How much IT do you really need?
IT systems landscapes have an unfortunate nature: The more
functionality it delivers to the business, the more difficult it is to
continue supporting the business properly. Here are some examples of
consequences of having implemented too much IT:
Key question for every Top Executive: How to ensure that we implement only so much IT support that the business really needs.
- Sunk costs – IT functionality that nobody uses
- Lower System Performance
- Higher development costs
- Less flexibility to react on future business needs / business changes
- More difficult to participate in the benefits of standard software
- Higher IT maintenance costs
The seven principles of IT Effectiveness
The western world had to learn it the hard way - they wasted lots of
money until they understood: IT has to be driven and owned by the
business because their are more and more important for business success:
The reasons are manifold:
- IT is becoming integral part of the business and in many industries it even can lead to significant competitive advantage
- IT spendings as percentage of revenue are increasing in many
industries – a cost position in the Profit and Loss statement that
can’t be ignored any more
- IT can also be a bottleneck – company can’t grow further without IT
support, hence they need to establish the right systems very fast
- Due to it’s complexity and long delivery cycles IT has to be
planned long time in advance to catch up with the fast moving nature of
today’s Asian businesses
- If conducted improperly, IT can also be a risk for your business –
imagine the figures out of your accounting system are just wrong
Do you know ...
... what's going on in your IT department?
... what value you get out of your IT systems?
... if your people are utilizing the existing IT systems fully?
... if your IT projects are delivered in the most efficient way?
... if you are using the most efficient IT vendors?
... if your IT is ready for your company's future?
... if you spend enough or too much for your IT?
IT Governance, if implemented properly, gives you the answer to these questions