Measuring Business-IT Integration – Part II

Continuing on my previous blog, let’s discuss the following factors that are critical (aka Critical Success Factors or CSFs) for the overall success of your Business Service Management or BSM journey.

  • Business process enablement and support
  • Business-IT integration

Business Process Enablement & Support

The level of business value delivered by IT services depends upon the extent to which these services enable and support the business processes. Some of the performance indicators that will help us measure our IT services in terms of business value delivered are as follows:

  • %age of IT projects that deliver the value on investment (or VOI) as assessed and agreed in related business cases.
  • %age of revenue generated through the use of IT services
  • %age of services for which cost of unavailability is well understood and properly communicated.
  • %age of business processes that rely on IT services
  • Number and %age of users that depend on IT services to perform their day-to-day job functions
  • %age of service improvement decisions made on the basis of quantitative as well as qualitative service performance as well as perception related data / information.
  • %age of services for which business / customer perception of service quality is calculated.
  • %age of # of key business decisions that are made based on the information / knowledge processed and provided by IT services.

Business-IT Integration

How do you measure the extent to which you IT is integrated with the businesses and / or customers that you support. Following are the key performance indicators or KPIs that will enable us to understand how well IT is integrated with the business. These include:

  • %age of IT projects (per year) that are business-driven, are initiated by IT, and are a result of alignment of business and IT strategies. These projects are considered innovative and will result in enabling core business processes and / or addressing core business needs / pain points. These projects must be conceived within IT.
  • %age of IT projects (per year) that are business-driven and are initiated by the business. These projects must be conceived with business.
  • %age of investments made in IT development compared to the total investments across the business enterprise (applies to internal IT service provider)
  • %age of IT budget of the total revenues of the business enterprise

There are other KPIs that are related to specific ITILv3 processes e.g., Change Management has its own KPIs, Service Asset and Configuration Management has its own KPIs and so on. Relevant ITILv3 literature should be used to understand, identify and select specific metrics to measure the maturity of these processes.

To learn more about ITIL, check out Learning Tree’s course, Achieving ITIL Foundation Course.

Ahmad Shuja

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