Value doesn’t come from technology. It comes from how that technology is used by the organization. It’s this disconnect that was the focus of The Information Paradox and is also the topic for this post by John Thorp, CMC, I.S.P. Thorp uses this article to explain the purpose, benefits, and elements of Val IT. The goal of Val IT is, as this article explains, to “enable organizations to manage their investments in IT such that they deliver optimal value to the enterprise at an affordable cost and with an acceptable level of risk.” To that end, the key elements of Val IT are described as knowing whether the right things are being done, if those things are being done correctly, if they are being done well, and if the benefits expected from those efforts are realized by the organization. The article’s emphasis is that any IT actions must be focused on facilitating benefit and change for the company. As Thorp explains:
The key to realizing the true potential of IT-enabled business investments is to recognize that the organization is implementing change—not technology. While “core” IT competencies must continue to be strengthened, a more integrated approach to IT and enterprise governance also needs to be taken. Val IT, together with COBIT, enables such an approach by ensuring that investments are aligned with the enterprise’s strategic objectives, that a complete and comprehensive business case is developed, that there is appropriate accountability and relevant metrics, and that the business case is managed through the full economic life cycle of the investment. The intelligent and disciplined implementation of the best practices contained within COBIT and Val IT will make a significant contribution to enterprises realizing value from their IT-enabled business investments.
In order to make this happen, all C-suite level executives must think of IT as an enabler and not merely an expense or a necessity of business. IT can become the tool used by the business to achieve objectives which reflect valuable business outcomes.