Reference no: EM1374956
[Like any asset IT is a resource to be managed. The resource has a cost and must deliver an adequate return/ROI. Projects must also be delivered on time and within reasonable budgets variances. Please develop a guideline that ensures:
(1) IT spending and investment will be aligned with corporate objectives
(2) The risk of bad IT implementation outcomes are mitigated]
Ideas/suggestions: Please discuss in general the appropriate metrics that one may need to track. Also discuss how investing in IT with an eyes towards the replacement/automation of another project/issue or task may work (e.g., if Company Z invests in technologies, A-C it may be able to shut down more antiquated systems and realize the highest ROI amongst the existing projects in the portfolio.
Treat and analyze the list of IT projects as a portfolio whereby different ROIs and payback periods may differ for projects based on a segmentation of: (1) Strategic Importance (e.g., High - Low) by (2) Ability to Execute or Strategic Importance today (High-Low) vs. Strategic Importance Tomorrow (High-Low). This framework can describe IT projects that fall into the following categories:
Legacy (Low - Today, Low - Tomorrow)
Falling Stars (High - Today, Low - Tomorrow)
Stars (high - Today, High - Tomorrow)
Rising Stars (Low - Today, High - Tomorrow)
Tomorrow represents the near/long term.
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