Harri Hyvönen Project Researcher 3.3.2011 Research Plan; The comparative research for decision making criterias in enterprise´s and municipal´s IS outsourcing cases IT Sourcing Enterprise Architecture Processes Adapting Change Management Strategy Development Production Financial CIO Harri Hyvönen Project Researcher 3.3.2011

Harri Hyvönen Project Researcher 15.2.2011 The biggest challenges are right now own time planning, key focus on dissertation and right research questions My ”strenghts” in CIO Academy: Experiences in large enterprises cases Large network on ICT business Pragmatic way to cope with IT issues New connections to public sector Access to one enterprise ongoing case IT Sourcing Course JYU MBA program K-S ICT strategy National ICT restructuring programs Family Writing Reading Enterprise cooperation My ”weaknesses” in CIO Academy: Long time from my studies in University world Understanding and adaptation of university rules and processes still pretty thin A lot of theories to learn more… Harri Hyvönen Project Researcher 15.2.2011

Dissertation Schedule Draft for discussion purposes! Dissertation Schedule 6/10 6/11 6/12 6/13 Start 28.6. Final version 2013 1st Draft Data collection Analyzing data Theoretical framwork Publishments Dissertation documentation Finalization

Supervisors Tomi Dahlberg, Research Director, University of Jyväskylä Information Technology Jukka Heikkilä, Professor & Vice Dean University of Jyväskylä Information Technology Pekka Neittaanmäki, Professor & Dean University of Jyväskylä Information Technology

Background – IS research IS “own” research theories are quite few and emerging (prof. S. Pohjonen lecture 22. feb 2011) There doesn´t seem to be in IS outsourcing literature a single method nor theory, which is used widely by all researchers (Information Systems Outsourcing: A Survey and analysis of the Literature – Dibbern et al 2004 The database for advances in Information systems) IS (Information Systems) /IT Outsourcing is however quite much researched during the last decade – it is easy to find tens of articles and book, which handles relevant outsourcing issues

My research approach ? Järvinen P; The classification of studies All the studies Studying the real world Mathematical studies Natural/social sciences, “value-free” studies (how and why things are) Design science, “value-laden” studies (utility of innovation) Theoretical studies on reality Empirical studies on reality Innovation- building studies Innovation- evaluating studies ? Theory-testing studies . dissensus . consensus Theory-developing studies . dissensus . consensus Järvinen P; The classification of studies

Key question(s) Can we find that an enterprise´s and munipal´s outsourcing are based on the same criterias? Outsourcing has very wide markets. Is that driven in IS by cost efficiency as claimed in existing theories (eg Transactional Cost Economy theory, Williamson O.E. 1985)? How does IS Outsourcing decision behaves (rationally <-> irrationally) eg. Clemons Eric K., Thatcher Matt E., Row Michael C. 1995. Identifying sources of reengineering failures: A study of the behavioral factors contributing to reengineering risks. Journal of Management Information Systems, Vol 12, No. 2, Fall 1995, 9-36 40,2% of the Finnish companies Information Technology is outsourced but only 52% has set targets for outsourcing (TTL, IT Barometri 2010, Finland) => When practical cases might not work as theory, is something missing from the existing theories?

”How the present outsourcing research fits to challenges on public and private organisation´s transformation needs” There is 342 municipals in Finland, where 23 in Central Finland Muicipals have big challenges High total spend ~1 billion euros 2009 High retirement development in coming years, depending on organisation Ratio between dev/operative approximately 10/90 No common ways to manage IS Large national restructing programs (Ministry of financial, SITRA/KPK ICT, several programs) IS management scattered and with great diversity Low competition / offering => supply in few hands Slow progress with very limited results What to ”outsource” and how Governance model Decision making Regulations Especially large Finland based enterprises have invested a lot in IS during the last decade But enterprises have still some challenges Financial challenges to increase cost efficiency IS has been the biggest growth enabler recently BUT this is seen slowing down Ratio between dev/operative closer to 50/50 Development project success rate generally low, especially in large projects High ratio of legacy systems Competition for competencies High competition / offering => supply in many hands What to ”outsource” and how - key question is how value chain can be extended efficiently Governance model Need for rapid decision making Enterprise Architecture focus

Research methods Data and content from Central Finland´s IS strategy project One large enterprise case, where outsourcing is going to happen in wide scale Multiple cases methodology to be used Strategic Management theory to be applied Transactional Cost Economics (Williamson O.E 1981 Transaction Cost Economics) to be applied also as theoretical framework? The first paper is in progress target IRIS seminarium (August 16th – 19th, 2011, Turku Finland Monogram or articles based dissertion still a bit open

DRAFT The comparative research for decision making criterias in enterprise´s and communities' process and IS outsourcing cases –Proposed papers Public / Municipal IS Enterprise / Life Cycle Costing Governance Outsourcing Study Processes Cost Enterprise / Outsource DS IS Architecture IT Quality Competency Public / Municipal IS 2? IS Outsourcing and trust?

Q & A

Background? topic of the PhD thesis, its format (collection of papers or monograph) and the supervisor(s) the status of the thesis and the expected finishing time background and main scientific contribution of the PhD thesis as well as results expected to be obtained and applicability of the results to be obtained and which part of the thesis is the talk related to.