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

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Achieving Business Value from Technology offers the expertguidance, real-world advice, and practical methodology managersneed to ensure that their dollars aren't wasted on IT disasters. Itshows them how to assess projects in real time and decide whetherto alter, abandon, or continue them with a clear understanding oflikely impact on the business.

With the increasing importance of technology in a business worldredefined by globalization, high-octane competition, and the shiftfrom mass production to mass customization, it's more importantthan ever that your IT dollars are well spent in pursuit ofefficiency, adaptability, and market mobility. Knowing whichinitiatives offer real business value can be the competitiveadvantage your business needs to thrive. Simply put, no matter whatyour business is, IT is your business.

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

Author Tony Murphy outlines a systematic process managers can useto identify, track, and realize benefits and value from their ITinvestments. This methodology helps management bridge thetraditional gap between the business and IT sides of theorganization and incorporates IT value metrics into conventionalmanagement reporting systems.

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

The author also provides guidelines for undertakingpost-implementation benefit audits and IT sourcing, as well as tipsand techniques for optimizing asset management and minimizingongoing total cost of ownership.

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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
  • Sales rank: 1,509,017
  • Product dimensions: 9.21 (w) x 6.14 (h) x 0.75 (d)

Meet the Author

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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Table of Contents


Chapter 1: Industrial Age Thinking for Information AgeProblems.

Business Value from Information Technology (BVIT)-A Large andGrowing Problem.

Learning from Case Studies.

What Do These Case Studies Have in Common?

Some Historical Perspective.

Drawing Conclusions from These Changes.

Revisiting the Case Studies.

Industrial Age Thinking for Information Age Problems.

The Limitations of Financial Metrics.

The Value of Financial Techniques for IT InvestmentAppraisal.

What Else Do We Need?


Chapter 2: The Five Pillars of Benefits Realization.

Pillar 1: Strategic Alignment.

Pillar 2: Business Process Impact.

Pillar 3: Architecture.

Pillar 4: Direct Payback.

Pillar 5: Risk.


Chapter 3: P2-Process.

Step 1: Setting the Ground Rules.

Step 2: Defining IT Value Standards.

Step 3: IT Value Analysis.

Step 4: IT Value Project Management.

Step 5: IT Value Achievement.

Step 6: IT Value Management.

Selecting Specific Products and Vendors.


Sensitivity Analysis.

Investment Scope.


Chapter 4: P3-People.

Roles-A Foundation Stone of Effective Governance.

The IT Council.

The IT Investment Board.

The Office of Architecture and Standards.

The Project Office.

Summary and Next Steps.

Appendix A: Sample Value Standards.

Strategic Alignment.



Business Process Impact.


Appendix B: Sample Value Standards Scoring Metrics.

Business Process Impact.



Appendix C: Completed Weightings.

Appendix D: From the Field-Investment Case Worked Example.

Appendix E: Quantifying End-User Benefits.

Preliminary Information.

Opening the Meeting.

Resolution of Inconsistencies.

Quantifying the Benefits.

Refine Quantification.


Appendix F: Gartner Recommended Approach to Risk Management.

Collaborative Risk Management.

Risk Assessment Processes.

Predictability and Complexity of Risks.


Appendix G: Analytical Hierarchy Process/Analysis.

Appendix H: Probability Analysis (Monte Carlo Simulation).

Appendix I: Gartner Approach to Change Management: StrategicPlanning Assumption.

The Need for Change Management.

The Human Response to Change.

Appendix J: Financial Metrics.

Net Present Value (NPV).

Internal Rate of Return (IRR).


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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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