A Practical Approach for IT Governance

Archive for February 2014

ABIT 1: Analytics Based IT Governance

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The growth of analytics is strongest in financial management and budgeting followed by operations and production, strategy and business development.  Sales and Marketing and Customer Services  are target areas of growth.   IT Analytics is the use of analytics to manage and deliver value-centric technology.   Significant is the lack of use of IT Analytics in workforce planning and allocation.   There are many reasons for this discrepancy, not the least of which being the perceived importance of IT in the organizations.  IT is by and large treated as an expense and not an investment. The role of IT Analytics can be better understood by making the distinction between micro-analytics (individual Key Performance Indicators) and macro-analytics (combination of multiple metrics).

ITIL provided a set of metrics which are very specific and cover a few specific measurements.  These analytics fall under micro-analytics. A Balanced Scorecard view provides macro analytics.  Macro analytics is analogous to macroeconomics – dealing with the whole whereas microeconomics deals with a specific domain or area. Macro IT Analytics can be classified into four groups:

  • Managing the Services Delivered (user perspective)
  • Managing the Resources (staff perspective)
  • Managing Value Delivered to the Enterprise (financial perspective)
  • Managing External Factors

User centered IT analytics includes customer happiness, response time, ability to triage and prioritize requests, and managing defects. Staff centered IT analytics include staff morale, resource utilization, transparency, productivity and turnover. Financial IT analytics includes number of capital projects, return on investments (ROI), variance and percentage of IT expenditures on new projects. External IT analytics includes outside threats, Disaster Recovery (DR) incidents, technology adoption velocity and percentage of budget allocated to contingency.

These four groups can be combined to provide a benchmark of IT itself.

Written by Subbu Murthy

February 23, 2014 at 11:57 pm