Warning: Your Journey To “Demonstrating IT-Delivered Value” Passes Through The Quaint Little Town Of “Understanding IT Costs"
Posted by Stephen Mann on November 16, 2011
Last week, I presented at the itSMF UK’s annual conference on the subject of value or, more specifically, I hid an awful lot of IT financial management-related content behind the title: “Anybody Questioning Your Value?” Importantly, this is not IT value; I am referring to business value.
It was a surprising session in many ways. Firstly, the number of attendees (I didn’t count them but I would guestimate about 80 ... I’m sure my IT service management peers in attendance will now quickly tell me it was a lot, lot less). Secondly, that they all seemed to stay to the end (well bar one worried-looking lady who left in a rush early on ... I assumed a Sev1 incident or an upset tummy, or both).
The third surprise was the response to a simple question I posed:
If your CEO or CFO stopped you in the corridor and asked, “I like the look of this Gmail-for-business thingy, how does it compare cost-wise with our internal email service?” Would you know the per-unit cost of delivering your corporate email service?
The surprise? Not one person in the room admitted to knowing what their corporate email service costs. I expected to see a low number of raised hands but not a wave-less sea of hands-in-laps. Unfortunately, being unable to answer such off-the-cuff and more formal questions around costs and value can only expose the absence of I&O’s business savvy and lack of cost-awareness. This is not a place I&O wants to be in right now (or ever).
So what does I&O need to do?
My Jerry Springer-like final thought?
I have said (well blogged) it before and I will say it again: I&O needs to have answers before the business asks awkward questions about costs, performance, and value.
If YOU don’t get to grips with costs and value, your successor will.
Please check out my latest blog ... http://blogs.forrester.com/stephen_mann