Tag Archives: IT investment

294 – If the Vendor Won’t Bet on Savings, Why are you?

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700 words (3 minutes reading time) by Tim Whistler

‘The IT Wager’ by Tim Whistler (with the assistance of ChatGPT)

Carole Parkinson has put together a compelling and well researched post on how Councils can avoid gambling on IT investments – or at least how the risks in the bet can be understood.

I asked some experienced IT managers what they thought and they said the post was useful but didn’t go far enough.

I asked them why.

Why the IT bet feels safer than a service bet

The first point made was that the post should have explored why CEOs prefer to gamble on an IT bet than a service review and improvement bet. It was suggested that perhaps they didn’t understand how to make the service review and improvement bet. Or it was simply easier to bet on an IT product from a big vendor. It is a way for the CEO to outsource risk. They pass on the responsibility for organisational service improvement to a Big 4 consultancy and the software vendor.

One suggested that CEOs don’t have a choice because they are caught up in the race to digitise simply because their councils and communities expect them to do it. It is the new service standard. Non one wants to be left behind. Whilst this may be true, I have never seen a business case with a justification of ‘they are doing it, so we should too!’.

Why business cases mislead

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293 – IT investment: Dangerous Enthusiasm or Due Diligence? Use evidence to decide.

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2200 words (20 minutes reading time) by Carole Parkinson

Podcast option:

Credit: ChatGPT

In a nutshell…

This post explores the risks and pitfalls associated with large-scale IT investments in local government. It argues that councils often rely on technology and automation to fix financial deficits or service inefficiencies without first optimising their underlying processes. Drawing on expert theories, the post suggests that these ambitious projects frequently over-promise and under-deliver by ignoring the complexities of human-technical systems. To avoid failure, Parkinson recommends that leaders adopt a skeptical mindset, demand evidence-based service studies, and implement incremental project stages. Ultimately, Parkinson emphasizes that improving service design from a resident’s perspective is more effective than simply digitising outdated methods.

Introduction

“I voted for the IT project because the business case promised the budget would balance by year four. But no one told us what we’d do if the savings didn’t arrive. In the end, we automated our inefficient services instead of fixing them. It has now cost us more money than we have saved!

We should have demanded a service study to improve services first, limited the project scope, put a ‘kill-switch’ in place, and made sure the CEO had an effective early warning system in place for failure.”  

Councillor

The lesson?

Big IT doesn’t fix services; it just automates them. You can make governance improvements to reduce the odds of an expensive disappointment.

Why councils are betting on IT

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