Information technology (IT) is the backbone of most of today’s businesses. Unfortunately the value generated by IT investments is not adequately recognized by many organizations. IT is still seen as a cost driver, rather than an equal partner and value creator.
One of the key questions of today’s CIO’s is: “How can I realize and demonstrate the value of IT to my clients?” KPMG believes that CIO’s should be able to answer the following questions in order to achieve a value orientation for their customers:
- Is my IT strategy and planning aligned to the business requirements and objectives?
- Does my project portfolio consist of a good mix of value-creation and mandatory projects?
- How does my IT architecture support current and future business needs?
- How good is my project delivery and reporting on the project’s beneﬁts and value?
- Do we have the resources and capabilities to meet strategic objectives and agreed-upon service levels?
- Do we track and report our IT services KPI’s, and are they meaningful to the business?
- Do we have frequent and effective communication between IT and business to make sure business recognizes the “value” of their IT investments?
IT value management is critical for the CIO; however, implementing it and making it tangible to the business is a major challenge. An independent “IT value assessment” is a good starting point to identify the biggest gaps in an IT organization. In many cases, implementing a structured business relationship management process marks the beginning of introducing “IT value” to the business.