• WisBusiness

Monday, October 4, 2010

Stop trying to measure IT value

By Tom Burzinski
A number of business and technology surveys this year indicate that companies are once again increasing their investment in Information Technology (IT) as a way of streamlining operations and enhancing business performance. One survey conducted last month by Skyline Technologies of Green Bay (WI) and the St. Norbert College Survey Center polled several hundred Wisconsin business and technology executives (from mid- and large-size Wisconsin companies) on the value that IT provides their firms.

This survey reported that 65 percent of the respondents are putting substantial and increasing resources towards IT in the next twelve months; with a whopping 91 percent of the respondents calling out IT as a key contributor of improved top- and bottom-line business performance. This same group also sees IT as critical for improved customer service, effective internal and external collaboration, cost control, and in running a quality operation.

The survey respondents (74 percent) believe that while there is considerable perceived value from their IT investments, there is also uncertainty about the actual return on investment (ROI) that IT provides. The survey respondents say they would like to find ways to substantiate IT’s value proposition so they can ensure that additional IT spending is appropriately targeted.

Trying to answer the question “What value does IT brings to my organization?” has been a goal of CEOs going back to the time when computers had vacuum tubes and programmers used punch cards. At one time or another, most CIOs have had to spend late nights and long weekends fabricating elaborate ROI justifications in the hope of convincing their CEOs or CFOs to sign-off on an IT project or next year's IT budget without first having to first sacrifice large parts of it on the altar of IT value.

The problem with trying to answer the IT value question is that it is essentially an unanswerable question. As the CIO-turned-business writer, Bob Lewis, says in his practical and very readable book, A Manifesto for 21st Century Information Technology, “There are no IT projects and there never were. IT doesn’t deliver value, it enables it.”

According to Lewis, all IT projects – yes, even IT infrastructure projects – are really business projects, in that they are about delivering business value. Specifically, three types of business value: increased revenue, decreased cost, or better-managed risk. That is it!

Lewis goes on to say, “In the same way that a hardware store provides you with tools to remodel your house but doesn’t do the remodeling, all IT can do is provide the tools business managers and end-users need to deliver value.”

Because there are no IT projects, only business projects, the role of the CIO is focused solely on providing the business with reliable estimates of the IT costs required to get the project done. Although the CIO must collaborate with his/her business partners in establishing a project’s value, it is the business’ responsibility to estimate, and then commit to, the business value of any IT-enabled project.

This is not to say that the CIO is off the hook when it comes to determining and then realizing the business value of an IT-enabled project. The CIO is still responsible for running the IT function in such a way as to deliver high-quality, agile, and cost effective IT services so that any IT-enabled project can return the highest possible value for the money invested. This, as anyone who has done it successfully will attest, is a major leadership challenge in itself.

Nor is the CIO a passive player when it comes to business governance. As a member of a firm’s executive team – which the CIO must be – the CIO participates with the other members of the executive decision-making team in determining the company’s project priorities.

Besides giving advice on how not to get dragged through the glass trying to justify IT’s value to your CEO, Lewis also challenges conventional IT wisdom concerning the need to embrace best practices, why relationships precede process, and the importance of establishing the right IT metrics for an organization.

A Manifesto for 21st Century Information Technology is an enjoyable read and I highly recommend it to CIOs or others involved, in any way, with their company’s IT function. Besides, now that you know that you don’t have to work so hard to justify IT’s value, you should have plenty of time to catch up on your reading!

-- Burzinski is a an IT executive and senior consultant specializing in business intelligence and IT/business alignment. In his 25-year career he has worked for several Fortune 500 companies headquartered in Wisconsin. Burzinski and his family live in Green Bay.


Comments: 35

At January 21, 2017 at 12:08 AM, Blogger bettycyoung said...

good Now double click Mobdro APK file and wait for few secs https://imobdroapp.com Mobdro Apk is a one of the most preferred free video nice.

