The high cost of large information technology (IT) initiatives coupled with a need to demonstrate solid return on IT investments are the key drivers behind a new service launched today by Ajilon Consulting and ITCentrix. Known as "IT Value Management," the new service combines ITCentrix's Value Accelerator software toolset, which began shipping in 2001, with Ajilon Consulting's implementation, life cycle governance and management capabilities. IT Value Management lets CIOs demonstrate objectively to corporate management the lasting business value of the organization's current and future IT investments. The service will be demonstrated at the SIMposium IT trade show in New York, October 12-14, 2003, and will be available to customers following the show.
"We've made the CIO's decision process easier by making it more objective," said Bob Ryder, vice president for Professional Services at Ajilon Consulting. "CIOs often have to struggle to convince management of the benefits of investing in this technology or that initiative. Now with IT Value Management, every IT decision can be based on its business value."
Ryder explained that IT Value Management lets the CIO and top management view and analyze the value of all IT investments - applications, projects, infrastructure, people and processes - in the context of industry benchmark data, IT objectives, and the organization's financial metrics such as revenue, headcount or productivity. The outcome is a clear and definitive relationship between dollars spent on technology and what that investment is worth to the business.
"Technology should demonstrate measurable returns, just like any other business investment," said ITCentrix CEO Dave Vellante. "IT Value Management provides C level managers with a methodology for taking the guesswork out of technology decisions. We've built a software framework to proactively measure IT value across the entire enterprise and preview the business impact of IT investments, before major expenditures are committed."
Vellante added that the ITCentrix Value Accelerator has excellent "what-if" capabilities. These features let the CIO investigate the financial and business impact of specific actions or changes to the organization's IT portfolio. For example, "how will a new application impact organizational productivity?"
"Value has become a board room-level mandate," said Ajilon Consulting's Ryder. "Technology moves from simply an organizational cost to a value creator once its contribution is apparent. And Ajilon Consulting's life cycle emphasis of IT Value Management breeds a new culture, a value culture throughout the organization that fosters a less emotional, value based decision-making process."
Included in the IT Value Management service is ITCentrix's ValueBase comparative benchmarking tool and Value Accelerator software and Ajilon Consulting's IT value life cycle methodology and implementation services.