The It Payoff: Measuring the Business Value of Information Technology Investments

by Sarvanan Devaraj and Rajiv Kohli

Book Overview

Does technology really add value? If so, when? What's the best way to quantify and maximize technology ROI? The IT Payoff gives you powerful new tools for answering critical technology investment... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 0130650749
• ISBN13: 9780130650740
• Release Date: January 2002
• Publisher: FT Press
• Length: 192 Pages
• Weight: 1.10 lbs.
• Dimensions: 0.5" x 6.3" x 9.3"

Customer Reviews

Fantastic Work

Clearly written, conveys the essence of making IT worthwhile. This book makes be believe in the long term promise of IT.I particularly like the practical applications and references to successful methods. This book provides well grounded and leading edge, yet practical, methods to improve IT returns.Overall, this book gives a clear road to increasing the value of the IT investment. Each organization should weigh which aspects to apply in its practices. The main method is the age-old concept of measure what you want to manage. The book builds extensively on this concept and provides clear direction.Although the manage by facts and measure, measure, measure themes are common in business thought, the proper application to the issues in corporate IT are insightful.The pedigree and background of the authors is impressive. Combined with their experience and demonstrated rigour, this gives the book a basis of actionable credibility.I highly recommend this book to anyone responsible for IT outcomes and return on IT investment.

A new thought leader

I recently perused this book while travelling overseas. First, I'm very impressed with the authors' succinct and actionable presentation style and content. The writing style allows the book to be quickly scanned or thoroughly perused and provides great time value in both cases, though at different levels.As to the content, this book presents a straightforward means to evaluate and understand the linkage between business value and IT investment. The process advice is clear, practical and well-grounded in terms of real organizational environments.I was particularly impressed by the insights and recommendations regarding creating a focus on measurable payoffs and high-value process innovations.This one definitely makes my bookshelf and I would recommend it to anyone involved in delivering IT value.Enjoy!

A Credible Source of Strategic Information

As the world of commerce continues to depend more and more on innovations in information technology, so to has the need for a greater understanding of how IT impacts corporate performance. "The IT Payoff" is one of the first works I've read that describes the value and impact of IT at the firm level without relying on popular buzzwords but rather on sound business theory and experience in the field. The authors do a good job of backing up strategic issues with noteworthy corporate examples to give the reader a full understanding of important concepts.If you're searching to gain a clear understanding of how to select and manage IT projects from implementation to execution, this book is a must read. I'm a practicing consultant and have written books on this topic and I found this to be a valued reference.

Fresh look at attaining the elusive

There is a plethora of books on the subject of wisely investing in information technology. If you immerse yourself in the literature you'll see that there are two distinct camps: the process-oriented, quantitative approach espoused by Dan Remenyi, and the holistic, 'there is no payoff' philosophy of Paul A. Strassmann. This book is in the Remenyi camp, although it does address many of the paradoxical observations set forth by Strassmann. This book has 12 chapters that are presented as a process and the techniques and factors that are required to make the process work. It begins with an introduction that discusses investment factors. Chapter 2 discusses the productivity paradox that Strassmann is famous for exposing. Where the book picks up is from Chapter 3 onward, when strategic planning is introduced as the framework, and the discussion of failure analysis in Chapter 4. This is one of my favorite chapters because it not only restates the obvious (you need top management commitment to embark on any strategic endeavor), it also provides references to documented failures and why they occurred. Forearmed is forewarned. In Chapters 5 (A Process Perspective) and 6 (Technology Payoff Metrics-Balanced Multiple Objectives) the roadmap to the process of nailing down the value of investments in IT and how to perform ongoing measurements is introduced. The next chapter is almost a digression with the discussion of technology curves (the 'S' curve). While this material gave insights into factors such as disruptive technologies and their impact, I think the entire chapter would have been better placed in the introduction.In many respects the heart of this book lies in Chapters 8 and 9. The survey of technology justification models discussed in Chapter 8 included three viable approaches: real options, economic value added and statistical approaches. Chapter 9 describes how to implement the IT payoff initiative to which the preceding chapters build by using a four phase approach: I -Exploration, II - Involvement, III - Analysis and IV - Communication. The final three chapters wrap up the book by examining the unique challenges imposed by eCommerce, a case study that dissects each of the four implementation phases, and an action plan for succeeding at IT payoff measurement. If you want a quantitative, by-the-numbers approach to investing in IT, it boils down to this book or Dan Remenyi's "The Effective Measurement and Management of It Costs and Benefits". Neither are mutually exclusive, and you may find that the approach that is provided in this book, and the wealth of checklists and compatible approach in Remenyi's book will result in a larger payoff than by choosing one of these excellent books over the other.