Abstract

Companies’ executives have long realised the importance of IT in conducting business. As such, an ever larger portion of capital is allocated to IT. Managers see an opportunity to reduce the input cost of producing value for clients by reducing IT expenditure; however, managers need a clear picture of the value of IT to make appropriate cut of IT cost. This study explores the value the IT unit provides to business, by investigating a method of identifying IT metrics that are significant to IT managers and extending their significance beyond the IT unit to business executives. The Gartner business value model was used to link IT metrics to financial metrics in a South African financial services company. Senior business executives, business process owners and IT respondents were interviewed to get pertinent information, and an exploratory approach was taken to investigate the information garnered. The results illustrate that if a set of leading indicators of financial performance can be identified by senior business executives, the business activities that support these leading indicators and the IT services these activities rely on can be uncovered. By identifying IT services that have a bearing on future financial performance, the metrics recorded around them may be used to demonstrate the impact that the IT unit has on future revenue. Key words: Business value, ITSM, metrics.

Highlights

  • The aim of this research is to demonstrate the value of using Information Technology Service Management (ITSM) metrics to business stakeholders; decision makers

  • This study explores the use of asset of ITSM metrics in a South African financial services company to demonstrate the business value of IT to those business decision makers

  • SLAs are implemented on a break fix basis and these are coded into the ITSM system in use at the responses from the IT respondent at the level of “IT Metrics” are expected as IT metrics by themselves are significant in the IT unitand no other business managers are expected to have insight into them (Smith, 2007)

Read more

Summary

Introduction

The aim of this research is to demonstrate the value of using Information Technology Service Management (ITSM) metrics to business stakeholders; decision makers. A model that links a set of metrics that is significant to both IT managers and business stakeholders was used to indicate IT value (Smith, 2007). Value model was used to identify ITSM business metrics, whichare generally defined by the ITIL best practice. This study explores the use of asset of ITSM metrics in a South African financial services company to demonstrate the business value of IT to those business decision makers. The financial company had implemented ITIL as a case study. Both managers and IT staff were interviewed and documentation was examined. The company granted permission to conduct the research, provided all respondents remained anonymous, and the company was given a fictitious name -Finstitute

Objectives
Methods
Results
Discussion
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call