IT Value in Business
ITM524 – Foundations of Information Technology Management
Module 4 Case
Dr. Julian Achim
More and more these days companies are realizing that Information Technology (IT) plays a crucial role in their day to day business. One such way is by using business intelligence (BI) tools to process immense amounts of data quickly which allows company leaders to make better informed decisions on company business. With new technology and software applications, gone are the days when IT was an afterthought for leaders. However, this has not been an easy task for CIO’s but a constant battle to show leaders how IT affects their value chain. With that being said, organizations are finally inviting IT leaders into their pre-planning meetings and valuing their input into how IT can help the company prosper. Because of this interaction and early involvement, IT solutions have been found to be instrumental in managing complex organizations through things such as network connectivity, tracking tools, and cloud technology all while enhancing business operations. Business Intelligence (BI)
In the fast paced business world of today, BI is one of the key indicators in getting information to business leaders in a timely manner. Companies rely on this information in order to make rapid business decisions that could either make them money or if not acted upon lose them money. With that being said, BI needs to produce qualitative information in a way that leaders can understand along with being flexible to change as the company changes. Therefore, “the purpose of investing in BI is to transform from an environment that is reactive to data to one that is proactive.” (Ranjan, 2008)
One such way IT solutions can foster this proactive transformation is through the use of dashboards. Dashboards can supply leaders with many options that are tailored to the company and can provide them with visual feedback concerning their value chain. Although in the past providing this data was labor intensive for IT personnel, these days technology has advanced so far that data manipulation can be done on-the-spot by company leaders. A few examples of the type of feedback these dashboards can produce are company expenditures as well as profit. With this information, leaders can see immediately where they can cut costs in order to increase their profit margins. As a result, leaders can see immediately the IT value these tools possess.
Unfortunately, these types of tools are expensive for companies to implement. Yet, with IT involvement in all of the planning stages CIO’s can ensure the company’s money is being spent wisely. In addition, company leaders need to include all of the stakeholders that will be responsible for using these IT tools to insure that there are no stones left unturned when implementation begins. Furthermore, for this type of change to be a success all of the staff using the product needs to know how it affects the company as well as k now how the product works. Lastly, with IT as well as all interested parties involvement from the beginning, companies can discover the shortfalls of implementation to include networking, electrical requirements, computer room space, as well as training requirements. IT Struggles
CIO’s face a daunting challenge convincing company leadership that paying for IT initiatives and improving network connectivity is a requirement for successful businesses. This challenge arises since IT usually is an afterthought for leaders and an easy target when it comes to cutting expenditures. That is until some kind of catastrophic failure happens and that is when IT is at the forefront of the leaders mind. However, recovering from a disaster should be included in the overall business continuity plan. Business continuity planning “suggests a more comprehensive approach to making sure you can keep making money, not only after a natural calamity but...
References: Berkman, E. (2002). Balanced scorecard demonstrates IT value. Retrieved December 21, 2014 from http://www.cio.com/article/2440818/it-organization/balanced-scorecard- demonstrates-it-value.html
Pender, L. (2001), How to communicate IT value in business terms. Retrieved December 21, 2014 from http://www.cio.com/article/2442254/it-organization/how-to-communicate-it- value-in-business-terms.html
Ranjan, J. (2008). Business justification with business intelligence. Vine, 38(4), 46-475. Retrieved December 15, 2014, from http://search.proquest.com.ezproxy.trident.edu:2048 /docview/232111207?pq-origsite=summon
Slater, D. (2012). Business continuity and disaster recovery planning: the basics. Retrieved December 15, 2014 from http://www.csoonline.com/article/2118605/pandemic- preparedness/business-continuity-and-disaster-recovery-planning-the-basics.html
Working Council for Chief Information Officers. (2003), IT Balanced Scorecards. Retrieved on December 21, 2014 from www.ism-journal.com/ITToday/AU2621_CH04.pdf
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