- A significant source of misalignment between business and IT is that business value is not well communicated.
- When you make decisions without a shared view of the business values involved, the result is often misallocations of cost and the perception that "IT is too expensive."
- You will also lose out on opportunities to improve efficiencies where needed and innovation where appropriate.
- IT exists to support the business in creating value. It is part of the business chain, especially in today's rapid digitalization. Many IT departments cannot accurately define value. That complicates making value-based business decisions.
- Link your IT spending to business value. Justify your investments based on the highest ROI for your company. Demonstrate how investments generate or help in creating value.
- Pursue value, not the tools or latest tech. If IT leadership and people cannot articulate value, the business will perceive IT as a cost center.
Impact and results
- Build a common understanding of the business chains and the value creation chains and how IT supports and enhances the business value. That will help in driving growth and will ensure that you follow the right strategic decision-making process.
- IT must monitor, evaluate, and direct investments to support the business in achieving the expected values and benefits.
- IT now visibly contributes to the bottom line. The governance structure is now enhanced to achieve cost optimization and business-aligned spending.
Besides the small introduction, subscribers and consulting clients within this management domain have access to:
Our concise executive brief shows you why you should develop a benefits realization process in your company. We'll show you our methodology and the ways we can help you in completing this.
Understand the business value in your company
Key stakeholders must have a common understanding of what is valuable within the organization and what will be in the future.
- Maximize Business Value from IT Through Benefits Realization – Phase 1: Understand Business Value (ppt)
- Business Value Statement Template (doc)
- Business Value Statement Example (pdf)
- Value Statement Email Communication Template (doc)
- Feedback Consolidation Tool (doc)
Embed benefits realization into your governance.
Build the process always to evaluate IT initiatives on spending versus expected and realized benefits. Monitor the realization over time.
- Maximize Business Value from IT Through Benefits Realization – Phase 2: Incorporate Benefits Realization into Governance (ppt)
- Business Value Executive Presentation Template (ppt)
Ensure that you have an accurate reference of value
You must continuously re-evaluate the value drivers' accuracy and relevance stated in your initiative's value statement. Business is continually changing, and so does value creation.
Maximize Business Value from IT Through Benefits Realization – Phase 3: Ensure an Accurate Reference of Value (ppt)