Business Benefits of Social Networks Exist, but …

When I see / read articles like this, or hear the breathless claims of vendors, pundits, and True Believers, I'll privately chuckle to myself. All of this stuff - social networking, collaboration, and innovation - are 21st century takes on good old Knowledge Management (KM), circa 1998. Do these sound like presentations from your recent Enterprise 2.0 conference? Managing Cultural Change to Create a Knowledge Sharing Environment Effectively Managing Information Overload in the Information Age Information Content and Security in…

Five More Realities for Driving Business Value from Technology

31 January, 2008
Business Value of IT
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Dennis McDonald's recent post listed Ten Realities of Managing and Using Technology to Generate Business Value. I think a few of these items need some elaboration ... Implementing a technology based solution without understanding the costs is a big mistake ... and most projects only consider TCI - Total Cost of Implementation. This typically includes acquisition, first-year maintenance, and professional services (or internal IT time) to integrate with existing systems. Smart managers will add in Recurring Costs, such as annual…

Measuring and Reporting IT Value (2 of 2)

My last post generated some interest, so here's the rest of the examples. Last time, I wrote about the simplistic approach to measure and report on IT value: Is your IT group working on the right things? Are they working on the right things well? Is your IT spend comparable to industry norms? Is your IT spend comparable to other measures of company performance? A bit more detail ... balancing quantitative and qualitative ... (Quantitative) To make sure you have…

Measuring and Reporting IT Value (1 of 2)

This started off as a quick response to a question on LinkedIn Answers ... but I got on a roll ... Here's a simplistic way to measure and report on IT value: Is your IT group working on the right things? Are they working on the right things well? Is your IT spend comparable to industry norms? Is your IT spend comparable to other measures of company performance? A bit more detail ... balancing quantitative and qualitative ... (Quantitative) To…

Defining the Business Value of a Project

25 October, 2007
Project Management, Business Value of IT
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I'm following a project management meme lately; while freely admitting that I'm oversimplifying some complex topics, I will forge ahead with ... project "value". At work, we've been talking about the classic challenge of putting a business value on a project. I call it a "classic" challenge because it's a basic requirement for every prioritization exercise that I've been exposed to. You know the drill - we have 10 projects, but only time and resources to do 5. How does…

Chargebacks Redux – Some Good May Come Of It

Okay - to be fair, that really wasn't the end of the chargebacks conversation. One of my cohorts suggested that we each come up with an argument counter to our position; I needed to come up with something "good" about chargebacks. Actually, it's quite easy to come up with the one good thing; the only problem is that it's something that most IT departments can't take advantage of ... Transparency Many business units, dissatisfied with the speed, efficiency, general business…

Yet Another Discussion on IT Chargebacks

It felt anachronistic, getting into a surprisingly good conversation on the pros and cons of IT chargebacks this past week ... We're not seriously thinking about it (thank goodness), but a group of us did go through the intellectual exercise of discussing the good/bad/ugly of such an approach. Unfortunately, most of the "debate" focused on positive and negative experiences in the past. I think this is not an effective way to petition for such a change; it would be better…

Open Source Insights on Enterprise Software Business Models

A recent Slashdot posting pointed to a presentation from EclipseCon earlier this month, given by Brent Williams, an equity research analyst who used to be in the software business. A few things really caught my eye … Take some time to flip through the original presentation; there are some interesting insights about the nature of the enterprise software industry (the SAP, Oracle, and Microsoft crowd). Three of the lightbulbs that went off in my mind ... (Slide 10) [By folding…

Misapplying the Pareto principle

8 January, 2006
Project Management, Business Value of IT
2 Comments

Here's an interesting phenomenon I've encountered before ... When analyzing a specific section of a business, people seem to naturally focus attention and conversation on the top two or three customers/products/vendors that together represent (say) 20% of the revenues/costs/contracts. Our objective is to look at the data and identify opportunities (increase revenues, cut COGS, aggregate contracts); unfortunately, processing the data for these customers/products/vendors is currently a 100% manual task. Of course; this is why there is apparently so much "opportunity"…

Of course we can pay for that … if it makes business sense

Had a good conversation with a vendor last week. They were looking to increase their business with us, no surprise there, but the rep was actually a bit cynical (in a nice way), and (probably wisely) asked directly what the chances were that we could actually get Project X off the ground? I've seen these great ideas start, but then some manager complains that they have no budget for this kind of thing. In retrospect, it is almost a rude…