Quantifying Information Technology Value

1354 Words5 Pages
Quantifying IT Value Introduction The rapid evolution of enterprise IT systems in general and analytics specifically is based on the myriad of information needs companies have. The Chief Information Officer (CIO) must increasingly be just as much of a strategist as a technologist. This is increasingly evident in how CIOS are expected to not only cost-reduce IT systems but also enable greater agility in information technologies to drive top-line revenue growth (Trkman, McCormack, de Oliveira, Ladeira, 2010). There are many analytics and reporting frameworks available for tracking the contribution of each area of a company's value chain. One of the most prevalent is the role of Dr. Michael Porter's value chain in defining how the functional areas of a business over time need to be coordinated to deliver profitability (Porter, 1986). For many companies, analytics is the glue or catalyst that unifies all aspects of the value chain together, ensuring the smooth operation of an enterprise. With the value chain framework in mind, the intent of this analysis is to evaluate the most critical key performance indicators (KPIs) and metrics of performance to measure the effectiveness and efficiency of IT strategies throughout an organization. The aggregate-based effect of using these KPIs and measures of performance is to create a foundation for measuring economic value of IT to the enterprise over the long-term. This aspect of measuring the value of information technological is
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