How to Win CFO Friends and Influence Business People

April 27, 2009, 09:35 AM —  CIO.com — 

Conventional wisdom and decades' worth of IT project failures and less-than-desirable outcomes tell us that every tech-related investment -- from a massive SAP ERP rollout to a small Salesforce.com SaaS CRM deployment -- comes with some amount of risk.

In fact, according to Forrester Research VP and principal analyst Chip Gliedman, "of all investments within an organization, investment in IT is generally assumed to have the most risk associated with it. Yet, it is surprising that IT investment has traditionally received the least amount of attention when it comes to risk management," Gliedman writes in a new report "Quantifying Technology Investment Risk."

The process of risk measurement has been "confounding decision-makers within IT for some time," Gliedman asserts. As a result, companies rely on weak qualitative analysis that only loosely ties to enterprise-application project outcomes, he says.

Gliedman breaks down IT risk factors into two categories: implementation and impact risks. Implementation-based risks relate to areas such as project size ("the larger the project, the higher the level of uncertainty about the outcome") and the technology and vendor (will they both deliver on the intended benefits?). Impact-based risks include cultural, training and managerial factors that all can significantly affect any project's outcome and benefits.

Most IT departments today could use help in the ongoing struggle to align IT with the business and vice versa: business execs are frustrated by application uptime challenges and their significant costs to the company's bottom line, though IT isn't fully aware of that; the business side is also not at all excited about long-term enterprise projects; and as a consequence of both, they're feeling animosity toward IT.

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Either way you look at it Microsoft Data Center management did not follow standards or best practices in this failure. In which case it makes me wonder more about the outsourcing of corporate data much less personal data.
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