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Making the Business Case for IT

Making the Business Case for IT. Bert Jarreau. Overview. Making the Business Case: Parallels Process of Adopting Innovation Award Winning Innovations What is the Value of IT? Linking Needs, Technology and Innovation Create a Business Case for a Government IT Project

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Making the Business Case for IT

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  1. Making the Business Case for IT Bert Jarreau

  2. Overview • Making the Business Case: Parallels Process of Adopting Innovation • Award Winning Innovations • What is the Value of IT? • Linking Needs, Technology and Innovation • Create a Business Case for a Government IT Project • Business Case Guidelines

  3. Making the Business Case: Parallels Process of Adopting Innovation* • Innovation: An idea, practice, or object that is perceived as new. • Innovation is communicated through certain channels over time among members of a social system • Communication: A process in which participants create and share information with one another to reach a mutual understanding *Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.

  4. Characteristics of Innovations

  5. 2006 Innovations in American Government Award • Washington , D.C.: Community Policing • U.S. Fish and Wildlife Service: Grass Roots Conservation Program • U.S. Department of Veterans Affairs: Health Information Technology • City of Indianapolis, IN: Mayor's Charter Schools Initiative • State of Connecticut: Supportive Housing Pilots Initiative • Commonwealth of Massachusetts: Children and Family System Reform • Broward County , FL: Urban Academies Program

  6. What is the Value of IT? • IT + Citizen Focus = Innovations • Improve productivity • Improve service delivery • Reduce the cost of government • Increase citizen input into government • Improve decision making • Increase the transparency of government transactions • Cultural transformation

  7. Linking Needs, Technology and Innovation* • Business needs define the demand for new technology • Focus the technology planning process on business needs • Needs-driven innovation *Primary source: Gartner Research

  8. Business needs define the demand for new technology • Business needs form expectations for innovation and results. • Business needs address structural issues. • Focusing on business needs early identifies high-potential technologies and strengthens the planning process.

  9. Focus the technology planning process on business needs • A business needs approach to planning creates a reason and a role for early business involvement and support. • CIO understanding of business needs enables investment in technologies based on business priorities, rather than market judgments of technology maturity. • Prioritizing the fit with business needs determines the value of emerging technologies.

  10. Needs-driven innovation • Use business needs to frame and focus innovation techniques. • Concentrate on using emerging technologies to change business fundamentals. • Build the business case by recognizing the connection between business needs and emerging technologies.

  11. Create a Business Case for a Government IT Project* • Develop Business Acumen • Build a Leadership Culture • Key Questions • Key Benefits *Primary source: Gartner Research

  12. Develop Business Acumen • Ensure that employees gain the business knowledge and skills to interact effectively with counterparts in the business units. • Recruit new professionals to the IT organization with demonstrable business skills and experiences. • Rotate high-potential employees into business-unit assignments to foster business acumen. • Engagement with peers and subordinates.

  13. Build a Leadership Culture • Guide, coach & motivate employees. • Create of a common vision that drives enthusiasm and commitment. • Create reliability and trust. • Create continual learning. • Lead by example.

  14. Key Questions • What problem exists that must be solved? • What people/stakeholders (how many constituents) does this problem affect? • What solutions are available to solve this problem? • What are the benefits of each solution? • What is the relative cost of each solution? • What stakeholders are affected by the intended solution? • Are stakeholders willing to pay for this solution or must government fund it? • Can other fund sources be used? • How can these stakeholders affect my political future? • If we pay to solve this problem, what other problem goes unsolved?

  15. Key Benefits • Financial Benefits • Improved Operational Efficiency • Improved Constituent Value • Political Return

  16. Business Case Guidelines* • Focus on simplicity over precision. • Select a few metrics you can track over time. • Maintain a balance between quantitative and qualitative metrics. • Update the business case regularly in conjunction with business participants. *Primary source: Gartner Research

  17. Questions? Contact Information: Bert Jarreau Chief Information Officer 440 First Street, N.W., Ste 800 Washington, DC 20001 (202) 942-4248 bjarreau@naco.org

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