Role of Information Technology in Organization Design and Structure

            
 
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Case Details:

Case Code : INS046
Case Length : 03 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Available
Organization : Varied
Industry : Insurance
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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JP Insurance Company has been facing problems related to the operational and regulatory environment. The company's problems increased after it acquired the Earnest Insurance Company.

Earnest Insurance Company is based in London, whereas JP Insurance Company is based in Bangalore, India. JP's problems regarding Earnest are related to high costs and the lack of flexibility associated with multiple IT systems and applications.

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This can be attributed to a change in JP's organizational structure following its acquisition of Earnest and the subsequent expansion of JP's operations. The existing IT department at JP was not able to sufficiently scale its operations, and failed to effectively meet the changed needs and requirements of the organization.

Actually, after the acquisition of Earnest Insurance Company, considerable flexibility was needed by the IT department of JP Insurance Company. But, due to certain changes that followed the acquisition, the size and operation levels of the company grew beyond its expectations. Managing this required a high degree of flexibility of the IT department as well as the other departments...



 

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