Skip Links

Network World

  • Social Web 
  • Email 
  • Close

Taking a measure of network IT's value

Organizations that get a real bang for their buck are those that marry investments to business processes.
By Joanne Cummings , Network World , 10/25/2004
  • Share/Email
  • Comment
  • Print

Nick Carr says IT doesn't matter. Erik Brynjolfsson, a professor at the Massachusetts Institute of Technology's Sloan School of Management, says his research shows IT is making a difference.

Even though we have long since put the productivity paradox behind us, debates about IT's value rage on and boardrooms still anxiously eye the network IT budget and wonder if they're getting their money's worth. And well they should. In many companies network IT accounts for 50% or more of capital spending.

But while Carr argued famously in his Harvard Business Review story that IT doesn't matter, Brynjolfsson's facts show otherwise. Based on extensive survey work, Brynjolfsson revealed that companies that are IT-intensive and marry organizational practices to computing usage get a real return on their dollar (see his research here).

Evidence abounds. "You can't just spend on IT for IT's sake," says Jason Brougham, enterprise network manager at American Medical Response (AMR), an ambulance services firm based in Greenwood Village, Colo. "It really has to be aligned with the business. If IT doesn't solve a specific business problem, then it's nothing more than a bunch of blinking lights in a really expensive room."

AMR should know. Some of AMR's facilities were in the path of the recent hurricanes that hammered Florida - in Palm Beach in the case of Hurricane Frances, and in Birmingham, Ala., during Hurricane Ivan - and could have sustained damage at a time when its fleet of ambulances and emergency personnel were needed most.

At that point, the company's extensive IP voice network came into play. It ensured that critical-business functions such as AMR's centralized help desk in Birmingham could continue.

"Two days before Ivan hit, we were in meetings planning how we could get calls out of affected facilities and into other facilities if necessary, depending on where the hurricane went," Brougham says. "We have facilities all over the country, and with our network we're able to shunt calls to other facilities and ensure the business was not affected."

The centralized help desk in Birmingham was closed for two days and all calls were re-routed to a regional office in California, keeping all functionality during a period of increased volume.

  • Share/Email
  • Comment
  • Print
Partner Content

NetScout and analyst Jim Metzler have teamed to deliver a series of IT Briefs on Network and Application Performance Management leveraging research from NetScout’s nGenius & Sniffer users.

www.netscout.com

Metzler on CIO Priorities

The top five CIO priorities based on a survey of NetScout users revealing CIOs' top priorities and what they think they should be. Also includes interviews with CIOs of large organizations.

Read the Report

Metzler on Application Delivery

How to eliminate the stovepiped or siloed nature of application delivery from both an organization and a technological perspective.

Read the Brief

Metzler on Network Troubleshooting

Overview of network troubleshooting that provides an assessment of where we are, and where we need to be relative to the complexities of today's IT challenges.

Read the Brief

Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed