By Tony Murphy
PRAISE FOR ACHIEVING enterprise worth FROM TECHNOLOGY
"Clearly, IT investments have by no means prior to performed one of these serious half in company development. The publication addresses the weak spot current in so much administration platforms regarding the inability of a scientific technique to gain the industrial merits of the IT funding and gives a transparent A-Z method for enterprise to bridge this hole. This ebook is obviously written for all degrees and backgrounds in enterprise administration and is a must-do for these whose company includes IT, is thinking about IT, or wish to considerably tailor IT investments for his or her fiscal advantage."
—Professor Richard P. Wool, college of Delaware, President and CEO, Cara Plastics Inc.
"Tony Murphy addresses the tough query of the price of IT investments head on. He interprets a sublime idea into potent perform. The case reports within the e-book successfully make stronger his key messages."
—Dr. Dermot Moynihan, Senior vice chairman, around the globe Chemical improvement, GlaxoSmithKline
"This publication is the reply to such a lot CIOs' desire for a well-structured, pragmatic, and simply carried out set of instruments and practices designed to respond to the common challenge of coping with and measuring it truly is contribution to the company. Tony Murphy's targeted mix of sensible event, top perform, and perfect verbal exchange abilities offers the reader with a valuable-and hugely readable-guide on how most sensible to accomplish that elusive aim of reliably knowing the company merits of IT investments."
—Michael Rice, oup Director of IT, Kerry workforce plc
"At Oxfam we're three hundred and sixty five days right into a three-year IT process in accordance with the foundations Tony Murphy lays out during this booklet, and there's a genuine, confident distinction in the way it is perceived, and in its genuine strategic place in the association. when you've got ever questioned simply how one can achieve strategic alignment in your IT functionality, after which the best way to make the sensible hyperlink to IT funding for the association, Tony has supplied a framework that joins them both."
—Simon Jennings, Head of knowledge structures, Oxfam GB
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Extra resources for Achieving Business Value from Technology: A Practical Guide for Today's Executive
Too often past experience is used as the basis for making forecasts. Especially in volatile times, this is likely to be a most unreliable indicator. This somewhat brief review of conventional accountingbased appraisal methods shows them to be inflexible, geared toward assessing efficiency rather than effectiveness, incapable of incorporating intangible or amorphous benefits, and weak on integration. They will generally favor the safe, short-term investments over the longer term strategic and infrastructure investments.
They underline how much more difficult it is to achieve the benefits from IT in Eras III and IV compared to earlier times. Today’s environment is faster moving and more complex. It requires not only internal integration, but also integration with trading partners while IT initiatives depend for their success on a wide range of stakeholders. Yet, as these case studies illustrate, executives extensively use Era I methodologies to address Era III and IV challenges. Industrial Age thinking for Information Age problems.
Even companies with sophisticated financial procedures usually confined costs to the direct and indirect labor expense associated with development, operations, data preparation and input, together with direct material costs such as stationery and, if applicable, punch cards. qxd 14 8/2/02 ➤ 8:26 AM Page 14 INDUSTRIAL AGE THINKING Era. These were indirectly addressed in some companies by the utilization of a throw factor, that is, a factor by which savings must exceed costs. In other words, a 40 percent throw factor (a common figure in my experience) would require savings of $200,000 where development and operational costs were estimated to be $140,000.