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 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

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.

Characteristics of Innovations

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? 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 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

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 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 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 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* Develop Business Acumen Build a Leadership Culture Key Questions Key Benefits Develop Business Acumen Build a Leadership Culture Key Questions Key Benefits *Primary source: Gartner Research

Develop 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 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 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 Benefits Financial Benefits Improved Operational Efficiency Improved Constituent Value Political Return Financial Benefits Improved Operational Efficiency Improved Constituent Value Political Return

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? Contact Information: Bert Jarreau Chief Information Officer 440 First Street, N.W., Ste 800 Washington, DC (202) Contact Information: Bert Jarreau Chief Information Officer 440 First Street, N.W., Ste 800 Washington, DC (202)