Measuring IT's Business Value

Measuring IT's Business Value You can’t manage, What you don’t measure !

IT Value Benefits are beyond Costs reduction, contributing to increase company's profitability
It's not easy to prove that an infrastructure gives business value to a company. I will try to answer at this difficult question.
To measure the IT infrastructure performance it is necessary to understand the performance indicator concept..


What is Key Business Value ?
  • Focus on Industry : Bank/Finance, Government, Retail, Telco, Manufacturing...
  • Business Value is Large : Stakeholder Value, Customer Value, Employee Value, Partner Value, Supplier Value, Managerial Value, Societal Value
  • Key Business Indicators : Profitability, Revenue Growth, Customer Satifaction, Market Share, Cross-Sell Ratio, Marketing Campaign Response Rates, Relationship Duration...
  • Common Language Management
  • IT Portfolio
  • IT Maturity
What is IT Value ?
  • Business/IT Alignment
  • Intellectual Properties
  • IT Process Automation
  • IT Performance
  • Innovation
  • Community
  • Know-How
  • Expertise
  • Service Level Agreement
Key Metrics
  • Key Metrics = Key Performance Indicators (KPIs)
  • Technical performance indicators : CPU, I/O, SAPS, SpecInt, TPC-H, Availability Ratio, Time To Repair, Data Loss Ratio...
  • Financial performance indicators : TCO, ROI, Depreciation...
  • Ecological performance indicators: Space, Watt, CO2, RoHS Ratio, WEEE Recycling Ratio...
What is Performance Lever ?
The Performance Lever is specific key performance indicator, it increases the system performance and it interacts with key indicators
It is a functional indicator, not technical !

Example:
  • #Concurrent Users Indicator is a Performance Lever (Business Indicator)
  • #CPU and #I/O are Key Performance Indicators
  • Calculate #CPU = f(#Concurrent users)
  • Calculate #I/O = f(#Concurrent users)
  • Start a Provisioning Process automatically
  • with #CPU and #I/O Values
  • Activate #CPU and #I/O Cards with Capacity on Demand Process
  • Integrate a new Web server with xVM Ops Center and N1 Service Provisioning System process
  • Testing
Measuring IT Value Process
Monitor
  • Put technical captors in different points of the infrastructure via scripts, software…
  • Gather technical, financial and ecological indicators values
Analyse
  • Integrate the native indicators values into the CMDB (My SQL for example because it's free software)
  • Calculate the complex indicators with native indicators
  • Analyse the results with reporting tool (StarOffice Calc for example because it's not a expensive solution)
  • Compare the results obtained to the awaited results.
  • Build a dashboard for CIO, IT Managers
Optimize
  • Infrastructure update with analysis results
           
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Business stakes are changing, the IT infrastructure must be increasingly reactive to significantly reduce Time To Market. Today, we have the technology and methodology addressing these new business challenges.

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