Manage IT as a Business: How to Achieve Alignment and Add Value to the Company

Chapter 3: Technology Assessment, Management, and Direction

INTRODUCTION

Given that this is a book about IT management, you would expect that a chapter dealing with technology would emphasize the benefits of the technology and how it can solve many business problems. And, yes there are many benefits of the technology. After all, technology makes the process improvement and change management possible. However, there is also tremendous waste and misdirection of effort due to technology. Thus, it is important to take a balanced view of new and existing technology.

Let s first turn to the life cycle of technology. Most new technology is generated based on discovery and research as opposed to solving specific business problems. In essence, much of technology (including that not pertaining to computers and automation) is a solution looking for problems. Nothing wrong with that as long as you take a pragmatic and realistic view. In order to be useful, technology often has to fit in with what already is on the market and in use. This puts attention on interfaces. Suppose, for example, that someone invents a new telephone model that can perform many functions such as video, camera, PDA, etc. Each of these functions has to interface with what people have on their existing PCs. Otherwise, you either have to invent even more technology or you find that there is no market for the technology. This is called backward compatibility. Backward compatibility is essential, but it is also a limitation because it places constraints on the extent of new features. Consider 32-bit computers.

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