SNw 018 Essential Business Knowledge for I.T. Effectiveness Created by James on 6/12/2013 4:41:53 PM
As I work with clients seeking to achieve maximum value from their investment in business information systems I regularly encounter situations where information technologists are sincerely engaged in doing things that are damaging and obstructing the business. Over the years, as I have evaluated numerous situations I concluded that there were some essential principles of business that were so inately understood by business people that they did not think to communicate them to I.T. people. After considerable thought and examination of my observations I concluded that there were seven broad categories of knowledge, experience and other attributes that should be taken into account.
After all why DO organizations exist in the first place?
To create opportunities and employment for human beings or ... to reduce head count?
1. Every organisation has a fundamental reason it exists
Strategy is fundamental -- the essence of why the organization exists and how it thrives.
Why, what, how, etc.
There are various drivers. Understand and prioritise the drivers and use them to focus everything else.
Strategy is constant (Robert, Porter, etc) BUT objectives evolve. Environment and markets evolve. Plans are implemented creating new opportunities for further improvement.
2. Service or supply to others creates exchangeable value
Money is only a medium of exchange and measurement. It is a proxy or surrogate for value.
Money is a measure of performance of perceived value by people. Profit and productivity result from this perception of value.
Money is easy to measure because it IS an instrument of measurement.
Strategy and competitiveness determine money yield and require OTHER measurements.
3. Only humans create, destroy and determine value
Things only have value IF a human being is willing to exchange (pay) for it. Things are inert, value is determined by what people do with things or think about things.
- Ways of being (attitude) create or destroy value
- Leadership, empowerment, delegation, loyalty, morale.
- Accountability, responsibility, trust.
- Self discipline, committment.
- Care, compassion, love, humanity, generosity.
- Esteem, ego, acceptance, recognition.
- Safety, security, health.
- Faith, belief, morals, values, religion.
- etc
In order to create value help people to be RIGHT
Attitude is the essence of what a person gives to an organisation that creates value and the essence of what a person seeks from an organisation -- how they ARE.
I.T. implementations, or indeed any endeavour, that destroy or weaken these can destroy long term corporate value and competitiveness.
4. Ways of being create or destroy value
- Leadership, empowerment, delegation, loyalty, morale.
- Accountability, responsibility, trust.
- Self discipline, committment.
- Care, compassion, love, humanity, generosity.
- Esteem, ego, acceptance, recognition.
- Safety, security, health.
- Faith, belief, morals, values, religion.
- etc
In order to create value help people to be RIGHT
The essence of what a person gives to an organisation that creates value and the essence of what a person seeks from an organisation -- how they ARE.
I.T. implementations, or indeed any endeavour, that destroy or weaken these can destroy long term corporate value and competitiveness.
5. Ways of doing create or destroy value
- Knowledge
- Experience
- Planning, analysis and design
- Method, process, standards
- Problem solving, creativity, initiative
- Systematic disciplined, diligent, productive contribution
- Communication, language, semantic skills
- etc
The "technology" and capability that the person supplies to the business, organization or nation.
6. Service or supply to others creates exchangeable value
Organisations comprise human beings.
Organisations exist to supply products or services to other human beings who consider that product or service to be valuable.
The basis of the value transaction -- frequently includes money, time, etc
7. The rest
Technology.
Assets
etc
Although a substantial component of most organisations and the primary focus of many organisations technology and assets cannot create or destroy any value EXCEPT through the interaction of human beings with that technology or asset.
A gun is neither good nor bad until it is held by a human being. If it is pointed at you by someone you hold to be bad then the gun is bad and if it is pointed at someone you hold to be bad by someone you hold to be good, then the gun is good.
Computers are much the same -- information technology is INERT, it is NOT strategic in and of itself, IT does NOT create value in and of itself. PEOPLE CREATE OR DESTROY VALUE.
Conclusion -- Essential Business Knowledge
Understanding of the above factors is critical to identifying and executing information technology projects that deliver real value.
Ignorance of these factors is a major reason why information technology projects fail outright or fail to deliver material business benefit.
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