Managing IT for Business Value
Investments in IT must be linked to overall business benefits. This means that the investments should not be viewed simply as technology projects, but as projects that generate business value and innovation across the organization. The Managing IT for Business Value macro-capability provides a structure within which the IT function provides the rationale for investment in IT and measures the business benefits accruing from it.
Critical Capabilities
- BARBenefits Assessment and Realisation
The Benefits Assessment and Realization (BAR) capability is the ability to establish an outcomes focus for the selection and management of IT-enabled business change initiatives to ensure that their potential value is delivered. BAR addresses the cultural and behavioural change needed to create and to sustain value from those initiatives. In this way, BAR ensures that business benefits are planned, dynamically adjusted, and actually achieved.
- PPMProject Portfolio Management
The Project Portfolio Management (PPM) capability is the ability to select, approve and balance project portfolio components (projects, programmes, or sub-portfolios) to deliver the organization's strategic objectives and its operational needs. Managing the project portfolio will prioritize, monitor, track, analyse, report, and as necessary, terminate project portfolio components that plan to, or that currently consume organizational resources.
- TCOTotal Cost of Ownership
The Total Cost of Ownership (TCO) capability is the ability to identify, compare, and control all direct and indirect costs associated with IT assets and IT-enabled business services. The Total Cost of Ownership (TCO) capability covers:
- Identifying and analysing IT costs across asset and service life cycles, from acquisition to operations, enhancements, and end of life.
- Identifying all costs that both directly and indirectly affect the bottom line — for example hardware and software acquisition, management and support, communications, training, end-user expenses, the opportunity cost of downtime, and other productivity losses.
- Establishing a common methodology for comparing costs within and across IT assets, processes, and services.