Académique Documents
Professionnel Documents
Culture Documents
MIS
Uarterly
xecutive
Restructuring Information Systems
Following the Divestiture of
Carestream Health
Carestream Health was formed when Onex Corporation purchased Kodaks Health Group
in 2007. As a part of Kodak, Carestreams IS infrastructure had been designed to align
with a large and complex parent organization. This case documents how the companys
IS organization was transformed to become more lean, agile and cost-effective, while
making a valuable strategic contribution to Carestreams business.1
Heather A. Smith
Queens University (Canada)
Richard T. Watson
University of Georgia (U.S.)
A top priority on Day 1 was to run as an independent business as quickly as possible, said
Carestreams CEO Kevin Hobert, who had been President of Kodaks Health Group before the
1 This article is being published in MIS Quarterly Executive as a SIM-Sponsored report: it is based on research sponsored by the
Advanced Practices Council of SIM.
2 For a detailed case study of an IT project for a business unit carve-out, see Leimeister, J. M., Boehm, M. and Yetton, P. Managing IT in a Business Unit Divestiture, MIS Quarterly Executive (11:1), 2012, pp. 37-48.
Carestream Health
Initial State
Interim State
Transformed State
IS Strategy
Non-existent
Engagement and
visioning
Relationship
Management
IS as order-taker
IS as solution provider
IS as strategic partner
Enterprise Architecture
Non-existent
Technology standards
Comprehensive architecture
governance
Comprehensive governance
framework
Application Development
and Support
Consolidated
development and
streamlined systems
Expensive, complex
and unreliable
Simplified, predictable
costs and improved
service
People Management
Talent management
The IS Transformation
Engagement &
visioning
Strategic
framework
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170
Solution
provider
Strategic
partner
Technology
standards
Comprehensive
architecture
governance
PMO; new IS
organizational
design
Comprehensive
governance
framework
Consolidated,
streamlined
systems
Standardized
processes, clear
responsibilities,
& development
strategies
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172
Simplified,
predictable costs,
improved service
Costs below
benchmarks,
high customer
satisfaction
People Management
Too many
people,
wrong skills
Upgraded skills
& improved
productivity
Talent
management
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Knowledge sharing
Stakeholder management
Change management
Master planning
Benefits realizationpost-project
review
3. Leadership
The depth and breadth of cultural
transformation that often accompanies a
divestiture requires a CIO who has depth and
breadth in leadership experience and ability.
Hobert invested considerable time and attention
in selecting the right person for the CIO job and
then gave him a clear mandate and stepped
out of the way. I value IS and see it as a great
enabler, he said. It is essential to helping us
differentiate ourselves, but building effective
IS systems and business processes also requires
consensus and cooperation. In addition to
monthly senior leadership team meetings, Leidal
September 2013 (12:3) | MIS Quarterly Executive
175
2010
2011
Portfolio
Management
Governance
Improved stakeholder
network governance
Established PMO monthly
projects review
Moved gate-review
governance to business
steering team
Improved monthly variance
cadence and reporting
Standards and
Best Practices
Introduced prototyping
project framework
Delivered project
methodology makeover
Improved lessons-learned
template and process
Coaching,
Mentoring and
Training
Established project
management community
forum
Launched PMO website
Provided Microsoft project
schedule training
Project execution
fundamentals training
WBS/schedule management
Resource management
Developed project
management career path
model
Concluding Comments
Given the burning IS platform on Day 1,
change was inevitable. It was much more difficult
than I anticipated, Donovan recalled. It was
a confusing time, and nothing went well. But
now, with five years of hindsight, Ive come to
appreciate what a phenomenal transformation
weve been through, and Im very grateful to have
been part of it. Today, there is considerable
optimism about ISs future at Carestream and
a strong desire to ramp up its strategic use now
that the initial transformation mandate has been
largely accomplished.
misqe.org | 2013 University of Minnesota
Richard T. Watson
Richard Watson (rwatson@terry.uga.edu) is the
J. Rex Fuqua Distinguished Chair for Internet
Strategy in the Terry College of Business at the
University of Georgia. He is a former President
of the Association for Information Systems and
the current Research Director for the Advanced
Practices Council of the Society of Information
Management. In 2011, he received the Association
for Information Systems LEO award, which is
given for exceptional lifetime achievement in
Information Systems.
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