Managing the IT Carve-Out in a SBU Divestment
Type
conference paper
Date Issued
2010-06-01
Author(s)
Research Team
iw6-init
Abstract
This paper presents an alignment model to analyze the specific IT-based challenges of divesting a strategic business unit (SBU). The model identifies the interdependences among SBU application portfolios, undocumented local system customization, and other intra-organization links that a carveout must identify and resolve. For large organizations that frequently buy and sell SBUs, four guidelines are proposed: 1) a SBU that will be sold - the so called carve-out object - should be autonomous, 2) the SBU IT application portfolios should be independent, 3) IT standards should be implemented in both the corporate IT platform and IT application portfolios, and 4) the intellectual property embedded in human resources needs to be replicated, and both retained in the vendor organization and divested to the buyer with the IT carve-out object. Complying with these guidelines is complex and difficult because they are frequently in conflict with vendor IT and line management goals. Carve-out management teams should consider and address these differences when structuring, designing and resourcing the IT work stream.
Language
English
Keywords
IS strategic planning
divestitures
IT alignment
Resource-based
theory
theory
HSG Classification
not classified
Refereed
Yes
Book title
Proceedings of the 18th European Conference on Information Systems
Publisher
Association for Information Systems
Publisher place
AIS Electronic Library (AISeL)
Event Title
18th European Conference on Information Systems (ECIS) 2010
Event Location
Pretoria, South Africa
Event Date
07.-09.06.2010
Official URL
Subject(s)
Division(s)
Eprints ID
220651
File(s)![Thumbnail Image]()
Name
JML_236.pdf
Size
250.42 KB
Format
Adobe PDF
Checksum (MD5)
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