At March 1, 2017 at 3:48 AM, Blogger kenyattamherzog said...

good order to be visible to other people. Also, it is feasible to use Musical.ly Login Online & Sign Up | Working Musically Guide the best ways to set up the personal privacy setups great.

At April 24, 2017 at 6:11 AM, Blogger dellamccabe said...

This application is officially readily on your Windows PC shareit for computer it is best time to get rid of sluggish means of data transfer.

At June 16, 2017 at 5:43 AM, Blogger dellamccabe said...

Nowadays there is a variety of compatible software Download xHubs APK setup in order to the most practical, while using.

At November 2, 2017 at 4:41 AM, Blogger Indra Dhawa said...

Outlook Support Number Wow awesome

At November 25, 2017 at 12:47 AM, Blogger Indra Dhawa said...

https://notresponding.net/ the operating system is not being able to recognize the printer. Causing your HP printer not to work. In this case, a new driver needs to be installed on the operating system to be able to recognize the printer.

At December 9, 2017 at 4:58 AM, Blogger Saurabh Sahni said...

pretty cool post. keep it up
happy new year 2018

At December 28, 2017 at 9:58 PM, Blogger Peter Land said...

very Help Full Post. Look Some Different here at upsc syllabus

At December 31, 2017 at 2:43 AM, Blogger Preeti Chopra said...

Useful Information You have the nice information thanks for sharing . If you need Asus Router Help Use Our Service.

At January 13, 2018 at 5:30 AM, Blogger Preeti Chopra said...

very Help Full Post. Look Some Different here at upsc exam

At January 14, 2018 at 1:54 AM, Blogger Ekam Khurana said...

We wish you a a great nnew year ahread. may new year bring you a lot of wealth as well as health. Regards: cinema box app android

At January 29, 2018 at 11:29 AM, Blogger Daniel Mark said...

very Help Full Post. Look Some Different here at upsc syllabus

At February 26, 2018 at 11:26 AM, Blogger Aarun Patil said...

This is not to say that the CIO is off the hook when it comes to determining and then realizing the business value of an IT-enabled project. The CIO is still responsible for running the IT function in such a way as to deliver high-quality, agile, and cost effective IT services so that any IT-enabled project can return the highest possible value for the money invested. and you can also get the all kind of the Microsoft Customer Service here

At March 20, 2018 at 5:14 AM, Blogger PC Tips said...

Here are the amazing computer or PC Tips If You are facing any computer related Problem Or need any suggestion.

At March 26, 2018 at 10:21 AM, Blogger hookupapps said...

Here is so much security need if you are daily internet visitor of surfer the you have to know internet security tips for sure your system from the hackers or other errent users that can harn your system.

At March 26, 2018 at 6:04 PM, Blogger hookupapps said...

Do You know the internet surfing in not secure now so if you want to make your computer internet knowledge improve get to know more internet security tips
For your computer security.

At August 3, 2018 at 11:45 PM, Blogger Unknown said...

If You are facing any Kind of the system issue that you are not able to fix get help by our tech experts. Our technician Will help you With support service like Hardware Support

At September 10, 2018 at 12:27 AM, Blogger Alex Brian said...

Thanks for sharing such type of nice and helpful information with us about stop trying to measure IT value and I hope that we will get more new information regarding this post in the future. This information is so valuable for most of the users. If you face any antivirus security issues then visit Kaspersky Antivirus Blog to get the best solution by the experts.

At September 10, 2018 at 1:47 AM, Blogger Avast Services said...

I needed to thank you for this incredible read!! I unquestionably adored each and every piece of it.
Are you facing a problem with your Router, extenders, windows, or phone? We are providing solutions for all issue related to technical issues.
Avast Antivirus Services

At September 10, 2018 at 2:02 AM, Blogger Router Support said...

