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Proposal to Optimize Johnson & Johnson’s It Governance Model

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Submitted By pfarqui
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To: Johnson & Johnson Leadership Committee Date: April 29, 2015
From: LaVerne Council, CIO
Re: Proposal to Optimize Johnson & Johnson’s IT Governance Model

Context: Johnson & Johnson’s current IT governance structure consists of a highly decentralized system. The company may be experiencing duplicative efforts across business units and markets, which may be hindering overall growth and financial success. Operating companies focus primarily on cost-reduction strategies that are relevant to their respective markets when they should also be promoting business growth opportunities that can be fueled by IT.
Proposal for Optimized IT Governance Model: Given the breadth of products and markets served, Johnson & Johnson could experience many drawbacks by maintain the status quo of a decentralized model. The primary goal is to ensure profitability while promoting enterprise-wide integration and cost reduction; therefore the new IT governance model should take on a more centralized approach, encompassing an executive committee, an architecture process, and a formal process for tracking, monitoring, and gauging the business value of an IT investment. The new model will contain a high degree of standardization in an effort to minimize business costs.
Reporting Relationship: Starting in the next fiscal year, upon approval by the executive committee, the CIO will have joint direct reporting to both the COO and the CFO. The IT steering committee, comprising of the CIO, CFO, and the existing Core Team (CIO – MD&D, CIO – Consumer, CIO – Pharma, and IT Global Solutions Delivery) will take primary responsibilities for investment decision, with chief responsibilities of ensuring that all initiatives are aligned with organizational objectives.
Handling the day-to-day operations, and reporting directly to

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