Centralized versus decentralized computing: organizational considerations and management options

Abstract

The long.standing debate over whether to centralize or decentralize computing is examined in terms of the fundamental organizational and economic factors at stake. The traditional debate is evaluated, and found to focus predominantly on issues of efficiency versus effectiveness, with solutions based on a rationalistic strategy of optimizing in this trade-off. A behavioral assessment suggests that the driving issues in the debate are the politics of organization and resources, centering on the issue of control. The economics of computing depolyment decisions are presented as an important issue, but one that often serves as a field of argument in which political concerns are dealt with. The debate in this light appears to be unresolvable in the long run, although effective strategies can be developed when the larger issues are recognized. The current situation facing managers of computing, given the advent of small and comparatively inexpensive computers, is examined in detail, and a set of management options for dealing with this persistent issue is presented.

Corporate Governance and IT Governance: Exploring the Board's Perspective

“…This view of IT governance is strikingly similar to the earlier debates on the organisational structure of the IT function (see for example Olsen and Chervany 1980, King 1983, Tavakolian 1989and Brown and Magill 1994. Part of this debate concerns whether the IT function should be centralised, controlling organisation-wide IT services from a single unit, or decentralised, with each business unit having its own IT function (Dearden 1987).…”

Monitoring Mechanisms, Gender, and Information System Structure in Nigerian Non-Financial Listed Companies

“…SOX Section 404 highlights how important it is to control the financial reporting function of management information systems (Li et al, 2012). Centralization of information system enables close monitoring of management activities for approval or change in work activities (King, 1983). Thus, the study suggests that information system structure is part of the internal control that calls for intensive monitoring especially by the internal auditor on a daily basis.…”

Shadow Systems, Risk, and Shifting Power Relations in Organizations

“…We have learnt from many studies that IT tends to reinforce the existing power base in organizations (George & King, 1991) not only on an individual but also on a group level (Markus, 1983) (e.g., of departments or divisions). Accordingly, one important force behind economic rationales for centralizing or decentralizing computing resources is the attempt to gain control and power (King, 1983). This implies that shadow systems-as a form of decentralized computing by individual users, work groups, and business units-are subject to power struggles as they potentially change power relations in organizations (i.e., between business units and between business units and central IT).…”