July 16, 2014
The World of IT Financial
Management
Marriott's Dearborn Inn
Dearborn, MI
Abstract
Everyone knows (or thinks they know) how to measure the value of IT services delivered to the
business. This is generally a well-defined process that works well until the project goes live. Once in
production, the IT service becomes linked to the business user, and this makes it difficult to measure
the delivered business value. The “value measures” have move from IT to the business user, but
they are still dependent upon IT. In this situation there are very few techniques that can objectively
measure the IT Business Value.
The major impediment to this type of measurement is there is no obvious way to value the service in
the context of the business user. Traditional IT value measures do not apply to services such as hot
line support, website activity, etc. Borrowing from the practitioners of Forensic Economics it is
possible to use a non-traditional approach to measure business value. Establishing procedures and
measures based on replacement value can provide an effective means to measure, manage, and
plan for these types of services. (Please note that this presentation is a continuation of the discussion
that was started at the spring conference).
In this session we will:
-- Review “Linking IT to Business Value - Forensic Economics” (Spring ITFMA)
-- Discuss the use of replacement value to measure IT Business Value
-- Define the methods that can be used to measure and manage IT in regards to business value
-- Define a process for using this non-traditional type of measurement
-- Work through a simple example that demonstrates this type of measurement
