The need for IT to run like a business is clear. Yet the perception remains that IT is more of a cost-center than a business partner. In fact, according to a recent survey by CFO magazine, 48 percent of CFOs reported poor alignment between IT and business needs.
For most corporations, the cost of delivering IT and other internal services represents 3% to 15% of revenue. Faced by continued cost pressures, together with the business units' growing demand for new IT services and higher service levels, internal service teams are embarking on a fundamental transformation. CIOs and other service delivery executives must align their services with the needs of the business, improve internal customer satisfaction, and deploy standardized processes to achieve greater operational efficiency.
Litcom, leveraging our Portfolio Management Method, works with CIOs and senior business executives to improve visibility and performance of an organization's IT service delivery capability and reduce costs, where possible. Armed with the right information, CIOs can at last run IT like a business.
The six most important steps to running IT like a business are:
Step 1: Improve the alignment between services offered and business needs by treating users like customers
Step 2: Create a service oriented culture by creating a catalog of standardized or best practice services
Step 3: Effectively communicate service delivery expectations by implementing service level agreements
Step 4: Demonstrate the value IT provides and create a system of Pricing and charge-backs for services
Step 5: Investigate cost effective alternatives to internal service delivery through strategic outsourcing
Step 6: Measure performance and continually improve IT delivery processes
Research suggests that by transforming itself in this way, the IT organization can:
• Rapidly and continually identify areas for cost savings.
• Eliminate bottlenecks to improve service delivery performance.
• Become more involved in key business operations by mapping services to key business metrics.
• Focus and expand the service portfolio to address the services most needed by the business.
• Demonstrate the overall value that IT delivers to the enterprise.
Have questions? Want to learn more? Contact Litcom at: [email protected]
