Though companies are investing in IT projects, they fail to realize their futuristic value. Sponsors are funding digital initiatives without a proper understanding of the value they could derive even when the project fails. In this article at HDI, Suresh GP discusses 5 steps that will help you showcase the value of your IT projects.
Translating the Values of IT Projects
Before describing the values, your IT projects carry, know what the stakeholders consider as values. Reduction in production cost and rise in customer base are some of the major drivers of investors. Below are the 5 steps to showcase your IT project value:
- Understand Your Customer First: Though IT projects have a lot of potentials, you can only sell them if customers find value in it. So, understand where the customers are coming from and what areas of their concerns your projects can solve. Ultimately, customers should benefit by investing in your IT projects.
- Organize Your IT Projects Based on Investments: What stakeholders demand is considered a goal for the projects. So, categorize the projects based on what the stakeholders want as outcomes. The goal can be increased cost efficiency, information gathering, inputs of company growth, and infrastructure.
- Align with Company Strategy: When your IT projects align with the company strategy, the stakeholders will automatically find value in the investment. Create business cases that are compelling and update them frequently. You can also set up an investment board that would analyze how the projects are benefiting the company. Ensure every project goes through the entire governance lifecycle. The lifecycle includes ‘strategic alignment, value delivery, risk management, resource management, and performance measurement.’
- Measure the Values: To maintain stakeholder buy-ins, you must showcase the tangible benefits that your projects are generating. Calculate the payback period, net present value (NPV), internal rate of return (IRR), and return on investment (ROI). Though BSC is an important metric, only 50 percent of organizations measure it.
- A Strong PMO Can Increase Project Value: The role of PMO and the steering committee are to supervise the business cases impersonally. They need to detect trends of projects heading for a downfall and take timely corrective measures. A strong PMO can convince stakeholders about the business values your IT projects have the potential to derive.
To view the original article in full, visit the following link: https://www.thinkhdi.com/library/supportworld/2017/it-governance-5-ingredients-to-kickstart-your-value-delivery.aspx