Browse > Article

Determinants and Processes of IT Consolidation: A Case Study of Korean Conglomerates  

Zo, Hang-Jung (School of IT Business, Information and Communication University (ICU))
Song, Chan-Hoo (School of IT Business, Information and Communication University (ICU))
Han, Seung-Hun (School of IT Business, Information and Communication University (ICU))
Publication Information
Information Systems Review / v.10, no.3, 2008 , pp. 223-255 More about this Journal
Abstract
This study explores the determinants and processes of IT consolidation of Korean conglomerates. Through an extensive analysis of cases, this study identifies the drivers, benefits and critical success factors of IT consolidation, and observes the transition of vision for the IT service subsidiaries in the conglomerates. The results show that most firms in this analysis have completed the organizational, physical, and logical consolidation of their IT resources, and currently some of them are preparing for the next stage of IT consolidation such as rational consolidation and virtualization. It is also found that the strategic factor was one of the most significant determinants in consolidating IT resources which leaded the transition of vision of the IT service firms in the conglomerates from "cost center" to "profit center". The results of this study can provide a fundamental and empirical basis for building a theory of IT consolidation, and be used as a valuable benchmarking model for the organizations which consider starting a project of IT consolidation.
Keywords
IT Centralization; Decentralization; IT Consolidation; IT Outsourcing; IT Infrastructure; Data Center;
Citations & Related Records
연도 인용수 순위
  • Reference
1 이경원, 정부연, "한국의 IT 서비스 산업 이슈 분석", KISDI 이슈 리포트, 정보통신정책연구원, 2003
2 Erlanger, L., "The Road to Consolidation", Info-World, Vol.28, No.47, November 20, 2006, pp. 18-26
3 Metzler, J., "The Rapidly Evolving Data Center", NetScout IT Impact Brief, Issue 5, September 2005
4 Von Simson, E. M., "The 'Centrally Decentralized' IS Organization", Harvard Business Review, Vol.68, No.4, July-August 1990, pp. 158-162   PUBMED
5 Von Simson, E. M., "The Recentralization of IT", Computerworld, Vol.29, No.51, December 18, 1995, pp. 1-5
6 Yin, R. K., Case Study Research: Design and Methods, 3rd Ed., Sage Publications, Thousand Oaks, CA, 2003
7 Lacity, M. C., and L. P. Willcocks, "An Empirical Investigation of Information Technology Outsourcing Practices: Lessons from Experience", MIS Quarterly, Vol.22, No.3, September 1998, pp. 363-408   DOI   ScienceOn
8 Evaristo, J. R., K. C. Desouza, and K. Hollister, "Centralization Momentum: The Pendulum Swings Back Again", Communications of the ACM, Vol.48, No.2, February 2005, pp. 67-71
9 Peak, D. A., and M. H. Azadmanesh, "Centralization/decentralization cycles in computing: Market evidence", Information and Management, Vol.31, No.6, January 1997, pp. 303-317   DOI   ScienceOn
10 Dibbern, J., T. Goles, R. Hirschheim, and B. Jayatilaka, "Information Systems Outsourcing: A Survey and Analysis of the Literature", The DATA BASE for Advances in Information Systems, Vol.35, No.4, Fall 2004, pp. 6-102
11 Da Rold, C., B. M. Caldwell, T. J. Bittman, and D. S. Tramacere, "Gartner Introduces the Infrastructure Utility Maturity Model", Gartner Research, No.M-22-2496, April 23, 2004
12 King, J. L., "Centralized versus Decentralized Computing: Organizational Considerations and Management Options", ACM Computing Surveys, Vol.15, No.4, December 1983, pp. 319-349   DOI   ScienceOn
13 Quinn, J. B., and F. G. Hilmer, "Strategic Outsourcing", Sloan Management Review, Vol.35, No.4, Summer 1994, pp. 43-55
14 Phelps, J. R., "Server Consolidation Is Still a Major Goal, but Not Just for Cost Cutting", Gartner Research, No.G00126102, March 1, 2005
15 Loh, L., and N. Venkatraman, "Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis", Journal of Management Information Systems, Vol.9, No.1, 1992, pp. 7-24
16 Malone, T. W., "Is Empowerment Just a Fad? Control, Decision Making, and IT", Sloan Management Review, Vol.38, No.2, Winter 1997, pp. 23-35
17 Phelps, J. R., "Server Consolidation: Benefits and Challenges", Gartner Research, No.AV-15-6165, March 28, 2002