1. The document discusses frameworks for evaluating IT investments and measuring their efficiency and impact on business performance. It provides models for assessing costs, benefits, and value added by IT.
2. Key factors that influence the success of IT projects are identified such as strategic alignment, clear objectives, management processes, and maturity of business judgement. Common causes of project failure include neglecting strategic considerations and overfocus on costs.
3. Metrics are suggested for measuring improvements from implementing integrated systems like ERP. Case studies demonstrate how organizations achieved efficiency gains, cost savings, and better decision making through IT.
1. “ Evaluating IT Investments and measuring efficiency / improvements”
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4. Main objective of assessing IT Implementation Projects is to improve IT’s contribution to the overall business and not just measure the contribution Overall Frame Work
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6. IT Provides “Business support” Acts as a “Performance driver” (along with other main management functions - Marketing, HR, Product Development, Knowledge Management etc.,) Overall Frame Work…
7. Thus, IT can provide an edge over competitors and improve the efficiency and effectiveness of business processes in line with best practices Therefore, the interaction of business processes with IT is of Paramount importance Overall Frame Work…
8. Conduct Business Conduct IT Improvements studies Performance studies Select Key Processes & Functions (Functional analysis of business to compare business processes / services with industry standards) (How effective the IT systems are)
9. Select Key Processes & Functions... Co-relate these two studies IT Performance should be associated to Business Key Performance indicators Value of IT in the Business Environment
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14. Eg: Increased Profitability CSFs - World Class Cost Management & Market Share For CSF ‘Cost Management’ IT Value Chain...
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16. At the last level, Identify the success of the interactions between Business & IT Measure short comings by comparing performance metrics with other companies IT Value Chain...
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84. “ Main objective of assessing IT Implementation Projects is to improve IT’s contribution to the overall business and not just measure the contribution Back to the Objective…