Moneyball for IT

5 Pages Posted: 19 Sep 2012 Last revised: 4 Sep 2013

Date Written: September 18, 2012

Abstract

Traditional efforts to improve IT performance treat project delivery as an operational endeavor driven by technologists. Progress, these technologists say, lies in ever more complex implementation methodologies.

The fact is, an IT project is a business endeavor which must be evaluated in financial terms, both as a standalone effort and in relation to other efforts competing for resources. Moreover, a client or vendor’s projects represent a rolling collection of endeavors. They are best analyzed and managed as a portfolio. The data, insights and opportunities generated by a financial, portfolio approach constitute Moneyball IT.

Proof of success will not only come through better project delivery and business ROI but the ability to insure IT projects for timeliness, adherence to budget, and full functionality.

Note -- With respect to Robert Zafft, this article arises from the entirely private research activities of the author and does not reflect the views of author's employers, past or present, nor any other organizations with which the author is or has been affiliated.

Keywords: IT, information technology, IT projects, project failure, risk, risk management, Moneyball, Flyvbjerg, Budzier, portfolio, portfolio risk management, technology risk, insurance, professional liability insurance, vendor

JEL Classification: G22, L86, O22, O30, D81

Suggested Citation

Zafft, Robert and Nickel, Loren, Moneyball for IT (September 18, 2012). Available at SSRN: https://ssrn.com/abstract=2148228 or http://dx.doi.org/10.2139/ssrn.2148228

Loren Nickel

Aon Consulting ( email )

Toronto, Ontario M5J 1H8
Canada

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