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The Business Value of IT

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The Business Value of IT

Managing Risks, Optimizing Performance and Measuring Results

Auerbach Publications,

15 min read
10 take-aways
Audio & text

What's inside?

How IT can create – and prove – value. And, how you can convince management that it does.

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Editorial Rating

7

Qualities

  • Applicable
  • Well Structured

Recommendation

Too often, companies suffer from strained relationships between their businesspeople and their information technology (IT) staffers. Much of this irritation stems from differences in the way they view IT’s contributions. Experienced IT executives Michael D.S. Harris, David Herron and Stasia Iwanicki’s useful handbook explains how to get IT team members and organizational personnel to understand each other, initially by clearly defining IT’s contributions in business terms. Besides valuable information, graphs, charts and chapter summaries, the authors include the references for everything they cite so you can dig more deeply into areas that affect your work. getAbstract praises their ability to express their thesis in human terms rather than lapsing into dreary technical recitations, although the writing is sometimes awkward. While utterly focused on IT, their book is not too technical for managers who deal with those in the field. This book enables you to explore the strengths and weaknesses of a variety of IT-finance, data and measurement models so you can select the ones that fit your situation.

Summary

Can IT Provide Real Business Value?

In most companies, the information technology (IT) department does not make a direct financial contribution, but it does provide the communication and data infrastructure that enables nearly every transaction. For your firm to realize a good return on its IT costs, the IT unit must:

  • Provide solid information for all levels of decision making.
  • Show that it earns real value in exchange for its expenditures.
  • Assist in risk management with the right infrastructure, expertise and information.
  • Document and assess all the business processes that run through its infrastructure.
  • Respond to business needs and support its end users.
  • Help the company compete by being innovative and improving its systems.

The Value Metrics of IT

Businesses live and die on hard numbers, so IT managers must be able to explain clearly how their work contributes to the company’s business value, and how IT systems and processes fit its goals. Many financial models can help you demonstrate IT’s real bottom-line return, including:

  • “Total Cost of Ownership” (TCO) – This model tracks...

About the Authors

All three authors are experienced IT executives. Engineer David Herron co-founded and Michael D.S. Harris owns the David Consulting Group. They work with IT Decisions Coaching, where Harris is a partner. Herron has co-written two books and numerous articles on functional measurement. Stasia Iwanicki is a Six Sigma Black Belt with 18 years global IT experience.

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