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Smart Enterprise: Greater Expectations

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deployed, but assume the benefits will result if it is on time, within budget and meets specifications. But if no one uses it, it generates no value." That can require patience on the part of CIOs and business executives alike. Thorp says it typically takes a company seven years to implement what he calls "the whole cul- ture" of ongoing executive involvement with IT. "The tenure of the average executive is less than that," Thorp adds. "So we are tell- ing them that the process is hard, and if it is successful, someone else will get the kudos." Companies that demonstrate patience can reap rewards. For example, Peppard cites a U.K.-based bank that, thanks to a new CRM system, saw its marketing response rates rise from just 2 percent to 40 percent after only three years. Another U.K.-based financial organization won an award for its CRM implementation — this time, after seven years. "The benefits do not happen automatically," Peppard says. "If you go live on Monday morning, you won't have all the benefits by Monday afternoon." Another key to getting value from IT is change management. Many IT projects fail not because the technology did not work, but because the organization failed to man- age the resulting change effectively. "Jobs may have to be redesigned, people may have to be redeployed — these are part and parcel of IT-enabled change projects," Peppard says. What's more, managing this change isn't something the CIO can do alone. "It has to come from within the business itself," Peppard adds. ESPN's Pagano adds that having the right culture is more important than having a defined process. "We have a culture rather than a template, and that is the way it has been since we launched in 1979," he says. "To be honest, there is no standard project template for anything here." In the final analysis, "IT is fundamen- tally different from other resources and needs to be managed in a fundamentally different way than, say, manufacturing," Peppard noted. "You can't manage IT from within a box on the organization chart, assign a budget and say to the CIO, 'Get on with it.' Executives need to recognize that IT is different, and that IT decisions are essentially business decisions. And CIOs need to educate their business col- leagues about how value is generated from IT investments — and what their role is in IT investments." Yes, the task is complex. But once CIOs understand the complexity, they can orga- nize it into simpler tasks, Thorp says. "If you deny the complexity of the task," he adds, "you only make it more complex." ■ LAMONT WOOD is a freelance writer based in San Antonio, Texas. Too Big to Succeed? Smaller IT projects are more likely to deliver their promised business value DATA: The Standish Group, 2010, custom data provided for Smart Enterprise, using worldwide project statistics Note: Succeeded = delivered on time, within budget, and with all promised features. Challenged = missing any or all of those three criteria. Failed = canceled, never completed, or delivered but not implemented 80 70 60 50 40 30 20 10 0 Succeeded Challenged Failed 2% 48% 50% 14% 32% 54% 38% 13% 49% 71% 5% 24% 11% 38% 51% PROJECT SIZE Less than $750K to $3 Million to $6 Million to More than $750K $3 Million $6 Million $10 Million $10 Million The Continuing Search for IT Value How well U.S. IT projects delivered their promised business value DATA: The Standish Group, "CHAOS Summary for 2010," using statistics gathered worldwide Note: Succeeded = delivered on time, within budget, and with all promised features. Challenged = missing any or all of those three criteria. Failed = canceled, never completed, or delivered but not implemented 80 70 60 50 40 30 20 10 0 Succeeded Challenged Failed 2000 2002 2004 2006 2008 32% 24% 44% 29% 18% 53% 34% 15% 51% 28% 23% 49% 35% 19% 46% Percent of Projects )'('SMART ENTERPRISE 51

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