Tue, 26 Jun 2007 00:00:00 -0500
- Strategy+Business Technology
This could have been an excellent article that it isn't. The premise of strategic sourcing coupled with demand management creating value is undeniable. Every business leader must know this.
However, intertwined with this gem is the warped logic that IT cost as a percentage of revenues is a meaningful measure of IT value. If there ever was a misleading metric, this would be it. Otherwise, the article would have included some cute charts and graphs on the value delivered by these "1% organizations" over time. It would have included the comparison of those values with the "3-4% Organization."
And then, I would have beat the article on the head for failing to establish the connection between the value delivered or lost and IT spend as a percentage of revenues!
Strong words? Perhaps.
The issue of IT Value would be so much simpler to solve if we stayed away from muddying the waters so much. It is a problem gaining yardage. Let us not make it more difficult by losing yards to inane arguments and metrics.
IT Strategy: IT Cannot be a Profit Center (Friday, September 08, 2006) IT Strategy: Of late, there is a lot of emphasis on IT ROI. While this is commendable, extending this argument to convert the IT Organization into a profit center is taking it to another extreme. For example, are HR, finance, and marketing profit centers? Why not?
IT Value Mapping (Friday, September 08, 2006) Why do some IT organizations create unprecedented shareholder value, while others earn the contempt of their business leaders? It is no secret that aligning IT with business improves IT ROI, what is often in doubt is how to make it happen. Can you say with certainty that your IT is aligned with business? Can you prove it? If improving IT ROI is an imperative for you, read on. This paper will show you how to improve ROI by 10% or more…and
Help! We are being treated as a cost center! (Wednesday, October 18, 2006) Let’s face it. An IT organization that has to justify its budget as a “cost center” has lost the respect of the business community somewhere along the line.
Why IT ROI doesn't matter? (Friday, November 03, 2006) Does IT ROI matter? Great many intelligent people are spending sleepless nights and countless dollars calculating IT ROI. The author argues that they are wasting their time and shareholder dollars!
Putting IT Strategy in Context (Wednesday, November 08, 2006) Often, the emphasis is on creating an IT Strategy. Before you do, understand the context of IT Strategy i.e. what is its role and scope.
A Framework For IT Value (Monday, April 02, 2007) In this series, we will discuss IT Value - from its definition to a framework to measure and track it
Part II: A Framework for IT Value (Monday, April 09, 2007) Last week, we lay the foundation for a discussion on IT Value. This week, we look at specific areas where IT creates value.
Part III: A Framework for IT Value (Monday, April 23, 2007) Last week, we focused on revenues. This week, we look at the costs in the IT value equation.
Part IV: A Framework For IT Value (Monday, April 30, 2007) Last week, we discussed the cost dimension of IT Value. This week, we will discuss the time to market dimension.
Talk to Me: The Disconnect Between Business and IT (Tuesday, May 08, 2007) The disconnect between business and IT is often lamented. A lot is spoken and written about this chasm. Ostensibly, a lot is done to bridge it. Yet, most would agree the chasm still exists.
Part V: A Framework for IT Value (Monday, May 14, 2007) Last week, we discussed the time to market dimension of IT Value. This week, we will discuss the quality dimension.
Part VI: A Framework for IT Value (Tuesday, May 29, 2007) Last week, we focused on quality and its impact on IT Value. This week, we will take a look at productivity and its impact on IT Value
Part VII: A Framework for IT Value (Monday, June 04, 2007) Last week, we focused on productivity and its impact on IT Value. This week, we will take a look at customer satisfaction and its impact on IT Value
Measuring IT Value Using Intel's Business Value Index (Friday, August 17, 2007) Want to measure the value of IT? Intel has proposed a solution based upon its "Business Value Index." Attached is an introduction to the methodology
The Ultimate Proof of IT Value (Friday, October 19, 2007) A study proves the bottom line impact of IT investments. Case closed? Hardly!
Mission Impossible: Demonstrating the Value of IT (Monday, February 25, 2008) 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?
Cracking the IT Value Code (Monday, March 24, 2008) Does IT Spending Matter? The answer is an emphatic no. Then what does? Read on...
Understanding the Value of IT (Monday, March 24, 2008) Understanding the IT Value equation is critical to making IT Decisions. This article provides guidance using the education industry.
Managing IT For Value (Monday, May 12, 2008) "We conclude that no existing method is suitable for assessing the business value created by IT assets." Read On...
Beyond EVA (Monday, June 23, 2008) A good discussion on EVA and how to plug its shortcomings.
The History and Future of Value Management (Monday, July 07, 2008) An excellent presentation on measuring and managing "value" - discusses various frameworks. MUST READ!
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