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Maximizing Value from IT Investments: Challenges and Strategies for Corporations

Explore the issues and opportunities surrounding IT investments, learn why IT may not provide a competitive edge, and discover strategies to leverage IT effectively while minimizing costs. Discover the key factors influencing the value extracted from IT projects and how to manage IT infrastructure efficiently.

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Maximizing Value from IT Investments: Challenges and Strategies for Corporations

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Presentation Transcript

  1. IT Does not matter!

  2. How is the problem manifesting itself? • 50% -60% of all corporate investments is on IT • 80% of all IT projects fail • 50% of all IT capacity is unused • 90% of all server capacity is unused

  3. What does Carr mean by IT? • Hardware • Software • Networks

  4. Why IT does not matter? • No means to differentiate using IT because: • IT becoming a commodity • IT becoming an infrastructure technology

  5. How has IT become an infrastructure Technology • Common architecture and standards • No differentiated use of the product • More efficient to deliver through the cloud • More efficient to pay for use rather than purchase

  6. How has IT become a commodity? • Moore’s Law..price of hardware is dropping by ½ every 18 month while processing capacity doubling during the same period • Metcalf’s law..value of network is directly related to the square of the number of users • Open Source • Common Standards & Protocols • Enterprise software

  7. What should corporations do? • Get more value out of IT by spending less on hardware & software • Follow & not lead - wait for standards to develop • Address vulnerabilities rather than opportunities (biggest vulnerability is overspending, security, reliability, IT project failures) • How well you use IT and how well you manage it will be the differentiating factor in the future

  8. Counterviews • It is not IT but the way one uses IT that provides a competitive advantage • Knowing is one thing, using IT is a totally different thing…Remember TQM, lean Manufacturing, Just in time • The use of IT is only constraint by the users’ imagination • Social networks • Crowdsourcing • Although standards exist, this has spurred the development of new IT apps: • Intelligent objects • Mobile computing • Cloud computing allows companies to reduce investment in IT while creating more innovative ways to put software together • IT spurs a culture of innovation

  9. What companies should do? • Manage infrastructure IT more efficiently (reduce the cost of infrastructure IT which currently constitutes 80% of all IT budgets) • Increase reliance on SaaS for the company’s infrastructure needs • Smaller IT investments • More creativity & modularization in use • More time and resources available for strategic IT • Deploy Strategic IT selectively only in support of core competency • When in doubt don’t be a first mover • Manage and demand results from any IT initiative

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