Customer Reviews

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

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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.

I have trouble in understanding how this book got such positive reviews. I found it to provide a very eloquent and succinct description of the issues, but nothing very insightful in terms of solution, or recommendations. The model they present is obvious to the point of uselessness, and does not offer any real help in how to evaluate investments more effectively. Specifically what is missing for me is that the authors are still tied to the world where the IT project deliverers take no responsibility for the business (financial) outcome of their work. What I'm looking for is a proposal for model of IT projects that brings the business value into the heart of the project methodology, rather than as a parallel exercise.

In summary the book is painfully academic with fleeting references to a small number of case studies. This is a book that brings nice introduction to the issues for a student, but is of no value to the practitioner. This is an important area and it deserves more.

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!

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.

The content appears to be good however I made the mistake of buying the digital e-book version without knowing that there is a form of protection that doesn't permit printing to paper.

The only reason I purchased it in this format was I needed it very quickly (I'm in Australia) for an assignment due this week so I can PRINT the book out, read it now and while travelling to and from work.

What a bloody shame. Amazon - why don't you highlight the above fact at least against all applicable e-books you sell so that the customer knows before he/she splurges any money instead of hiding it in a help or FAQ file. Last time I'll buy an ebook from here or anywhere where I can't print it out.

Impractical because the implementation approach recommended is abstract and generic: phases include "exploration" and "involvement."

Published in 2002, the book shows its age in its discussions of e-commerce and e-loyalty.

Academic because the book has substantial sections on debates with no practical value including "payoff paradox" and "technology curves."

Finally, the print quality is poor. The chapter heading pages resemble photocopies.

For a tighter, more modern approach you might want to look at one or both of:

The Business Case Checklist: Everything You Need to Review a Business Case, Avoid Failed Projects, and Turn Technology into ROI

Making the Software Business Case: Improvement by the Numbers

The IT payoff was an easy quick read. It really did a excellent job of breaking down complex topics into easy read chapters that are quick and informational. The book examined how IT has been measured in the past and reasons why these metrics do not work today. The book goes in depth about what factors to be aware of before implementing IT projects. I think especially the strategic role of technologies, failure analysis, and process approach are vital to looking at before a company can fully implement an IT payoff. The last couple of chapter of the book gives an framework for the implementation of an IT payoff. The framework goes through all the logical steps that need to be taken to really show the payoff of IT investments. Throughout the book good examples are used to illustrate each important topics. An comprehensive example is given to illustrate all the steps of the framework for implementing IT payoff.

This would be a valuable read if you are in a top management position because it really explains why all levels of the organization are important and vital to the successful implementation of IT projects. The concepts explained in the book are simple but commonly overlooked by managers. Each step of the framework for implementation is extremely important and many steps are easily skipped by most managers. Communication key information that executives want to hear about it is really emphasized in this book. This point is very true that executives want to see bottom line numbers. This book shows how IT investments can be translated to positively impact the bottom line. The book gives a fresh perspective on IT payoff and it really helps the reader to understand why it is difficult to measure but how it can be.

The IT Payoff was a quick read and easy to understand. This book is most beneficial as a reference book on the shelf of a corporate executive's office. I strongly recommend this book to a high level decision maker that lacks experience or wants addition knowledge about the implementing a successful IT project. Any reader could benefit from this book by skimming through and picking out valuable advice to use in their own IT implementation.

The authors of this text have academic backgrounds in management which is evident through their emphasis on strong positive relations with colleagues. Convincing the company that the project is successful or will be successful is more than half of the battle of implementing a successful project.

The main thrust of the book comes with the authors recommended framework. The framework encompasses 4 stages: exploration, involvement, analysis, and communication. The exploration, involvement, and communication stages of the framework are covered in much greater detail than the analysis step. An additional resource would be helpful to get a better idea of the analytical steps in implementing and IT project. The authors give examples of methods to conduct the analysis but do not go into detail to explain how each method should be utilized. I feel that the authors have left a huge gap between the results of the information to the actually utilization of their framework. Perhaps another book can supplement the analysis step.

The IT Payoff is a great place to start your research for implementing a successful IT project. Although persons severing a management role will likely receive a greater benefit from this book every reader will be able to take away valuable advice. I highly recommend this book to anyone looking to improve their ability to implement projects effectively.

Easy to read book. Get's straight to the point. However, the case studies are out of date. A new, updated version is needed!

Practical methodogy was introduced, it provides specific templates, metrics, and tools for making funding and IT investment decisions. It should be recommended reading for IT executives and managers.