6 steps to measure the business value of IT
5.
Measure
the
value
proposition
“We’ve
learned
in
our
discussions
and
from
scientific
findings
that
there
is
no
general,
standardized
measurement
with
definitive
key
figures,”
says
Matschi.
5.
Measure
the
value
proposition
“We’ve
learned
in
our
discussions
and
from
scientific
findings
that
there
is
no
general,
standardized
measurement
with
definitive
key
figures,”
says
Matschi. “Each
measurement
is
individual
and
dependent
on
the
stakeholder
and
the
business
case
under
consideration.”
Against
this
background,
the
consultants
developed
a
3×3
matrix
structured
according
to
IT-
and
business-oriented
key
figures. Both
quantitative
and
qualitative
measurement
approaches
are
presented
in
order
to
measure
the
value
contribution
individually
for
a
stakeholder
or
a
business
scenario. Depending
on
the
focus
of
the
activity
(operation,
projects,
innovation)
and
business
architecture
(IT
capabilities,
business
capabilities,
business
goals),
different
types
of
added
value
can
be
derived,
behind
which
there
are
certain
metrics.
Discussions
with
the
CIOs
made
it
clear
where
the
hurdles
lie
in
the
measurement. It’s
particularly
difficult
to
measure
the
IT
value
added,
for
example,
in
day-to-day
operations,
especially
in
network
or
workplace
commodity
IT
services,
says
Holger
Blumberg,
CIO
at
mechanical
engineering
company
Krones.
6.
Planning
the
communication
Once
the
value
contribution
is
identified
in
its
respective
forms,
the
next
step
is
well-planned
communication. CIOs
should
consider
what
information
they
want
to
provide
to
whom. From
4C’s
point
of
view,
the
form
of
presentation
is
also
decisive
for
success,
which
must
look
different
for
qualitative
metrics
than
for
quantitative
ones.
In
order
to
get
more
added-value
visibility,
and
find
out
where
IT
can
provide
even
better
support,
CIOs
go
different
ways.
Kleine
from
Pfizer
Germany,
for
example,
introduced
IT
ambassadors
in
the
departments
that
support
communication.
Büchner,
CIO
of
SachsenEnergie,
relies
on
the
additional
role
of
“demand
managers,”
or
IT
employees
with
business
skills
who
act
as
an
interface
between
IT
and
business,
and
take
care
of
the
communication
with
the
department.
The
sum
of
its
parts
Discussions
with
CIOs
have
shown
that
the
process
model
can
be
used
in
practice. Krones
CIO
Blumberg,
who
helped
develop
the
model
with
his
team
as
a
practical
partner,
reports
on
successful
piloting
and
success
in
cooperation
with
stakeholders.
In
addition,
the
survey
revealed
other
useful
results
that
could
help
make
the
IT
value
contribution
more
tangible.
Matschi
and
Held
add
there’s
no
single
value
behind
it,
but
a
conglomerate
of
metrics. These
can
be
of
a
qualitative
or
quantitative
nature
that
ultimately
show
how
satisfied
stakeholders
in
the
departments
are
with
IT.
It’s
important
to
connect
facts
with
perceptions,
and
that
metrics
are
measured
in
dimensions
that
are
relevant
for
respective
stakeholders.
The
bottom
line
is
it’s
about
shared
success
across
departmental
boundaries. Both
IT
and
business
departments
should
be
able
to
see
how
IT
affects
business
performance,
so
neither
can
create
value
on
their
own. In
the
end,
it’s
the
combination
of
IT
and
organizational
skills
that
counts.
(This
post
is
based
on an
article from
our
sister
publication
CIO
Germany.)
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