Did you know that 51% of IT managers surveyed said they can accurately predict the cost and impact of investment options to their business?
Five out of 10 IT managers either have no idea how to or are having problems effectively predicting cost and impact to the business.
I asked a few of the brains at TeamQuest this question and they provided some examples how one might go about correcting this.
Director of product management John Miecielica says it’s fairly straightforward.
Come up with a set of technology alternatives and project the cost. Keep in mind that the business is really looking for a recommendation of which investments to make and why. In order to come up with the recommendations, you need to partner with the business to understand the following:
- What is the market position and life expectancy of each product service?
- What is the expected business volume growth and how do you plan to achieve this growth?
- What are the competitive and market pressures which could alter your course and how likely are they to occur?
- Where is your product in the product maturity life cycle?
Look at different options for a cash cow that is expected to be irrelevant in three years versus a growth engine which is expected to increase ten-fold year over year.
If you have a common understanding of what the business needs and wants, you can move that information with the measured data currently available for your products and use the two to create a prediction of the amount of IT resources needed to meet business objectives. From there, you should construct several scenarios of investments and work with the business to choose the one which most closely aligns with the discovered information.
Make accurate predictions about the oncoming impact of a business decision with advanced analytics, says TeamQuest Director of Global Services Per Bauer. You need to have context in order to do a complete analysis. Verify that the scenario is realistic and that it’s the right one. Understand the primary business objectives since this will have an impact on what option you should recommend.
Simply put, you need to have a good idea of what’s happening now so you know precisely where to predict from.
If you want more information on how to accurately predict cost and impact, download one customer’s account of how his team drove success with business metrics, data and automated forecasting.