Georgia Digital Government Summit
November 16, 2006
Making the Business Case for IT
Bert Jarreau
Overview
Making the Business Case: Parallels
Process of Adopting Innovation
 Award Winning Innovations
 What is the Value of IT?
 Linking Needs, Technology and
Innovation
 Create a Business Case for a
Government IT Project
 Business Case Guidelines
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Making the Business Case: Parallels
Process of Adopting Innovation*
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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
Potential
Adopter
Adopter
Information
Convergence
Divergence
*Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.
Characteristics of Innovations
Relative
Advantage
(degree innovation
perceived as better than
idea it supersedes)
Observability
(degree results of an
innovation visible to others)
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)
Complexity
(degree innovation
perceived as difficult to
understand and use)
2006 Innovations in American
Government Award
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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?
IT + Citizen Focus = Innovations
Improve productivity
Improve service delivery
 Reduce the cost of government
 Increase citizen input into government
 Improve decision making
 Increase the transparency of
government transactions
 Cultural transformation
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Linking Needs, Technology and
Innovation*
Business needs define the demand for
new technology
 Focus the technology planning process
on business needs
 Needs-driven innovation
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*Primary source: Gartner Research
Business 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.
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Focus the technology planning
process on business needs
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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 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.
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Create a Business Case for a
Government IT Project*
Develop Business Acumen
 Build a Leadership Culture
 Key Questions
 Key Benefits
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*Primary source: Gartner Research
Develop Business Acumen
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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 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.
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Key Questions
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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 Benefits
Financial Benefits
 Improved Operational Efficiency
 Improved Constituent Value
 Political Return
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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.
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*Primary source: Gartner Research
Questions?
Contact Information:
Bert Jarreau
Chief Information Officer
440 First Street, N.W., Ste 800
Washington, DC 20001
(202) 942-4248
[email protected]