Chaper Three

In this chapter, I saw a lot of disturbing stories of IT spending, and these stories would help managements, who are buyers and sellers, to realize the relationship between their business and costs of their technology. For example, buyers should understand that sellers may have the different interests in their mind or may have their best interests in their mind. The buyers can use references to analyzing what kinds of systems or software functions the previous sellers want, and they will realize what software functions they really need. If sellers did not provide reference, it would be considered risky. Another important thing is the costs of associated failures. Because when new technologies were implemented in the companies, the management did not really know about the cost and the benefits of implementing the new technologies. Thus, the forecasts by the employee with financial expertise are very important. Thus, the book mentioned the sensitivity analysis. Using the sensitivity analysis can let the managements know how to compute the potential benefits and losses of the new technology for the best worst, and probable scenario. Thus, the management would know the risks of implementing the new technologies. Finally, this chapter also provided the survival guide for buyers and sellers. This guideline is very useful for the managements because the managements can take this guideline to consider what costs or risks are in the new technologies when the new technologies are brought in the companies. This guideline also gives the comment sense for management before attempting to implement large, complex projects. Thus, I suggest that the managements who are implementing the new technology should study and understand the top 10 corporate information technology failures, and then the managements would have better sense for the risks and costs of implementing the new technology in the companies.