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062 How To Ensure That Software Assets Deliver -- by Dr James A Robertson PrEng

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Key factors giving rise to business information system investment failure and critical components of ensuring a successful outcome with particular emphasis on executive custody and managing the factors causing failure and the critical factors for success

See also http://www.James-A-Robertson-and-Associates.com/

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062 How To Ensure That Software Assets Deliver -- by Dr James A Robertson PrEng

  1. 1. JAMES A ROBERTSON AND ASSOCIATES EFFECTIVE STRATEGIC BUSINESS SOLUTIONS SOFTWARE ASSET MANAGEMENT The Critical Factors for I. T. Investment Success How To Ensure That Software Assets Deliver http://www.jar-a.com 1 CONFERENCE 20 and 21 July 2006 Dr James Robertson Chief Executive Officer James A Robertson and Associates JJAR&A (Copyright : JAR&A)
  2. 2. AGENDA HOW TO ENSURE SOFTWARE ASSETS DELIVER Understanding Why I. T. Investments Fail Pinpointing the Critical Factors for I. T. Investment Success Defining the REAL Drivers of E. R. P. Investment Identifying the Economic Drivers of I. T. Investment Reviewing the Three Dimensions of Executive Custody 1. 2. 3. 4. 5. JJAR&A 2 http://www.jar-a.com
  3. 3. CONTEXT: INFORMATION TECHNOLOGY AN INDUSTRY CHARACTERISED BY FAILURE Seventy percent of I.T. investments fail TOTALLY Another twenty percent fail to fully satisfy the original business requirement "19 out of 20 E.R.P. implementations do not deliver "what was promised" Ninety percent of strategic plans fail Seventy percent of B.P.R. investments fail "Most organisations are not making better decisions than they did five years ago." 1. 2. 3. 4. 5. 6. JJAR&A McLeod (FM) Gartner http://www.jar-a.com 3
  4. 4. AN INDUSTRY CHARACTERISED BY FAILURE: DECISION MAKING "Attendees of Gartner's Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically. Gartner's survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations: Gartner's vice president of research summed up the situation nicely by saying: "Most organisations are not making better decisions than they did five years ago." JJAR&A BUSINESS INTELLIGENCE Article published in Computer Business Review Africa May 2005 published by Network Times. http://www.jar-a.com 4
  5. 5. CAUSES OF INFORMATION TECHNOLOGY INVESTMENT FAILURE Information technology mythology (30%) Lack of executive custody and inappropriate policies (20%) Lack of strategic alignment (15%) Lack of an engineering approach (12%) Poor data engineering (10%) People / soft issues (8%) Technology issues (5%) 1. 2. 3. 4. 5. 6. 7. 50% (Remember that I.T. Is value inert) JJAR&A 5 http://www.jar-a.com
  6. 6. THE CRITICAL FACTORS FOR SUCCESS 43% Executive Custody (25%) Strategic Solution Architecture (18%) Strategic Alignment (16%) Business Integration and Optimization (14%) Programme and Project Management (12%) Data Engineering / Information Management (10%) Technology Components (5%) 1. 2. 3. 4. 5. 6. 7. JJAR&A 6 http://www.jar-a.com
  7. 7. E.R.P. SYSTEM REPLACEMENT DRIVERS Badly designed Badly built Badly implemented Badly maintained Obsolete technology Dramatic real business change where others have gone before Other - fashion / don't understand / mythology / don't want to look stupid / confusion / etc 1. 2. 3. 4. 5. 6. 7. Has the system been successfully used for a number of years? 747 / Concorde JJAR&A http://www.jar-a.com 7
  8. 8. GENERAL I. T. ECONOMIC DRIVERS Fashion / corporate peer pressure / fear / vendor driven obsolete Truly obsolete / worn out Badly maintained / not sustainable Stabilization / consolidation of existing infrastructure and capability Increased capacity to support growth Productivity / efficiency opportunities -- do more with what you have Strategic efficiency and innovation 1. 2. 3. 4. 5. 6. 7. JJAR&A http://www.jar-a.com 8
  9. 9. THE THREE DIMENSIONS OF EXECUTIVE CUSTODY Engagement Prove it works / make it work Leadership 1. 2. 3. JJAR&A http://www.jar-a.com 9
  10. 10. CRITICAL EXECUTIVE QUESTIONS Questions Every Executive Should Answer Before Saying "YES" Do I have a clear definition of the value proposition that I own now and can communicate to the rest of the organization? Do I have a clear definition of how the outcome will be accomplished? Is there real acceptance of the real effort and investment required? Is there real business commitment? Am I (CEO / responsible executive) willing to be held accountable? Am I willing and able to hold the responsible executive / manager accountable? Am I williing and able to hold the service providers and vendors accountable? 1. 2. 3. 4. 5. 6. 7. JJAR&A http://www.jar-a.com 10
  11. 11. EXECUTIVE CUSTODY Role of executives in Strategic Leadership "The greatest barriers to strategy are often self imposed and many are internal. Strong leadership by the chief executive officer is almost a necessity if strategy is to be created and implemented" Professor Michael Porter Seen as an important tool of the business FULL responsibility and accountability this is MY business system comparable level to - MY factory / warehouse / etc 1. 2. 3. ) ) JJAR&A 11 http://www.jar-a.com
  12. 12. EXECUTIVE CUSTODY Role of executives in Strategic Leadership A key responsibility of executives is innovation that will generate high bottom line value outcomes that is Strategic outcomes Executives therefore define the role of information technology in creating sustainable competitive advantage JJAR&A 12 http://www.jar-a.com
  13. 13. 13 HOW TO ENSURE THAT SOFTWARE ASSETS DELIVER QUESTIONS ? http://www.jar-a.com James A Robertson & Associates Tel +27-11- 791-2327 / 083-251-6644 P O Box 4206, Randburg, 2125, South Africa

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