Making smart t choices Understanding value and risk in Government it investments Sharon S. Dawes Theresa A. pardo Stephanie Simon Anthony M. Cresswell Mark F. Lavigne David F Andersen Peter A. bloniarz Center for Technology in Government University at Albany, SUNY 187 Wolf Road Albany, NY 12205 Phone:(518)4423892 Fax:(518)442-3886 E-mail: info@ctg. albany. edu www.ctg.albany.edu Second edition April 2004 @2001 Center for Technology in Government The Center grants permission to reprint this document provided this cover page is included
Making Smart IT Choices Understanding Value and Risk in Government IT Investments Sharon S. Dawes Theresa A. Pardo Stephanie Simon Anthony M. Cresswell Mark F. LaVigne David F. Andersen Peter A. Bloniarz Center for Technology in Government University at Albany, SUNY 187 Wolf Road Albany, NY 12205 Phone: (518) 442-3892 Fax: (518) 442-3886 E-mail: info@ctg.albany.edu www.ctg.albany.edu Second Edition April 2004 ©2001 Center for Technology in Government The Center grants permission to reprint this document provided this cover page is included
Table of contents Part One Introduction Chapter 1 7 The risks of iT innovation in government 8 Risks of it innovation 10 Public sector risks 12 How this guide can help Chapter 2 13 The analysis and evaluation process 15 Analysis is a group process 17 Phase 1. Understand the problem and its context 21 Phase 2. Identify and test soluti Phase 3. Evaluate and make smart choices Chapter 3 33 Preparing a business case 34 Essential elements of a business case 36 Problem statement 37 A mission or vision statement 38 Specific objectives 41 Performance and group process 42 Risks and ways to address them 43 A basic plan of work, timeline, and key milestones 44 Project management and staffing 45 Cost estimates and funding sources 47 Opposing arguments and responses Chaper 4 49 Presenting your business case 50 Identifying the audiences for your business case 52 Presenting your business case 54 Be prepared for all kinds of questions
Table of Contents Part One Introduction 1 Chapter 1. 7 The risks of IT innovation in government 8 Risks of IT innovation 10 Public sector risks 12 How this guide can help Chapter 2. 13 The analysis and evaluation process 15 Analysis is a group process 15 Techniques for acquiring needed information 17 Phase 1. Understand the problem and its context 21 Phase 2. Identify and test solutions 26 Phase 3. Evaluate and make smart choices Chapter 3. 33 Preparing a business case 34 Essential elements of a business case 36 Problem statement 37 A mission or vision statement 38 Specific objectives 39 Preferred approach 40 Expected benefits 41 Performance and group process 42 Risks and ways to address them 43 A basic plan of work, timeline, and key milestones 44 Project management and staffing 45 Cost estimates and funding sources 46 Alternatives considered 47 Opposing arguments and responses Chaper 4. 49 Presenting your business case 50 Identifying the audiences for your business case 52 Presenting your business case 54 Be prepared for all kinds of questions
Part two Skills for working with groups 62 Group facilitation 67 Audience and presentation skills Information gathering techniques 69 Library and document research 71 Internet research 82 Simulatio Tools for Phase 1: Understanding the problem and its context 89 Service obje 95 Stakeholder analysis 99 Partisan analysis 105 elf-assessment tools 107 Models of problems Tools for Phase 2: Indentifying and testing solutions 112 Technology awareness reviews 116 Environmental scanning 120 Modest, moderate, elaborate alternatives 123 Protot
Part Two Skills for working with groups 62 Group facilitation 65 Consensus building, collaboration, and decision making 67 Audience and presentation skills Information gathering techniques 69 Library and document research 71 Internet research 75 Surveys 77 Interviews 79 Experiments 82 Simulations Tools for Phase 1: Understanding the problem and its context 85 Visioning 87 Hopes and fears 89 Service objective 91 Strategic framework 95 Stakeholder analysis 97 Positioning charts 99 Partisan analysis 101 Process analysis 105 Self-assessment tools 107 Models of problems Tools for Phase 2: Indentifying and testing solutions 110 Best and current practice research 112 Technology awareness reviews 114 Benchmarking 116 Environmental scanning 118 Models of solutions 120 Modest, moderate, elaborate alternatives 123 Prototyping
Tools for Phase 3: Evaluating and making smart choices 125 Risk analys 128 Scenario building and forecasting 133 Cost-benefit and cost-performance analysis 135 MAU models 137 Prioritizing methods 139 SWOT analysis
Tools for Phase 3: Evaluating and making smart choices 125 Risk analysis 128 Scenario building and forecasting 130 Cost estimation 133 Cost-benefit and cost-performance analysis 135 MAU models 137 Prioritizing methods 139 SWOT analysis
