Dialogue between management and IT departments is the basis for the Business Value of IT

What is the value of IT in my company? More and more managers are asking themselves this question. If the business value of IT is to be determined, classical controlling reaches its limits. But how can the business value of IT then be reflected and what prerequisites must be fulfilled for its introduction?

Management must also understand the Business Value of IT

The business value of IT is being questioned in many places. More than ever, the question is what concrete contribution IT makes to the company and its goals. For many managers, IT is simply there. According to the motto: you just need it. Others see the strategic value of IT – and use it purposefully. And between us: I think this type will have clear market advantages in the long run.

So while some already have key figures for the business value of IT, others are still flying blind. Yet this is precisely where the crux lies. If financiers do not understand the value of IT, they will never be its advocate and thus are unlikely to approve funding. Or worse: keep demanding tough austerity measures.

Management, IT and the respective department must therefore cooperate and define the business-relevant IT key figures. From these key figures, those involved can then draw the necessary information for strategic decisions.

Only then can an optimal result be achieved. I have observed that the introduction of the “Business Value of IT” requires not only technical, but also organisational and cultural prerequisites.

Participants work out the value proposition together

In practice, this means that the services of IT for the business must be known. Without knowing how these two are linked, no meaningful dialogue on value contribution is possible.

With this basis, IT and business representatives can work out the common processes and values in the broader context. The corporate culture must also be taken into account in order to establish the dialogue. The respective expertise of those involved is just as important here as the communication skills of the different parties.

In an iterative process, the business value metrics can be identified and established. The business value of IT thus becomes more tangible for all parties involved. This in turn allows projects or IT expenditures to be prioritised based on the relative value contribution to the organisation.

How do you see it? Let’s discuss.