Skip to main content

Understanding Business Value of IT(Information Technology)


Is IT driven by business?
I believe its a good question to be asked at this point in time after the doom of financial markets allover world. When top investment banks collapsed in USA and Europe everybody is asking a question how it is possible if the system in place. IT in general supposed to be driven by business requirements so its natural process that, as other component in business, this is also adding value to business, but is that benefits realized to business?

Is IT a hype from time and again?
Business value of IT measured in different metrics and methodologies that may or may not give true picture of IT value to business, so the contradiction lies in the hypothesis itself that IT is driven by business which is adding no value but continuing. In the concurrent world where businesses are competing for survival and existence IT is invaluable from intangible perspective. 

Making sense of PM triangle 
The infamous scope, cost and schedule trio can be realized for IT business value in terms of earned value over time may only give results for a particular project. But unit or entities are interconnected by infrastructure, service delivery, process, people, and technological enabling for fostering agility and innovation.
Green IT
New buzz word in circulation to many, but required for sustenance to justify IT value to business, justifying new technologies may be Cloud Computing or web services to improve overall business functions and IT Cost Optimization required to reap benefits in future growth of IT.










Real Business of IT: How CIOs Create and Communicate Value             The Business Value of IT: Managing Risks, Optimizing Performance and Measuring Results           How to Measure Anything: Finding the Value of Intangibles in Business
Labels:

Comments

Post a Comment

Popular posts from this blog

Aligning Projects with CSR (Corporate social responsibility)

CSR ( Corporate social responsibility ) in context to Project management : Projects are unique entity units, they have a start and a logical end. Projects executes in a time frame with certain goals and objectives to achieve by the end of project and obviously Business as whole is connected with project where sustainability matters. Project managers seek responsibility and accountability from each team members in projects to make project a success, there comes the role of CSR wherein project managers can engage project members to achieve the stated objectives in a project in a sustainable way with responsibility. Corporates do CSR but at the corporate level, if we drill down CSR initiatives at the implementation level and align operational objectives with CSR which can drive projects in a holistic way by driving individuals inside-out from organization perspective and projects outside-in. CSR is just not one word but a gamut of activities are associated with it where in on...
Post a Comment
Read more

Do we really need to calculate earned value for project?

budget (Photo credit: 401K ) What is earned value : It measures cost , schedule, and work done .Its a way to measure projects progress and provide budget variances. Its a indicator of schedule, budget,and milestone.It also gives us percentage of work done, budget spent, and time consumed. So the units to measure it is dollars and and work hours. So whats the next step to calculate EV: Prepares a WBS (work break down structure) to quantify each task as phases and then phases into modules, modules into more detail units as it descends with time-frame for each task have fixed time which gives us a baseline structure. Lets understand some terms: BCWS - Budgeted Cost of Work Scheduled ACWP - Actual Cost of Work Performed BCWP - Budgeted Cost of Work Performed From above terms earned value will be defined as "Cost incurred to accomplish the work that has been done to date." Derived metrics known as Schedule variance and Cost variance, if they fall into ne...
Post a Comment
Read more

Porter's outside-in and Hammel - Prahald's Inside-out

Over the years inspiration and motivation to out do something which creates spark in the genre of concurrent times is always been challenge for all of us, to make things happen requires a plan, an out of the box solution to rationalize its existence. More often than not inspiration are unknown to us, which may leads to different scenarios of multiple ways of looking at things differently and indifferently also, anyways there are always n-1 degrees of freedom to think differently for n+1 different ways looking at things. Inspired by a spiral which is coincidentally a galaxy in our spatial system gives us views like --if one start from a point from outer end to reach at center, will reach from outside-in and if one starts from the center and circle outwards move than that will be inside-out thinking. So again its up to individuals, which way move. Traveling by we see stars and other objects binding each other with gravitational forces. Galaxy One of the many management stra...
Post a Comment
Read more