Introduction Frankly sir, we're tired of bein., on the cutting edge of technology. guide is designed to help you and needed to improve or change the way they ur organization make good decisions gather and use information. Here at the Center when and how to invest in information for Technology in Government, we have worked technology(IT). Put another way, it will help on projects in human services, criminal justice, you avoid becoming one of the statistics that financial management, and environmental dominate reports on information technology protection, among others. investments The agencies weve worked with range in Reports on failure rates range from 50 to 80 size from enormous federal departments to percent and sometimes more Failures don't tiny towns, and everything in between. Their happen because people arent smart or trying goals focused on a wide variety of functions hard. But failures do happen every day-mostly including case management, direct citizen because people fail to realize and appreciate contacts, research and analysis, general the complexity of these decisions and the way administration, and regulatory affairs. Some they affect nearly every other aspect of an had many years of experience in using IT; organization 's work others were novices Failure is almost inevitable if decisions Regardless of their differences, every project about IT are hasty, unrealistic, or uninformed encountered similar basic challenges. Early To help you avoid this fate, we lead you conceptualizations of their problems were through the complex and challenging process often oversimplified. The influences of their of analyzing an information problem or larger organizational and political environments need-and its context. We help you identify, were underestimated. The ways in which evaluate, and choose possible solutions And current work would have to change were not through the of building onsidered. In those a solid business case for investing in yo the effort needed to identify how people and or ways of working were considered, estimates recommendations processes work now(and how they would have Everything in this guide is based on years to change) were vastly insufficient. Agencies of experience working with dozens of times hoped that " the right " technology government and nonprofit agencies that would solve almost any problem CENTER FOR TECHNOLOGY IN GOVERNMENT: MAKING SMART IT CHOICES
CENTER FOR TECHNOLOGY IN GOVERNMENT: MAKING SMART IT CHOICES Introduction 1 This guide is designed to help you and your organization make good decisions about when and how to invest in information technology (IT). Put another way, it will help you avoid becoming one of the statistics that dominate reports on information technology investments. Reports on failure rates range from 50 to 80 percent and sometimes more. Failures don’t happen because people aren’t smart or trying hard. But failures do happen every day—mostly because people fail to realize and appreciate the complexity of these decisions and the way they affect nearly every other aspect of an organization’s work. Failure is almost inevitable if decisions about IT are hasty, unrealistic, or uninformed. To help you avoid this fate, we lead you through the complex and challenging process of analyzing an information problem or need—and its context. We help you identify, evaluate, and choose possible solutions. And we guide you through the process of building a solid business case for investing in your recommendations. Everything in this guide is based on years of experience working with dozens of government and nonprofit agencies that needed to improve or change the way they gather and use information. Here at the Center for Technology in Government, we have worked on projects in human services, criminal justice, financial management, and environmental protection, among others. The agencies we’ve worked with range in size from enormous federal departments to tiny towns, and everything in between. Their goals focused on a wide variety of functions including case management, direct citizen contacts, research and analysis, general administration, and regulatory affairs. Some had many years of experience in using IT; others were novices. Regardless of their differences, every project encountered similar basic challenges. Early conceptualizations of their problems were often oversimplified. The influences of their larger organizational and political environments were underestimated. The ways in which current work would have to change were not fully considered. In those cases where new ways of working were considered, estimates of the effort needed to identify how people and processes work now (and how they would have to change) were vastly insufficient. Agencies sometimes hoped that “the right” technology would solve almost any problem