Operationalization of strategic IT themes and measuring IT performance
Economic downturn and IT outsourcing pressure the IT budgets and IT organizations, and do not seem to be the partner for business process outsourcing deals. The need for justification of the value of IT seems to be more important than ever, but business & IT managers do not seem to make the value of IT transparent. Possible causes of this problem are insufficient knowledge of the IT Business Model and insufficient knowledge on how IT impacts the business performance.
Value creation takes more than translating strategy into Key Performance Indicators (KPI’s) to create results and measure performance with those KPI’s to influence behavior. And above all, it requires adjustments to evaluate the planned performance in a dynamic business context.
The combination of strategic themes and the implementation of performance management processes will ensure a mind-shift within the business regarding the business value of IT, from cost center to asset and production factor. First the performance must be defined and measured, than controlled and finally, the value can be predicted.
This white paper discusses the path of value creation, which is a path of building knowledge on the effectiveness and efficiency of your own business model, or to be specific, on the IT Business Model.
Quint identified strategic themes to leverage the benefits of IT to the business and a framework to implement and operationalize these strategic themes. Organizations with a high IT performance capability are not only able to manage the IT costs effectively, but they are also able to increase the revenue by calculating the right price for the scarce information resources. Demystifying the IT value then enables organizations to make a difference in the competitive market.
