The need for IT to run like a business is clear. Yet the perception of IT as a cost-center rather than a business partner remains. In fact, according to a recent survey by CFO magazine, 48 percent of CFOs reported poor alignment between IT and their business needs.For most corporations, the cost of delivering IT and other internal services represents three to fifteen percent of revenue. Faced by continued cost pressures, together with the business unit's growing demand for new IT offerings and higher service levels, internal teams are embarking on a fundamental transformation. CIOs and 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.At Litcom, we leverage our Portfolio Management Methodology to work 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 are finally able to run their IT departments like a business.
The six most important steps to ensure success include:
Step 1:Improve the alignment between service offerings and business needs by treating end 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 implement a pricing and chargeback structure 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 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.
To find out how Litcom could effectively help your organization assess and optimize your IT infrastructure, please contact us at:[email protected]
Copyright 2009 Litcom Information Services Inc.
