IT In Business: What Does IT Do?
Why Is IT in Business so Frequently Painful and Expensive?
Aug 9, 2008
In the western world IT spans virtually all that we do. Everything from mobile phone usage to data analysis involves an element of IT. Even if a conscious effort is made to keep away from technology, passive involvement makes avoidance almost impossible.
We accept technology in the home, in transport, in entertainment, so why is IT in business so frequently painful and expensive?
Ownership of the Process
The difference here stems from the fact that the functional IT to be found as feature enhancement in cars, phones, kitchen appliances and entertainment systems comes pre-packaged and is rarely the primary purchase motivator. Business IT, on the other hand, must serve the business and it is usually extensively configurable. This means that someone must take ownership of the function and here's where the issues start.
Decide What to Computerise
The first issue to face the potential purchaser of a business IT system is the question of functional analysis. What the system will do, how this will be achieved, what will it cost and what will it save all must be addressed.
Because businessmen like to be seen as decisive, simple stock answers are often used in place of full analysis to justify the cost or 'sell' the implementation to the business. This applies to the largest of organisations as well as the SME; the spectacular failure of government department IT projects is clear evidence of this.
Involve the Stakeholders
In order to achieve a clear understanding of what is to be achieved both sponsors and stakeholders need to be appraised of the aspirations and implications of any systems to be rolled out. There is little to be gained from hiding potential impact in order to move a project along towards a point of no return. The hope that the inevitable will be accepted is often thwarted with painful consequences.
Avoid Planning for Failure
Expectations must be clearly defined and SLAs set. Penalty clauses may be included, but is must always be appreciated that failure with fiscal compensation is still failure and it will still adversely impact business.
The best strategy is to plan for success and ensure thorough preparation.
Keep the Benefits in Focus
If all this is starting to look daunting, think about the benefits to be gained. Good IT delivers improved economy, that is to say you get to choose between reduced costs and improved performance and that makes all the difference in a competitive world.
Very good, but does this mean that every businessman needs to become an IT expert?
IT Is a Business Tool
Not at all, what is needed is the perception of IT as a business tool and an understanding that good craftsmen choose their tools carefully, use their tools carefully and always look after their tools. Good craftsmen also know when to invest in new tools.
Knowing the business and learning what tools to use to improve the business is paramount.
Keep Control
The secret is to remain in control at all times. Avoid the temptation to overreach and only seek to implement what is fully understood.
In order to achieve this it will be necessary to analyse and document each affected process. This is best done by engaging the skills and knowledge of the current process operatives for in-house functions and seeking out the experiences of others for new or unfamiliar processes.
Look out for the next article in this series - IT In Business: The Cost of IT.
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