Assignment: IT And Business.
Assignment: IT And Business.
ORDER NOW FOR AN ORIGINAL PAPER:Assignment: IT And Business.
So Who Should Make the Decisions?
• Ross & Weill say • The CEO should not make those decisions alone • C-level executives should not even make those
decisions • Input is needed from both IT and the business units
alike • Steering (or Executive) Committee solution
© 2016 John Wi ley & Sons, Inc. 12
Building a Business Case – Components
• Executive Summary
• Overview and Introduction
• Assumptions and Rationale
• Project Summary
• Financial Discussion and Analysis
• Benefits and Business Impacts
• Schedule and Milestones
• Risk and Contingency Analysis
• Conclusion and Recommendation • Appendices
© 2016 John Wi ley & Sons, Inc. 13
© 2016 John Wi ley & Sons, Inc. 14
Sample of benefits in a business case for adding chat function linked from Facebook page
Busy chat operators; busy Facebook page; Customers seem happier
Sales improved by $250k; costs decreased by $50k after change
Facebook page likes; number of chats; Customer satisfaction scores moved from 3.3 to 4.1 (out of 5)
Converted 150 calls per day to chats; reaching 200 more customers per day
© 2016 John Wi ley & Sons, Inc. 15
IT Portfolio Management
• IT investments should be managed as any other investment.
• Evaluate and approve IT investments as they relate to other potential investments of all kinds
• Goals: • Pick the right mix of investments
• Invest in the most valuable IT initiatives
© 2016 John Wi ley & Sons, Inc. 16
• Weill and Aral say that there are four asset classes of IT investments: • Transactional systems – systems that streamline or cut
costs on business operations.
• Informational systems – any system that provides information used to control, manage, communicate, analyze or collaborate.
• Strategic systems – any system used to gain competitive advantage in the marketplace.
• Infrastructure systems – the base foundation or shared IT services used for multiple applications.
© 2016 John Wi ley & Sons, Inc. 17
Average company’s IT portfolio profile (See Discussion Question 4)
© 2016 John Wi ley & Sons, Inc. 18
Comparative IT portfolios for different business strategies (See discussion question 4)
Valuing IT Investments
• Soft benefits, such as the ability to make future decisions, make it difficult to measure the payback of IT investment • IT is expensive, thus under close scrutiny. • IT is complex; calculating the costs is an art, not a science.
• Payback period for infrastructure is much longer than other types of capital investments.
• With necessary systems (due to laws, etc.), the payback period cannot be calculated
• Many valuation methods are available…
You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.
Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.
Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.
The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.