Foreword xi

Preface xv

Acknowledgments xix


PART I STATUS QUO — WHERE’S THE VALUE? 1

CHAPTER 1 IT Investment 3
Sticker Shock 3
Six Decades of IT Investment 4
IT Investment Trends 9
IT Investment Classification: The Four “S” Category
Model 16
Future IT Investment 22

CHAPTER 2 Conventional IT Valuation 29
Bottom Line 29
Maximizing Shareholder Value 30
Conventional Asset Valuation 33
Challenging Conventional Norms 36
Lost Value 41

CHAPTER 3 Banking Value 51
Financial Services Industry Global IT Investment 51
North American Banking Industry 52
North American Banking Market Challenges 54
Banking Industry IT Value Observations 62
NA Bank Case: IT Investment Observations 66


PART II TRIANGULATING THE VALUE — SOMEWHERE HERE 71

CHAPTER 4 IT Value Network Measurement 73
Identifying Investment 74
Justifying Investment 75
Prioritizing Investment 75
Selecting Investment 75
Performance of Investment 75
Realizing Value from Investment 76

CHAPTER 5 IT Value Network Measures: Financial-Based Methods 77
Traditional Financial and Accounting Techniques 77
Emerging Financial Techniques 83
Emerging Decision-Support Techniques 86
Value-Creation Business Case 89

CHAPTER 6 IT Value Network Measures: Organizational-Based Methods 93
Conventional Planning Techniques 94
Emerging Organizational Management Techniques 96
Emerging Information Economics Techniques 103

CHAPTER 7 Triangulating IT Investment Value 107
Value Index and Value Lenses 107
IT Value Portfolio 115


PART III SIX DEGREES OF IT VALUE — THERE IT IS 125

CHAPTER 8 IT Value Network Management 127
Value Capture 127
Value Enabling 128
Value Optimization 129
Value Realization 129

CHAPTER 9 First Degree of IT Value 131
Value System 131
Process and System Improvement 133

CHAPTER 10 Second Degree of IT Value 137
Strategic Planning 137
Portfolio Governance 141

CHAPTER 11 Third Degree of IT Value 145
IT Systems and Infrastructure Capability/Capacity 145
Organization and People Capability/Capacity 149

CHAPTER 12 Fourth Degree of IT Value 151
Program and Project Management 151
System Management 155

CHAPTER 13 Fifth Degree of IT Value 159
Service Management 159
Information Management 163

CHAPTER 14 Sixth Degree of IT Value 167
Networked Value Management 167


PART IV IT VALUE NETWORK CLIENTS— DID IT, GOT IT 173

CHAPTER 15 NA Bank 175
Challenge: Strategic IT Investment Alignment 175
Solution: IT Value Network 176
Impact: IT Investment Redirection for Higher Value Capture 181

CHAPTER 16 Nortel Networks (Nortel) 187
Challenge: Speed of Market Change 187
Solution: The IT Value Network 188
Impact: IT Reorganization and Improved Capability for Value Enabling 193

CHAPTER 17 Indigo Books & Music (Indigo) 197
Challenge: Project Management 197
Solution: The IT Value Network 198
Impact: Project Management Office For Value Optimization 202

CHAPTER 18 NA Credit Union 207
Challenge: Credit Union Merger 207
Solution: The IT Value Network 208
Impact: Successful Bank Integration for Value Realization 214


PART V EMERGING REALITY — DO IT, VALUE IT 223                                                                                                     
CHAPTER 19 Forward Thinking 225
Value Networks 225
Value Systems 230
Value Options 235
Maximizing Stakeholder Economic Value 243

CHAPTER 20 Connecting the Dots 251
IT Value Network Maturity Model 252
IT Value Network Checklist 270
Collaboration for Network Advantage 273
Value IT 276


Glossary 277
Notes 289
About the Author 303
Index 00

Copyright © 2009, Tony J. Read, The IT Value Network. Publishers: John Wiley & Sons. All rights reserved.