Quantifying Information Technology Value

Key Issues At NAF, delivering value with IT is about more than delivering projects on time and on budget or having a good IT development shop. They have all this but theres still not enough value getting delivered. This case explores the questions of who is responsible for delivering value with IT and when IT value is delivered. It emphasizes that value delivery should be a business-IT partnership responsibility and will require change in the business over time. The first part of this case looks at the relationship between business strategy and IT development projects. It makes it clear that enterprise business strategies need enterprise solutions and a procedure for matching these. It also introduces the concept that investing in IT

This article makes up Chapter 1 of the free, open access book titled, Information Systems: A Manager's Guide to Harnessing Technology, by John Gallaugher. Please ensure that you read the entire Chapter 1 of the book consisting of 3 parts (Part 1 Introduction; Part 2 Don’t Guess, Gather Data; and Part 3 Moving Forward).

Like many of its most profitable competitors, Alcan has grown quickly through insightful series of mergers, acquisitions and rapid product development and launch strategies throughout the major markets it sells into. The company has settled on a highly decentralized divisional business model that has to the point of the case study served them well. Their IT systems are showing signs of massive overduplication of expense, with a $500M level of spending on enterprise applications with SAP being the majority. There are further signs of massive waste in their highly diversified organizational structure. There are 400 systems in the company all dedicated to pricing, a massive duplication of costs, time and effort on the part of IT across the five divisions. There are also over 1,000 concurrent enterprise-class IT systems being used throughout the company at any point in time. Conservatively speaking the company is spending 20% of their total enterprise software spend on maintenance costs alone. This is forcing the CIO, Robert Ouelette, to re-evaluate both the organizational structure and IT systems supporting it. The goals of this analysis are to evaluate the advantages and disadvantages of the existing application or IT management structure. An analysis of the proposal by Robert Ouelette is also provided along with an assessment of it potential effectiveness in solving the challenges is facing today.

The major elements are cost efficiency, eliminating wastes, and researching future IT investments. In the IT Doesn’t Matter article, three main points were outlined, and they were spend less, follow, don’t lead, and focus on vulnerabilities, not opportunities. Overspending has always been a major issue in regards to applying new technology, and it is important to execute an IT budget for any organization. Office Depot adopted new technology to improve all of their operations, especially in the supply chain. They were able to increase efficiency, while modernizing their budget. Information technology can benefit any organization if they are researched thoroughly and will improve the business needs of the organization. If it will not improve the business needs, there is no need to invest in expensive technology. The most important phase in the system development life cycle is the systems analysis phase. The goal of this phase is to identify what problems need to be fixed and breaking down how the system will benefit all users. Therefore, the business needs need to be identified and outlined before new technology is adopted into an organization’s business model. Once new technology is applied, organizations must continue to research information technology. If organizations follow these elements of

What does the data show – identify metrics to sell the business case to upper management

Copyright 2009 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America This chapter was originally published as chapter 1 of The Adventures of an IT Leader, copyright 2009 Harvard Business School Publishing Corporation. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the

Porter’s Value Chain Model (MIS 585 2017 Module 2 slides) categorizes activities as Primary and Support activities. The IT organization led by Matulovic

iPremier’s IT was in the offensive quadrant /strategic mode of the IT strategic grid and to detriment remained at stage one of the evolution of IT governance (Nolan and McFarlan, 2003, Rau, 2004). All of their business was conducted online with highly affluent clientele, therefore any service loss/failure could have detrimental effects on the business in a very competitive industry sector. I have identified business continuity, governance and performance measurement issues as the three key factors that led to the iPremier crisis.

Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 Six IT Decisions Your IT People Shouldn’t Make 10 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications

This paper highlights viability of having a new product offering by Medstreaming Company namely a Business Intelligence Balanced Scorecard specifically designed for the healthcare sector. Focus of the study is on identifying the appropriate measurement metrics for the balanced scorecard. The project has added knowledge to the critical issues which need to be addressed by the healthcare organizations in implementing the Business Intelligence Balanced Scorecard product within the system. This project also discusses the benefits which the proposed business intelligence tool once implemented in a healthcare organization can provide for all hierarchical levels of the organization.

According to the value chain analysis, a business adds value to its products or services through a series of activities it performs within the company. First, the primary value activities describe the production, the selling, and after-sales support for its products and services. Second, the support value activities describe all business functions needed to provide the human resource, the technology, the infrastructure, and the supplies (Baltzan, 2012). EG Inc. coordinates all its value-adding activities using an MIS infrastructure, comprising of a supply chain management (SCM) system, customer relationship management (CRM) system, and enterprise resource planning (ERP) system, and as a result increases productivity, reduces cost, optimizes business operations, generates growth, and increases profitability (Baltzan,

Information systems are a crucial part of business and their road to being successful and profitable. This paper describes what an IS strategy is and the roles it takes in organizations. It also talks about Porter’s Five Forces Model, which describes the problems organizations have to face in order to be a competitor in its market. The Value Chain is a model that companies look at to gauge its business processes. This paper describes what the value chain is and how information systems can improve the processes of the value chain. There are three competitive strategies for business that were identified by former Harvard Professor Michael E.

The readings this week discuss the challenges of competing in the information age and the management information system tools managers can use to help them support the business strategies. With so much data available, there is an opportunity and advantage for companies to utilize information systems to capture and make sense of this information. There are a variety of information system modules that are available, including Customer Relationship management (CRM), Supply Chain management (SCM), Human Resource management (HRMS). While they all have their own emphasis, the advantages of each of these modules include the ability to store data, create reports that enable management to make sense out of the data, and share this information, in real time, throughout the organization. With good input data, information systems can provide a company with a competitive advantage in the marketplace.

            The Value-Chain was conceptualized and popularized by Porter in 1985 through his book, a best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. The main thrust of “the value-chain” is to categorize the generic “value-adding activities” of an organization. The value-chain management tool recognizes two value-adding activities in an organization, the “primary activity” and the “support activity”. The primary activities includes the following, inbound logistics, production, outbound logistics, sales and marketing, and maintenance. Support activities include administrative infrastructure management, human resources management,

Brown/DeHayes/Hoffer /Martin/Perkins, Managing Information Technology 6/e © 2009 JessuplValacich, Information Systems Today 31e © 2008 Kr oenke, Using MIS 21e © 2009 Kr oenke, Experiencing MIS © 2008 Laudon/Laudon, Management Information Systems 10le © 2007 Laudon/Laudon, Essentials of Management Information Systems 81e © 2009 Luftman et aI., Managing the IT Resource © 2004 Malaga, Information Systems Technology © 2005 McKeen/Smith, IT Strategy in Action © 2009 McLeod/Schell, Management Information Systems 10le © 2007 McNurlin/Spr ague, Information Systems Management In Practice 7Ie © 2006 Miller, MIS Cases: Decision Making with Application Software 41e © 2009 Senn,