Surviving the Recession, a Quocirca series

In the second instalment of this weekly 12-part series Quocirca analyst Clive Longbottom looks at how those in IT need to win over the board and the rest of the organisation with some sound business thinking...

It is a fact that 60 per cent of all IT projects fail, running over time, over budget, or just not meeting objectives. Historically, the main approach has been to try to solve a problem in one go.

Take enterprise resource planning (ERP) - attempts were made to overhaul the way a company manages its internal resources in one large project, with (generally) one product, such as Baan, Oracle or SAP. Eighteen months later, the main board - who had signed on to the 'grand vision' in the first place - would suddenly be pulling the rug from under the project and looking for scapegoats.

Scapegoats there often were - but often in the wrong place. The management should have looked in the mirror - they had fallen for the problem of 'fix everything first'. The vendors were guilty - "We are the answer. What was the question?" The systems integrators should also hold up their hands - "It will all be in place in x months."

But you have to live with the consequences. It was an IT project and therefore the problem is yours. The perception of IT has rarely been lower - it is seen only as a necessary evil and during a downturn of the market it is an easy target for funding hits.

Now, if we could demonstrate to the business how the correct approach to IT projects can provide demonstrable business benefits, we may be able to re-address these perceptions. The key to this is time and money - being able to show how small changes (and, hopefully, small investments) can positively affect the business the most.

Quocirca's approach is always to start with the business - technology without a purpose serves no one. Companies need to take a step back and ask themselves what the main issues are stopping them being number one in their markets. This should generally generate about 15 or 20 main issues - enough to make any business person run for cover. However, a useful general rule of thumb shows the top two or three issues will be the ones causing 80 per cent of the pain.

Therefore, prioritising issues becomes of major importance and for this you will need the help of some of the company's business managers. They should be able to tell you which of the issues are the most painful - they won't particularly be able to help you in what the solution should be but by listening carefully to the business talk that goes on you should be able to apply your technology knowledge to the issues.

For example, you hear: "If only the marketing department tells the sales department what they are doing, the sales guys would be able to position themselves more accurately with the customer." This becomes: "We have communication problems. Either an advanced messaging system or a campaign management system would solve the problem."

Again: "The problem is not selling the product - it's getting enough of the parts to make it," becomes: "We have supply chain issues - managing supply against demand will solve the problem."

You are the broker, the one who takes the business issues and identifies what technologies can solve these in the most cost-effective manner. By holding these meetings (and listening at other meetings,) you will be able to build a bigger picture of the issues facing your company - and therefore be able to build a priority list of the most pressing issues.

Then, by choosing one or two of the most pressing issues that can be solved via suitable technological underpinnings within a short period of time, you have the makings of becoming the white knight for the company - an IT manager who understands the business and can be seen to implement suitable solutions in a fast time, so enabling the business to work more effectively.

But - and it's a big but - you still will not get anywhere until you can get the funding for your project. As we have said earlier, the perception of IT has been somewhat tarnished and the amounts of money being offered for IT projects during a recession can be derisory. Therefore, we need to be able to create a set of arguments that will make the project more palatable or even make the decision a no-brainer.

For all of us, the key is the customer - knowing who they are, understanding what they want and being able to offer it to them. These are good starting points.

Next week, we look at what key attributes customers are looking for, and how to begin to build your arguments for IT investment.

**Quocirca is a leading, user-facing analyst house known for its focus on the 'big picture'. For a full summary of its activities see http://www.quocirca.com, or reach the company's founding directors by emailing quocirca@silicon.com.

Previous Surviving the Recession columns:
Part 1. It's a recession - save or spend?
http://www.silicon.com/a49733