Focus on value creation: strategies for effective IT Value Management

Even if it has felt like it for years: IT is not an end in itself, but the basis for companies to master the digital transformation and remain successful in the future. The solution for achieving this is effective IT Value Management strategies and therefore a focus on IT Value Contribution.

If, on the other hand, IT is only seen as a cost factor, the opportunity for further development remains unutilised and all energy is spent on maintaining the status quo.

And who wants to just maintain the status quo?

Exactly.

So what do we mean by IT Value Management?

IT Value Management – a definition

Roughly speaking, we understand IT Value Management strategies as all the activities that contribute to selecting and managing the IT portfolio and future IT investments in such a way that they contribute to increasing the value of the company.

Or to put it even more simply, in IT Value Management we organise all IT activities in terms of the value that they generate for the company. Of course, IT Value Management does not exclude the costs that IT generates. Nevertheless, IT Value Management focusses on the value that IT generates for the company.

Find out how to do this now.

How does it work?

In concrete terms, the main task is to create transparency within the company and to show which measures or projects have which effects on company processes and thus contribute to increasing the value of the company.

Effective strategies in IT Value Management

Transparency

In order to really be able to act with regard to the value contribution of IT, meaningful and comprehensible cost/benefit reports are required for each component of the IT portfolio. These should be prepared in such a way that everyone in the company can understand them. Acting in the spirit of IT Value is a strategic (re)orientation that must be supported by the entire company in order to be successful in the long term.

Continuity

As is so often the case, the key to success lies in the continuous implementation of the agreed method. In order to live IT Value Management, companies need organisational structures with agreed processes, resources and responsibilities. In concrete terms, this means that continuous improvement processes, the promotion of employee skills and needs-based service levels may be necessary. The value contribution of existing IT structures can often be increased through changes to the organisation or usage.

The right key figures

In order to measure the contribution of your IT to your company’s value, you need the right key figures. At the BAMAC Group, we focus primarily on financial measurement. Our end-to-end approach ensures that you get exactly the figures you need.

Corporate requirements

It is so fundamental that it doesn’t really seem necessary to mention it. Unfortunately, we regularly see in practice that this perspective is lost sight of or not fully realised. In order for IT to make a significant contribution to the company’s value, it must be consistently adapted to the company’s needs. If these needs change in the course of time, this must also be reflected in IT. In IT Value Management, the aim is for IT to support the company’s production operations and processes one hundred per cent and not just a little.

Make or buy policy

The question of make-or-buy decisions follows the alignment with the company’s needs. In this case study we have explained in detail the significant influence these issues have on increasing the value of IT and also listed important decision criteria.

legacy systems

The scope of IT Value Management also includes a critical review of legacy systems. Of course, not every older IT structure is automatically without value contribution, but in practice we often come across duplication of functions or much-loved systems that have long since been replaced by more efficient ones. Here it is important to critically assess the value added, because maintaining outdated systems simply because establishing new ones could be complicated is missing the point.

Basic information on IT Value Contribution and why establishing it is the decisive benchmark for your long-term success can be found here. Instruments and processes for a holistic integration of value contribution in companies are presented here.

The BAMAC Group as a partner

Naturally, we at the BAMAC Group want to enable you to successfully implement these IT Value Management strategies without the hassle of trial and error. At the BAMAC Akademie you have the opportunity to acquire additional qualifications in IT Value Contribution and to be trained as an IT Value Manager. In various seminars, we take a concrete and practical approach to the IT value management strategies discussed above.

However, if you want a reliable partner at your side, then we at the BAMAC Group will be happy to assist you. We not only provide our customers with customised support, but also pursue an end-to-end approach. If you would like to find out more, please get in touch with us.