Jean-Pierre Garbani serves Infrastructure & Operations Professionals. See the full Analyst bio.
Visit Forrester.com to learn how we make Infrastructure & Operations Professionals successful every day.
Business Services Value Analysis
Posted by Jean-Pierre Garbani on June 4, 2010
The choice between different formats of cloud computing (IaaS, SaaS mostly) and their comparison to internal IT business service deployment must be based on objective criteria. But this is mostly uncharted territory in IT. Many organizations have difficulties implementing a realistic chargeback solution, and the real cost of business services is often an elusive target. We all agree that IT needs a better form of financial management, even though 80% of organizations will consider it primarily as a means for understanding where to cut costs rather than a strategy to drive a better IT organization.
Financial management will help IT understand better its cost structure in all dimensions, but this is not enough to make an informed choice between a business service internal or external deployment. I think that the problem of which deployment model to choose from requires a new methodology that will get data from financial management. As I often do, I turned to manufacturing to see how they deal with this type of analysis and cost optimization. The starting point is of course an architectural model of the “product”, and this effectively shows how valuable these models are in IT. The two types of analysis, FAST (Function Analysis System Technique) and QFD (Quality Function Deployment), combine into a “Value Analysis Matrix” that lists the customer requirements against the way these requirements are answered by the “product” (or business service) components. Each of these components has a weight (derived from its correlation with the customer requirements) and a cost associated to it. Analyzing several models (for example a SaaS model against an internal deployment) would lead to not only an informed decision but also would open the door to an optimization of the service cost.
I think that such a methodology would complement a financial management product and help IT become more efficient.
For more details about value analysis: a very informative site on Value Analysis (http://www.npd-solutions.com/va.html).
Regards,
JP Garbani
Categories:
search forrester's blogs
Chart the digital business future.
Attend Forrester’s Forum for Infrastructure & Operations Professionals EMEA, June 10-11, London UK
Analyst Blogs
- Andre Kindness (20)
- Bryan Wang (7)
- Christian Kane (4)
- Christopher Voce (8)
- Dave Bartoletti (13)
- David Johnson (39)
- Doug Washburn (35)
- Eveline Oehrlich (8)
- Glenn O'Donnell (25)
- Henry Baltazar (3)
- Henry Dewing (3)
- James Staten (102)
- Jean-Pierre Garbani (12)
- John Rakowski (15)
- JP Gownder (45)
- Katyayan Gupta (10)
- Laura Koetzle (1)
- Lauren Nelson (4)
- Michele Pelino (3)
- Rachel Dines (28)
- Richard Fichera (106)
- Stephanie Balaouras (1)
- Stephen Mann (93)
- Wen Zhao (2)
Top Categories
Archives
- May 2013 (1)
- February 2011 (3)
- January 2011 (1)
- December 2010 (4)
- August 2010 (1)
- July 2010 (2)
- June 2010 (5)
- March 2010 (2)
- January 2010 (2)
- October 2009 (2)
- September 2009 (2)
- August 2009 (1)
- June 2009 (1)
- See all
Comments
Hi My name is Anna
Hi
My name is Anna Wojciechowska. I am contacting you on behalf of one of my clients- Regus India; the world’s largest supplier of workplace solutions, hoping you might be interested.
I noticed on your site: http://blogs.forrester.com/jean_pierre_garbani/10-06-04-business_service...
you provide some great information that would be relevant to people who might find Regus very useful.
We have a HTML widget and we are looking for webmasters that would be willing to host it on their sites. The widget provides both a booking facility, and information about our client's destinations. We would of course be happy to pay a monthly fee for you hosting this, with 3 months upfront.
Please let me know if this is something you might be interested in doing.
Thank you for your time!
Regards
Anna