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Your tax dollars at work? Can “Government”, “analysis” and “results” be used in the same sentence? We report, you decry! Read On »
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT roi, measure IT value
Are you about to lose your kingdom for the want of a nail? Say what? Read On »
Tags: Demonstrating the Value of IT, it roi, it roi framework, it value, it value framework, IT Value Model, measure IT value
What is a Cost Benefit Analysis without risk? Worthless!! Read On »
Tags: CBA, cost benefit analysis, Demonstrating the Value of IT, it roi, it value, measure IT value, measurement of IT value
CIOs are caught in a vicious circle of “cost cutting” begetting more cost cutting expectation! How can you get out front and demonstrate IT’s value? Read On »
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT value, measurement of IT value
An overview to Value Measuring Methodology (VMM). Read On »
Tags: Demonstrating the Value of IT, it roi framework, it value framework, it value measurement, measure IT value, measurement of IT value, Value Measuring Methodology, Value Measuring Methodology (VMM)
Proving IT’s Value is the Achilles heel of CIOs. There are many views and more tools but the issue persists. What now? Read On »
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT value, measurement of IT value
The attached article describes a study that apparently proves the value it IT. We are told that companies that invest in IT - correctly - can see the gains on their financial statements. Finally, case closed?
Please do not go anywhere yet! This is far from over. Read On »
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT value, measurement of IT value
The Hackett Group has published research on IT metrics at “world class” companies. These metrics measure things such as IT spending, spending per staff, spending on outsourcing etc. in an effort to provide benchmarks for others to follow.
I would have preferred starting with a precise definition of a “world class” company i.e. what makes a company world class? Then made the connection between this level of IT spend and the achievement of that status. In other words, how are we to know that their marketing investments did not get them to this coveted spot? Perhaps, IT had nothing to do with it. Perhaps, the current level of IT spending had nothing to do with it.
Benchmarking and IT spending metrics are meaningless in the absence of a clear and direct connection between the metrics and shareholder value. Some people have made a connection between IT spending levels and share price increases. I commend this effort, however, in the absence of other data, for example marketing or operations spend during the same period, or news on one time events like winning a patent lawsuit or M&A activity, there is neither a clear nor direct connection between IT Spending and shareholder value.
Conversely, one can examine specific metrics/benchmarks being quoted and see that they are meaningless:
These are rhetorical questions. Hopefully, they help understand the complex issue of IT value metrics.
Tread these murky waters with caution!
Sourabh Hajela is a management consultant and trainer with over 20 years of experience creating shareholder value for his Fortune 50 clients. His consulting practice is focused on IT strategy, alignment and ROI. For more information, please visit www.StartSmartS.com. Or feel free to contact Sourabh at Sourabh.Hajela@StartSmartS.com
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT value, measurement of IT value
“Industrial manufacturers often have strained relationships with their IT organizations because manufacturers demand better IT support while simultaneously targeting IT for not cutting costs. Some companies have successfully emerged from this predicament using a lean, best practice model which we call “the 1 percent IT organization.” Read On »
Tags: Demonstrating the Value of IT, it roi, it value, it value measurement, measure IT value, measurement of IT value
Nicolas Carr was dead wrong when he proclaimed that IT is now a commodity bereft of strategic capability. There is ample evidence that Mr. Carr was making a sensational claim based upon a shallow understanding of IT Capability. He sold books and got the attention of executives who were disappointed in IT’s delivery not its promise. Read On »
Tags: Demonstrating the Value of IT, it roi, it value, measure IT roi, measure IT value
Alan