Achieving Business Value from Technology: A Practical Guide for Today's Executive
"Clearly, IT investments have never before played such a critical part in business growth. The book addresses the weakness existing in most management systems involving the lack of a systematic process to realize the economic benefits of the IT investment and provides a clear A-Z methodology for business to bridge this gap. This book is clearly written for all levels and backgrounds in business management and is a must-do for those whose business involves IT, is considering IT, or would like to significantly tailor IT investments for their economic advantage."
—Professor Richard P. Wool, University of Delaware, President and CEO, Cara Plastics Inc.
"Tony Murphy addresses the difficult question of the value of IT investments head on. He translates an elegant theory into effective practice. The case studies in the book effectively reinforce his key messages."
—Dr. Dermot Moynihan, Senior Vice President, World Wide Chemical Development, GlaxoSmithKline
"This book is the answer to most CIOs' need for a well-structured, pragmatic, and easily implemented set of tools and practices designed to answer the universal problem of managing and measuring IT's contribution to the business. Tony Murphy's unique blend of practical experience, industry best practice, and excellent communication skills provides the reader with a valuable-and highly readable-guide on how best to achieve that elusive objective of reliably realizing the business benefits of IT investments."
—Michael Rice, oup Director of IT, Kerry Group plc
"At Oxfam we are one year into a three-year IT strategy based on the principles Tony Murphy lays out in this book, and there is a real, positive difference in how IT is perceived, and in its real strategic position within the organization. If you have ever wondered just how you can gain strategic alignment for your IT function, and then how to make the practical link to IT investment for the organization, Tony has provided a framework that joins them both."
—Simon Jennings, Head of Information Systems, Oxfam GB
Chapter 1: Industrial Age Thinking for Information Age Problems.
Business Value from Information Technology (BVIT)-A Large and Growing Problem.
Learning from Case Studies.
What Do These Case Studies Have in Common?
Some Historical Perspective.
Drawing Conclusions from These Changes.
Revisiting the Case Studies.
Industrial Age Thinking for Information Age Problems.
The Limitations of Financial Metrics.
The Value of Financial Techniques for IT Investment Appraisal.
What Else Do We Need?
Chapter 2: The Five Pillars of Benefits Realization.
Pillar 1: Strategic Alignment.
Pillar 2: Business Process Impact.
Pillar 3: Architecture.
Pillar 4: Direct Payback.
Pillar 5: Risk.
Chapter 3: P2-Process.
Step 1: Setting the Ground Rules.
Step 2: Defining IT Value Standards.
Step 3: IT Value Analysis.
Step 4: IT Value Project Management.
Step 5: IT Value Achievement.
Step 6: IT Value Management.
Selecting Specific Products and Vendors.
Chapter 4: P3-People.
Roles-A Foundation Stone of Effective Governance.
The IT Council.
The IT Investment Board.
The Office of Architecture and Standards.
The Project Office.
Summary and Next Steps.
Appendix A: Sample Value Standards.
Business Process Impact.
Appendix B: Sample Value Standards Scoring Metrics.
Business Process Impact.
Appendix C: Completed Weightings.
Appendix D: From the Field-Investment Case Worked Example.
Appendix E: Quantifying End-User Benefits.
Opening the Meeting.
Resolution of Inconsistencies.
Quantifying the Benefits.
Appendix F: Gartner Recommended Approach to Risk Management.
Collaborative Risk Management.
Risk Assessment Processes.
Predictability and Complexity of Risks.
Appendix G: Analytical Hierarchy Process/Analysis.
Appendix H: Probability Analysis (Monte Carlo Simulation).
Appendix I: Gartner Approach to Change Management: Strategic Planning Assumption.
The Need for Change Management.
The Human Response to Change.
Appendix J: Financial Metrics.
Net Present Value (NPV).
Internal Rate of Return (IRR).