| |
| |
| |
| The Value of Corporate IT Initiatives |
|
|
 |
|
 |
The Value of Corporate IT Initiatives
© Paul Arveson 1998
Government agencies should emulate large private-sector companies in their aggressive use of IT (Information Technology) to enhance an ever-increasing number of business activities. These activities range from routine individual office work processes to enterprise-wide strategic planning. The following tables (based loosely on Applegate, L. et al., Corporate Information Systems Management) provide examples of the areas where IT can add value to existing activities in government.
Category I: Process Redesign and Improvement
|
Representative Systems
|
Value metrics
|
|
Development process redesign
(technology assessment, R&D project management, market testing)
|
Innovation capture, quality improvements, customer satisfaction, leverage of knowledge
|
|
Operational production process improvement
Product/service delivery
|
Cycle time, activity costs, supplier relationships, benchmarking, total cost of ownership
|
Category II: Work Group Productivity
|
Representative Systems
|
Value Metrics
|
|
Measurement-based operational management systems
(resource planning, logistics, key account management)
|
Decision speed, quality, lowering of level of decision authority
|
|
Individual / workgroup Information reporting
(ad hoc query, business intelligence)
|
Productivity, objectivity of promotions, benefits of incentives
|
|
Workgroup Support Systems
(collaborative writing, project management, workflow systems, groupware)
|
Cycle time reduction, paperwork reduction, ISO-9000 process certification coverage
|
Category III: Management Support
|
Representative Systems
|
Value Metrics
|
|
Measurement-based strategic management systems
(balanced scorecard, strategic planning, promotion planning)
|
Decision reliability, timeliness, strategic awareness
Lowering of level of decision authority
|
|
Management information reporting systems
(policies, forms, financial data, production data, ad hoc query, business intelligence, OLAP)
|
Time for routine work, accuracy of data
Operational and process feedback
|
|
Operational management systems
(resource allocation, performance monitoring, personnel skills management, knowledge audits )
|
Employee job satisfaction, morale
Productivity
|
Category IV: Competitive Advantage
|
Representative Systems
|
Value Metrics
|
|
Electronic commerce
(EDI, supplier management, electronic shopping, secure protocols)
|
Market share
Price premium for products/services
|
|
Information-based products and services
(financial, market, and industry-specific information services)
|
Operating margins, New business revenues, cash flow, knowledge retention
|
|
Information value added to existing products and services
(customer information networks, electronic catalogs)
|
Relative return on equity
|
|
|
|
|
|
|
|