subject: Are Your It Investment Strategies Providing "value For Money"? [print this page] Part of the reason for inadequate ROI from IT financial commitment strategies comes from companies concentrating on employing technological innovation and not on conference well articulated company advantages.
IT financial commitment is not just about technological innovation. CIOs should concentrate on determining and handling the shipping of company advantages. This concentrate contains interesting company supervisors and IT experts in a way that allows them to apply their combined knowledge to creating company value.
To assess the value of an IT-investment is still a complex and uncertain process.
How can control ensure that financial commitment strategies made in IT are not a spend of money?
A key idea behind a well know IT Government structure - Val IT - is to logically choose those IT financial commitment strategies that have the best potential to create value, and handle all IT financial commitment strategies to increase value.
Val IT is a package of guides created by the IT Government Institution (ITGI) that offer a structure for the governance of IT financial commitment strategies. It is a official declaration of concepts and procedures for IT collection control. The collection strategy to handling IT tasks means that experts will take action when financial commitment strategies aren't providing the preferred outcomes, just as common finance supervisors would towards shares in their financial commitment collection.
Val IT represents the idea of value by checking out if an company has:
a obvious knowing of benefits
clear responsibility for benefits
relevant metrics
an effective advantages understanding process
An important issue in knowing the company value of it is showing the advantages of IT in a style that mature experts and selected panel associates can link with.
Results - are they value the cost paid? Board associates often ask if the outcomes are value the cost compensated. Fact-based statistic of excellent opportunity, work accomplished, complete expenses and styles are required for perfectly responding to this concern. The more maturation proven by the IT Management team in the capability to response this concern, the more capable in making advised collection choices that effect the prioritization of company imperatives.
Do provided alternatives fulfill objectives fully? With this, we also ask whether the huge selection of business guidelines, such as security, structure quality, risk and so forth, are fulfilled by the alternatives provided. The capability to response this concern across a collection of tasks drive provided outcomes which are constant. Increasing the significance of this concern also has procedure significances, which offer a major sign of the completeness of the solution. These procedures allow governance to be more than a assistance exercise.
