IT Compliance Articles The Val IT Story
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The amount of money that organizations spend on information
technology (IT) keeps increasing, yet they continue to ask, "What are
we getting for this money?" This issue was described in The Information Paradox,
the fundamental premise of the book being that while the organization
is investing in a great deal of technology, value does not come from
technology itself—it comes from how it is managed and used.
Organizations must recognize that they are not investing in IT—they are
investing in IT-enabled change.
Why Is Val IT Needed?The amount of money that organizations spend on information technology (IT) keeps increasing, yet they continue to ask, "What are we getting for this money?" This issue was described in The Information Paradox, the fundamental premise of the book being that while the organization is investing in a great deal of technology, value does not come from technology itself—it comes from how it is managed and used. Organizations must recognize that they are not investing in IT—they are investing in IT-enabled change. If organizations are to realize the full potential of IT-enabled change, effective IT governance must be an integral part of the organization's overall enterprise governance. In their recent book, IT Governance, Peter Weill and Jeanne Ross claim, based on a survey of 250 enterprises worldwide, that "effective IT governance is the single most important predictor of the value an organization generates from IT."
The organizations that understand this and do it well are leaders in
their field. Those that do it poorly lag, suffer significant losses and
risk oblivion. Gartner Group estimates that organizations waste US $600
billion a year on ill-conceived IT projects—and that includes only "sunk" cost, not unrealized value.
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