THE BUSINESS VALUE

OF IT
The IT business value
• Develop a case for IT look at the type of financial goals that
can be achieved from:
• Cost savings, revenue growth, asset efficiency, sustainable
advantage
• These depend on identifying the impact of IT on strategy
capability drivers
• IT must tell a story
• Why this: communicate why this is good to pursue will you
achieve it
• Why now ; how long will it take to implement and deliver
• Why you are you well connected with key stakeholders, do you
have political power, creditability and sponsorship, passion and
commitment
Can IT Drive Cost Savings
• To identify capabilities:

• Streamline and integrate nonrevenue generating process;

• Improve productivity cycle time,
• Effectiveness of non revenue generating processes
• Improve performance of non revenue generating employees
• Decrease cost of current business operations
Can IT drive revenue growth
• STRATEGY
• Improve new product development process to increase speed
to market effectiveness of new product launch
• Improve generating processes(marketing ) to increase
customer satisfaction, loyalty, lifetime value
• Provide relevant actionable information and analytical tools
to business decision makers
• Improve market segmentation & personalisation to expand
market penetration
• Enter new markets or increase market spending from existing
customers
• Launch new information based products services and
solutions
Can IT drive asset efficiency
VALUE
• Create shared services, self service portals & centers of
excellency
• Outsource to take advantage of low cost labour markets &
scarce expertise
• Build a modular flexible open source IT architecture
• Attract develop & retain top IT talent
• Create IT development deployment, & operating
processes that decrease the cost time & effort needed to
launch new value creating IT applications
• Develop best in class security & risk mgt. systems
Can IT create sustainable advantage
• Differentiate products
• Launch new IT enabled products or
businesses in high growth markets and
industries
• Increase barriers to entry or switching cost
• Decrease the time cost & success of
pursuing incremental and radical
innovations