Arriving at a clear understanding of the benefits businesses can derive from justifying their investments in Information Systems and Technology is not a simple task.
Information Systems & Technology investments require thought leadership by techno savvy Managers and Professionals who understand the inherent risks and benefits.
Most business organizations have existing systems and technology environments. They value the professional who understands their business context and the scope of the work and investment and can define an IS & IT strategy based on their needs. This type of thought leadership depends on systems thinking and analysis, cost and benefit analysis of the solutions proposed, documented implementation roadmaps that allow the business to understand the plan of operations.
John Ward in his Principles of Information systems management and EriK Keller in Technology Paradise Lost have discussed this topic from several angles.
John Ward discusses investments based on the segments of an Application Portfolio. He suggests that the investment/ spending can be categorized based on serving a specific purpose for the business.
He discusses categories such as:
- procuring technology for a specific business application which benefits the business,
- identifying efficient technologies which would reduce the costs of operations,
- replacing technologies that are obsolete as the applications using them are found to be valuable for the business,
- investing in technology infrastructure that enables business strategy,
- identifying technology capacity to support the growth in business activity.
Ward cautions that it is important to consider long term perspectives and changing supply situations are important to arrive at balanced and justified investments.
Erik Keller in Technology Paradise Lost provides a history of IT spending which was attributed to technological milestones such as birth of mini, micro computers,client-server, Y2K, Internet. New thinking to utilise the technologies and quantify the business benefits are the BIG THINGS that businesses are looking forward to investing in.
He further warns businesses to ascertain spending levels and then determine the IT buying strategy and approach. Buying technology based on vendor hype, spending high as a habit from past, spending too low are to be avoided. The "path to profits" requires balancing price and productivity.
References:
Principles of Information systems management by John Ward
- Chapter 7, Managing Information system resources (pages 198 - 205)
Technology Paradise Lost by Erik Keller
- Chapter 1, Paradise Lost (pages 9-10)
- Chapter 2, IT Spending: A brief history (pages 14-15)
- Chapter 9, Four Paths of IT Spending (pages 153 - 169)
