What's your IT value measurement strategy?

1 Define your value proposition

The first step in measuring IT value is to define what value means for your organization and your IT function. Your value proposition should articulate how IT supports and enables the strategic objectives, priorities, and needs of your business and your customers. It should also highlight the unique capabilities and differentiators that IT brings to the table. To create a compelling value proposition, you need to understand your stakeholders' expectations, pain points, and opportunities, and how IT can address them with its products, services, and solutions.

2 Choose your value metrics

Once you have defined your value proposition, you need to select the appropriate metrics and indicators that can quantify and demonstrate the value of IT. These metrics should be relevant, measurable, achievable, and aligned with your value proposition and your business goals. They should also cover the different dimensions of IT value, such as financial, operational, customer, and strategic. Some examples of IT value metrics are return on investment (ROI), total cost of ownership (TCO), customer satisfaction, service level agreements (SLAs), innovation rate, and business agility.

3 Collect and analyze your data

To measure your IT value metrics, you need to collect and analyze data from various sources, such as financial systems, project management tools, service management platforms, customer feedback surveys, and business performance reports. You need to ensure that your data is accurate, consistent, and reliable, and that you have the right tools and processes to store, manage, and access it. You also need to apply analytical methods and techniques to transform your data into meaningful insights and recommendations that can inform your IT decisions and actions.

4 Communicate and report your value

The final step in measuring IT value is to communicate and report your value metrics and insights to your stakeholders in a clear, concise, and compelling way. You need to tailor your communication and reporting methods and formats to suit your audience, their preferences, and their level of detail. You also need to use visual aids, such as charts, graphs, dashboards, and scorecards, to illustrate your value metrics and insights in an engaging and easy-to-understand way. You should also highlight your achievements, challenges, and opportunities for improvement, and how you plan to address them.

5 Review and improve your value measurement strategy

Your IT value measurement strategy is not a one-time exercise, but a continuous process that requires regular review and improvement. You need to monitor and evaluate your value metrics and insights, and how they align with your value proposition and your business goals. You also need to solicit feedback from your stakeholders, and incorporate their suggestions and expectations into your value measurement strategy. You should also keep abreast of the latest trends, best practices, and innovations in IT value measurement, and adopt them as appropriate.

6 Benefit from your value measurement strategy

By developing and implementing an effective IT value measurement strategy, you can reap several advantages. This includes enhancing your IT credibility and reputation, improving performance and efficiency, increasing agility and innovation, strengthening IT governance and accountability, and optimizing value delivery. All of this can be achieved by aligning IT investments, projects, and services with business needs and opportunities, as well as identifying and eliminating waste, redundancy, and inefficiency. Additionally, focusing on the value drivers and enablers that matter most to your business and customers is key to achieving optimal results.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?