Assess Before Making Major Investments

In my conversations with corporate business and IT executives, it is clear that organizations that have bought some software solution with the hope that somehow the software would be a panacea for their problems have been less than satisfied. More and more, I am seeing organizations today realizing the value of a formal cross-departmental assessment of the organization's needs and the development of a formal plan before making an investment in a "product." The findings highlighted in an article in CFO.com reinforce the value of including an assessment as part of any software or hardware investment.

"It is as much the implementation of technology — the delivery of the right solution tailored to a business problem and aligned with business strategy — as the core technology itself that delivers real value to companies."

The key points the article draws out, based on a survey by CFO Research Services, include:

• IT is vital, but poor implementation kills value
• Risk & performance vary through the IT Delivery Process
• Delegating work while retaining risk
• IT needs help with business-risk analysis & governance
• Risk analysis is too narrowly focused

A formal assessment can address all of these points. The starting point is communication. Getting key leaders from your entire organization in the same room is invaluable to ensure success for any implementation. It's easy to get tunnel vision to only what your department needs. Hearing the concerns of others can not only help you get what you need, but make sure it'll work for what other departments are trying to solve. Not only will you avoid investing in something that might be in conflict with what another department needs to do, you might even get the funds for a broader implementation with the additional buy-in.

Finally, by working together to establish a plan for implementation, expectations are clearly understood by everyone involved - including vendors and consultants. Risks have been identified and addressed prior to beginning a project, rather than being discovered midway through implementation.

If you are considering a major IT investment for 2007, make sure you include a formal planning assessment before you make your final decision. It could be the difference between a strategic technological improvement for your organization and an expensive software purchase destined for shelfware.

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If you are considering a major IT investment for 2007, make sure you include a formal planning assessment before you make your final decision.

It could be the difference between a strategic technological improvement for your organization and an expensive software purchase destined for shelfware.