A New Framework for IT Investment Decisions

Question: Describe about A New Framework for IT Investment Decisions? Answer: Making Better Business Case For IT Investment Purpose of the paper: Today most of the organization is demanding robust business cases to have a justified business investment in Information Technology. In this document the drawbacks of the current approaches in IT investments are shown and according to those drawbacks the required approaches are also mentioned. Hence it can give the ability to organizations to identify the benefit and to take the appropriate measurement of all the benefits and to gather the evidence of size of the expected benefits (Ward, 2008). Important points: With a deep concern about the IT investment, this document have drawn the evident fact on drawbacks related to presently used approaches to IT investment in a business scenario. Researches related to this filed at early stages are found as disappointing to reach the desired expectations. Benefits, which are overstated, can also weaken managements commitment to the IT investment. In the context of finding the business fund approval for an IT project, robust business case is important for under mentioned reasons: Priorities need to be enabled to be set among different resource and fund investments. A benefit realization plan is required to identify what the combination of business and IT will deliver benefits Commitments from business managers are needed to achieve the investment benefit. A basis of review should take place in order to realize whether benefits are coming or not. A new SIX-STAGE approach is taken in order to develop business cases: Investment objectives and Business Drivers need to be identified. Benefits, owners and measures need to be identified. Benefits structures need to be identified. Benefits from the organizational changes need to be identified. Explicit value for each of the benefit needs to be identified. Risks and cost Identification is needed (Keen and Digrius, 2003). Approach Used: With development of this paper Author first developed the scenario on drawbacks related to present approaches used for IT investment in a business scenario. Researches related to this filed at early stages are found as disappointing to reach the desired expectations. Author have shown that the context of finding the business fund approval for an IT project, robust business case is important to enable priorities to be set among different resource and fund investments, A benefit realization plan is required, Commitments from business managers are needed to achieve the investment benefit, a basis of review should take place in order to realize whether benefits are coming or not. Questions need to bring forward: What are the business objectives need to bring forward? How the benefit realization plans need to draw? IT Risk As A Language For Alignment: Purpose of the paper: In this paper Author stated the fact that the language of risk is powerful tool to improve the alignment of IT/business. Incorporation of risk into IT management helps IT executive and business person to take better decision. Based on field research, more than 5 years of surveys, case studies and interviews this article shows risk as a focusing mechanism to take better decision (Barnes, 2010). Important points: Managing IT requires balance of two different and conflicting perspective, such as- Strategic change perspective and Operational-resilience perspective. In this paper, author has shown Risk a Unifying language. In this context author highlighted the point that the risk awareness approach makes a big difference by asking questions about the business risk form the IT executives to understand the IT rules and obtain the IT management techniques. There are Four As framework to manage IT risk- Agility, Availability Accuracy, Access (Keen and Digrius, 2003). Approach Used: In this paper author discussed the point that the risk awareness approach makes a big difference by asking questions about the business risk form the IT executives to understand the IT rules and obtain the IT management techniques (Westerman, 2009). Questions need to bring forward: How the Risk frameworks need to be managed, in order to change the resilience Tradeoffs? What are the IT management risks that generally come under consideration? References: Barnes, A. (2010). A new framework for IT investment decisions. Petersfield, Hampshire: Harriman House Ltd. Keen, J. and Digrius, B. (2003). Making technology investments profitable. New York: Wiley Sons. Ward, J. (2008). Building Better Business Cases for IT Investments1. [online] Oro.open.ac.uk. Available at: https://oro.open.ac.uk/11215/ [Accessed 21 Mar. 2015]. Westerman, G. (2009). IT Risk as a Language for Alignment. [online] Misqe.org. Available at: https://misqe.org/ojs2/index.php/misqe/article/view/263 [Accessed 21 Mar. 2015].