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What matters to CIOs? – DSAG IT Economics Survey 2012: Part 4


This blog is the fourth in a series to provide insights about IT Economics and discuss results from a survey with more than 70 CIOs and IT manager. Part 4 is dedicated to key best practice measures with the highest potential to increase IT enabled business value. Part 3 was focused on key measures to reduce TCO (link to blog).

Successful companies manage both dimensions: They continuously drive down IT cost and add value to the business with IT. Managing IT value and increasing IT enabled business value is critical. Experience has shown, many projects do not meet business expectation. From 100% expected value up to 50% can get lost easily. Why? For example: Due to poor project selection and prioritization, inefficient project realization, poor adoption and lack of value tracking.

CIOs and IT manager want to know: Value Management at Best Practice Organizations – What do they do differently? Here is my view:

A Design for Value (Superior Discovery)

  • Find new opportunities to create business value by solving existing problems
  • Discover new problems beyond existing boundaries which limit the business to create true innovation

B Transform to Value (Superior Realization)

  • Focus on high-impact business results
  • Drive accountability through continuous measurement

C: Improve to Value (Continuous Optimization)

  • Extend cost controlling to value controlling
  • Embrace a culture of performance improvement

D Business-IT align to Value (Clear Direction)

  • Set ambitious business goals enabled by ambitious talent and the right technology investments
  • Demand that business transformation and IT investments deliver business value and create competitive advantage

In the survey we covered 14 (*) best practices measures.

Survey Question: How do you estimate the potential, to increase IT enabled business value with these measures?


Survey Results: Top 10 with highest potential to increase IT enabled Business Value


My  conclusion from the survey results: Business-IT alignment with a clear direction to add business value and respective demand management (Rank 1: Joint  Business-IT planning, Rank 2: Business Strategy & IT Strategy Alignment, Rank 3: Joint IT-Business Project Portfolio Management) is the key lever to increase IT enabled business value.

What is the perspective on IT Economics in your business? Take part in the survey and find out, free of charge. It is now available globally, here: IT Economics Survey @ SAP Value Management Center

More Information:

Your View matters: What is your practice to increase IT enabled business value? Share your feedback and thoughts!

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