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Business Value of IT: Worth Taking a Closer Look

Enterprise IT is inclined towards business in more commercial spaces with IT services. The IT functions majorly contribute to achieving better sales margins and lower risks. With cheaper and much faster IT services, IT contributes to achieving a sustainable competitive advantage.

In this article at ITSM.Tools, Mark Smalley explains that an IT project depends majorly on a strong team that comprises of developers, business analysts, product champions, software engineers, and testers. Irrespective of their roles, each team member strives to achieve the common goal of bringing a successful outcome.

ITIL Warranty

In the ITIL world, ‘fitness for purpose’ is the key source of business value while the ‘fitness for use’ is the non-functional needs like availability, performance, and business security.

Conventionally, IT services have been used to automate manual work and to reduce costs. However, gradually the IT services are affecting the top line revenues and prices. In fact, IT services also affect the reputation of the organization.

Delivery of IT Services

Although, the IT services’ delivery speed has no specific value, the utility that is obtained, and of course the speed with which the costs are incurred, does have enough value. Decision-making agility is setting the right priorities, at the same time, it improves the ability to change the overall game once it creates a niche in the market.

To understand how IT services can help in improving and supporting business operations, IT organizations need to do more than expected. The cost of development and operations is the overall cost of ownership (TCO). This must be regarded as the percentage of total business costs that IT represents, and this may diverge immensely from one sector to another.

For instance, if a retail bank with a high online presence spends about 20 to 30 percent on IT services, an energy producer may be spending ten times their IT budget on the operational technologies. IT represents only a few percent of the overall revenue generated by the organization.

Click on the following link to gain in-depth knowledge about IT services in the original article: https://itsm.tools/2018/09/13/understanding-how-to-demonstrate-the-business-value-of-it/

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