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Transforming IT to show cost of services: 5 best practices

Sunny Gupta, CEO Apptio | Feb. 8, 2011
IT has struggled for years to calculate and prove what its own services actually cost to deliver to the business. Consider these five strategies, as shared by CIOs who've already battle-tested them, says Sunny Gupta, CEO of Apptio.

"We made an early decision to make this pervasive," says Rebecca. "Some of the folks on my team wanted to just do part of it and I said, 'no way.' I don't care if we're precise but we're going all the way on this." In essence, what Rebecca is saying is that the value of IT-business alignment will only be fully realized when it touches every facet of the IT organization so that the business stakeholders truly understand the discrete unit costs of the services being provided.

The bottom line is that transformation is a journey, not a sprint. There is a tendency for people to confuse 'innovation' and 'transformation' because they both imply the same thing: change. However, there is a subtle and important difference between the two: whereas innovation implies changing 'what is',transformation suggests creating 'what's new'.

For today's business oriented CIO, this is exactly what's needed — a new methodology to quantify the cost, quality, and value of IT and be able to communicate it in a language the business understands.

 

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