Ch 5 - ismg3000 Essay Example | Topics and Well Written Essays - 750 words

Ch 5 - ismg3000 - Essay Example The effective CIO should be able to steer the organization into designing strategies that match the organizations’ resources and create their competitive advantage over the rest of their competitors; and leave other responsibilities like focusing on functions, as well as portfolio and infrastructure management to duly competent IT personnel. It is so difficult to assign a quantitative value to the return on an IT investment because, as explained by Ruben, computing for the value should take into consideration varied factors that influence and affect IT within an organization. The rationale for this is that gauging the performance of IT would take evaluating the role that IT plays within a continuum. IT is never static; therefore, computing for a quantitative value captures a pre-defined time frame, which is challenging in itself. This is compounded by the fact that the elements to be incorporated in value computation differ. As disclosed, the investments in IT are already clear demonstrations of value. However, there is also a need to incorporate competitors’ reaction to a particular investment to determine the rate of return that that particular investment generated in the long run. From the researches provided with the assistance of Maggie, the â€Å"IT Doesn’t Matter† contention was actually refuted since all crucial information indicated that IT’s role in the organization is significant given the distinct value it provides. As supported from the experience of Zara, a clothing retailer, the benefits and values that IT has created in terms of immediately identifying customers’ demands and preferences in clothing styles paved the way for the organization to perfectly match these needs with the current resources. Likewise, the same experience was also disclosed from Wal-Mart in terms if using IT to create their competitive edge over their