Georgia Digital Government SummitNovember 16, 2006

Making the Business Case for ITMaking the Business Case for ITBert JarreauBert Jarreau

OverviewOverview

Making the Business Case: Parallels Process of Adopting Innovation

Award Winning InnovationsWhat is the Value of IT?Linking Needs, Technology and

InnovationCreate a Business Case for a

Government IT ProjectBusiness Case Guidelines

Making the Business Case: Parallels Process of Adopting Innovation

Award Winning InnovationsWhat is the Value of IT?Linking Needs, Technology and

InnovationCreate a Business Case for a

Government IT ProjectBusiness Case Guidelines

Making the Business Case: Parallels Process of Adopting Innovation*

Making the Business Case: Parallels Process of Adopting Innovation*

Innovation: An idea, practice, or object that is perceived as new.

Innovation is communicated through certain channels over time among members of a social system

Communication: A process in which participants create and share information with one another to reach a mutual understanding

Innovation: An idea, practice, or object that is perceived as new.

Innovation is communicated through certain channels over time among members of a social system

Communication: A process in which participants create and share information with one another to reach a mutual understanding

*Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.

Potential Adopter

Information

Convergence Divergence

Adopter

Characteristics of Innovations

Characteristics of Innovations

RelativeAdvantage(degree innovation

perceived as better than idea it supersedes)

Compatibility(degree innovation perceived as being consistent with existing values, past experiences, and needs of potential adapters)

Trialability(degree innovation may be

experimented with on a limited basis)

Observability(degree results of an

innovation visible to others)

Complexity(degree innovation

perceived as difficult to understand and use)

2006 Innovations in American Government

Award

2006 Innovations in American Government

Award Washington , D.C.: Community Policing U.S. Fish and Wildlife Service: Grass

Roots Conservation Program U.S. Department of Veterans Affairs:

Health Information Technology City of Indianapolis, IN: Mayor's Charter

Schools Initiative State of Connecticut: Supportive

Housing Pilots Initiative Commonwealth of Massachusetts:

Children and Family System Reform Broward County , FL: Urban Academies

Program

Washington , D.C.: Community Policing U.S. Fish and Wildlife Service: Grass

Roots Conservation Program U.S. Department of Veterans Affairs:

Health Information Technology City of Indianapolis, IN: Mayor's Charter

Schools Initiative State of Connecticut: Supportive

Housing Pilots Initiative Commonwealth of Massachusetts:

Children and Family System Reform Broward County , FL: Urban Academies

Program

What is the Value of IT?What is the Value of IT?

IT + Citizen Focus = Innovations Improve productivity Improve service deliveryReduce the cost of government Increase citizen input into

government Improve decision making Increase the transparency of

government transactionsCultural transformation

IT + Citizen Focus = Innovations Improve productivity Improve service deliveryReduce the cost of government Increase citizen input into

government Improve decision making Increase the transparency of

government transactionsCultural transformation

Linking Needs, Technology and Innovation*

Linking Needs, Technology and Innovation*

Business needs define the demand for new technology

Focus the technology planning process on business needs

Needs-driven innovation

Business needs define the demand for new technology

Focus the technology planning process on business needs

Needs-driven innovation

*Primary source: Gartner Research

Business needs define the demand for new technologyBusiness needs define the

demand for new technology

Business needs form expectations for innovation and results.

Business needs address structural issues.

Focusing on business needs early identifies high-potential technologies and strengthens the planning process.

Business needs form expectations for innovation and results.

Business needs address structural issues.

Focusing on business needs early identifies high-potential technologies and strengthens the planning process.

Focus the technology planning process on business

needs

Focus the technology planning process on business

needs A business needs approach to planning

creates a reason and a role for early business involvement and support.

CIO understanding of business needs enables investment in technologies based on business priorities, rather than market judgments of technology maturity.

Prioritizing the fit with business needs determines the value of emerging technologies.

A business needs approach to planning creates a reason and a role for early business involvement and support.

CIO understanding of business needs enables investment in technologies based on business priorities, rather than market judgments of technology maturity.

Prioritizing the fit with business needs determines the value of emerging technologies.

Needs-driven innovationNeeds-driven innovation

Use business needs to frame and focus innovation techniques.

Concentrate on using emerging technologies to change business fundamentals.

Build the business case by recognizing the connection between business needs and emerging technologies.

Use business needs to frame and focus innovation techniques.

Concentrate on using emerging technologies to change business fundamentals.

Build the business case by recognizing the connection between business needs and emerging technologies.

Create a Business Case for a Government IT Project*

Create a Business Case for a Government IT Project*

Develop Business AcumenBuild a Leadership CultureKey QuestionsKey Benefits

Develop Business AcumenBuild a Leadership CultureKey QuestionsKey Benefits

*Primary source: Gartner Research

Develop Business AcumenDevelop Business Acumen

Ensure that employees gain the business knowledge and skills to interact effectively with counterparts in the business units.

Recruit new professionals to the IT organization with demonstrable business skills and experiences.

Rotate high-potential employees into business-unit assignments to foster business acumen.

Engagement with peers and subordinates.

Ensure that employees gain the business knowledge and skills to interact effectively with counterparts in the business units.

Recruit new professionals to the IT organization with demonstrable business skills and experiences.

Rotate high-potential employees into business-unit assignments to foster business acumen.

Engagement with peers and subordinates.

Build a Leadership CultureBuild a Leadership Culture

Guide, coach & motivate employees.

Create of a common vision that drives enthusiasm and commitment.

Create reliability and trust.Create continual learning.Lead by example.

Guide, coach & motivate employees.

Create of a common vision that drives enthusiasm and commitment.

Create reliability and trust.Create continual learning.Lead by example.

Key QuestionsKey Questions What problem exists that must be solved? What people/stakeholders (how many

constituents) does this problem affect? What solutions are available to solve this

problem? What are the benefits of each solution? What is the relative cost of each solution? What stakeholders are affected by the

intended solution? Are stakeholders willing to pay for this

solution or must government fund it? Can other fund sources be used? How can these stakeholders affect my political

future? If we pay to solve this problem, what other

problem goes unsolved?

What problem exists that must be solved? What people/stakeholders (how many

constituents) does this problem affect? What solutions are available to solve this

problem? What are the benefits of each solution? What is the relative cost of each solution? What stakeholders are affected by the

intended solution? Are stakeholders willing to pay for this

solution or must government fund it? Can other fund sources be used? How can these stakeholders affect my political

future? If we pay to solve this problem, what other

problem goes unsolved?

Key BenefitsKey Benefits

Financial Benefits Improved Operational Efficiency Improved Constituent ValuePolitical Return

Financial Benefits Improved Operational Efficiency Improved Constituent ValuePolitical Return

Business Case Guidelines*Business Case Guidelines*

Focus on simplicity over precision.Select a few metrics you can track

over time.Maintain a balance between

quantitative and qualitative metrics.

Update the business case regularly in conjunction with business participants.

Focus on simplicity over precision.Select a few metrics you can track

over time.Maintain a balance between

quantitative and qualitative metrics.

Update the business case regularly in conjunction with business participants.*Primary source: Gartner Research

Questions?Questions?

Contact Information:

Bert JarreauChief Information Officer440 First Street, N.W., Ste 800Washington, DC 20001(202) 942-4248bjarreau@naco.org

Contact Information:

Bert JarreauChief Information Officer440 First Street, N.W., Ste 800Washington, DC 20001(202) 942-4248bjarreau@naco.org