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Two Speed IT - Confronting C Level Executives

Why Digital Transformation is not an IT Transformation

  More on Digital Transformation is here   I would like to mention that this POV is widely used globally and is referenced by a very popular blog run by Rick.  More details here   

The Future of Digital

How would banks make money if banking products or services were free?

My response to this discussion is Banks are going through what Telco's have gone through in last decade. That is, that their core product voice (analogue) is digitised and hence voice based service is free in competitive markets. In case of banks money is still not fully digital, but its not that far either, it will be digitised in few years. In that case then banks or telcos become digital platform for transaction enablement, like Google is for search. And so downstream consumers get free services and upstream consumers pay for interacting/engaging with downstream consumers using the digital platform and in that case it will be banking's core platform. Not only banks but any industry where core offering can be digitised as a multisided platform will have to be adopted else the business will go belly up. Media is evolving on those same lines.  In case of Australia its bit hard because markets across verticals are either monopoly or duopoly, its not a competitive mar

IT Strategy Framework - Linking Corporate Strategy to IT Strategy

Linkage of Corporate Strategy to IT Strategy via IT-CMF

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Why IT - CMF For IT Strategy - It differs from other IT frameworks in several fundamental respects: • It is comprehensive. While other frameworks focus on one dimension of IT management—for example, ITIL (Information Technology Infrastructure Library) concentrates on infrastructure and operations, while CMMI (Capability Maturity Model Integration) focuses on application development—the IT-CMF examines the full spectrum of dimensions. • It is holistic and value-focused. Other frameworks tend to focus solely on IT process maturity, which by itself does not create business value. The IT-CMF, however, focuses on the business value delivered by IT and how a combination of process, skills, culture, and tools can maximize that value. • The IT-CMF is also action oriented. An IT-CMF assessment not only confirms the IT organization’s current maturity for a given capability or set of capabilities, it also defines both short- (that is, 12-month) and med

Weekend Reading

10 Lessons from Cloud Offerings Don't Stop Talking about Your Ideas IT Economics for Business BCG Consultants Love Life Strategic Selling 

A Consultants Life

Private Cloud Solutions

Hype Curve Emerging Technologies - 2013

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   Source: Gartner

IT Economics for Business - II

Real Options Valuation (ROV): A complex technique than TCO, ROI and EVA. It is based on the financial estimation techniques used in stock options theory. ROV is used to modify the ROI calculation by considering the value that the current project could contribute to future projects. This approach typically enhances the ROI of projects such as IT infrastructure. The cost of implementing a whole new infrastructure for just one project for one business unit’s needs is so burdensome that no one business unit could ever justify starting the new infrastructure. However, the overall value of the new infrastructure to all the business units in the organization could be huge. ROV provides a technique for justifying that first project based on the future derived value. Return on Assets (ROA): A popular measure for the performance of companies, ROA can also be applied specifically to IT assets.ROA for IT assets can be calculated by isolating the IT-specific assets from the organisational ass

IT Economics For Business - I

Total Cost of Ownership (TCO): It seeks to capture the full cost of an IT asset from initial purchase through implementation and operation to maintenance and “end of life” costs. This is a cost-based approach that does not equate to value. It is useful for measuring IT value because it allows comparison of alternative implementations that will meet the same business need and, presumably, have very similar values to the business. If the TCO of one alternative is significantly less than the others, it represents better value for money. It includes consideration like training costs, security costs, scalability costs, and the costs of reliability deficiencies. TCO incorporates perspectives that are not purely financial. Limitation: It involves predicting future costs. This limitation can be minimised over time by tracking actual costs but, by then, the investment decision has been made. Return on Investment (ROI): It means calculating the revenue that the business generates or the c

10 Learnings From Cloud Offerings

IT Capability Frameworks

Buyer Process Maps

Buyer Process Maps captures the Buyer's Journey