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.
It is either a case of a business community that has not been “educated” on the value of IT or, worse, one that does not believe that IT is adding value. Consequently, it treats IT as a necessary evil not a strategic partner in value creation.
The imperative for such an organization is to first get out of a state of denial. Then, identify the cause(s) of business dissatisfaction and/or apathy. Subsequently, put an action plan in place to transform itself:
· Understand business’ expectations, needs and wants
· Understand how IT can add value
· Demonstrate the value of IT through results that meet business expectations
· Educate the business users on the value of IT
However, in the interim, one needs to get a budget passed!
Since the business is viewing every dollar spent on IT as one it could save, the imperative for IT is to demonstrate the “value lost” through such an action. In other words, detail what will happen if this dollar is not spent.
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
IT Strategy Course (Friday, September 08, 2006) At the end of the day, most business leaders agree that alignment is critical, but they don't know how to achieve that goal. This course discusses the challenges of aligning IT with business in depth and presents a differentiated approach and framework.
IT Strategy Framework (Monday, September 25, 2006) IT Strategy requires a process and a framework. The former provides the steps and the latter the toolkit. Together they help an organization get to an IT Strategy that maximizes IT ROI. This article addresses the latter.
What is IT Strategy? (Saturday, October 14, 2006) There are many definitions of IT Strategy. Which one is true?
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!
Kiss and Make Up (Tue, 26 Jun 2007 00:00:00 -0500) 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." This means IT has a cost structure approaching 1 percent of revenue. An IT organization that can transform its operating model to act as both cost center and strategic enabler will be poised to manage both the cyclicality of the present and the growth needs of the future.
Is Your Company World Class in IT? (Monday, July 09, 2007) Metrics make us feel secure because of the implicit promise of control. However, metrics are as meaningful as the spin surrounding them!
IT Strategy: Does IT Matter? (Monday, February 04, 2008) This paper presents results from investment in IT at a macro economic level. Proof positive that IT Matters? You decide.
IT Strategist as a Race Car Driver? (Tuesday, February 12, 2008) Learning from Mario Andretti sounds like fun but what has that got to do with IT Strategy? Read on!
Measuring Information Productivity (Monday, March 03, 2008) Excellent paper on IT value measurement. This framework powered Baseline's 500. Very informative.
Influences on IT Strategy (Monday, March 03, 2008) Excellent overview of IT Strategy and things that have an influence on its outcome. Must read!
IT Strategy For Business Value (Monday, March 10, 2008) The paper presents a framework for developing an IT Strategy for business value.
IT Strategy Framework with SOA (Monday, March 10, 2008) A very good presentation that takes IT Strategy to solutions architecture using SOA. Good read!
Developing an IS/IT Strategy (Monday, March 17, 2008) A very good presentation on developing an IT Strategy. Must Read!
A Framework for Developing IT Strategy (Monday, March 17, 2008) A very good discussion on developing IT Strategy including detailed steps and explanations. Must Read!
IT Strategy for the Law Firm (Monday, March 17, 2008) A presentation on the challenges facing CIOs at law firms and how to create an IT Strategy to overcome them.
Managing for Shareholder Value in difficult times (Monday, June 02, 2008) Is there "managing" to anything else? Read this excellent discussion on how everything in an enterprise should be managed.
Case Study: Strategic Use of Information Technology (Monday, July 07, 2008) Can you imagine a world without Google? I for one can't imagine one without Microsoft. Microsoft's bugs make Google indispensible!
The History and Future of Value Management (Monday, July 07, 2008) An excellent presentation on measuring and managing "value" - discusses various frameworks. MUST READ!
DAM/VAM: A Structured Methodology for Developing and IT Strategy (Monday, November 17, 2008) Demand and value assessment methodology is a structured approach to quantifying the demand for and the value from IT investments. This guide provides a step-by-step approach to implementing DAM/VAM. Excellent Read!
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