1. What were the major drivers of the outsourcing at Kone?
- Kone found out that internal IT processes were insufficient to support the globalization strategy.
- The major drivers of the outsourcing at Kone is Kone realize that it must implement and manage a global-standard IT environment. The company also realized that its business is about escalators and elevators, not IT, so it decided to pursue IT outsourcing.
2. Why did Kone elect to work with several vendors?
- By using two separate vendors promised the best-of-breed approach.
- To ensure high availability environment.
- The system provides management with real-time data on product sales, profitability and backlogs
3. What are some of the risks of this outsourcing?
- Lose some element of control over the people that have been outsourced.
- communication network between Kone and vendors failure.
4. How can Kone control its vendors?
- Kone maintains some IT competencies to allow it to actively manage its outsourcing partners.
- The internal team meets online regularly, and the vendors collaborate and work closely together.
By: Goo Yah Wei
Monday, March 23, 2009
Minicase 2
1. What were the major drivers of the outsourcing at Kone?
The major drivers of the outsouring at Kone are
- implementation and management of global-standard IT environment because Kone found out that their internet IT processes were insufficient to support the globalization strategy
- perform mainframe operations to Computer Science Corp
2. Why did Kone elect to work with several vendors?
Kone elected to work with several vendors because
- the scope of outsourcing was much larger
- by using two seperate vendors promised the best-of-breed approach and help Kone in managing real-time data on product sales, profitability and backlogs.
3. What are some of the risk of this outsourcing?
The risks of this outsourcing includes:
- cost control of glodal outsourcing in infrastructure and people
- private communication networks failure
- integrity and compatible of hardware and software with different IT platforms and variety of applications
4. How can Kone control its vendors?
Kone control its vendors by
- maintains some IT competencies to allow it to actively manage its outsourcing partners
- Kone's internal team meets online regularly, and the vendors collaborate and work closely together
By: Goh Poey Ching
The major drivers of the outsouring at Kone are
- implementation and management of global-standard IT environment because Kone found out that their internet IT processes were insufficient to support the globalization strategy
- perform mainframe operations to Computer Science Corp
2. Why did Kone elect to work with several vendors?
Kone elected to work with several vendors because
- the scope of outsourcing was much larger
- by using two seperate vendors promised the best-of-breed approach and help Kone in managing real-time data on product sales, profitability and backlogs.
3. What are some of the risk of this outsourcing?
The risks of this outsourcing includes:
- cost control of glodal outsourcing in infrastructure and people
- private communication networks failure
- integrity and compatible of hardware and software with different IT platforms and variety of applications
4. How can Kone control its vendors?
Kone control its vendors by
- maintains some IT competencies to allow it to actively manage its outsourcing partners
- Kone's internal team meets online regularly, and the vendors collaborate and work closely together
By: Goh Poey Ching
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