Business value will always be driven by the same few fundamentals, and different business units will contribute to creating this value in different ways. In an article for CIO.com, Mike Sisco describes how the process might work for IT. He shares how the five aspects of business value apply to IT:
- Increase revenue.
- Decrease costs.
- Improve productivity.
- Differentiate the company.
- Improve client satisfaction.
The Avenues to Value
IT can directly assist with revenue by delivering innovative new offerings or supporting new company products. They can also assist in more low-key ways by providing SEO for the business. And on other end, when it comes to decreasing costs, Sisco says this:
IT organizations offer tremendous financial leverage. In fact the IT organization can provide more leverage than any department in a company. IT is the only department that can help every other department of a company reduce cost or improve productivity. No other department offers this type of leverage.
IT indeed can improve business productivity in myriad ways. It can be as simple as IT taking action to cut down on paper waste, or introducing video communication technology that facilitates telecommuting. The right technology used in the right places can create innovations that differentiate the business from its peers. Achieving this is arguably one of IT’s greatest aspirations, as it means IT is truly embracing digital transformation. But the final aspect of business value, improving client satisfaction, is a place where IT already shines. They fixate over how to satisfy stakeholders and delight users. If IT can find ways to take this dedication to service and apply it to actual customers of the business, then that is even better.
Every move IT makes should be a strategic maneuver toward business value. This notion should underscore IT management’s decision-making process. You can view the original article here: http://www.cio.com/article/3128724/leadership-management/business-value-is-key-to-it-success.html