Discovering IT Value in four steps

Discovering IT Value

Some commonly heard complaints about IT are ‘we are spending too much on IT’, or ‘IT is a black-hole’. While IT aspires to become a strategic business partner, business folks complain about the lack of trust between IT and business or the lack of a common language between the two.

Some commonly heard complaints about IT are ‘we are spending too much on IT’, or ‘IT is a black-hole’. While IT aspires to become a strategic business partner, business folks complain about the lack of trust between IT and business or the lack of a common language between the two. Business does not know if IT is doing a good job and many IT leaders cannot communicate how they are creating value for the business.

A book by Hunter and Westerman, "Real Business of IT" provides a four step process for finding and communicating IT value. I thought I would share their key ideas.

Four steps to IT Value

The authors found that successful CIOs do remarkably similar things when it comes to achieving and communicating IT value. They found remarkable similarities in the approach taken by CIOs. The four step approach they have proposed is: 

1. Avoid the value trap thinking – Avoid practices that appear good but actually prevent IT from delivering real value.
2. Show that IT provides value for money – Demonstrate that IT provides the right services and the right level of quality at a competitive price.
3. Show how IT improves business performance – Demonstrate the link between IT investment and business performance.
4. Show how you add value beyond IT – Take on a “CIO-plus” role by being a peer on the executive team and providing value beyond IT.

Successful CIOs don’t skip steps or do these steps out of sequence.