Before you spend those technology dollars

Before you make a significant investment in a technology project, you should answer the following questions. The first question: How does investing in this help the company’s bottom line? In other words, does this project save expenses, or does it help increase revenue without adding significant expense? As obvious as these questions are, they are often overlooked when people are trying to justify investing in the next great technology thing.

Another question you need to answer: Is this project required by a changing business need? Sometimes the only justification for a project is that it is required by your customers, suppliers, a change in corporate direction or strategy, industry regulations, etc.. These things happen, and they affect you. Still, you should consider the costs.

Yet another question: Is this project required by a legal or government regulation? Some examples of this type of project include Sarbanes-Oxley and HIPAA requirements. What can I say? There’s no way around these projects, and you have to do them. Try to avoid the trap that sometimes happens with companies who try to use compliance as a way to justify pet technology projects.

There may be other questions, ones specific to your company, industry, etc. that you also need to answer. However, if the technology project you are considering doesn’t satisfactorily answer one or more the questions I listed, chances are it’s a bad investment and you shouldn’t do it. As an IT leader, it’s your responsibility to help your company make wise investment decisions. Spending on technology for technology’s sake is not the path to helping your company to become more profitable. It’s your job to direct the scare resources under your control to the best possible outcome for meeting business strategies. Turning down projects that do not meet these criteria will not make you the most popular person in IT. Leadership is not about popularity. Often it’s about doing hard things that no one else will.

Did You Know 4.0

This is another official update to the original “Shift Happens” video. This completely new Fall 2009 version includes facts and stats focusing on the changing media landscape, including convergence…

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