By Tony Murphy
PRAISE FOR ACHIEVING enterprise price FROM TECHNOLOGY
"Clearly, IT investments have by no means earlier than performed one of these severe half in enterprise progress. The ebook addresses the weak point present in such a lot administration structures related to the inability of a scientific strategy to achieve the industrial advantages of the IT funding and offers a transparent A-Z technique for enterprise to bridge this hole. This publication is obviously written for all degrees and backgrounds in company administration and is a must-do for these whose enterprise consists of IT, is thinking about IT, or want to considerably tailor IT investments for his or her financial advantage."
—Professor Richard P. Wool, collage 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 chic thought into powerful perform. The case stories within the e-book successfully strengthen his key messages."
—Dr. Dermot Moynihan, Senior vice chairman, around the globe Chemical improvement, GlaxoSmithKline
"This ebook is the reply to so much CIOs' desire for a well-structured, pragmatic, and simply applied set of instruments and practices designed to reply to the common challenge of dealing with and measuring it is contribution to the enterprise. Tony Murphy's distinct mix of sensible event, top perform, and ideal verbal exchange abilities presents the reader with a valuable-and hugely readable-guide on how top to accomplish that elusive aim of reliably figuring out the company advantages of IT investments."
—Michael Rice, oup Director of IT, Kerry team plc
"At Oxfam we're 12 months right into a three-year IT process in accordance with the rules Tony Murphy lays out during this ebook, and there's a actual, optimistic distinction in the way it is perceived, and in its genuine strategic place in the association. in case you have ever puzzled simply how one can achieve strategic alignment in your IT functionality, after which tips to make the sensible hyperlink to IT funding for the association, Tony has supplied a framework that joins them both."
—Simon Jennings, Head of data structures, Oxfam GB
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Extra info for Achieving Business Value from Technology: A Practical Guide for Today's Executive
Few anticipated the PC’s impact—and that includes IBM! Its policy of making the operating system available on competitors’ hardware meant that so-called clone manufacturers were in a position to produce machines much more cheaply than IBM. As prices plummeted, users, hardware manufacturers, software developers, and training specialists leapt on the PC bandwagon. Everyone, it seemed, was either using a PC or was in the PC business. This was understandable in view of the following: ➤ A quantum leap in processing power: Computer power exceeding in many ways.
ROI, based on realistic cost benefit analysis, is, particularly when discounted, a vital component of most evaluation exercises. However, it is only one component. The problem today is that the formalized evaluation process in so many organizations continues to rely on these methods—in particular, the costbenefit analysis (CBA)—alone. The CBA has severe limitations that need to be recognized. ➤ Limitations of the CBA Approach The CBA approach is: ➤ Crude: Before-and-after estimates of benefit are crude in that they will be accurate only if work patterns remain unaltered after the implementation of the system.
The hitherto crippling dependence on specialists was vastly reduced. For example, a company running one of the well-known PC-based accounting packages would find it relatively easy and inexpensive to find staff experienced in the operation of the computer and the software package. qxd 16 8/2/02 ➤ 8:26 AM Page 16 INDUSTRIAL AGE THINKING techniques that addressed the concept of the time-value of money. In effect, this means that money is seen as having a cost, with the effect that earlier benefits and/or deferred costs should be attributed greater value than the discrete monetary amount—this is looked at in more depth later in this chapter.