IT Business Value Management
business value management, IT Business Alignment, IT Business Alignment in 2010, IT value management
Could anyone help me out with a scientifically correct definition of IT business value management? Thanks a lot!
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ASKED:
January 29, 2010 8:07 AM
UPDATED:
May 19, 2010 5:24 PM
Answer Wiki:
According to litterature, I dare to say that no such definition exist..
Googling for 'business value' gave a couple of good links to read:
http://en.wikipedia.org/wiki/Business_value
and some very good articles from the IBM Institute for Business Value:
http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html
Good luck in setting up your own method.
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There is no “scientific” definition of value because value is subjective and directly related to cost. If you pay $1 for a Mcdonalds hamburger you consider it value. If you pay $10 for the same hamburger you will feel cheated.
Frequently, IT organizations do not understand their mission so they cannot determine value. They are very reactive to business requests thinking they are delivering value but business executives may ask for low-value services or they may not know what to ask for.
The solution: IT must understand the measurable business objectives and then align the Information Processing capablities and related services to these objectives. If the requests do not align, they should provide consulting to the business to help them define an information strategy.
Critical success factor: IT needs visibility and control of the services they provide and the capabilities they support. IT is a young profession. Management practices, tools, and measures are still evolving. Many IT organizations are content to do what they are told instead of providing a leadership role. As a result, they are viewed as a commodity and a cost to be reduced or outsourced. IT must take a leadership role if they are to demonstrate their value and save the profession. Otherwise, the trend towards low-cost, low-value outsourcing will continue and there will be no more IT profession in the U.S.