Taking the Measure of Lean IT
For CIOs, using metrics that business managers
understand is key to demonstrating the value of IT.
By
Michael Christenson
Lean IT — the application of Lean
manufacturing principles to IT —
can help CIOs eliminate IT inefficiencies,
increase productivity, control costs,
and improve service quality and customer
service. CIOs who apply Lean thinking
to IT can maximize the value their department
delivers to both the business and
its customers.
Looking to get started? Here are some
practical tips to help ensure that your Lean
IT efforts deliver results that will please your
CEO, your CFO and, perhaps most important,
your customers:
Focus on Quick Incremental Wins.
When starting with Lean IT, consider small
projects that can help lower costs and yield
quick results. Identify one or two essential
IT processes where inefficiencies exist, and
focus on reducing waste and cycle time there.
One such area is server provisioning. In
a recent Benefits of Practical Innovation
survey, conducted by Smart Enterprise magazine
and IDG Research Services, 45 percent
of CIOs said their server-provisioning processes
could use improvement. One of our
customers, a financial services company,
used to take 34 days to provision just one
new server. Our sales and services teams
worked with the company to implement
process improvements and automation that
reduced the process to just six days. This
improvement saves the company more than
$12,000 each time it provisions a new server.
Focus on the Customer Experience.
Increasingly, customers interact with
companies through the Web and online
applications. And across nearly every industry,
a great deal of revenue is driven today by
electronic transactions. CIOs can enhance
this by applying Lean IT practices, which
aim to maximize the value delivered to
customers — and to ensure that customers
have a positive online experience when they
engage with your company.
In the Practical Innovation survey,
nearly 85 percent of senior IT executives said
that improving their customers' experiences
with business-critical or revenue-driving
applications would yield a major business
benefit. In this issue's cover story, you can
learn how we've helped software provider
Intuit Inc. ensure that its customers have a
positive experience.
Focus Your Resources to Maximize
Value.
In this economy, no company can
afford to spend precious IT resources on
projects that fail to yield sufficient business
benefits. More than likely, the challenge
you face is one of prioritization. Since the
constituencies you serve have no shortage of
ideas for how they'd like IT to support their
initiatives, how do you pick the ones likely
to deliver the greatest business benefit?
You're not alone. In the Practical Innovation
survey, nearly 75 percent of senior
IT executives said their IT investment processes
could stand improvement. Project and
portfolio management (PPM) solutions can
provide CIOs with insight into how well
various projects align with organizational
objectives, leading to informed, fact-based
investment prioritization discussions. PPM
solutions can also help CIOs ensure that,
once resources are assigned, the intended
projects are delivered on time, on budget
and on track to deliver the expected results.
These three approaches can help you
apply Lean practices — and start enjoying
the benefits — today.
Michael Christenson
is CA's
President
and COO.