Are you measuring the business value of your IT projects? It is so worth the effort!
I have referenced a number of autonomic technology projects(or proof of concepts) recently completed that have demonstrated quantifable business value. I must admit, the ability to measure business value creation did not come naturally to me (or to many of the IT groups we have worked with) and thus required a very deliberate focus.
How do we measure the impact on revenue or costs of business processes supported by IT? The majority of CIOs admit that they find it difficult to measure and communicate the business value of IT related projects to the business unit. Yet most agree that projects supported by IT consistently yield a higher return than those that are not. Given today's business climate, it is more important than ever to measure IT driven business value to insure we make the right investment decisions as we move forward.
Although the study of business value creation is largely an unfamiliar space for many technologists we can begin to build our ability to do this as a scientific approach. Here are 3 things to consider to get started:
1) Develop a set of value categories and a common taxonomy - Start by defining a small set of the most compelling measurements - you can(and will) expand these over time.
2) Measure before, during, and after - Believe it or not, for the majority of IT projects, quantification of business value is an afterthought. Start with the base case - It is critical to do the value measurement using the value categories agreed upon PRIOR to the IT project. Repeat these same measurements at agreed to project checkpoints, at project completion, and at agreed to points during the lifecycle.
3) Communicate the results (and consider your audience) - Before you go forward with your findings consider who you will be presenting to. Translate /communicate value in the terms and context meaningful to the target audience.[Read More]
Industry Solutions and Tivoli
From archive: November 2005 X
DavidBBartlett 0600017MDJ 580 Views
DavidBBartlett 0600017MDJ 446 Views
Does a skills shortage threaten the business value agenda? - Many CIOs predict that a significant shift in the IT skills portfolio is occurring and are therefore concerned about the acquisition of critical skills.
Considering current trends that include outsourcing of development and support the increasing strategic role that IT plays for corporations, many agree that skill demand is shifting to project management, leadership, business process analysis, and communications displacing software development and infrastructure and operations as the most important skills. (of course the given is that you have solid development, infrastructure and operations skills in place) Skills like leadership and project management require the longest time to develop internally and are the hardest to source externally, given the importance of understanding an organization's business context.
What is the impact of Autonomic Computing on IT roles? Because AC is focused on building more consistent, standards based self-managing technologies for IT infrastructures, some jump to the conclusion that AC will eliminate jobs. But what we are observing is that AC's impact is not so much about eliminating jobs -it is more about the elimination of tasks characterized as mundane and repetitive. I would contend that AC is, therefore, a fundamental enabler of one's ability to shift focus and time from repetitive development and support tasks to leadership, business process analytics, project management, etc.[Read More]
DavidBBartlett 0600017MDJ 483 Views
Check out the December 5th issue of BusinessWeek which features a two page story on Autonomic Computing by Steve Hamm entitled 'Computer, Heal Thyself...Intelligent machines that can learn and fix themselves are becoming a reality.'
This feature story includes statements from Dennis Callahan, CIO, Guardian life Insurance Co., who used self-healing autonomic technology with the result: 'pared time required to fix things by 90%.' Dennis, who has been active in AC CIO roundtables, is a true visionary and leader in the area of autonomic computing. Most importantly he is getting real business value today, as we work together as an industry on the longer term goals of Autonomic Computing.
If you think it is too early to start thinking about AC check out this article (available in BusinessWeek Online as well) http://www.businessweek.com/@@UKE3lmYQdMO2OAkA/premium/content/05_49/b3962101.htm[Read More]