How do IT investments create value? Enable value creation?
From my understanding, IT board gives the company the ingenuity in technology by providing infrastructure and ultimately profit. These investments can be seen currently as well future value to the company. However they do not add value independently but help other departments that are directly related to the profit other departments produce. There main purpose is to make sure the other departments are working and that the operation system is efficient without wasting time and energy on physical labor. It assists other departments by speeding up processes, making things run more accurately. Internally, efficiency, quality and time and externally customers and the interaction to serve them better adds value. When the IT departments installs a more brilliant system it pays off by saving the company money and creating more lean budgets.
How might we get a quantitative handle on the level of value provided by it?
To get a number value for the IT department, he starts off by getting the value for the whole company and see how important the IT department has influenced the value. In order to get a more absolute number he has to do more research from the impact IT has on the environment of the organization. The value IT is dependent on how much each department pays for IT, how much equipment IT needs to provide its service in order to get a dollar amount. Overall it has a very distinct value which is hard to quantitatively on an on-going cycle yet their positive value is seen among the users of the infrastructure. Barton can look at the cost of the IT in each department, how much IT equipment costs direct relationship with how much the company has grown.
What light does the consultants’ report shed on the matter of Davies’ firing and the subsequent choice of Barton as CIO? What (if anything) does IT add to the