Proving the value of an IT investment before you spend would eliminate a host of uncertainty and indecision. Phil Lewis, Infor director of business consulting, explains how.
In a commentary titled "Proving the Value of IT Investments" published on ITP.net, Lewis argues that "the net value of IT is too under-valued in today's business environment, and that CIOs need to quantify and demonstrate the value of projects at all stages of their lifecycle."
"It's no longer enough for technology to merely support business—it must propel it," he writes. "Only when business and technology strategies are properly aligned will they be able to achieve the maximum possible value from their enterprise software investments."
Here are more excerpts:
"How can assurances be made that expected improvement initiatives will actually be in line with the strategy? … Many companies wish that there was a definitive way to model the benefits of go/no-go.
"It is vital to clarify the benefits of going ahead with a particular project, or help decide which of the systems being evaluated would deliver the fastest payback and the most return in order to make the selection process easier.
"… By clarifying the benefits and quantifying the value, a benchmark for success is automatically created, providing a mechanism for measuring success. Benefits and value identified before embarking on the implementation project can be measured throughout and after the project to ensure resources have been focused in the right areas.
"How can it be achieved? It is necessary to follow a proven methodology and tools to:
- Benchmark against industry standards and competition.
- Demonstrate the impact on company results—if a small percentage improvement in company performance versus peers could be achieved.
- Help align strategy and objectives to performance benchmarks.
- Create a comprehensive business analysis, including a solution roadmap and ROI based on benchmarks, executive and operational interviews.
- Develop a more granular transformation study, including a detailed implementation plan.
- When business and technology strategies can be properly aligned, then technology can be appropriately deployed in order to propel the business forward. Only then can companies achieve the maximum possible value from their critical enterprise software investments."
Read the full article "Proving the Value of IT Investments" on ITP.net.
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