Strategic Architecture Tutorial: Defining Metrics to Align IT with Business Outcomes

Strategic Architecture Tutorial: Defining Metrics to Align IT with Business Outcomes

This IDC study provides a conceptual model for identifying performance metrics that effectively measure whether the IT organization and the enterprise have achieved their intended business outcomes. While many organizations have an idea of key business outcomes, such as "improve customer loyalty," most have no idea how to model or measure the metrics, KPIs, and CSFs that lead to "moving the needle" on those business outcomes. Linking performance metrics to business outcomes through compelling critical success factors and KPIs encourages the organization to focus on the important metrics and prioritizes the path to continual outcome improvement.Using this model, IT leaders, architects, business analysts, and business partners can work together to identify appropriate metrics and incorporate them into reporting, decision making, and management processes. This study focuses on Strategic Architecture, IT Strategy and Governance, and Big Data and Analytics."With the staggering increase in analytics power and the significant drop in the cost of these systems, IT is missing a huge opportunity to provide value to executive leadership," states Mike Rosen, vice president, Research at IDC. "When you can provide executives with insightful information that they didn't have before and that enables them to make better, faster decisions, the conversation changes from 'How are you cutting costs?' to 'How can you provide me with more?'"

IDC Opinion
In This Study
Situation Overview
OMG's Business Motivation Model
Keep It Simple with GuSTO
Defining Performance Metrics
Getting Agreement
Alignment and Traceability
Future Outlook
Essential Guidance
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