One of the challenges SMOs face is that they often lack the cash flow required to invest in a technology initiative that doesn’t provide any short term value. The techknowlogy principles applied to overcome this challenge are (1) Technology Planning, (2) Incremental Development, and (3) Performance Management.
TechKnowlogy Principle: Technology Planning
Strategic Alignment includes aligning the technology initiative with the organization’s tactical (short-term) plan and strategic (long-term) plan. This ensures that the initiative provides value within a reasonable payback period and that it also contributes to the attainment of the organization’s long-term goals.
Timeline Management is the practice of establishing milestones for measurement of project progress and to support business planning. Because many technology initiatives involve the automation or enhancement of a business process, the timeline for technology projects must take into consideration any potential business process impacts, requirements, and constraints.
Initiative-level Budgeting is the creation and maintenance of a budget that covers the entire technology initiative. This budget is used to assess whether the value provided by the initiative justifies the cost of the initiative. It is also used to ensure that sufficient funding will be available when the project requires it.
It is important to remember that the initiative-level budget is only an estimate. The components of the estimate have varying levels of reliability depending on how well the scope and requirements of the individual component have been established. The more defined the scope and requirements, the more reliable the estimate for the component.
TechKnowlogy Principle: Incremental Development
TechKnowlogy Principle: Performance Management
In the context of a technology initiative, Performance Management helps to validate the value that a project is providing. In the intraprise setting, technical projects are often centered on process improvement and thus the success of a project can be measured by its ability to provide value to a process (i.e. helping a process to meet or exceed the performance standard).