Calculating the return on investment (ROI) of any IT project is not just a buzz phrase as a mantra in IT management circles.
Stacey Smith, chief financial officer at Intel, said at the European launch of the Innovation Value Institute (IVI) at the National University of Ireland in Maynooth, that calculating IT investments had “to an extent, been like shooting in the dark”.
“Companies have had no way of verifying that their IT dollars are being spent most efficiently, in a way that brings real value to the business,” he said.
Smith said that in the face of tough economic condition, it was imperative that IT heads could demonstrate the business value derived from investments in IT. He added that to help CIOs and IT heads make these strategic IT investment decisions for big businesses an integrated and standardised framework was required.
“The IT Capability Maturity Framework (IT-CMF) being developed by IVI does exactly this – it addresses the fundamental problem of the business value derived from IT spend by providing an end-to-end framework to help CIOs make those difficult investment decisions,“ Smith added.
It is Smith’s view that this framework will enhance the CIOs position in the boardroom by helping transform IT results into pounds, shillings and pence, something that the rest of the board and the business can understand.
IT-CMF is a concise management roadmap to optimise the business value derived from IT investments, by allowing organisations to assess their IT maturity level, benchmark against industry peers and develop a clear roadmap for improvement.
IVI is a consortium of leading industry, consulting, not-for-profit and academic organisation, which has spent three years developing and testing new ways to align IT investments with business. It has more than 40 members including Intel, Boston Consulting Group, Microsoft, Chevron, SAP, BP and Electricity Supply Board.
To find out more about IT-CMF watch our three exclusive video case studies.
ComputerWeekly.com talks to three leading CIOs about their experiences of using the IT Capability Maturity Framework (IT CMF), which is a model that helps companies benchmark IT functions and performance while identifying weaknesses.
- Laurent Allard – CIO of Logica
- Kevin Cooney – European MD and Global CIO for Xilinx
- Peter O’Shea – CIO of ESB (Electricity Supply Board)