An interesting new survey from ISACA (www.isaca.org) on the governance of IT related business investments. Amongst the findings from more than 500 enterprises surveyed was the astonishing (to me anyway) absence of a common understanding of what constitutes value to the enterprise. Only 34% of respondents indicated that there was a common understanding of value across different business departments, including IT, whilst 38% admitted no common understanding along with 28% who were unsure. Perhaps this makes it hardly surprising that so few of the enterprises surveyed (just 29%) consistently measured the value arising from investment in IT. In the current recessionary times it is perhaps more important than ever to measure value. Unless this is done, any attempt to reduce IT costs, including project based investments, will be unfocused and arbitrary, whilst future investments are likely to be selected based upon a less than informed analysis.
The same survey indicated also that in almost 50% of the respondent enterprises it is the CIO who has responsibility for ensuring that stakeholder returns on IT related investments are optimized. Whilst undoubtedly the CIO has a significant role to play in optimizing value surely this has to be the prime responsibility of the business? After all the technology itself cannot deliver value. It is the way in which the business uses the technology to reduce cost or enhance revenues that will lead to value creation. Whilst ambiguities remain over the meaning of value, and whose reponsibility it is to deliver it, it is probable that value destruction rather than value creation will be the end result.
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