Invest in future capabilities

posted 2.17.2017

Develop mechanisms to ensure an appropriate level of investment in future capabilities of entire company. In particular, develop processes investing in reusable IT capabilities, the long-term quality of architecture and regular renewal of IT infrastructure and workstations (e.g. sustaining agility and other KPI's)

Why:

Decision-making mechanisms of investing in IT are often focused on short-term financial goals of separate projects (ROI - Return On Investment). Ie. we look for positive business case for particular project. As a result we build a single-purpose solutions.

To ensure a balance between local project, short-term goals (ROI) and company-wide, long-term objectives (Return On Asset) we need to provide funding mechanisms for both types of objectives (e.g. funding mechanism focused on investing in IT enablers - reusable IT capabilities to be used in several projects in the future by several business units).

This topic is quite difficult in situations when business owns the budget and decides on project scope and cost (and wants naturally to achieve business results with lowest possible cost). The result: future IT capabilities cannot be responsibly planned and thus are insufficiently implemented.

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