What is the best way to think about IT investment decisions?   Leave a comment


IT purchase decisions. Choices about what information technology to invest in.

Often times its just a senior manager saying “I think we should do this”. Then, on the back of that a whole process follows. Justifications for the decision. Quotes and vendor discussions. Perhaps even chaos.

And both from my research, from experience, and from talking with others – this is how the majority of choices about what information technology to use are made. An ad-hoc approach. An approach that really is not grounded in any metrics, and science, any understanding of what really is required for the host organisation.

For, when its brought back to basics – information technology is there to increase the value of the firm.

Any investment in IT should be to either improve:

  • the maturity of the business systems
  • the efficiency of information flow
  • the timeliness of market information
  • the processes of value creation
  • the understanding of customer behavior

So, rather than think “what needs to be upgraded”, put this thought first “from the perspective of the organisation, what should be done?”

 
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Posted October 8, 2014 by terop in Business Strategy, ICT Strategy, Technologies

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