Discussion on:

Prioritize projects with the IT Project Hierarchy

At first glimpse the hierarchy of needs showed a management view of IT. In most companies that is the norm, but it is not necessarily the best use of IT. Your "low level" operations could well be costly to operate without "strategic" tools that serve to streamline a lower level workforce. The cost savings could be enormous compared to having more timely statistics on the CEO's desk. Use the projects portfolio approach to establish details on each potential initiative, including savings opportunities. If the CEO still wants to get the statistics done first, so be it, there is no law that forces companies to manage IT rationally. If you run out of resources before you can address the operational areas that must be streamlined it matters little if the statistics tell you of the troubles brewing in the company. The illustration of a hierarchy of needs would suggest otherwise, if taken at face value. The needs analysis should involve detailed business requirements analyses in all areas of the company where IT can provide tools to streamline operations, including the DSS tools for management to stay on top of operations effectiveness. The results should be reflected in a portfolio and reviewed by management to decide on priorities. There should be regular status and review meetings to keep management aware of what is being accomplished, and to adjust priorities should conditions arise. While you may not get all the desired projects done, it has been found that a portfolio approachover time will result in more effective use of IT at any level of what the infrastructure can support.

Implementing a micro approach, infrastructure is obviously critical to any IT project. For example, a client's desire to upgrade an accounting system usually requires investment in networking and computer equipment to run the new accounting system and future support.

From a macro approach there are many questions, will this new accounting system integrate with other software currently used by the client and how will it benefit the client overall.

Any project is an investment in a firm and subject to at least cost benefit analysis or some form of net present value analysis if possible.

Granted these costs and benefits are quantative, most of the benefits are qualitative measures and hard to define in financial terms.

A firm should have proper infrastructure to support a new project, while analyzing the cost and benefits of a project and how it fits into the strategic plan of a firm. Depending on the projects? the required infrastructure support is sometimes minimal, but always important.

It is very insular to approach IT investment as a static hierarchy on its own. The business alignment is the generator of value to an organisation far more substantially than the IT components themselves.

Why this proprietary need to reinvent the wheel and replace it with a delta? IT project hierarchy is covered as part of IT service management. IT service management is amply covered in ITIL and the IT Service CMM.

Business requirements i.e. (the customer) drive IT function for anyone who receives IT services, internal or external.

If only the IT "project hierarchy" (i.e. service management) world were as simplistic as this pyramid depicts! I guess gaining a techrepublic writing byline for a quick metagroupian McAnalysis is a more immediate and Machievellian goal for Mr. Sisco than getting IT from the gitgo.

Stability could mean different things depends on each organization. In my opinion these hierarchy is true just if we remove the support items because all the production corrections that has an impact in the daily work will be addressed first. After that could be strategic, tactical..doesn?t care but the business needs continuity for that purpose you need to focus on give stability (agree with that comments).