Business owners and managers are always striving to better quantify returns from their IT investments. It is often difficult to be sure of the extent of business value you could be receiving from various IT projects. With that in mind, here are four questions that can help you determine the potential value of the various IT initiatives you have under consideration:
- Strategic benefits – Will the proposed IT project help the organization become more competitive; for example, by helping you identify new products and services?
- Operational benefits – Will the proposed IT project improve current operational efficiencies, such as reducing steps and improving quality?
- Technological enhancements – Will the proposed IT project improve your current IT capabilities, such as making systems easier to use?
- Risk and compliance implications – Will the proposed IT project better manage risks or improve compliance with regulatory requirements?
Using this simple four question framework, business owners and managers can evaluate various IT initiatives under review and link each initiative to its potential business value proposition. Another benefit of this approach is that it encourages decision makers to view IT initiatives as business improvement opportunities, rather than pure technology projects.
How does your business determine whether it's making the most of its investments in IT? Share in the comments.