One of the more obvious and pronounced benefits of IT has been to make process execution faster through automation. IT has been credited with increasing efficiencies through automation. Unfortunately, often, the credit stops there. However, automation has both efficiency and effectiveness capabilities.
A company that gets products faster to market makes money faster. Money is not made till someone buys a product – the quicker we make it the quicker someone buys and pays for it. Here are some steps along the journey from concept to value recognition:
Generating product ideas or concepts
Converting concepts into prototypes
Getting feedback on prototypes and ensuring their marketability i.e. do customers want it and if so, what are they willing to pay for it
Converting prototypes into mass production
Distributing manufactured products to customer “outlets”
Taking customer orders
Collecting payment from the customer
The efficiency rationale is simple. If it takes the company, 100 days to get from concept to payment, then the investment it has made along the way does not produce results for those 100 days. For every day that is reduced from this cycle time, the company makes more money without doing anything additional i.e. not investing a single dollar more.
Time value of money:
A customer payment that is with you a day earlier means you have that money to “invest” for one additional day
Your investment is now paid for a day less
Reduced overhead: one also eliminates the cost of keeping the product for one additional day
Is there an effectiveness pay off as well? Absolutely!
Crafting a Vision for IT (Monday, August 21, 2006) What is the purpose of a vision statement for IT? This article examines how a vision can accelerate the business value generated by an IT Organization.
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 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.
e-Business ROI (Friday, September 01, 2006) How do you select eBusiness projects for funding? Everything cool is not everything profitable! This article discusses ways to make sure you win while you feel good!
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.
7 Steps to Business and IT Alignment (Monday, November 20, 2006) No business will ever reach the goal of “business and IT alignment”. Should this discourage you from pursuing business and IT alignment? NO! It is a worthy goal to pursue. Indeed, it is a critical one to pursue. You might never reach alignment but you can take steps to get ever closer. This requires a process. Often, we ignore the fact that business and IT alignment is a process. This process does not have a starting point nor does it have an end. It is a series of “learn and do” cycles that incrementally get towards alignment. Let me explain.
It's not just IT, it is Your Brand (Monday, January 22, 2007) When we talk about "business and IT alignment", we often forget about the elephant in the room - the impact of IT on brand. This article discusses the connection and provides examples of how IT can help or hurt your brand.
7 Signs of Trouble in Paradise (Monday, February 26, 2007) Ever wonder what happens when business and IT are not aligned? Well, like most other things in life, there are symptoms of misalignment. Monitoring them and analyzing them can help you avert disaster.
Creating a Winning Project Charter (Monday, March 05, 2007) A project's charter is its anchor. It provides returns exponentially greater than the time and effort spent creating it.
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 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.
Focus on Customer Service (Monday, May 14, 2007) Is it time to relearn the no.1 rule of business? Some airline companies seem to have gone back to school. Unfortunately, this was an expensive education because their customers took them there!
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
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!
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
Avoiding the Alignment Trap (Sunday, September 09, 2007) Alignment is an issue but are you focused on the right strategy to fix it?
In Search of Innovation (Tuesday, November 13, 2007) Bringing innovation to your organization isn't easy. Need tips? Read On!
"SOLACE" in IT Strategy (Monday, January 07, 2008) IT Strategy is nothing without its implementation. How can CIOs get some "SOLACE" from their IT Strategy? Read on!
Enabling the Strategy Focused Organization (Monday, January 14, 2008) Is IT Value compromised because of the strained relationship between business and IT? How can the CIO overcome this challenge?
Overview of Function Point Analysis (Monday, January 21, 2008) IT Strategies fail on poor execution. Function point analysis is a tool to make better implementation decisions before money is spent on them! Good overview of the tool and approach
A Framework for IT Investment Management (Monday, January 21, 2008) A framework for IT Investment Management - also covers the process and maturity model. Must Read!
IT Powered Growth (Monday, January 21, 2008) How to pull out of an information technology tailspin!
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!
Trippling Innovation Success Rate! (Tuesday, February 12, 2008) Innovations are notorious for their high failure rate. Is there a way to reduce it? Read on...
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?
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.
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.
Measuring Innovation (Monday, July 07, 2008) How do you know if innovation is really producing results? Measure it young man. Here are some pointers to help you along the way...
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!
Frameworks for Organisational Capability Analysis (Monday, July 14, 2008) The good professor hits upon this key topic with an assortment of tools/frameworks - SWOT, Balanced Scorecard, 7S Framework etc. - and case studies. Excellent Read!
A Framework for Strategic IT Alignment (Monday, September 15, 2008) Is IT Alignment a strategic weapon to gain competitive advantage? Duh! But do you know to what extent information intensity affects competitive advantage? Hmm...
The Strategy Cycle (Friday, October 24, 2008) Often, the talk about the connection between Business and IT Strategy does not translate into action. At other times, IT Strategy is devised in isolation. This is a good discussion on the big picture of strategy in an organization - soup to nuts framework to connect ALL the organizations strategic processes, people and technology. Good 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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