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

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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 allstages 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.

Author Biography: TONY MURPHY,PhD, is a Vice President in Consulting and a thought-leader in the field of IT investment appraisal and benefits realization at Gartner, Inc., the world's largest technology research organization. With nearly thirty years' experience as CIO, software developer, project manager, consultant, and university lecturer, Tony is a sought-after advisor to many of the world's leading corporations and public sector bodies. In addition, he has played an active role in the development of the Irish software industry and is a former vice president of the Irish Computer Society.

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Product Details

  • ISBN-13: 9780471232308
  • Publisher: Wiley
  • Publication date: 10/8/2002
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 254
  • Product dimensions: 9.21 (w) x 6.14 (h) x 0.75 (d)

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Table of Contents

Introduction
Ch. 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
Ch. 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
Ch. 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
Ch. 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
App. A Sample Value Standards 169
App. B Sample Value Standards Scoring Metrics 177
App. C Completed Weightings 183
App. D From the Field - Investment Case Worked Example 185
App. E Quantifying End-User Benefits 201
App. F Gartner Recommended Approach to Risk Management 207
App. G Analytical Hierarchy Process/Analysis 217
App. H Probability Analysis (Monte Carlo Simulation) 227
App. I Gartner Approach to Change Management: Strategic Planning Assumption 231
App. J Financial Metrics 239
Index 243
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  • Anonymous

    Posted February 9, 2003

    Well Researched, Practical and Scholarly

    This title is perhaps the seminal work in the return on investment debate. While scholars argue from isolated perspectives of economics, accounting and strategic management, Tony Murphy provides a practical, but theoretically grounded approach for the business and IT executive to improve their organizaitons. Easy to read, yet researched and properly footnoted the title provides a poignant argument for comprehensive mangement of IT across the enterprise with key involvement of top management. This book not only provides the theory that should work, but offers examples and implementation steps to help the savvy business professional to move from theory to practice

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  • Anonymous

    Posted September 17, 2002

    Make Your IT Dollars Count!

    Tony Murphy's book takes the subjective, qualitative yet crucial aspects of an IT investment decision and makes them actionable. Achieving Business Value from Technology teaches a simple way to begin the arduous task of managing a portfolio of IT investments. This book is a must read for CIOs who need to justify IT spend and quantify business and IT initiatives or for anyone who wants to avoid the pain of another bad IT investment.

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