Friday, 11 January 2008

IT Strategy:: How much of your investment in IT makes you money and how much saves it?

Brand Killer Robots reveal::
It is true that the Killer Robots began life building medical robots in the prototype lab before moving into a career in IT. It is also true that one of the finest IT Management books ever downloaded was a book written by Henry Firdman, entitled, Strategic Information Systems, published by McGraw Hill. In it, Mr Firdman produces a formula for planning, design and implementation for what he calls "strategic information systems". In other words IT components that are delivered into your business enterprise, that are a direct result of "strategic decisions", formulated by the executive team and through a top-down process actually results in seeding action programs at a grass routes level.

Why you say "that's how its done anyway - isn't it?". Sure, but what Henry Firdman argued was that there should be greater formalisation of the corporate strategic planning process and transparency in planning and implementation, so that all parties can see both the macro and micro mechanics of any particular project. Firdman also considered the impact of IT, in terms of whether IT projects fell into three distinct impact categories

1. Cost elimination benefits
2. Operational benefits
3. Strategic benefits

At the time of publishing in 1991, Firdman calculated about 35% of all projects falling into the cost elimination benefit category, 45% in the operational benefit category and 20% in the strategic benefit category. Firdman argued that the lack of effective, consistent top-down formal IT planning, along with intrinsic problem solving, educational and decision-making gaps were the primary causes of why the focus had been in those areas where quantification of benefits were easier to work out. Strategic benefits had taken a back seat because executives and managers found it harder to perceive the benefits in strategic terms, than they did operational and cost elimination terms.

Whilst High-impact benefits are harder to quantify and even harder to qualify - the rewards can be far greater. Just ask Bill Gates and Steve Jobs about strategic impact.

Its all about wiring the right kind of "Competitive Innovation" into your business.

How much of your investment in IT MAKES YOU MONEY and how much only saves it?

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