Achieving Business Value from Technology: A Practical Guide for Today's Executive / Edition 1

Achieving Business Value from Technology: A Practical Guide for Today's Executive / Edition 1

by Tony Murphy
     
 

ISBN-10: 0471232300

ISBN-13: 9780471232308

Pub. Date: 10/08/2002

Publisher: Wiley

Achieving Business Value from Technology offers the expert guidance, real-world advice, and practical methodology managers need to ensure that their dollars aren't wasted on IT disasters. It shows them how to assess projects in real time and decide whether to alter, abandon, or continue them with a clear understanding of likely impact on the business.

With the

Overview

Achieving Business Value from Technology offers the expert guidance, real-world advice, and practical methodology managers need to ensure that their dollars aren't wasted on IT disasters. It shows them how to assess projects in real time and decide whether to alter, abandon, or continue them with a clear understanding of likely impact on the business.

With the increasing importance of technology in a business world redefined by globalization, high-octane competition, and the shift from mass production to mass customization, it's more important than ever that your IT dollars are well spent in pursuit of efficiency, adaptability, and market mobility. Knowing which initiatives offer real business value can be the competitive advantage your business needs to thrive. Simply put, no matter what your business is, IT is your business.

Achieving Business Value from Technology offers proven techniques, methodologies, governance mechanisms, and best practice guidelines to guarantee your money is transforming your current IT setup from potential value to real value. The approach offered in this book-and developed by the experts in Gartner's Consulting and Measurement practices-has been proven to help managers make the right IT decisions every time.

Author Tony Murphy outlines a systematic process managers can use to identify, track, and realize benefits and value from their IT investments. This methodology helps management bridge the traditional gap between the business and IT sides of the organization and incorporates IT value metrics into conventional management reporting systems.

Managers will learn to monitor opportunities, risks, and impediments at all stages of the investment cycle and rest assured that the money they invest in IT will bring long-lasting and measurable benefits to the organization.

The author also provides guidelines for undertaking post-implementation benefit audits and IT sourcing, as well as tips and techniques for optimizing asset management and minimizing ongoing total cost of ownership.

Product Details

ISBN-13:
9780471232308
Publisher:
Wiley
Publication date:
10/08/2002
Edition description:
New Edition
Pages:
254
Product dimensions:
9.21(w) x 6.14(h) x 0.75(d)

Table of Contents

Introduction xi

Chapter 1: Industrial Age Thinking for Information Age Problems 1

Business Value from Information Technology (BVIT)—A Large and Growing Problem 2

Learning from Case Studies 3

What Do These Case Studies Have in Common? 11

Some Historical Perspective 12

Drawing Conclusions from These Changes 23

Revisiting the Case Studies 27

Industrial Age Thinking for

Information Age Problems 30

The Limitations of Financial Metrics 30

The Value of Financial Techniques for IT Investment Appraisal 36

What Else Do We Need? 36

Summary 38

Chapter 2: The Five Pillars of Benefits Realization 39

Pillar 1: Strategic Alignment 42

Pillar 2: Business Process Impact 45

Pillar 3: Architecture 52

Pillar 4: Direct Payback 61

Pillar 5: Risk 66

Summary 76

Chapter 3: P2—Process 77

Step 1: Setting the Ground Rules 81

Step 2: Defining IT Value Standards 90

Step 3: IT Value Analysis 95

Step 4: IT Value Project Management 113

Step 5: IT Value Achievement 118

Step 6: IT Value Management 127

Selecting Specific Products and Vendors 140

Refinements 142

Sensitivity Analysis 146

Investment Scope 147

Summary 148

Chapter 4: P3—People 151

Roles—A Foundation Stone of Effective Governance 153

The IT Council 155

The IT Investment Board 157

The Office of Architecture and Standards 159

The Project Office 163

Summary and Next Steps 165

Appendix A: Sample Value Standards 169

Strategic Alignment 169

Payback 171

Architecture 173

Business Process Impact 174

Risk 174

Appendix B: Sample Value Standards Scoring Metrics 177

Business Process Impact 177

Architecture 180

Risk 181

Appendix C: Completed Weightings 183

Appendix D: From the Field—Investment Case Worked Example 185

Appendix E: Quantifying End-User Benefits 201

Preliminary Information 201

Opening the Meeting 202

Resolution of Inconsistencies 202

Quantifying the Benefits 203

Refine Quantification 205

Cross-Verification 205

Appendix F: Gartner Recommended Approach to Risk Management 207

Collaborative Risk Management 207

Risk Assessment Processes 208

Predictability and Complexity of Risks 215

Summary 216

Appendix G: Analytical Hierarchy Process/Analysis 217

Appendix H: Probability Analysis (Monte Carlo Simulation) 227

Appendix I: Gartner Approach to Change Management: Strategic Planning Assumption 231

The Need for Change Management 231

The Human Response to Change 233

Appendix J: Financial Metrics 239

Net Present Value (NPV) 239

Internal Rate of Return (IRR) 239

Index 243

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