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The Business Technology Value Scorecard

Sponsored By Apptio, Inc

Finance & Risk Management > Benchmarking/Metrics

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The old, safe, and stable transaction-oriented systems view of IT is dead. Empowered customers, coupled with increasing economic, product, and market change, force organizations to become customer-focused, outcome-oriented business partners who must think about technology systems as business drivers and revenue catalysts.

In July 2013, the Technology Business Management Council (TBM Council) commissioned Forrester Consulting to evaluate the impact of current business imperatives on the metrics that CIOs use to convey the performance and contribution of technology to business goals. The goal of the engagement was to produce a proposed suite of metrics that would serve as a starting point for traditional IT organizations looking to better reflect their role in their organization's success.

Forrester developed a hypothesis and proposed a four-domain BT value scorecard based on its research in the area of CIO dashboards. Forrester then conducted in-depth interviews with 19 C-level business and IT executives to test this hypothesis and to gather opinions on proposed metrics. Technology leaders were asked to identify KPIs they currently use and how they would change them, while business leaders were asked to identify KPIs that would most benefit them in making business decisions and understanding technology contributions to business outcomes. Adjustments were made to the initial model, and specific KPIs were added and changed based on the interviews. The final results were validated by looking at the technology and business priorities from Forrester?s Business Decision-Maker (BDM) and IT Decision-Maker (ITDM) surveys.

Forrester found that an optimal BT value scorecard would span four areas - health, delivery, outcome, and agility. These domains convey the best blend of information so that business leaders truly understand the role and contribution of technology in their business.
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Released: November 07, 2013
Length: 21 pages
Format: PDF (1167 kb)
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