IT departments as true “value contributors”

in Advisory, 13.08.2014

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:

  1. Is my IT strategy and planning aligned to the business requirements and objectives?
  2. Does my project portfolio consist of a good mix of value-creation and mandatory projects?
  3. How does my IT architecture support current and future business needs?
  4. How good is my project delivery and reporting on the project’s benefits and value?
  5. Do we have the resources and capabilities to meet strategic objectives and agreed-upon service levels?
  6. Do we track and report our IT services KPI’s, and are they meaningful to the business?
  7. 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.

IT value graphic 580x129px

 

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