Services Transformation: Communicating IT's Effectiveness with Strategic Cost Metrics

Services Transformation: Communicating IT's Effectiveness with Strategic Cost Metrics

This IDC study describes five strategic metrics that CIOs and IT financial managers can exploit to demonstrate to senior executives the effectiveness and efficiency with which IT is managing company funds. It explains the service portfolio optimization metric, innovation metric, sourcing metric, "black hole" metric, and cloud versus on-premise metric. These metrics require that IT has a good understanding of its service portfolio and how its assets and resources are costed and consumed. However, for IT to remain competitive with outside providers, CIOs and other senior IT executives must arm themselves with metrics that prove that IT is making strong progress in service and cost management and can compete with the outside market. This study enables them to use metrics to support IT's essential role in the organization."CIOs who spend time and effort to go beyond traditional cost center reporting and develop a service portfolio and cost model that can generate the set of five metrics in this report will be in a strong position to engage the business as a trusted business partner," says Bob Multhaup, adjunct analyst with IDC's Research Network.

Please Note: Extended description available upon request.

IDC Opinion
In This Study
Situation Overview
The Service Portfolio: Basis for IT Business Performance Measurement
Strategic Metrics Measure Service Portfolio Optimization
Bring Customer Demand into the IT Metrics Equation
Metric 1: Service Portfolio Optimization
Metric 2: Innovation
Metric 3: Sourcing
Metric 4: The Black Hole
Metric 5: Cloud Versus On-Premise
Future Outlook
Essential Guidance
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Related Research
IT Executive Program Research Agenda

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