I'll be speaking on the subject, "How to Cost-Justify an IT Investment,"
at AFCOM's spring Data Center World conference in March. The presentation will explain how IT managers can use the concept of economic value added (EVA) to build the business case for IT infrastructure and data center investments.
Business executives aren't writing any blank checks to IT these days. Therefore, data center managers and other IT executives need to be able to present the cost and benefits for each IT project in terms that executives outside of IT can appreciate.
Too often an IT manager will present a new project in terms of why it is important. But, every project is important to somebody. With limits on funding, business executives think in terms of which project delivers more value to the organization.
For example, it may be obvious to the IT group that server upgrades are necessary. But when the request gets to the executive committee, it is competing with a new plant in Idaho, or a new warehouse in Buffalo, which are also important. So the IT group needs to find a way to show that those server upgrades either make money or save money. It's not always easy.
Part of the presentation will focus on application of economic value added (EVA) as a tool for IT investment analysis.
AFCOM's Data Center World conference is being held March 19-23, 2006, at the Georgia Word Congress Center in Atlanta, Georgia. To request a free conference brochure or to register for the conference, visit AFCOM's website at www.afcom.comAbout AFCOMAFCOM
is the premier association representing the needs of enterprise and Internet data center executives and vendors around the globe. Established in 1981, AFCOM has become a forum for data center professionals, where they can share best practices and disseminate education on key management issues through the media, trade shows and conferences. The Data Center Institute--AFCOM's think-tank--provides the industry's most comprehensive insight and analysis on key issues affecting all data-intensive organizations. The association's members include data center managers, CIOs and other IS professionals from Fortune 1000 companies.Related postsUsing Economic Value Added (EVA) to justify IT investments