IT value-based management needs to be driven by concepts like collaborative value, collective advantage and multi-layer ROIs.
IT should be run as an integral part of business to create multifaceted corporate value; help the company achieve its business goals and objectives in any way possible.
IT needs to deepen the value chain of business, as well as the value chain of the business ecosystem in which it competes: If traditional IT is inside out operation driven, often being perceived as a cost center by business partners; then digital IT organization today must build a reputation as a value generator of the company. IT strategy is an integral component of the corporate strategy within the framework of innovation and generation of products and services of the organization to attract and keep customers’ satisfaction. As IT enables the business to understand customers deeper via an in-depth understanding of the business value chain and oversight of key business processes. Beside economic value or shareholder value, the value of the company goes to include other forms of value such as employee value, customer value, alliance/channel partner value, managerial value, and societal value, etc.
IT management can help businesses improve net, by optimizing processes, eliminating redundancy, reducing cost of doing business by various means such as right sourcing & sizing, keeping IT cost flat while at the same time maximizing its output so when the business revenue increases. IT leaders are the part of corporate executive teams to keep business strategy in mind. So all parties can agree on the common value proposition, keep a clear business value stream view, make wise IT related investment to improve the top line business growth and at the same time decrease expenses to improve the bottom line.
Value-based IT management needs to be driven by concepts like multidimensional collaborative value or collective advantage and multi-layer ROIs: In order to run a value-added IT organization with pragmatic advancement, IT management should force close relationships with the senior executives and business managers to really understand their goals and plans for expanding their area. They need to properly understand all elements of value that are translated to the entire company cross functions, and how all the pieces and parts of the business are ultimately impacted, for good or bad, by each new IT enabled business initiative.
IT management is able to look at IT-enabled capability-products/services delivery mapping from a “value streams” perspective with logical steps:
-Identify major business value streams (end-to-end processes that deliver corporate value).
-Collect feedback from customers (both internal users and end customers)
-Map information technology related products/services that support business competencies or untapped business capabilities.
-Estimate the “capability leverage,” preferably in value-based measurement, provided, or potentially so, by each of these products/services to each value stream.
-Estimate the business capability (value-based measurement) represented by each value stream
IT value is based on transforming data into intelligence; and leverage intelligence to generate multi-faceted business value: Information is one the most invaluable assets that IT needs to manage scientifically for generating business value. The service IT delivers to the enterprise is transforming data and information into knowledge and intelligence which can help the company explore business opportunities to grow and allow people across the organizational hierarchy to make effective decisions for problem-solving. It’s interesting to see how IT value is in the eye of the beholder. The ability to incubate, grow, protect, and leverage intellectual capital is the greatest value that any forward-looking companies should pursue. IT management should learn how to leverage reliable information for helping business leaders un-puzzle IT investment and assist them in deciding whether or not a technology investment is worth making.
There are tangible (cost saves, efficiency, etc.) and intangible (brand equity, sales enablement, etc.) components of value. IT value can be perceived via the expanded lenses such as strategic imperative, operational excellence, and business agility. Each organization has a set of capabilities that enable it to achieve successful outcomes, whether financial, brand, or double bottom line. IT helps to automate certain tasks and business routines, so the staff can spend more resources and time on innovation. IT helps the company discover new areas which contribute to the business growth, or spot the opportunities to increase revenues. IT enabled workforce management helps the business put the right people in the right position to generate business corporate value.
IT is part of business, IT value can be demonstrated through the rate of employee productivity increases, the rate of new product development increase, the rate of market share gains, the rate of customer satisfaction and retention improvement, and the rate of sales gains, etc. IT value-based management directly impacts the competency of their company.
IT needs to deepen the value chain of business, as well as the value chain of the business ecosystem in which it competes: If traditional IT is inside out operation driven, often being perceived as a cost center by business partners; then digital IT organization today must build a reputation as a value generator of the company. IT strategy is an integral component of the corporate strategy within the framework of innovation and generation of products and services of the organization to attract and keep customers’ satisfaction. As IT enables the business to understand customers deeper via an in-depth understanding of the business value chain and oversight of key business processes. Beside economic value or shareholder value, the value of the company goes to include other forms of value such as employee value, customer value, alliance/channel partner value, managerial value, and societal value, etc.
IT management can help businesses improve net, by optimizing processes, eliminating redundancy, reducing cost of doing business by various means such as right sourcing & sizing, keeping IT cost flat while at the same time maximizing its output so when the business revenue increases. IT leaders are the part of corporate executive teams to keep business strategy in mind. So all parties can agree on the common value proposition, keep a clear business value stream view, make wise IT related investment to improve the top line business growth and at the same time decrease expenses to improve the bottom line.
Value-based IT management needs to be driven by concepts like multidimensional collaborative value or collective advantage and multi-layer ROIs: In order to run a value-added IT organization with pragmatic advancement, IT management should force close relationships with the senior executives and business managers to really understand their goals and plans for expanding their area. They need to properly understand all elements of value that are translated to the entire company cross functions, and how all the pieces and parts of the business are ultimately impacted, for good or bad, by each new IT enabled business initiative.
IT management is able to look at IT-enabled capability-products/services delivery mapping from a “value streams” perspective with logical steps:
-Identify major business value streams (end-to-end processes that deliver corporate value).
-Collect feedback from customers (both internal users and end customers)
-Map information technology related products/services that support business competencies or untapped business capabilities.
-Estimate the “capability leverage,” preferably in value-based measurement, provided, or potentially so, by each of these products/services to each value stream.
-Estimate the business capability (value-based measurement) represented by each value stream
There are tangible (cost saves, efficiency, etc.) and intangible (brand equity, sales enablement, etc.) components of value. IT value can be perceived via the expanded lenses such as strategic imperative, operational excellence, and business agility. Each organization has a set of capabilities that enable it to achieve successful outcomes, whether financial, brand, or double bottom line. IT helps to automate certain tasks and business routines, so the staff can spend more resources and time on innovation. IT helps the company discover new areas which contribute to the business growth, or spot the opportunities to increase revenues. IT enabled workforce management helps the business put the right people in the right position to generate business corporate value.
IT is part of business, IT value can be demonstrated through the rate of employee productivity increases, the rate of new product development increase, the rate of market share gains, the rate of customer satisfaction and retention improvement, and the rate of sales gains, etc. IT value-based management directly impacts the competency of their company.
0 comments:
Post a Comment