1. From Business Strategy to IT Action Chapter 3 Connect to the Bottom Line

2. Connecting IT Spending to the Bottom Line reducing the cost of “lights on” projects – those everyday projects that are required to standard business processes reducing the cost of “lights on” projects – those everyday projects that are required to standard business processes performing financial analyses (the text prefers ROI) on proposed new projects performing financial analyses (the text prefers ROI) on proposed new projects measuring the impact on a specific project and then relating that project’s impact on profitability measuring the impact on a specific project and then relating that project’s impact on profitability

3. reducing the cost of “lights on” projects be careful of paying attention only to the ROI percent – risk assessment is critical and intangible cost/profit is difficult to measure be careful of paying attention only to the ROI percent – risk assessment is critical and intangible cost/profit is difficult to measure “lights on” projects should be evaluated with the same frequency as other firm projects (no entitlements) “lights on” projects should be evaluated with the same frequency as other firm projects (no entitlements)

4. performing financial analyses ROI is common ROI is common look for other issues look for other issues tangible/intangible tangible/intangible image/halo effect image/halo effect champion champion

5. measuring the impact on a specific project has the greatest probability (of the three) to increase the firm’s profitability has the greatest probability (of the three) to increase the firm’s profitability implicitly assumes IT is aligned with the firm’s strategic goals implicitly assumes IT is aligned with the firm’s strategic goals means you have to be able to look forward and anticipate change means you have to be able to look forward and anticipate change IT is not a strategic part of a firm unless it is either the firm’s product or integrally ingrained in the product – think Wal-Mart IT is not a strategic part of a firm unless it is either the firm’s product or integrally ingrained in the product – think Wal-Mart

6. the text says that a problem with evaluating IT is that many people cannot differentiate between strategic and operational effectiveness the text says that a problem with evaluating IT is that many people cannot differentiate between strategic and operational effectiveness