Findings and Challenges
  • Information technology and systems occupy an increasing place in organizations. They often generate high expectations, within and beyond the company or the public institution, and usually incur significant expenditures
  • If many IT-enabled projects meet their objectives and contribute to improve sales, operational or financial performance, one has to admit that numerous ones miss or partially achieve their targets at the cost of budget and/or schedule overruns. The reasons are multiple : insufficient scope definition, conducive to a « tunnel effect », poor governance, diluted responsibilities across business and IT specialists, ineffective project management and oversight, lack of ownership over technology, etc.
  • A major challenge for the IT function is therefore to demonstate its ability to be a genuine and sustainable value lever for the organization
We can help you to :
  • Align IT and strategy : Translate business strategy into an IT investments plan and a portfolio mix of IT projects – Factor economic and societal value creation citeria, as well as risks, in project business plans – Define an ad-hoc governance scheme to ensure IT is permanently well « pegged » to business strategy, and enforce an effective and cost-conscious demand management process 
  • Control and monitor operating costs and ensure a sound allocation of expenditures : Map existing IT services and assets (applications, infrastructure, …) to short and medium term priorities and appraise their business value – Set savings targets for operating costs by measuring Total Cost of Ownership – Analyze the budget process for IT expenses and capital expenditures to align it with the strategy – Define a scheme for IT cost allocation and recharging, depending on your policiy and desired outcomes
  • Improve the efficiency of the IT organization and the quality of the services delivered – Analyze IT processes in order to simplify them and adapt them to evolving business requirements – Value and professionalize IT services offerings and define a catalog of services supported by actionable Service Level Agreements – Industrialize development, intergration and testing processes
  • Review the sourcing mix for projects and operational services – Assess the opportunity for alternative sourcing models (e.g. outsourcing vs. insourcing, offshoring vs. onshoring, etc.) – Select technology partners and solutions – Develop the contractual agreements – Define a value-based performance management framework to monitor and constantly adjust the sourcing relationship
  • Define and implement necessary actions to enhance the positioning of the IT function and increase its operational efficiency. Those may include : the choice of the operating model and its governance (e.g. division of roles and responsibilities between central and local IT, shared services center, profit center, internal services company, joint venture, etc.); management and oversight of infrastructure or application development plaform consolidation projects; definition of a sourcing strategy, etc.


Strategic Fit, Value for Money, Client Satisfaction, Empathy with Users, and Ability to drive Innovation and Business-Oriented Initiatives : these are 5 Winning Strategies for a Value-Yielding Information Technology.
"Too many people today know the price of everything and the value of nothing."

Ann Landers
CIO Advisory On Demand
© 2012En