This blog, by Suresh GP for hdiconnect.com, talks about ways to address the top two Information Technology Service Management trials, namely IT cost transparency and value demonstration. The difference between the two is that value demonstration offers different benefits to various stakeholders, such as cost reduction, increased customer satisfaction, more value for money, etc. With IT ventures and profits in non-stop, accelerated growth, companies definitely need to give more attention on exactly how costs and value originate from IT-related businesses.
The 5 Factors One Must Consider
1. How to Define Value
As the popular quote goes, “value is in the eye of beholder,” so understanding it from your customer and user perspectives is vital for your business. Organizations need to define value based on true business outcome.
2. Prioritization and Categorization of Investments
While we have no choice for nondiscretionary investments determined by legal and regulatory compliance, it is fundamental to get the discretionary investments planned and executed with proper categorization and prioritization.
3. Methodology and Best Practices
Start with strategy. It is important to define business outcomes based on the strategic direction of the organization.
4. Performance Measurement
Value delivery is closely associated with performance measurement to determine if the intended plan is grounded in reality.
5. Role of Board and PMO
Typically governance is implemented with an executive board setting the strategic direction and a steering committee overseeing the actual implementation. Successful programs that yield true business value have a strong project management office (PMO) in place to review, evaluate, and guide programs to achieve the intended business value.
All in all, obtaining value delivery and cost transparency needs a lot of work and collaboration within the organization, especially in an IT-driven business company. But with the proper set of tools and right medium available such as PMO and various strategies and techniques, any company can address these challenges suitably and efficiently.