PLANNING FOR THE COMPUTER SERVICES SPIN-OUT

BANKS, CONSUMER GOODS MANUFACTURERS, INSURERS, AND MANY OTHER COMPANIES RECENTLY HAVE CREATED INFORMATION SERVICES SUBSIDIARIES, MAINLY FOR BETTER UTILIZATION OF PERSONNEL AND FOR LEVERAGING THIS TALENT IN OUTSIDE BUSINESS. OFTEN, HOWEVER, TANGLED RELATIONSHIPS BETWEEN DIVISIONS AND THE SUBSIDIARY H...

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Bibliographic Details
Published in:Harvard business review 1972-09, Vol.50 (5), p.69
Main Author: Soden, John V
Format: Magazinearticle
Language:English
Subjects:
Computer service industry
Divestiture
Organizational
Spinoffs
Structure
Online Access:Get full text
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Summary:BANKS, CONSUMER GOODS MANUFACTURERS, INSURERS, AND MANY OTHER COMPANIES RECENTLY HAVE CREATED INFORMATION SERVICES SUBSIDIARIES, MAINLY FOR BETTER UTILIZATION OF PERSONNEL AND FOR LEVERAGING THIS TALENT IN OUTSIDE BUSINESS. OFTEN, HOWEVER, TANGLED RELATIONSHIPS BETWEEN DIVISIONS AND THE SUBSIDIARY HAVE MADE THE PARENT COMPANY REGRET IT DID NOT KEEP ITS COMPUTER OPERATIONS DECENTRALIZED. THE AUTHOR EXPOSES COMMON PLANNING FLAWS AND SHOWS WHERE TO LOOK BEFORE THE COMPANY LEAPS.
ISSN:0017-8012