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How to measure your IT investment

 

I have been reading up lately about IT-CMF, it was developed in conjunction by NUI Maynooth and Intel Ireland. It is not just a tool but a framework to help businesses to manage, measure and deliver more value to their IT investments. The focus of the system is to ensure that the IT investment moves from being a business cost to a business value.

The framework provides four inter-related strategies:

  • Managing the IT Budget
  • Managing the IT Capability
  • Managing IT for Business Value
  • Managing IT like a Business

Managing IT like a Business

This strategy does what it says on the tin, instead of concentrating on technology and production focus on customers and services. This is the old adage of think inside-out instead of outside-in. Give your customers what they want, not what you think they want. You know you have reached maturity level 5 when you IT is no longer viewed as a cost but as service value.

There are five maturity levels of Managing IT like a Business

  1. Beginning
  2. Cost Centre
  3. Customer / Service Orientation
  4. Customer / Service Focus
  5. Value Centre

Managing the IT Capability

This strategy helps the business view IT as a value to their business infrastructure. The aim is to continuously develop new applications that will help grow your business, decrease costs, increase efficiency and create a competitive advantage.

There are five maturity levels of Managing the IT Capability

  1. Beginning
  2. Technology Supplier
  3. Technology Expert
  4. Strategic Business Partner
  5. Corporate Core Competence

Managing IT Budget

This strategy focuses on controlling and managing costs. You look at practices and tools to manage your budget and reduce costs. By reducing costs this will give you more funding for your project.

There are five maturity levels of Managing the IT Budget

  1. Beginning
  2. Predictable Performance
  3. Systemic Cost Reduction
  4. Expanded Funding Options
  5. Sustainable Economic Model

Managing IT for Business Value

This strategy helps your outline the business value to your IT investment. In this stage you assemble tools that will help to outline such aspects as costs, return on investment (ROI), and business value.

There are five maturity levels of Managing IT for Business Value

  1. Beginning
  2. TCO
  3. ROI & Business Case
  4. Options & Portfolio Management
  5. Optimizing Value

You can read more about IT Capability Maturity Framework

Or take a sample assessment.

 

 


Written by Vince Doherty, Dakor Web Design