IT Financials
At the heart of our IT Value Framework is the rigorous analysis of IT spending. Just like any other business function, you need to measure the value that is delivered to the stakeholders of an organization in financial terms.
Our approach to analysing the financial performance of an IT organization starts with developing a clear understanding of what the IT organization spends its money on and what those funds are used for (The Sources and Uses of IT Spending pictured to the right).
Based on that analysis, we can then determine how much of IT spending is required to “run the business”, or “keep the lights on”, and how much of that spending represents a decision by the organization (explicitly or implicitly) to invest available funds to “build the business” or change or improve a business process or capability.
Once an IT organization’s spending is understood in these terms, it is relatively easy to measure the value that IT delivers:
Our approach to analysing the financial performance of an IT organization starts with developing a clear understanding of what the IT organization spends its money on and what those funds are used for (The Sources and Uses of IT Spending pictured to the right).
Based on that analysis, we can then determine how much of IT spending is required to “run the business”, or “keep the lights on”, and how much of that spending represents a decision by the organization (explicitly or implicitly) to invest available funds to “build the business” or change or improve a business process or capability.
Once an IT organization’s spending is understood in these terms, it is relatively easy to measure the value that IT delivers:
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The value associated with “Expense” spending is a function of the total spending to provide an IT service at r the Service Levels that are required by the business.
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The value associated with “Investments” are a function of the benefits (tangible and intangible) that are achieved based on the funds that were invested - typically defined in a business case analysis.
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Sources and Uses of IT Spending
| ITR Consulting Model |
| Our Founders |
| Our Associates |
| ITR Value Proposition |
| IT Strategy & Architecture |
| Lean IT Transformation |
| Program Leadership |
| IT Executive Support |
| IT Assessments |
| IT Financials |
| Business/IT Alignment |
| IT Architectures |
| IT Capabilities |
| IT Initaitives |
| Clients |
| ITR Capability Framework |
| Lean IT Principles |
| Scenario Based Strategy |
| IT Architecture Concepts |
| IT Scorecard |
| IT Cost Reduction |
| BI Optimzation |
| Future of IT |