One company sees value resulting from all parts of the organization having the same processes; another defines value by turn on investment (ROIL’ still another measures t by a composite of key performance indicators. IT value proposition is that everyone involved in an IT initiative agree on what value they are trying to deliver and how they will recognized it. IT Value is a function of people, process, and technology The Three Components of the IT Value Proposition: Identification- Recognize and evaluate opportunities. Conversion- Transformation of ideas and opportunities Into IT value propositions and creating IT value.
Realization- Deliver value and ensure that technology is widely accepted Best Practices in Identifying Potential Value: Joint equines-IT structure. Compare value across projects. Utilize a portfolio approach to project selection/personalization. Establish a funding mechanism for infrastructure. Conversion: Managerial issues with Conversion More projects than resources: Insufficient time to complete all projects; inadequate technical/business resources; significant business process redesign may be required for Implementation of IT.
IT value creation can be successfully made by: Excellent project management; Effective execution (e. G. Change management); Reliable IT operations Best Practices in Realizing Value: Measure outcomes against expected results. Does Expected Value = Actual Value? ]; Plan a value-realization phase for all IT projects; Look for and eliminate root causes of problems; Assess value realization at all levels in the organization; Have provision for acting on new opportunities.
Five Principles for Delivering IT Value: 1 . Have a clearly defined portfolio value management process. Track projects as they are developed. Revisit portfolio decisions to determine if projects should be changed. Invest in strategic and infrastructure projects. Develop an ongoing means to ensure value is realized. 2. Aim for chunks of Value. Focus on key areas. Deliver Value through a series of small focused projects. Balance short-term and long-term strategic goals.
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