Thanks for sharing your impressive and amazing ideas. I will not be hesitant to share your website to everybody who should be given suggestions just like these. If you have issues related to operating system then, you can contact us through +44 800 048 8653 toll-free number. and also can visit here - https://laptopsupportnumber.co.uk/operating-system-support/

At September 10, 2018 at 2:54 AM, Blogger India Property Clinic said...

Hi there! I could have sworn I’ve been to this blog before but after checking through some of the post I realized it’s
new to me. Anyhow, I’m definitely delighted I found it and I’ll
be bookmarking and checking back frequently
1 BHK flat for sale in kullu

At September 11, 2018 at 12:11 AM, Blogger Tech support said...

Useful information. If You are facing Any Kinds of the tech issue with the PC OR computer Products Then Get Help With the Our Antivirus Technical Support team. They are always ready for assist you.

At September 11, 2018 at 2:32 AM, Blogger Julio Frenk said...

QuickBooks Support provides instant solutions related to any issues of Payroll support, Installation support, Enterprise support, CRM integration support, Error troubleshooting support and Configuration support. We are 24 hours available on QuickBooks Support Number +44 800 098 8380 and also on Live chat support

At September 21, 2018 at 4:22 PM, Blogger Jhon Perker said...

This is really nice information that you shared, I am really very very thanks to Netgear Support

At September 29, 2018 at 12:41 AM, Blogger Urban Clap said...

The CIO must collaborate with his/her business partners in establishing a project’s value. This is so true and I am agree with this. I have a website which provide services for many devices and home appliances like Fridge Repair Dubai and many more.

At October 1, 2018 at 3:56 AM, Blogger Ray Collins said...

An information technology technician is a computer support person who can work for various companies. They should have an associate's degree, bachelor's degree, or certificate in a computer field. IT technicians may look into obtaining certifications to promote job potentiality
Our diligent team at Tech Support Dubai attends global clients and creates amazing logos to enhance your business across the world. They will assist you with creating a perfect logo for your brand logo design services dubai

At October 1, 2018 at 3:58 AM, Blogger Ray Collins said...

Every software company is an IT company but every IT company may not be a software company. ... IT (Information Technology) is a catch-all for the industry at present, any job that is primarily to do with the operation of computers or developing for them is within the "IT industry/sector". visit refrigerator repair services

At October 4, 2018 at 5:51 AM, Blogger Unknown said...

Information technology making the data more useful and refine the business strategy to more comprehensive insight. Apple also improved the a lot to make IT more useful. iPhone x price UAE is also a great device to utilize the IT

At October 9, 2018 at 9:45 PM, Blogger Jhon Perker said...

Nice post

Netgear Customer Service

At October 25, 2018 at 3:33 AM, Blogger Urban Clap said...

These projects need your help to understand our planet, explore the universe, and make our world a better place.
WordPress Website Development

At October 25, 2018 at 4:50 AM, Blogger Mohammad hassan said...

This is nice post.
AC Repair Service

At October 25, 2018 at 11:51 PM, Blogger Shahbaz Anshari said...

All the companies working for wealth maximization,they are focused on increasing the wealth of the stakeholders.
AC Repair Service in Dubai

At November 16, 2018 at 4:04 AM, Blogger Unknown said...

UC Browser is one of the best Browser. it is easily available in the market if you have any queries related to this Browser please visit here. you are really shareing such a nice information. chrome support you can visit us for more detail related to tech support.
setup Netgear WN3000RP

At November 20, 2018 at 11:21 PM, Blogger jolly dolly said...

Hello, The survey respondents believe that while there is considerable perceived value from their IT investments, there is also uncertainty about the actual return on investment ,Fallout 4 Won’t Launch On The PC

At November 25, 2018 at 3:12 AM, Blogger Netgear Device Manager Error Code 10 said...

Netgear is the most reliable one. It offers many advanced facilities and a range of Wifi connection. However, you may face technical glitches while using the Netgear router. Netgear Device Manager Error Code 10 is the most common issue among users.


Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed

wisbusiness.com Social News

Follow Us

Site Sponsors


· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications