A New Framework for IT Investment Decisions
Making Better IT Investment Decisions
A New Framework for IT Investment Decisions is an essential guide to getting more out of IT for business. Fully illustrated and explained with reference to numerous examples from across industries and the world, this is a groundbreaking book for advancing businesses beyond some of the unhelpful investment frameworks of the past, and attaining more accurate, comprehensive and profitable knowledge of how to approach IT projects and systems.
An urgently needed new framework
There is always enormous pressure on businesses to control their spending and maximise the benefits of all investment projects. This applies particularly to IT spending, where the business case for a typical IT project can often be unclear to managers and investors. Any decision on IT investment involves an assessment of the potential costs and benefits. But the benefits are hard or impossible to calculate using traditional measures such as return on investment (ROI). A new framework is needed in order to make better IT investment decisions and this book provides it.
The framework is based on simple ideas about the way in which IT systems interact with a business. Building on these simple ideas, some radical conclusions can be drawn about the nature of IT investment and how it affects a business. These conclusions are very different to the commonly accepted approach to IT investment. Key to the new framework is the concept that most IT spending is geared towards building future capabilities that will not generate an immediate return. These ideas are brought together into a simple decision table that managers will find invaluable in making better decisions about IT projects.
A guide for all business managers
This book is for business executives who need to make investment decisions about IT projects, or who need to understand the thinking behind such decisions. This includes almost all business managers, not just those who are directly concerned with IT. It also includes those in the public and not-for-profit sectors.
1100489163
A New Framework for IT Investment Decisions
Making Better IT Investment Decisions
A New Framework for IT Investment Decisions is an essential guide to getting more out of IT for business. Fully illustrated and explained with reference to numerous examples from across industries and the world, this is a groundbreaking book for advancing businesses beyond some of the unhelpful investment frameworks of the past, and attaining more accurate, comprehensive and profitable knowledge of how to approach IT projects and systems.
An urgently needed new framework
There is always enormous pressure on businesses to control their spending and maximise the benefits of all investment projects. This applies particularly to IT spending, where the business case for a typical IT project can often be unclear to managers and investors. Any decision on IT investment involves an assessment of the potential costs and benefits. But the benefits are hard or impossible to calculate using traditional measures such as return on investment (ROI). A new framework is needed in order to make better IT investment decisions and this book provides it.
The framework is based on simple ideas about the way in which IT systems interact with a business. Building on these simple ideas, some radical conclusions can be drawn about the nature of IT investment and how it affects a business. These conclusions are very different to the commonly accepted approach to IT investment. Key to the new framework is the concept that most IT spending is geared towards building future capabilities that will not generate an immediate return. These ideas are brought together into a simple decision table that managers will find invaluable in making better decisions about IT projects.
A guide for all business managers
This book is for business executives who need to make investment decisions about IT projects, or who need to understand the thinking behind such decisions. This includes almost all business managers, not just those who are directly concerned with IT. It also includes those in the public and not-for-profit sectors.
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A New Framework for IT Investment Decisions

A New Framework for IT Investment Decisions

by Antony Barnes
A New Framework for IT Investment Decisions

A New Framework for IT Investment Decisions

by Antony Barnes

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Overview

Making Better IT Investment Decisions
A New Framework for IT Investment Decisions is an essential guide to getting more out of IT for business. Fully illustrated and explained with reference to numerous examples from across industries and the world, this is a groundbreaking book for advancing businesses beyond some of the unhelpful investment frameworks of the past, and attaining more accurate, comprehensive and profitable knowledge of how to approach IT projects and systems.
An urgently needed new framework
There is always enormous pressure on businesses to control their spending and maximise the benefits of all investment projects. This applies particularly to IT spending, where the business case for a typical IT project can often be unclear to managers and investors. Any decision on IT investment involves an assessment of the potential costs and benefits. But the benefits are hard or impossible to calculate using traditional measures such as return on investment (ROI). A new framework is needed in order to make better IT investment decisions and this book provides it.
The framework is based on simple ideas about the way in which IT systems interact with a business. Building on these simple ideas, some radical conclusions can be drawn about the nature of IT investment and how it affects a business. These conclusions are very different to the commonly accepted approach to IT investment. Key to the new framework is the concept that most IT spending is geared towards building future capabilities that will not generate an immediate return. These ideas are brought together into a simple decision table that managers will find invaluable in making better decisions about IT projects.
A guide for all business managers
This book is for business executives who need to make investment decisions about IT projects, or who need to understand the thinking behind such decisions. This includes almost all business managers, not just those who are directly concerned with IT. It also includes those in the public and not-for-profit sectors.

Product Details

ISBN-13: 9780857190260
Publisher: Harriman House Publishing
Publication date: 10/20/2010
Pages: 200
Product dimensions: 6.30(w) x 9.30(h) x 0.90(d)

About the Author

Antony Barnes is an IT consultant with over 15 years of experience. With a background in system design and programming, he has a strong track record of success in helping companies gain a competitive advantage through understanding and maximising the value of their IT systems. Antony currently works in the area of mergers and acquisitions, helping businesses to maximise the value of their IT investment throughout the deal process. He holds a BSc and MSc from Imperial College, London, and an MBA from Warwick Business School.

Table of Contents

About the Author v

List of Abbreviations vii

Introduction ix

Part I The Problem With ROI 1

Chapter 1 Hard Benefits Are Hard to Find 5

The Unquestioned Logic of ROI 8

ROI: Broken in Theory and in Practice 12

Chapter 2 The Complex World of Computers 15

Why Value Estimation Remains Elusive 21

Part II Towards a New Framework 25

Chapter 3 The Value of Information Systems 29

The Benefits of Applications 37

The Benefits of Technology Infrastructure 40

Chapter 4 Organisational Complexity 43

Chapter 5 The Change Dimension 55

Chapter 6 The Context of Competitive Pressure 71

Part III Applying the Framework to IT Projects 83

Chapter 7 Improving the Way a Business Works 87

Bespoke Software Projects 89

Packaged Application Software 92

Technology-driven Initiatives 95

Chapter 8 Re-shaping the Business Landscape 99

IT Separation 101

Organic Expansion of a Business 104

Integrating Applications 106

Integrating the IT Infrastructure 114

Chapter 9 Big Bang: ERP and Other Mega-projects 117

Chapter 10 Building and Maintaining the Platform 125

Technical Upgrades of Application Software 127

Broad Technology Infrastructure Projects 129

Cost-reduction Programmes 131

Prioritising Business as Usual and Building a Decision Table 133

Part IV Making Better IT Investment Decisions 137

Chapter 11 A Pragmatic Alternative to ROI 141

Business Scope 143

Potential Impact 147

Calculating Value From Improvement Projects 150

Calculating the Benefits of Scaling the Business 153

Calculating the Benefits of Reducing Risk 154

Calculating the Benefits of Options 155

Building a Decision Table 158

Using the Decision Table 160

Chapter 12 Insights and Implications 163

Conclusions 171

Notes 177

Index 185

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