Making Technology Investments Profitable

A guide to getting the crucial business case right?every time

Showing professionals how to calculate the value of typical budgeting and funding requests quickly and easily, Making Technology Investments Profitable, Second Edition applies the "Value Realization" process, using proven strategies that maximize the business payoff from IT projects. Filled with case studies, this innovative book enables managers to confidently quantify, in a matter of minutes, the true business value of funding a desired project.

• New edition explains how to proactively manage the conversion of a business case's value promise to its value realization
• Includes dozens of new case studies on realizing maximum value from IT enabled investments from various industries and around the world
• New checklists and tables
• A dedicated Web site containing additional material, case studies, chat rooms, and blogs on the value-realization process

The Second Edition provides senior executives, project managers, and technical staff with new insights on how to get the crucial business case right, while also explaining how to proactively manage the conversion of the business case's value promise into the value reality of a completed project.

Preface to the Second Edition xv

Acknowledgments xvii

Introduction xix

Part One Understanding Value Leaks: Major Threats to Program Success 1

Chapter 1 Why Value Leaks Torpedo Program Success 5

Chapter 2 Being “On-Value”: The Essential Third Pillar of Investment Success 15

Part Two Flushing Out Value Leaks: A Guided Journey 19

Chapter 3 Avoiding Half-Right “Fixes” 21

Chapter 4 Introducing the Value Practices Audit 25

Chapter 5 Evaluating Value Practice Areas 33

Chapter 6 Shifting the Mind-Sets of Management: The Key Fix for Value Leaks 63

Part Three Plugging Value Leaks: Success Begins Here 85

Chapter 7 Finding the Best Quick Wins 87

Part Four Getting The Business Case Right 95

Chapter 8 How to Recognize a Trustworthy Business Case 97

Chapter 9 The Importance of Good Processes for Value Realization 105

Chapter 10 Defining: Steps 1, 2, and 3 to Building Better Business Cases 113

Chapter 11 Assessing: Steps 4, 5, and 6 to Building Better Business Cases 131

Chapter 12 Delivering: Step 7 to Building Better Business Cases 153

Chapter 13 Finding Hidden Value That Others Miss 161

Chapter 14 Handling Intangibles: The Emotional Enigma of Value Realization 173

Chapter 15 Using ROI Storytelling to Drive Home the Message 191

Chapter 16 Selecting: Prioritizing Programs with Confidence and Ease 197

Chapter 17 Tracking: Making Sure Benefits Get Realized 219

Appendix Sample Business Case 227

Glossary 267

Bibliography 275

About the Author 279

Index 281

JACK M. KEEN is the Value Analytics Leader with Infosys Consulting, the consulting arm of Infosys Technologies, Ltd., a leading global player in consulting and IT services. Mr. Keen has over twenty-five years of management consulting experience, including the past eighteen years as a value realization advisor to major global firms. Having completed hundreds of value realization engagements for clients based in over twenty countries on four continents, he is recognized worldwide as a thought leader in creating and delivering high-impact value realization approaches for major transformation programs. He is a charter member of Infosys's global thought leadership team responsible for developing enhanced value realization approaches. A prolific author and accomplished speaker, he can be reached at JackMKeen@gmail.com.

Making Technology Investments Profitable, Second Edition is the go-to resource that CIOs, CFOs, business unit heads, program directors, and solution design managers can use to be more assured that "expected ROI" becomes "realized ROI" for important IT-enabled investments.

Research shows that over 76% of IT programs fail to achieve their promised ROI. Most of this shortfall can be prevented when senior leaders champion a disciplined focus for finding and stopping these avoidable value leaks.

Examples of common, but preventable, value leaks explained in this book include:

• Hidden benefits that are overlooked when building the business case

• Valid benefits that are excluded by hyper-conservative managers who misunderstand enterprise needs

• Omission of crucial intangible (soft) benefits that can make or break the investment's appeal

• Legitimate benefits that are rejected due to poor explanations in the business case

• Expected value that never occurs because no one was held accountable to make it happen

• Design decisions that unintentionally optimize low value capabilities

• Scope control decisions that ignore the value implications of choices available

• Rollout sequencing and priorities that disregard impacts on value achievement

A centerpiece of this second edition is a powerful, self-administered Value Practices Audit for rapidly detecting if major value leaks are a problem in your organization. In addition, over thirty "quick wins" are highlighted for rapidly halting, or preventing, ROI shortfalls.

Because the typical root cause of major value leaks is senior management's lack of awareness of the problem and/or the solution, this Second Edition explains how the mind-sets of enterprise leaders can be enlightened, so that critical programs are not only "on time" and "on budget," but most importantly, "on value."

Recognizing this value realization journey as the largest, most undermanaged component of a program's business success, Making Technology Investments Profitable, Second Edition offers an abundance of proven, easily applied tools, tips, and techniques for maximizing the value of IT-enabled investments.

Making Technology Investments Profitable

Making Technology Investments Profitable, Second Edition is the go-to resource that CIOs, CFOs, business unit heads, program directors, and solution design managers can use to be more assured that "expected ROI" becomes "realized ROI" for important IT-enabled investments.

Research shows that over 76% of IT programs fail to achieve their promised ROI. Most of this shortfall can be prevented when senior leaders champion a disciplined focus for finding and stopping these avoidable value leaks.

Examples of common, but preventable, value leaks explained in this book include:

• Hidden benefits that are overlooked when building the business case
• Valid benefits that are excluded by hyper-conservative managers who misunderstand enterprise needs
• Omission of crucial intangible (soft) benefits that can make or break the investment's appeal
• Legitimate benefits that are rejected due to poor explanations in the business case
• Expected value that never occurs because no one was held accountable to make it happen
• Design decisions that unintentionally optimize low value capabilities
• Scope control decisions that ignore the value implications of choices available
• Rollout sequencing and priorities that disregard impacts on value achievement

A centerpiece of this second edition is a powerful, self-administered Value Practices Audit for rapidly detecting if major value leaks are a problem in your organization. In addition, over thirty "quick wins" are highlighted for rapidly halting, or preventing, ROI shortfalls.

Because the typical root cause of major value leaks is senior management's lack of awareness of the problem and/or the solution, this Second Edition explains how the mind-sets of enterprise leaders can be enlightened, so that critical programs are not only "on time" and "on budget," but most importantly, "on value."

Recognizing this value realization journey as the largest, most undermanaged component of a program's business success, Making Technology Investments Profitable, Second Edition offers an abundance of proven, easily applied tools, tips, and techniques for maximizing the value of IT-enabled investments.