Describe about the Managing the Realization Benefits of IT, Three CIO Advisory Board Responses to Managing the Realization OF Business Benefits from IT Investment?
1. Managing the Realization Benefits of IT
1.1 Purpose of the paper:
In this paper there is a clear statement to bring the poor reputation across many organizations. This paper focuses on ability of IT to generate the significant benefits.
1.2 Important point/ arguments presented:
There are five principles to be considered to realize the benefits through IT:
- There is no inherent value using IT
- Chances to get benefit increased only when IT allows people to adopt the nature of workability in a different manner.
- Only users and Business managers are able to release the benefits related to business.
- All the projects implemented on IT have outcomes but only few have the benefits in actual.
- To obtain the benefit, implication of IT requires an effective management.
1.3 Approaches used:
In this article different types of investment policies are adopted in order to maintain the IT implication in a business organization and obtain the related benefits.
Approaches to make different investment plan need intervention or changes, which is of two types:
1. Innovation based: benefits form innovation based approach involves ability to identify, create and to successfully implement new way of gaining advantages of guiding new IT means and business.
2. Problem based: In this problem based approach of making intervention target the improvement on the basis of business scenarios and ROI calculations.
1.4 Issues and their solution:
Issues: as far as issues are concerned there is myth that IT has no inherent value as it imposes bulk of money to implement an effective way to carry out a business plan.
Solution:different types of investment policies are adopted in order to maintain the IT implication in a business organization and obtain the related benefits, i.e. innovation based intervention and problem based intervention.
2. Three CIO Advisory Board Responses to Managing the Realization OF Business Benefits from IT Investment
2.1 Purpose of the paper:
The purpose of this paper is to enlighten the noteworthy focus and desired goal to gain the optimality in the business value using the modern-day business irony from IT investment. Though there is only limited number of companies who became able to gain profit with consistent IT expenditure.
2.2 Important points/arguments presented:
There are some important points while keeping focus on the business value driven by the IT expenditure, such as
Resistance can be encountered by demand driven investing:
Approaches of making demand driven investing can improve Governance:
The Author of this paper also suggest splitting the IT into two categories, such as- a) required spending: where IT leaders are able to clearly state the problem related to project which often takes place due to loosely determined IT investment.
Project spending: Only some value added solution or the investment upon the new information technology come under innovation phase and other less value added facts need to be eliminated.
2.3 Approaches used:
With this article author gave a try to make us understand about the flawless way to maintain IT expenditure by eliminating less value added solution and making clear statement on the problems related to project. Hence the above mentioned scenario to maintain IT expenditure can allow to have well planned IT expenditure.
2.4 Issues and their solution:
In this article there are many sated problem on IT investment, such as-
- All the IT investment required millions of euros or dollars in order to set up a successful business.
- Attraction of effectiveness and efficiency in business organization rather than ROI component.
- An Organization should focus on ROI formula and should eliminate the less important solution.
- There should be a clear statement about the project related problem to put the expenditure towards a right direction.