By Tony Murphy

PRAISE FOR ACHIEVING company worth FROM TECHNOLOGY

"Clearly, IT investments have by no means sooner than performed this kind of serious half in company progress. The booklet addresses the weak spot present in such a lot administration structures concerning the inability of a scientific approach to gain the commercial merits of the IT funding and offers a transparent A-Z method for enterprise to bridge this hole. This publication is obviously written for all degrees and backgrounds in enterprise administration and is a must-do for these whose company includes IT, is thinking about IT, or wish to considerably tailor IT investments for his or her fiscal advantage."
—Professor Richard P. Wool, college of Delaware, President and CEO, Cara Plastics Inc.

"Tony Murphy addresses the tricky query of the worth of IT investments head on. He interprets a chic idea into potent perform. The case reviews within the publication successfully make stronger his key messages."
—Dr. Dermot Moynihan, Senior vp, around the globe Chemical improvement, GlaxoSmithKline

"This ebook is the reply to such a lot CIOs' want for a well-structured, pragmatic, and simply applied set of instruments and practices designed to respond to the common challenge of dealing with and measuring it is contribution to the company. Tony Murphy's distinct mix of useful event, most sensible perform, and perfect conversation talents offers the reader with a valuable-and hugely readable-guide on how most sensible to accomplish that elusive goal of reliably understanding the enterprise merits of IT investments."
—Michael Rice, oup Director of IT, Kerry workforce plc

"At Oxfam we're 12 months right into a three-year IT approach according to the rules Tony Murphy lays out during this ebook, and there's a genuine, optimistic distinction in the way it is perceived, and in its genuine strategic place in the association. in case you have ever questioned simply how one can achieve strategic alignment to your IT functionality, after which the way 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 platforms, Oxfam GB

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Achieving Business Value from Technology: A Practical Guide for Today's Executive

Compliment FOR reaching enterprise price FROM know-how "Clearly, IT investments have by no means sooner than performed this sort of severe half in enterprise progress. The ebook addresses the weak point present in so much administration structures concerning the shortcoming of a scientific procedure to achieve the industrial merits of the IT funding and offers a transparent A-Z technique for enterprise to bridge this hole.

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Two big technical hurdles of this model are that traditional IT architectures are inflexible and difficult to integrate. Global standards for the meaning, format, and presentation of information remain a distant dream. , cXML, BizTalk, vertical industry groups like Rosettanet) are enabling some advances to be made. qxd 22 8/2/02 ➤ 8:26 AM Page 22 INDUSTRIAL AGE THINKING ➤ Changing business models create IS challenges: Enterprises that wish to participate in the emerging Internet worked economy must add a formal application interface layer to their IT architecture to build in the required flexibility for external integration and to control future integration costs.

Misleading: The introduction of a new application involves additional expense in terms of software and software maintenance and possibly hardware and other costs. Except where these can be directly assigned to a specific user department, they must be absorbed as overhead. Frequently, this overhead will not be taken into consideration in estimating the costs and benefits. Even when it is, the allocation will be the subject of a certain amount of arbitrariness. For example, if there is spare processing capacity, will the new system be allocated a proportion of processor costs?

Yet, they are still used today (admittedly in a much tweaked and enhanced form) to support a range of executive decisions, including those relating to IT performance and investments—objectives that would have been far from the minds of the originators! The accountancy-based methods such as payback, discounted cash flow, and internal rate of return reflect their Industrial Age origins, when benefits were measured in terms of enhanced input/output productivity—the factory paradigm. A wide range of elaborate attempts to apply these techniques to evaluating white-collar productivity have been undertaken, with very limited results.

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