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Completing the IT Value Equation
If IT portfolio management processes and tools are to succeed in helping senior executives align activities with business goals, their reach must go beyond projects, and cover systems, non-project work, clients and employees. Inevitably, this holistic approach will create greater IT value.
For a technical bunch, CIOs display a loose grasp of basic math when attempting to add up IT value. In the past 15 years, IT executives have been hammered by business executives, consultants and IT trade magazines with a crystal-clear mandate: align IT with the business to deliver value. A December 2003 back-page column in the Harvard Business Review cites a leading technology executive who asserts that IT "is supposed to help the bottom line, not hinder it." The column was a reprint. The quote first appeared in the publication in 1986.
Eighteen years later most CIOs understand their missions, but the majority of IT departments still do not compute IT value correctly or completely. Seventy percent of IT organizations are perceived as cost centers rather than value centers and 52 percent of CEOs question the value that their IT departments deliver, according to the META Group. The Butler Group, reports that only 53 percent of global companies — both large and small — have developed a strategic plan to deliver IT value.
Several miscalculations typically prevent companies from realizing …
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