From Business Strategy to IT Action: Right Decisions for a Better Bottom Line

by Robert J. Benson, Tom Bugnitz

Overview

From Business Strategy to IT Action gives companies of all sizes the tools to effectively link IT to business strategy and produce effective, actionable strategies for bottom-line results. The authors present CEOs, CFOs, CIOs, and IT managers with a powerful and accessible resource packed with such useful material as:
* The Strategy-to-Bottom-Line Value Chain, which integrates the management practices relating to planning, prioritization, alignment, and assessing a company's entire IT budget
* Methods for using IT Impact Management to establish IT culture and performance models for the business/IT connection
* The IT Improvement Zone, which quickly identifies where a company can focus its energies for maximum results
* And much more

Product Details

ISBN-13:	9780471491910
Publisher:	Wiley
Publication date:	02/23/2004
Pages:	352
Product dimensions:	6.30(w) x 9.30(h) x 1.15(d)

About the Author

Robert J. Benson is a principal with The Beta Group, a consulting firm with clients in the United States and throughout the world. He is affiliate professor of computer science at Washington University and part-time professor of information management at Tilburg University in the Netherlands. He is coauthor of Information Economics: Linking Information Technology and Business Performance and Information Strategy and Economics.

Thomas L. Bugnitz is President of The Beta Group. He is a frequent speaker on technology management and an adjunct professor at Washington University.

William B. Walton is a principal with The Beta Group. Prior to joining The Beta Group, he spent seventeen years with Gartner Group, where he developed IT measurement services and associated analytical methods.

Table of Contents

Preface xxi

Acknowledgments xxiii

Chapter 1 Define the Goals 1

Today’s Reality 2

The Entire IT Spend: Reducing Cost and Improving Bottom-Line Impact 4

The Strategy-to-Bottom-Line Value Chain 5

Disconnects 6

Critical Success Factors 7

Completing the Picture: The New Information Economics Practices 8

Summary of the Book 13

Define the Goals: Management Agenda 14

Chapter 2 Ask the Right Questions 17

The Right Questions Focus on Affordability and Impact 18

Affordability Questions: The Starting Point for the Right Actions 20

Impact Questions: The Roadmap for the Right Actions 22

Examples: Answering the Questions 24

The Contexts for Management Questions Are Planning and Budgeting Processes 26

Why Ask Affordability and Impact Questions? 26

Taking Action 28

Chapter Summary 29

Ask the Right Questions: Management Agenda 30

Chapter 3 Connect to the Bottom Line 33

Bottom-Line Impact Based on Cause and Effect 35

Cause and Effect Is Based on Management’s Intentions 36

Management’s Strategic Intentions 37

Principles of IT’s Bottom-Line Impact 39

Summary and Additional Implications 43

Connect to the Bottom Line: Management Agenda 45

Chapter 4 Understand Costs and Resources 47

Introduction 47

Origins of Portfolio Management 49

IT Portfolio Management in Prioritization 51

Portfolios in NIE Practices 52

Four IT Portfolio Concepts 56

Practical Problems in Applying Portfolio Management 62

Summing Up Portfolios and Portfolio Management in Information Technology 67

Chapter Summary 68

Understand Costs and Resources: Management Agenda 70

Chapter 5 Focus on the Right Things 73

The Goals and Principles for Right Decisions/Right Results 74

Goal 1: Actionable, Commonly Understood Strategic Intentions 74

Goal 2: The Right Bottom-Line Results from IT 79

Goal 3: The Right Management Culture and Management Roles 81

Goal 4: Portfolios and Portfolio Management 83

Goal 5: Actions and Results 84

Summary of Right Decisions/Right Results—Goals and Principles 85

Goals and Principles Applied to the Strategy-to-Bottom-Line Value Chain and NIE Practices 86

Focus on the Right Things: Management Agenda 88

Chapter 6 Adopt Effective Process to Produce Action 91

The Strategy-to-Bottom-Line Value Chain 92

Establishing the Process Connections 98

Management Roles 98

New Information Economics Practices 99

Summing Up New Information Economics Practices 106

Summing Up: Adopt Effective Process to Produce Action 107

Adopt Effective Process to Produce Action: Management Agenda 109

Chapter 7 Tackle the Practical Problems 111

A Practical Perspective 111

The Practical Problems Revolve around People 112

Addressing Practical Problems: IT Impact Management 113

Practical Problems Getting from Strategy to Bottom-Line Impact 113

The Role of IT Impact Management 126

Tackle the Practical Problems: Management Agenda 127

Chapter 8 Make the Right Decisions 129

The Management Context for “Make the Right Decisions” 130

Elements of Right Decisions 132

Make the Right Decisions: Two NIE Practices 141

The Prioritization Practice 141

The Alignment Practice 150

Make the Right Decisions with Prioritization and Alignment 160

Chapter Summary 162

Make the Right Decisions: Management Agenda 164

Chapter 9 Plan for the Right Results 167

Two Planning Processes 168

The Strategic Demand/Supply Planning Practice 172

The Innovation Planning Practice 187

Chapter Summary: Plan for the Right Results 194

Plan for the Right Results: Management Agenda 196

Chapter 10 Keep Score 199

Management Issues 201

Frameworks and Process Overview 202

Result 207

Critical Success Factors: Right Decisions/Right Results Principles in Performance Measurement 208

Summary: Performance Measurement Practice 210

Keep Score: Management Agenda 211

Chapter 11 Deal with Culture 213

Part 1: The Impact of Management Culture 214

Part 2: The Need for Culture Change 217

Part 3: Classification of Business/IT Culture 218

Part 4: Applying Culture Management Concepts 225

Deal with Culture: Management Agenda 230

Chapter 12 Chart the Path to Implementation 233

Introduction to the Business Value Maturity Model 235

Maturity Model Goals 237

Requirement for Management Action 238

Embedding NIE Practices into Management Processes 240

Using the Business Value Maturity Model 242

Summary: The Business Value Maturity Model 245

Chapter 12 Appendix A: Details of the Business Value Maturity Model 246

Chapter 12 Appendix B: The Development of Maturity Models 250

Chapter 13 Define What’s Next 253

Three Methods to Establish Right Decisions/ Right Results Goals 254

Setting Goals from a Corporate Governance and Process Perspective 261

The IT Impact Management Program to Implement Right Decisions/Right Results and NIE Practices 263

Conclusion to Chapter 13 267

Chapter 14 Answer the “So What?” Question 271

Why This Trip Is Necessary 271

First, Hit the IT Improvement Zone 272

The “So What?” for the Company 273

The “So What?” for the CEO 273

The “So What?” for the CFO 274

The “So What?” for Line of Business Management 274

The “So What?” for IT Management 275

The “So What?” for the Business 276

Continuing Development 276

Appendices 277

Appendix A The Role of Enterprise Architecture in Right Decisions/Right Results 277

Appendix B Management Team Roles in Right Decisions/ Right Results 283

Appendix C The Development of Strategic Intentions, with Examples 289

Appendix D Applying Strategic Intentions in Prioritization 297

Appendix E The CFO Role in Right Decisions/Right Results 299

Appendix F The Details of the Business Value Maturity Model TM 301

Bibliography 313

Index 323

Editorial Reviews

"The book provides a road map for C-level executives, including CIOs, on how to manage and invest in IT to deliver business value." (COMPUTERWORLD; 11/29/04)

From the Publisher