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Introduction

The purpose of metrics is to demonstrate how a company is performing and if it is improving, remaining on target, or experiencing a period of contraction. The IT metrics must be clearly, and directly, aligned with the business metrics.

Highlights

  • Metrics must be carefully considered so that they provide a balanced view of the cost and value of IT within an enterprise.

Features and Benefits

  • IT staffing metrics must take account of all staff involved in the delivery and support of IT services.
  • Organizations need to clearly distinguish business outcome from operational efficiency metrics.

Key questions answered

  • How to demonstrate that the IT function is performing as expected.
  • Why evaluating the total cost of IT can become extremely complex.

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for enterprises

IT staffing metrics must take account of all staff involved in the delivery and support of IT services

  • Identify all staff involved in IT activity through a RACI model
  • Break down the involvement into categories to assist understanding of impact

Evaluating the total cost of IT can become extremely complex

  • Use an activity-based costing model to standardize analysis
  • Accounting for change is the biggest issue reported with use of external services/service providers
  • Impact of cloud computing on costs and metrics

Organizations need to clearly distinguish business outcome from operational efficiency metrics

  • IT departments must understand how to use business metrics to monitor performance
  • Value contribution requires agreement between IT and business on what the value is
  • Transparency of cost and value requires greater maturity
  • Mixing technical metrics with business metrics requires careful consideration
  • Recognizing priorities and metrics will change; therefore, use a mixture of short-, medium-, and long-term perspectives

Appendix

  • Further reading
  • Author

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