An excellent and timely article from Mary K. Pratt in the January 24, 2011 edition of computerworld magazine.Â Pratt quotes Greg Rosenberg of The Corporate Executive Board as saying, "Most CFOs still see IT as a black box - they have limited visibility into the value that IT creates for their organization." And whose fault is that!Â How to fix it?
- Find out the business objectives of the stakeholders
- Allocate all [MH - "all relevant"] IT costs to a set of services that the business wants
- Hold IT service managers accountable for controlling the costs of the services they provide
- Define units of service in terms that the business understands [MH - talk to us if you are struggling with this] and show how changes in IT service consumption affect cost
- Reward IT staffers for lowering the total cost of service
- Set the prices for IT services to support overall business objectives such as cost predictability
- Invest in IT asset management [MH - including software assets] for making resource allocation decisions (not for reacting to audits)