Strategies Adopted in the IT Transformation at Intel-Free-Samples

Question: Discuss in detail by critically analyzing the strategies adopted in the IT Transformation at Intel. Answer: Introduction This is the strategy, which has been adopted by Intel for managing the budget of the company. The management of the budget is a very crucial factor for the responsible for any type of gain or credibility of an organisation from its business partners (Newton 2015). The main aim of managing the IT budget is to meet the requirements of a business along with freeing up of the resource responsible for the growth and innovation of the company. Various practices are included in the process of taking out the costs from the IT budget, this includes the making the components of IT support, services autonomous, the levels of services are adjusted according to the needs, and the contracts of the suppliers are renegotiated according to the requirements. This paper discusses about the IT strategies adopted by The IT Transformation at Intel. The strategies adopted by Intel for the purpose of IT transformation are described below. The IT transformation strategy included mainly four strategies and they are: Management of the budget required for IT. management of the Assets and value chain required for IT. Management of the business values required for IT. Management of the IT like a business. Strategies adopted by INTEL Management of the budget required for IT. The process of reducing the costs might also include the involvement of new technologies that are able to perform new and similar services as that of the old technologies at a relatively low cost this is termed as disruption. Some of the technologies included in disruptive technologies are virtualisation of the servers and voice over IP (Bloch Blumberg and Laartz 2012). The main reason for the process of managing the IT budget is to reach the sustainable economic model. The two disruptive technology used by Intel were use of the Linux in the Engineering Computing of Intel and the Redesigning of the PC Support for the employees. By redesigning of the PC support Intel not only made the cost for support drop by $1.5 million which was around $7million a year previously but also increased the satisfaction of the customer by 20%. The company made use of the Linux so as to solve the demand of unsustainable demand for IT capital expenditures. Management of the Assets and value chain required for IT. The capability of IT is made up of the IT assets and the IT value chains. The capabilities of the IT are defined as the things that can be done for a business by the IT functions. From the view point of the IT CMF model this capability can be seen as the production function. The capabilities of the IT include the knowledges, skills, tools, process abilities and the present motivations that are present in the IT organisations (Christopher 2016). for the purpose of supporting and performing the various business activities. Management of the IT assets and the IT value chains which involves in systematic management of four different aspects of the IT and this includes IT assets. The value chains, which help in creation of the business values from the IT, the core competencies that are involved in the delivering of the IT business values (Acharyulu and Shekbar 2012) and the complete workflow, that goes through the complete IT value chain. In the year of 2000 the CEO of the company Busch h ad a vision of making the Intel IT a core strategic capability for intel. This was focused on the development of three IT assets and it included the IT infrastructure, IT people and the IT business relationships. For the purpose of developing the IT infrastructure Intel decided to move to use of notebook computing which was followed by the use of wireless communication for the purpose of flexible and increased production of the workplace (Weske 2012). For the purpose of increasing the IT people asset the people capability model was used by Intel long with this it also launched a seven step strategy for the purpose of making Intel the company of 21st century. Lastly, for the improvement of the IT business relationship initiative were taken by Intel to enhance the marketing organisation of the IT and for creating management strategy for the new accounts which mainly focused on the key customers. Several surveys were also conducted by Intel for the purpose of identifying their flaws an d to adopt new ways for the improvement and to gain more customer satisfaction. Management of the business values required for IT. The management of the values required for the IT mainly focuses on the fact of investing decisions on the benefits that are unexpected and verification needs to be done weather this benefits are actually being delivered or not. The IT management adopts some measures for the purpose of realising this benefits and this includes core business practices which includes the return-on-investment measures, firm-wide coordination of the investments being made, the disciplines in the business case, and management of the complete portfolio and the reprioritization (Goetsch and Davis 2014). The management of the IT business helps in the movement of the IT from the total cost of the ownership analysis to the optimizing of the values involved in the IT investment. The IT of Intel was able to track the Total cost ownership or TCO of the PCs since the year of 1995. Intel tried to focus on managing the TCO of its distributed PC platforms. After getting the information about the cost the company was a ble to take value decisions due to availability of the financial informations and along with this they were able to drove down the overall IT cost. Intel was able to manage and measure the value of each group involved (Van Der Aalst2013) in investments rather than the value involved in individual investments. Management of the IT like a business. Managing the IT like a business refers to the fact of running an IT organisation like a business. The main strategies that are involved in this process are application of the solid professional business practices in the functioning of the IT. This process also involves the implementation of number of critical processes so as to ensure that the outputs delivered by the IT commensurate with the goals of an enterprise (Harmon 2015). Along with this, the maturing of the strategy will greatly help the organisations to move from being perceived so that the cost centres are seen as the value centres having an IT business alignment at a very high level (Schmiedelvom Brocke and Recker 2013). The main goal of Intel was to run the business by adaptation of the standard business practices and the purposes that are involved in the improvement of the performances, alignment and the operating efficiencies. Conclusion Based on the above report it can be concluded that the main part of the business plan involved the creation of IT operations for the organisation to manage and implement the business plans to adopt the proper business practices. New approaches were made like the product costing and management, which was proved a fundamental in running of the business of the Intel. 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