Sumit Kumar Singh 09609008

Anuj Kapoor 09609155

Kanupriya Raghav 06502903
Introduction…
IT often loses its significance as a major contributing
success factor in an organization's strategic objectives.
Predominantly considered a function with in an
organization that’s not integral to achieving a
business objectives.
Budgets are squeezed year after year as IT
organizations inevitability drift towards cost centre
perception.

Measuring the Business Value of Information

12/07/21 Technology 2
IT COST vs. IT BENEFITS
IT is often viewed as a cost centre.
IT can move from being perceived as cost centre to
becoming a strategic partner that contributes to
organizational objectives.
Enables a competitive advantage for the organization.
To do this, IT organization must change from being
techno-centric to user-centric.
When user experience design brings together business
objectives, user requirements & IT capabilities then
Organization is in a position to measure Business Value.
Measuring the Business Value of Information
12/07/21 Technology 3
 Measured Business Value
Measuring the Business Value of Information
12/07/21 Technology 4
IT & Business Value Defined
Direct contribution to corporation’s market position
or revenue.
Deliverables & Results that support solving customer
Business needs and challenges.
Customer cost savings & or financial Benefits.
Examples of Technology Investment that advance the
industry.

Measuring the Business Value of Information

12/07/21 Technology 5
Relationship b/w IT & Business
Value
Using Production Function Approach to compare
Business-Value outputs with and inputs & found a
positive return on IT investment.
(Research -Brynjolfsson and Hitt 2002)
Dedrick, Gurbaxani, and Kraemer concluded that
Greater investment in IT is Associated with Greater
Productivity at the company & country level.

Measuring the Business Value of Information

12/07/21 Technology 6
Continued…
Degree of Alignment between IT Strategy & the firm’s
Business Strategy was Important and that investment
alone was not enough.

Measuring the Business Value of Information

12/07/21 Technology 7
Intel’s IT Business Value Program
 A standard measurement methodology to determine
the impact of IT solutions
 A common valuation process with finance acting as
independent auditors
 A business value portfolio of the forecasted and
delivered results
 A set of ground rules used to define the program’s
operation

Measuring the Business Value of Information

12/07/21 Technology 8
Managing Information Technology
Managing IT like Business

Managing the IT Managing the IT Managing IT for

Budget Capability Business Value

 IT Management is viewed as a production process

 The IT budget provides the essential input to the
production process
 The budget drives the IT capability which provides IT
value as output
 Managing IT like Business is a feedback mechanism
Measuring the Business Value of Information
12/07/21 Technology 9
Conclusion
 Implementing an innovative approach to determine
the business value of information technology is an
enormous task but the payoff for the IT organization
is worth the effort
 To create a world class IT organization, the culture
must shift from techno-centric to user centric
thinking
 IT Strategist will need to Develop and Systematically
implement a uniform business value language

Measuring the Business Value of Information

12/07/21 Technology 10
 The firm need to establish a team that is supported
by upper management, define rules which govern
program and develop a valuation process.

Measuring the Business Value of Information

12/07/21 Technology 11
 THANK YOU

Measuring the Business Value of Information

12/07/21 Technology 12