Achieving Business Value From Technology by Tony Murphy

By Tony Murphy

Total this booklet introduces a framework of IT funding with actual definitions, sound sensible advices, powerful specialise in worth size of IT. i feel it's a solid reference for IT Strategic Consultant.The framework is so known as 3P: 5 Pillars, approach, humans. The 5 Pillars are Strategic alignment, enterprise technique influence, structure, Direct Payback, possibility. Weighting and scoring technique is seriously used on the making plans and research degree whereas quantitative dimension of every of the 5 Pillars is intensely emphasised by way of the writer.

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Technologies that support these goals and initiatives are more likely to make an impact on the enterprise if they complement process and business model enhancements and are more likely to be supported by business unit and senior management. ■ PILLAR 2: BUSINESS PROCESS IMPACT I have already referred frequently to the changes that have occurred to business models in recent years. This book is mainly about meeting the new challenges posed by these developments 46 ➤ THE FIVE PILLARS OF BENEFITS REALIZATION when it comes to investment in IT.

We saw several examples of this in the previous chapter. As in Sun Tzu’s time, those who do not do so experience failure. While modesty would forbid us from claiming that our framework estimates completely, this is a very practical approach in a wide number of engagements. The comprehensiveness of our approach stems from the three Ps of our framework—Pillars, Process, and People: ➤ Pillars: The Five Pillars of Benefits Realization (strategic alignment, business process impact, architecture, direct payback, risk) define the umbilical cord between business context and IT investment management.

This reflects the discipline’s original purpose, which was to measure physical systems for delivering products and services. Very often, vast sums of money may be spent on building such applications and databases, yet they may not appear on a company’s balance sheet since the accounting systems might treat them as expense items. When we consider that a newspaper title has been deemed acceptable for capitalization, it seems strange that valuable, long-term software resources disappear into the black hole of expense accounting.

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