1 / 7

MISY 300 The Business Value of IT

MISY 300 The Business Value of IT. Introduction. Business Value. Profit = Revenue – Expenses Yes, but… There is a lot more to business value than that Multi-dimensional output Different observers apply different weights to different dimensions at different times. Examples of Business Value.

merlin
Download Presentation

MISY 300 The Business Value of IT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MISY 300The Business Value of IT Introduction

  2. Business Value • Profit = Revenue – Expenses • Yes, but… • There is a lot more to business value than that • Multi-dimensional output • Different observers apply different weights to different dimensions at different times

  3. Examples of Business Value • Can you think of any?? • Financial return on the investment made in the development of a new product or service • Building an infrastructure that facilitates other business (i.e., shopping center) • Ensuring that a current business service continues to be available and does not fail • Beating competitors to market • Responding quickly when competitors beat you to market

  4. Role of IT in Business Value • How much value does IT add? • Carr’s IT doesn’t matter • BIGGER question: how do we measure value? • The right metrics are available, can be implemented and have been shown to work

  5. Measuring Value • “IT has traditionally measured itself in very technical terms that don’t mean much to people outside of IT” • Identify IT metrics that do have meaning for people outside of IT • Explaining some important IT metrics in a way that people outside IT can readily appreciate.

  6. This term • Techniques, methods and processes to identify and assess risks, to measure performance, to put a dollar value to IT, and to measure and justify the measurement program. • Measure results -> improve IT processes -> deliver value… then do it again

  7. Four Challenges • Business value: “what does IT contribute to the business?” • Governance: “why should care about IT governance?” • Activities of the IT organization need to be prioritized to maximize the value delivered to business or businesses being served in the short, medium and long term • Performance: “how should we measure IT performance?” • Why should we measure? Is a given. If you can’t measure it, you can’t manage it. • Implementation: implementing change through people

More Related