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The Art of Business Value Paperback – April 7, 2016
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About the Author
Mark Schwartz is an iconoclastic CIO and a playful crafter of ideas, an inveterate purveyor of lucubratory prose. He has been an IT leader in organizations small and large, public, private, and nonprofit. As the CIO of US Citizenship and Immigration Services, he provokes the federal government into adopting Agile and DevOps practices. He is pretty sure that when he was the CIO of Intrax Cultural Exchange he was the first person ever to use business intelligence and supply chain analytics to place au pairs with the right host families. Mark speaks frequently on innovation, bureaucratic implications of DevOps, and Agile processes in low-trust environments. With a computer science degree from Yale and an MBA from Wharton, Mark is either an expert on the business value of IT or just confused and much poorer.
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Top customer reviews
The author does a great treatment of ROI (Return on Investment – does anyone ever really measure that?), NPV (Net Present Value), MVA (Market Value Added) and SVA (Shareholder Value Added). I especially enjoyed the humorous practical example that revealed a surprising truth that acquiring an MBA can easily have a negative NPV (in other words, a bad investment!) So save your money and pay attention to the author’s "four-paragraph MBA" (p. 20) that unpacks the main two principles learned in an MBA: 1) There is time value of money and 2) A business venture needs a sustainable competitive advantage.
Legacy IT architecture and bureaucracy are often considered negatives and obstacles to progressive competitive relevance but the author brings a refreshing perspective on the “value” of that complex hairball of legacy and rules and the right way to polish and transform them.
“The purpose of an Agile team is to self-organize and meet the underlying business need in the best way possible, often by cutting through the bureaucracy.” (p 55)
“The DevOps model…looks to break down the silos that have resulted from technical specialization over the last few decades. But the DevOps spirit goes further looking to eliminate the conflicting incentives of organizational silos and the inhumane behaviors that can result from those conflicting incentives.” (p 48)
“Bureaucracy delivers business value. Just sometimes not enough.” (p 59)
…”developers are bureaucrats by nature. We have a tendency to solve problems by creating standard processes rather than by relying on human judgment.” (p 54)
“The pipeline is an automated bureaucracy: it applies its rules in a rigorous, unemotional way, sine ira et studio. That does not mean that the software development process is unemotional; it means that the tools are unemotional and the passion is brought to the process by the people.” (p 105)
And on Business Value…
“Business value is a hypothesis held by the organization’s leadership as to what will best accomplish the organization’s ultimate goals or desired outcomes.” (p 90)
I highly recommend this book to IT leaders, digital executives, strategic managers, and anyone seeking to make their organization more agile, effective, relevant, competitive and humane.
The reader will finally be rewarded with a set of evolving solutions that they will need to explore in the light of their own organization's situation.