The IT Value Network: From IT Investment to Stakeholder Value

by Tony J. Read

• ISBN13: 9780470541869
• ISBN10: 0470541865
• Format: eBook
• Copyright: 2009-09-01
• Publisher: Wiley

Summary

Learn to measure and manage the real value of IT investment and spendingIT investments are becoming more than just business enablers or assets on the books; they provide capability that can drive the business. Thought leadership should migrate towards information investment, getting a bigger bang for the buck from the 'I' in IT and from the 'I' in CIO.Your organization needs a new kind of IT investment management system, built to optimize the IT value-creation of the company network. Just looking at financial or accounting measures of value is a short-term focus and a lag indicator, while focusing on productivity measures does nothing for the intangible value and intellectual capital generated.The IT Value Network: From IT Investment to Stakeholder Economic Value incorporates new emerging decision support methods, such as real options, which are considered to complement traditional financial measures. Organizational and informational economic based techniques are also incorporated to manage and assess IT investments, including the balanced scorecard (BSC), and investment and portfolio management; in addition to coverage of IT key performance indicators and competitive benchmarking.The IT Value Network: Provides a proven framework to unlock and realize IT value, which bridges the value gap between the CIO and business partners, especially the CFO and the Board Shows how value needs to be triangulated with other stakeholder/scorecard measures Provides a six degrees of IT value model and maturity model for managing IT investment Includes cases and implementation guidance making the methodology easy to applyIn the current economic climate, the tendency is to focus IT investments on short-term profitability. The IT Value Network offers a forward-looking perspective, challenging you to align IT spending more effectively to the company business strategy, value system, and the business network, for sustained competitive advantage or network advantage.

Table of Contents

Foreword

Preface

Acknowledgments

Status Quo - Where's The Value?

IT Investment

Sticker Shock

Six Decades of IT Investment

IT Investment Trends

IT Investment Classification: Four "S" Model

Future IT Investment

Conventional IT Valuation

Bottom Line

Shareholder Value Maximization

Conventional Asset Valuation

Challenging Conventional Norms

Lost Value

Banking Value

Financial Services Industry Global IT Investment

North American Banking Industry

North American Banking Market Challenges

Banking Industry IT Value Observations

NA Bank Case IT Investment Observations

Triangulating The Value - Somewhere Here

IT Value Network Measurement

Identifying Investment

Justifying Investment

Prioritizing Investment

Selecting Investment

Performance of Investment

Realizing Value from Investment

IT Value Network Measures: Financial-Based Methods

Traditional Financial and Accounting Techniques

Emerging Financial Techniques

Emerging Decision Support Techniques

Value-Creation Business Case

IT Value Network Measures: Organizational-Based Methods

Conventional Planning Techniques

Emerging Organizational Management Techniques

Emerging Information Economics Techniques

Triangulating IT Investment Value

Value Index and Value Lens

IT Value Portfolio

Six Degrees Of Value - There It Is

IT Value Network Management

Value Capture

Value Enabling

Value Optimization

Value Realization

First Degree

Value System

Process and System Improvement

Second Degree

Strategic Planning

Portfolio Governance

Third Degree

IT Systems and Infrastructure Capability/Capacity

Organiation and People Capability/Capacity

Fourth Degree

Program and Project Management

System Management

Fifth Degree

Service Management

Information Management

Sixth Degree

Networked Value Management

It Value Network Clients- Did It, Got It

NA Bank

Challenge: Strategic IT Investment Alignment

Solution: IT Value Network

Impact: IT Investment Redirection for Higher Value Capture

Nortel Networks (Nortel)

Challenge: Speed of Market Change

Solution: IT Value Network

Impact: IT Reorganization and Improved Capability for Value Enabling

Indigo Books And Music (Indigo)

Challenge: Project Management

Solution: IT Value Network

Impact: Project Management Office Driven Value Optimization

Na Credit Union

Challenge: Credit Union Merger

Solution: IT Value Network

Impact: Successful Bank Integration for Value Realization

Emerging Reality - Do It, Value It

Forward Thinking

Value Networks

Value Systems

Value Options

Maximizing Stakeholder Economic Value

Joining The Dots

IT Value Network Maturity Model

IT Value Network Checklist

Collaboration for Network Advantage

Value IT

Glossary

Notes

About the Author

Index

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