The be attributed to the fact that each

The advantages (or pros) of a decentralized IT architecture is the ability to gain greater insight and intelligence into the performance of a given business unit or division with analytics, metrics and Key Performance Indicators (KPIs) that are tailored to the specific processes, procedures, strategies and system of a given business unit. Arguably this gives a business unit or division much greater insight and ability to respond quickly to market opportunities and threats. For Alcan, this has translated into significantly more control over purchasing, procurement and supply chain strategies, making production more efficient and focused than would have been possible with centralized IT. Second, using two-tier or decentralized Enterprise Resource Planning (ERP) systems continues to show significant potential for transforming business units from being inward-centric and myopic to being more customer-centric and focused on the market, not themselves (Bock, Flores, Latumahina, Cheng, Lam, Chan, Soeharto, Kang, 2009). Another advantage of having a highly decentralized IT architecture where ERP systems are specific to each business unit is the ability to fine-tune each process area more precisely than if a centralized ERP system was being used. In the case of Alcan, each business unit has a very specific set of requirements for procurement and sourcing, and having an ERP system dedicated to each business unit allows for greater customization to each specific process area. Customizing an ERP system to the unique process and product requirements of a given business unit can also significantly increase system adoption as well, meaning more people use the system and get value from the data and analysis it provides (Esfahani, Murad, Sulaiman, Udzir, 2011). For Alcan, the relatively high rate of adoption of IT systems within each specific business unit can be attributed to the fact that each division’s ERP systems are tailored to the specific and unique requirements of each business unit


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