IDC PlanScape: Communicating IT's Value Proposition to Internal Customers

IDC PlanScape: Communicating IT's Value Proposition to Internal Customers

This IDC study explores how the CIO and the IT management team can better express to their customers what value IT is creating to their business. Measuring and communicating the value of IT requires that IT be restructured into a viable service business in which the cost and value proposition of each service can be clearly defined and measured. For IT to succeed, the value of each IT service can be expressed in terms of five key stages of value creation that not only need to be achieved but clearly "marketed" to the IT stakeholders. In addition, with the competition from the 3rd Platform as an alternative to traditional IT services, the cost and price of the IT service becomes a significant differentiator and must be competitive.This study focuses on services transformation, leadership transformation, and IT strategy and governance."Creating value to the customer is not enough," says Bob Multhaup, adjunct analyst with IDC's IT Executive Program (IEP). "If you can't 'prove' and communicate with credible metrics that IT has made a strong contribution to the business, then all your good work can go unrecognized."

Please Note: Extended description available upon request.

IDC PlanScape Figure
Executive Summary
Why Is Communicating IT's Value Proposition to Internal Customers Important?
Traditional IT Accounting Cannot Measure Competitive Advantage
What Is Communicating IT's Value Proposition to Internal Customers?
Define the IT Service Portfolio
Who Are the Key Stakeholders?
IT Investors
IT LOB Customers
How Can My Organization Communicate IT's Value Proposition to Internal Customers?
Ensure that IT Projects Deliver Their ROI and Budget Commitments
Ascertain Whether IT Improved from Its Former Position
Make Sure IT Is Competitive with the Open Market
Ascertain the Strength of IT's Contribution to Achieving Customer Business Goals and Metrics
Consider How IT Can Generate Revenue for the Business
Essential Guidance
Immediately — Prior to Budget Completion
Next Six Months — Included in Budget
Next 12–24 Months
Next 24–48 Months
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