Analysis of Case 6: Considerations for Voice Over IP Telephony
1. Should the vice president’s approach put greater stress on the need to replace an obsolete system (risk mitigation) or on the desirability of improving the organization’s ability to implement new applications (enable new opportunities)
2. How should he engage the organization in learning about the potential of VoIP and developing plans for potential uses of the technology?
3. If a result of this learning is a belief that the VoIP technology is not fully mature, how should Forest assess whether it should proceed or not?
The vice president of support services will need to take a systematic ...view middle of the document...
Examples of these investments include application replacements, upgrades of the network, or expansion of data storage.
3) Process improvement - These IT investments sought to improve the operations of a specific business entity—for example, to reduce costs and improve service.
4) Experiments - Experiments were designed to evaluate new information technologies and test new types of applications. Given the results of the experiments, the organization would decide whether broad adoption was desirable. (Kindle Locations 8969-8976).
Replacing the unsupported system with an old but supported system would fall under Renewal because it is a simple replacement that would restore previous functions of the telephone system with minimal gains, if any, in terms of new capabilities. In contrast, a new VoIP system will be an investment that spans across three classes in terms of potential: Transformation, Renewal and Process Improvement.
Aligning IT goals and plans with that of the Organization as a whole
The vice president of support services will also have to consider the overall Forest goals, plans and strategies. Also, if Forest’s historical precedence is anything to go by, Forest is known for taking an aggressive stance in new IT investments. It is therefore very likely that the more aggressive of the two choices at hand, VoIP, would be more aligned with the global goals of the organization. If this is the case, VoIP will act to increase the value of the investment in terms of aligning IT plans and strategies with overall organizational plans and strategies (Wickham, Wager and Glaser, 2009).
Other factors that increase the value of IT investments that will have to be weighed and compared across both choices are: Commitment to the strategic and effective application of the IT, low political turbulence, satisfied users, integrated business information technology planning, and, experience (Wickham, Wager and Glaser, 2009). This can be done from reports obtained from similar organizations as well as vendor reports.
Weighted options through financial analysis
The vice president should conduct a background evaluation on the benefits of each choice so that he/she has a preferred choice from the beginning. This should be done formally through a committee of stakeholders as well as IT specialists. The Chief Technology Officer should chair this committee. The committee should then identify the criteria based on the organizations requirements and preferences, then weigh the criteria based on level of importance to the organization.
The next step would be to review available vendors of both VoIP systems and old supported systems for those that generally match the organization’s goals and criteria. A complete cost-benefit analysis (or other type of financial analysis that assigns scores) should be done with input from Forest stakeholder representatives, consultants, comparable Physician Hospital Organizations, as well as...