Globally, computer and telecommunications
investments now amount to half or more of most large companies' annual
capital expenditures. Whatever IT investment is made, one thing is
clear: it must be viewed as a "value producing" proposition,
in line with the strategic goals of your organization. Technology
alone does not provide value - it is its application to the business
that can add benefits.
Developing
the IT Scorecard reveals the tools, techniques and approaches that
separate the winners from the losers in IT evaluation and performance
measurement. Drawing on case studies of pioneering organizations
in the UK, Europe and US, it offers a blueprint based on actual,
successful experience - often learned the hard way - for planning
and implementing IT evaluation and performance measurement across
the systems life cycle.
Chapter
One: IT Evaluation - Trends, Eras and Challenges
Chapter one looks at the importance of evaluating IT with the goal
of understanding costs, types of benefits derived and guidelines
for measuring those benefits
Chapter
Two: A Survey of Current Evaluation Trends and Practices
As part of the research for this report Business Intelligence and
the Oxford Institute of Information Management conducted an extensive
survey into how IT evaluation practices are managed in leading organizations
throughout the UK, Europe and the US. This chapter summarizes the
survey results, enabling you to see how your company's evaluation
practices and techniques measure up against the average, best
and worst in the field.
Widespread
customer dissatisfaction and the desire to become a business-focussed
IT organization led to the introduction of a customised IT measurement
portfolio for the UK Post Office's IT services, including the Balanced
Business Scorecard, EFQM initiatives, an investigation into the
benefits of outsourcing and the implementation of ongoing customer
surveys. The new measurement regime provides not only direction
for the future of the organization, but also an effective management
tool that is ingrained within the IT culture.
Chapter
Three: Planning Prioritization and the Feasibility of IT Investments
Overall planning and prioritization of IT projects can provide a
bird's-eye view showing how various projects interrelate to each
other and to other initiatives and operations within the organization.
This chapter examines planning and prioritization, feasibility assessment
and benefits management approaches, reinforcing the need to focus
on life cycle evaluation and quality IT investments.
An examination
of evaluation at a division of SunAlliance uncovers both strengths
and weaknesses in their system's life cycle approach and reveals
key lessons in alignment and prioritization.
Chapter
Four: Risk Assessment and Management
Chapter four explores risk assessment and risk management. It reviews
why projects fail in order to glean insight about project risk
and other project variables requiring management. It also looks
at frameworks for diagnosing risk as the basis for failure/success
of a project, reviews successful risk analysis examples and finally,
from a risk analysis perspective, extracts a set of variables that
need to underlie measurement going forward.
Chapter
Five: Project Management and Post-implementation Evaluation - Methods
and Approaches
Chapter five looks at evaluation from the IT project process through
to post-implementation. Several popular management and development
methodologies will be reviewed here against project/risk variables.
The California
Franchise Tax Board faced problems when it needed funding from the
California legislature for critical technology improvements. Because
of several recent IT disasters involving other Californian public
sector agencies, the legislature was unwilling to commit to funding
for unproven IT projects. A performance-based procurement process,
underpinned by benefits funding, provided the lever FTB needed to
get the project go-ahead.
Chapter
Six: IT Assessment - Taking a Balanced Business Approach
The development and use of a scorecard provides the organization
with the opportunity to agree on and disseminate a clear organizational
strategy, deliver this in detail and continually improve on delivery.
Chapter six covers the conceptualization and use of balanced business
scorecards, the use of which can align IT usage with organizational
strategy.
GenBank
needed to modify its approach to business in general and to IT in particular
in order to maintain its customer and profit base. Ultimately, the
IT group decided on the balanced scorecard as the vehicle for carrying
out a new measurement and management programme.
Chapter
Seven: IT Benchmarking - van Nievelt's BOP Approach
Chapter seven examines benchmarking techniques in general and van
Nievelt's approach in particular. This approach avoids significant
problems inherent in many benchmarking initiatives and, if used
correctly, helps to diagnose and redirect organizational competitive
performance.
Chapter
Eight: Outsourcing as a Catalyst for Improved Evaluation Practice
Chapter eight explores outsourcing and its relationship to the evaluation
process.
Chapter
Nine: Assessing the Business Value of Internet-based Electronic
Commerce
The contribution of Internet-based electronic commerce to the business
has to be clearly defined before the allocation of resources. Chapter
nine examines the economics of electronic commerce.
When European
fashion retailer C&A decided to conduct market research among
a group of buyers not attracted by its retail outlets it chose the
Internet as its medium. Business needs and objectives were clearly
defined, the potential contribution of the Internet was examined
and evaluated against alternatives and specific goals, and expectations
were defined along with suitable metrics. But the main problem
was in measuring the overall success of the project.
Chapter
Ten: Key Emerging Issues in Information Technology Evaluation
Chapter ten covers a number of special issues pertaining to evaluation,
including the Year 2000, EMU, EFQM, infrastructure issues, mergers
and cost of ownership.
The case
Study on Royal and SunAlliance UK Life Pensions provides an effective
illustration of the interaction between technology evaluation and
a number of special issues covered in this chapter. The case study
describes the business and technology contexts of the merged organization.
Chapter
Eleven: Conclusion - An In-depth Look at Integrated Performance
Measurement
This Chapter presents a case study that ties together the issues
and evaluation approaches by pointing towards integrated performance
measurement as a process: a set of techniques facilitated by computerized
tolls.
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