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The Alcan Case

Description

This case describes the evolution of IT management at Alcan during the period from 2006-2007. At that time, IT governance and the IT function itself were undergoing a complete transformation. The case follows the Vice-President of Corporate Information Technology from the time of his arrival at Alcan: his observations on the current state of IT management, his appointment to the position of Chief Information Officer and the development of his new strategic plan for IT management. Part A presents the main features and challenges of IT management at Alcan up until the middle of 2006.. Students are encouraged to reflect on the characteristics, implications and challenges represented by IT management in a large global organization.

To which quadrant It belongs to

In order to identify the class in which Alcan belongs to, we need to understand the specific business characteristics

Rate of change in Alcan:

Alcan belongs to the aluminium industry which involves mining and manufacturing:

1. Typically this kind of an industry is a stagnant and slow moving in terms of technological adoption and new process introductions

2. It depends on macro economic scenarios and industry performance is effected directly with the international pricing fluctuations

3. Slow rate of growth

4. Customer needs and preferences are not shifted rapidly

5. Dependent on government regulations

6. Competitive landscape is international – Internally Alcan is the market leader and it provides at cheaper rates compared to other international competitors due to its lesser COGS and operational expenses

7. As it is vertically integrated and there is no problem with the supply of raw materials

Basis for competitive Advantage:

The organisation mainly concentrates on reducing costs through improving operating efficiency

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