The IT department can add real value to a business if
allowed to implement a few key strategies. For example, cost and
time savings can be made by simply identifying all the initiatives
currently under way or planned within an organisation.
In a process known as "theming", projects are analysed in order
to identify mutual goals. Any overlaps can then be identified and
eliminated, so reducing time and costs spent duplicating work. The
remaining initiatives can then be organised into themes.
Psychologists have shown that human short-term memory can only
deal with between five and nine things at one time, but this number
can be extended by grouping. Why not follow the same principle when
it comes to rationalising the tasks of the IT department?
A medium to large organisation will, for example, have between
75 and 250 initiatives on the go at one time. Each will have its
own individual budget and is likely to take longer than three
months to complete.
Of these initiatives, 80% could probably be fitted into the
requisite five to nine themes. If the IT department can group
projects together in such a way, less time will be wasted on
replication of basic requirements. In addition, theming projects
may help to keep development in line with the organisation’s
strategy.
The IT department can also be used to monitor the benefits of
multiple projects as they spread across an organisation. It can
break down cost and efficiency benefits, for example, according to
whether they come from improved use of resources or increased
return on investment.
Tracking a portfolio requires layers of detail from projects and
sub-projects up to departments or business functions, then to
themes and finally the grand picture of costs versus benefits for
the entire organisation. If you do this just for the IT systems,
you will have a final picture of the value that IT adds to the
business.
All the above activities are within the competence of the IT
department, and do not involve a coup d’etat in the business.
By analysing and tracking business performance, the IT
department can significantly increase its importance to the
business. Its unique perspective, an IT perspective, can unearth
value within every aspect of the business’ activities. Many chief
executives feel that this does not go far enough: that IT should
impose solutions on the business and that IT should drive change in
spite of business protests. However, this is self-defeating. For
example, I know of one large organisation whose IT department
approached everything through a process approach. It mapped out and
tracked all the business processes.
Rather than IT staging a coup d’etat, the board abdicated its
leadership role. It considered IT soley responsible for all the
business problems. This is also far from a healthy solution. So the
issue is one of balance. And true alignment can surely only occur
if IT takes a co-operative role, rather than a confrontational
one.
What Business Really Wants From IT, by Terry White, is part
of the Computer Weekly Professional Series, to order a copy,
click here
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