For Johnson & Johnson, ITIL Means No More I.T. TearsBy Rob Garretson | Posted 2007-02-07 Email Print
After federalizing its global IT operations, the global healthcare giant is cutting costs and improving service through its "Process Excellence" methodology.
Six years ago, Johnson & Johnson was among the world's oldest and most profitable heathcare companies. In 2001, profits hit nearly $5.7 billion on sales of $33 billion, and the far-flung enterprise surpassed 100,000 employees at 197 operating companies in 54 countries. But despite strong, double-digit growth in both sales and earningsup nearly 16 percent that yearthe New Brunswick, N.J.-based healthcare giant had a serious problem.
IT infrastructure costs were also growing at double-digit rates, while demand for servicesservers, storage, applications, hardware and particularly end-user supportwas growing just as rapidly. In 1996, the 120-year-old company had embarked on a wrenching shift to consolidate IT infrastructure under a single, centralized division, defying its heritage as a confederation of fiercely independent operating companies. The purpose was to corral uncounted millions in IT spending. (See Case Study: "Johnson & Johnson and Managing IT," December 2001.)
After federalizing its IT infrastructure, J&J could finally track technology costs across its globally dispersed and diverse operations. But the numbers still weren't pretty: With a global IT budget of $1.2 billion in 2001, double-digit growth in spending was not acceptable. In response, the company turned to its Networking and Computing Services division to provide IT services across J&J's global enterprise, and installed Michael Shea as president.
Among the key tools that Shea and his management team at NCS tapped to help control technology spending was a decades-old set of best-practice guidelines for IT service management called the IT Infrastructure Library, or ITIL. Originally developed by the U.K. government as a model for its outsourced service providers, ITIL is widely used by European companies as a framework for IT service management, and in recent years it has begun to gain momentum in the U.S. Its proponents often cite ITIL as a method of "running IT like a business."
Read the full story on CIOInsight.com: For Johnson & Johnson, ITIL Means No More I.T. Tears.
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...