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Measuring the Business Value of Information Technology deals with computers/software.
The importance of demonstrating the value achieved from IT investments is long established in the Computer Science (CS) and Information Systems (IS) literature. However, emerging technologies such as the ever-changing complex area of cloud computing present new challenges and opportunities for demonstrating how IT investments lead to business value. Recent reviews of extant literature highlights the need for multi-disciplinary research. This research should explore and further develops the conceptualization of value in cloud computing research. In addition, there is a need for research which investigates how IT value manifests itself across the chain of service provision and in inter-organizational scenarios. This open access book will review the state of the art from an IS, Computer Science and Accounting perspective, will introduce and discuss the main techniques for measuring business value for cloud computing in a variety of scenarios, and illustrate these with mini-case studies.
"Addressing questions raised by managers and researchers over the last decade on the business value of information technology (IT), this book provides business professionals with a more precise rationale for making IT investments by detailing how computerization does not automatically create business value, but is one essential component that should be coupled with organizational changes such as new strategies, new business processes, and new organizational structures."
In an era when IT budgets are being cut as indiscriminately as they were once increased, this book offers the first systematic guide to measuring the true impact of IT spending--and making rational decisions about which projects to fund.
Business managers, management consultants and researchers regularly question whether and how the contribution of IT to business performance can be measured. This book contributes to the art and science of the expost valuation of IT, by posing and answering key management questions, offering insights into the value of IT once it has been developed, implemented and used. Measuring the Value of Information Technology empowers its readers to systematically, effectively and consistently measure the value of information technology.
Do you really understand what business value is? Information technology can and should deliver business value. But the Agile literature has paid scant attention to what business value means—and how to know whether or not you are delivering it. This problem becomes ever more critical as you push value delivery toward autonomous teams and away from requirements “tossed over the wall” by business stakeholders. An empowered team needs to understand its goal! Playful and thought-provoking, The Art of Business Value explores what business value means, why it matters, and how it should affect your software development and delivery practices. More than any other IT delivery approach, DevOps (and Agile thinking in general) makes business value a central concern. This book examines the role of business value in software and makes a compelling case for why a clear understanding of business value will change the way you deliver software. This book will make you think deeply about not only what it means to deliver value but also the relationship of the IT organization to the rest of the enterprise. It will give you the language to discuss value with the business, methods to cut through bureaucracy, and strategies for incorporating Agile teams and culture into the enterprise. Most of all, this book will startle you into new ways of thinking about the cutting-edge of Agile practice and where it may lead.
Annotation A call for IT and business managers to reformulate the way they manage IT, this book contends that if IT is to deliver business value, it should be measured in core business terms such as customer satisfaction, revenue growth, and profitability. Leading academic research and industry best practices are synthesized, and principles and strategies are presented for managing for optimum IT business value, the IT budget, and the IT organization's capability. In a time when IT spending is reduced and IT organizations are often perceived as cost centers, a necessary and timely counterbalance is provided, and the argument is made that IT investments can and should be linked directly to enterprise business indicators. Also discussed is how IT spending should improve corporate profitability and how the relationship between IT initiatives and business indicators should be explicit and empirical.
"Written for business managers, information technology (IT) managers, business students, and researchers, this academic analysis offers insight into the expost valuation of IT by posing and answering key managerial questions. Topics covered include the business value of IT, IT planning, and IT benchmarks. Information is provided and strategies are outlined to facilitate systematic, effective, and consistent measurement of IT value."
The book addresses the practical needs of executives responsible for planning, budgeting & justifying information technology expenditures. Written by the former chief information executive (1956-1978) & vice president of strategic planning (1978-1985), author of the widely acclaimed & translated INFORMATION PAYOFF - THE TRANSFORMATION OF WORK IN THE ELECTRONIC AGE (Free Press, 1985), lecturer & university professor. Reviews: "A New Bible for Management Information Systems. An eminently readable book made more so by a playful sense of humor" -Information Week-; "Strips away obfuscation that has concealed the real value of computers." (The Financial Post); "A true path to the Holy Grail of business value." (Computer Weekly); "Some surprising answers to familiar questions cast new light on investing profitably in computer hardware & software." (The Conference Board); "All those either transfixed or baffled by the powers & potential of computers would do well to heed Strassmann's advice." (Daily Telegraph); "Measuring managerial productivity is the key to knowing how to invest in information technology. Strassmann's new book sets out the results of his research in detail. His argument comes through clearly." (The Financial Times).