Preview

Delivering Business Value with It at Hefty Hardware

Good Essays
Open Document
Open Document
514 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Delivering Business Value with It at Hefty Hardware
Chapter 1
IT Value is defined as the worth or desirability of a thing. It is a subjective assessment. The value of IT depends very much on how a business and its individual managers choose to view it. Strategic positioning, increased productivity, improved decision making, cost savings, or improved service are all ways value could be defined.
It is tied to the organization’s business model because adding value with IT should enable a firm to do it business better. One company sees value resulting from all parts of the organization having the same processes; another defines value by return on investment (ROI); still another measures t by a composite of key performance indicators.
IT value proposition is that everyone involved in an IT initiative agree on what value they are trying to deliver and how they will recognized it.
IT Value is a function of people, process, and technology
The Three Components of the IT Value Proposition: Identification- Recognize and evaluate opportunities. Conversion- Transformation of ideas and opportunities into IT value propositions and creating IT value. Realization- Deliver value and ensure that technology is widely accepted
Best Practices in Identifying Potential Value: Joint business-IT structure. Compare value across projects. Utilize a portfolio approach to project selection/prioritization. Establish a funding mechanism for infrastructure.
Conversion: Managerial issues with Conversion More projects than resources: Insufficient time to complete all projects; inadequate technical/business resources; significant business process redesign may be required for implementation of IT. IT value creation can be successfully made by: Excellent project management; Effective execution (e.g. change management); Reliable IT operations
Best Practices in Realizing Value: Measure outcomes against expected results.[Does Expected Value = Actual Value?]; Plan a value-realization phase for all IT projects; Look for and eliminate root causes

You May Also Find These Documents Helpful

  • Powerful Essays

    str 581 finals

    • 1770 Words
    • 8 Pages

    7) The value proposition consists of a cluster of benefits the company promises to deliver; it is…

    • 1770 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Background The case outlines five specific problems at NAF: IT budgeting is misaligned with enterprise strategy, Project decisions are made without cross-functional synergies, Inconsistent business cases, No ability to stop projects, No accountability for delivering benefits. Background After an initial meeting with senior management, Matt and Caroline meet with others in the organization and come up with the following set of principles: Alignment of the IP development portfolio with enterprise strategies Rigor and common standards around IT planning and business casing Accountability in both business and IT for delivering value Collaboration and cross group synergies in all IT work. Background The Team develops the following vision statement: ◦ “Our Vision is for a holistic view of our IT spending that will allow us to direct our resources where they will have the greatest impact. We propose to increase rigor…

    • 797 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mckeen Its2 Pp Cases

    • 871 Words
    • 9 Pages

    IT Strategy: Issues and Practice Second Edition Mini-Cases © 2012 Pearson Education, Inc. Publishing as Prentice Hall Delivering Business Value with IT at Hefty Hardware 1. 2. © 2012 How effective is the partnership between IT and the business at Hefty Hardware?…

    • 871 Words
    • 9 Pages
    Satisfactory Essays
  • Better Essays

    The value proposition - which involve the introduction of a new product or service to market or expand the existing supply (Gitman & McDaniel, 2007).…

    • 1104 Words
    • 5 Pages
    Better Essays
  • Good Essays

    IT 205 final assignment

    • 1253 Words
    • 6 Pages

    • What considerations must be applied when selecting projects that deliver the best business value?…

    • 1253 Words
    • 6 Pages
    Good Essays
  • Best Essays

    We will create long term value by applying project controls oversight, leadership, and partnerships in executing the right projects at the right time and the right cost.”…

    • 3170 Words
    • 13 Pages
    Best Essays
  • Good Essays

    ECN 204 Notes

    • 6284 Words
    • 26 Pages

    -Value added: The value of the product sold by a firm less the value of the inputs the firm purchased from other companies.…

    • 6284 Words
    • 26 Pages
    Good Essays
  • Satisfactory Essays

    Lincoln Douglas Outline

    • 533 Words
    • 3 Pages

    A value is an ideal held by individuals, societies, or governments that serves as the highest goal to be protected/achieved. In general, the debater will establish a value which focuses the central questions of the resolution and will serve as a foundation for argumentation. Explain how the value relates to the topic.…

    • 533 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Cis 500 Exam 1

    • 780 Words
    • 4 Pages

    A value proposition is an analysis of the benefits of using the specific model (tangible or intangible) in business decision making.…

    • 780 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    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 infrastructure and keeping it current is an important component of being able to deliver value. This case speaks directly to the disconnect between IT budgeting practices and financial and business strategy implementation. The case describes how lack of clearly defined expectations, effective governance, and accountabilities can undermine the business-IT relationship and lead to a lack of trust. The case illustrates the need to reduce the proportion of the IT budget spent on maintenance matters and the need for reduction of the complexity of the applications portfolio in order to free up resources to use on discretionary, strategic IT projects. Discussion Questions Cathy Benson, the Director of the newly created IT Investment Office, is tasked with the design and implementation of a detailed investment optimization process to be implemented throughout the bank in time for the next budget cycle. She has three months to do this and it must be in accordance with the five established principles to guide the banks IT investment process. Your task is to design and implement inst/ingeneral-problem idch05genqq01 label1 maxpoints1questionparaDesiA thorough and rigorous method of project categorization and…

    • 1109 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    IBM IT governance

    • 45875 Words
    • 184 Pages

    Note: Before using this information and the product it supports, read the information in “Notices” on page v.…

    • 45875 Words
    • 184 Pages
    Satisfactory Essays
  • Good Essays

    It Guiding Principles

    • 268 Words
    • 2 Pages

    Best Investment Value. Investments in information technology will enable meeting priorities while achieving spending restraint and accountability for investment decisions. Investments must be economically and technically achievable, reusable where practical to…

    • 268 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Rich Picture

    • 558 Words
    • 3 Pages

    The traditional methods of project evaluation such as NPV, IRR, and EVA have been used for many years as the primary methods for IT project approvals in many large corporations. The assumption using in these methods is extremely valid and should be taken into consideration when analysing a project. However, financial indicators are only one factor to be considered when making such decision. Cost reduction is one common benefit and tangible result that often is used to justify a capital investment in any IT project. The BPR Columbus project is no different. Several cost savings can be gained, from efficiencies that the new system can provide. In addition, new capabilities and new business opportunities can be uncovered which typically are not captured in these traditional financial indicators. In other cases, some IT projects, like the Columbus project, some tangible and clear benefits can be measured, which are not based on cost savings, but in creating value, such as increasing sales, increasing brand awareness, etc. It’s crucial, therefore, to evaluate whether the Columbus BPR project will provide such benefits in addition to cost savings.…

    • 558 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    McAfee, A., & Brynjolfsson, E. (2008). Investng in the IT that makes a compettve difference. Harvard…

    • 1385 Words
    • 9 Pages
    Satisfactory Essays
  • Powerful Essays

    safety. The paper looks at ICT security and safety within a company, the risks and…

    • 2313 Words
    • 10 Pages
    Powerful Essays