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Eastman Kodak Co Managing Information Systems Through Strategic Alliances Case Solution
Hudson’s internal and external research showed that the company’s technology system was redundant and immediately needed help. Given Kodak’s business nature, importance of technology could not have been overlooked. The pressure to increase efficiency and decrease costs made Hudson take such drastic measures in the ISD. The outsourcing decision depended on two main factors. The first factor was whether a particular business would add value to the whole organization, and the second factor was whether that business was related to Kodak’s core business. In case, answers to both questions were “yes”, only then the company pursued that business; otherwise it outsources them.
Following questions are answered in this case study solution
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Why did Kathy Hudson make such a major change in IS resource management at Kodak? What factors contributed to her decision to outsource data center, telecommunications, and PC services to IBM, DEC, and Business Land?
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Do you agree with her philosophy and approach for selecting outsourcing partners and negotiating the agreements? What would you have done differently?
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What advice would you give Hudson concerning long-term management of Kodak’s “networked” IS organization?
Case Analysis for Eastman Kodak Co Managing Information Systems Through Strategic Alliances
2. Do you agree with her philosophy and approach for selecting outsourcing partners and negotiating the agreements? What would you have done differently?
Hudson’s outsourcing philosophy revolved around developing partnerships with Kodak’s vendors. Usually, businesses simply outsource their business functions by assigning them specific goals or tasks. However, Hudson thought it would be absurd to “throw it over the wall”. Kodak’s changing needs along with its partner/vendor’s changing need were taken care of via strategic alliances. Long-term and smooth relations would ensure growth for both partners. Hudson hired CMI for negotiating with company’s vendor in the initial phase; it acted as an arbitrageur that ensured neutrality. It not only helped Kodak to save cost as both partners paid for CMI services. Lastly, Hudson should have defined some criteria on which she could evaluate the vendor’s performance, after the implementation phase.
3. What advice would you give Hudson concerning long-term management of Kodak’s “networked” IS organization?
Hudson has created a complex organizational structure in pursuit of making strategic alliances. Complex structures create complex problems. She needs to evaluate the whole system as she did before implementing drastic ISD change. In this way, she would be able to foresee complex problems and see them beforehand.
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