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Chapter Five Value of I.T

The document discusses how IT investments create value for an organization by enabling other departments to work more efficiently and at lower cost. Specifically, investments in project management, supply chain, and time/billing systems can provide immediate savings and more efficient processes. However, IT value is difficult to quantify precisely as much of its value is intangible. The consultants' report provides insight into why the previous CIO, Davies, was fired and why Barton was chosen as the new CIO, indicating the company wanted to move from a Type 1 IT initiative structure to a more advanced Type 2 or 3 structure that Barton was believed to be capable of achieving.

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Rizza L. Macarandan
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203 views5 pages

Chapter Five Value of I.T

The document discusses how IT investments create value for an organization by enabling other departments to work more efficiently and at lower cost. Specifically, investments in project management, supply chain, and time/billing systems can provide immediate savings and more efficient processes. However, IT value is difficult to quantify precisely as much of its value is intangible. The consultants' report provides insight into why the previous CIO, Davies, was fired and why Barton was chosen as the new CIO, indicating the company wanted to move from a Type 1 IT initiative structure to a more advanced Type 2 or 3 structure that Barton was believed to be capable of achieving.

Uploaded by

Rizza L. Macarandan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Column1

The Value of IT
Refection
How do IT investments create value? Enable value creation?
IT investments make an incentive by adding to the foundation and funding
to the organization. These investments are unmistakable frameworks and
foundation that give current and future value to the organization, yet, they
don't include value on their own. The manner in which these ventures make
value is by empowering different divisions to work all the more
productively and with less expense. They speed measures, which in
wording includes esteem. Concerning empowering esteem creation, I think
this is the place the IT ventures have a superior result on view of the
frameworks that are made can have uncommon reserve funds for the
organization. As expressed the speculations fundamentally empower
different divisions to reduce expenses and speed their work. Venture the
board frameworks, flexibly chain frameworks, and time/charging
frameworks are largely instancing of speculations an organization can make
that will make? Instant value as investment funds and more lean financial
plans.
How might we get a quantitative handle on the level of value provided
by IT? adopted the strategy of finding the general estimation of the
Barton
organization and afterward attempting to think about the amount of an
effect IT has on that number. I think he was destined for success, yet he
simply expected to burrow more profound for some better numbers. The
sum spent on IT as the extent of the organizations generally worth would
give in any event a dollar sum for IT inside the organization. Eventually, IT
has a ton of natural value that can't be handily translated quantitatively.
This makes the scrape considerably more intricate.
What light does the consultants’ report shed on the matter of Davies’
firing and the subsequent choice of Barton as CIO? What (if anything)
does it add to the IT value discussion?

This reveals insight into the thinking for letting Davies go. It shows that
IVK needs to move away from the Type 1 IT initiative structure and toward
a more Type 2, and at the end Type 3 structure. Also, this says that IVK no
doubt considered Barton to be to a greater extent a Type 2 or 3 leader, or
possibly an individual with the higher capability of arriving at Type 2 or 3
on the grounds that there is no motivation to move him to CIO in the event
that they didn't see that potential in him.
How much of IVK obtained from IT?

benefits of IT

Innovation

Increased Revenue

increase efficiency

increase productivity

Risk

Financial Risk

Technical Risk

Organiztional Risk

Compliance Risk

Strategic

Competitive Advantage

Sales Increase

Market positioning

Transational

Cost of IT

Increase througput

Increase effectiveness

Increase Efficiency

Technology

Security

Operations
Management
Operations Efficiency Effectiveness Column1
Column2 Column3

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