IT Value Management

IT organizations and their management teams are being challenged to select IT’s true value discipline to meet the needs and expectations of its customers while also optimizing the use of available resources. "The selection of a value discipline is a central act that shapes every subsequent plan and decision a company makes, coloring the entire organization, from its competencies to its culture. The choice of value discipline, in effect, defines what a company does and therefore what it is." According to Forrester Research, value disciplines for IT organizations are evolving into three (3) distinct business models: Solid Utilities that focus on cost control; Trusted Suppliers that focus on services and projects: and Partner Players that focus on business competitiveness and innovation.

Each of these value disciplines requires its own set of strategies to align its business mandates, quality of information to drive operational and managerial actions and decisions, and performance management capabilities to manage resources and achieve its strategies. Additionally, each model requires that IT resources including cost, capital, and capacity be deployed to yield their greatest returns on these expenditures. This is particularly critical in the Financial Services industries where IT expenditures often approximate 7% of a company’s revenues.

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