ScottMadden Insight: A Better Way to Make IT Investment Decisions

ScottMadden, Inc. recently published “Creating IT Value: A Better Way to Make IT Investment Decisions” to discuss an alternative to IT business cases.

Online PR News – 10-September-2012 – Atlanta, GA – ScottMadden, Inc., a leading general management consulting firm, recently published “Creating IT Value: A Better Way to Make IT Investment Decisions.” This paper summarizes a leading-practice approach to IT investment decision-making. This report is the second in a series on how companies can maximize their return on IT investments.

Most approaches to IT project decision-making leave executives unsure of what they are getting for their IT investment dollars. Traditional approaches, using business cases and financial measures (e.g., ROI, NPV, IRR, etc.), are ineffective, because most IT investment business cases rely on “soft benefits.” These benefits never get baked into project sponsor budgets. The bolder the business case, the more the sponsor is rewarded via project approval and priority. While these business cases promise impressive returns, business value remains elusive.

“IT success is ultimately a function of how good its investment decisions are. But how can an organization make good decisions if it cannot identify the expected value of these IT investments? This issue is becoming more obvious now that IT appears to be finally living up to its promise of enabling top-line performance. An alternative approach that evaluates investments on their ability to deliver strategic outcomes is required,” says Jon Kerner, partner and information technology practice lead at ScottMadden.

Presented in the paper is an improved approach to making IT project decisions, based on ScottMadden’s IT Value Creation framework. This includes a set of tools that enables IT organizations to engage their stakeholders to create an IT Blueprint which establishes practical investment decision criteria. The Blueprint acts as a strategic filter to identify the value creating IT projects capable of delivering strategic outcomes.

To learn more about how to maximize the value created from your IT investments, please contact us directly at

ScottMadden has been helping clients create greater value for their corporate services organizations for nearly 30 years. Our highly efficient, collaborative teams employ measurable, award-winning methods and deep cross-functional expertise to improve operational performance.

About ScottMadden, Inc.
ScottMadden is a management consulting firm delivering customized, practical solutions for clients in energy, clean tech and infrastructure, corporate and shared services, and the federal government. Our collaborative, small-team approach, coupled with deep content knowledge, experience, and insight, delivers an exceptional consulting experience and superior results. To learn more, visit | Twitter | Facebook | LinkedIn


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