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12/3/2007
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IT's Value? Prove It

Tech managers in small to midsize companies are constantly wrestling with the need to prove the benefit of the business' IT investment. But quantifying that kind of value is not simple. But now there could be an easier way.

Tech managers in small to midsize companies are constantly wrestling with the need to prove the benefit of the business' IT investment. But quantifying that kind of value is not simple. But now there could be an easier way.The Hackett Group has developed four basic principles to calculate the value of IT investments to a business and its research indicates, according to Baseline, that the results are more important to CIOs than ever.

The four principles of the "yardstick" involve value conversion, collaborative process, process-driven approach, and dedicated resources and executive sponsorship. While not groundbreaking research, the principles effectively organize and help quantify an IT manager's approach.

But what was really interesting was what Baseline highlights about the need for this kind of assessment. Writes Baseline writer Doug Bartholomew: "Hackett's research indicates that the need to quantify the value of IT's contribution to the enterprise is becoming more key to CIOs who aspire to a higher executive role."

He quotes from the Hackett report: "We believe that over the next five years, CIOs will either evolve into fully accepted 'business partners' at the leadership team level, or senior business leadership will make strategic IT decisions and delegate execution to a de facto 'COO of IT'.

Is the CIO position indeed evolving? Who is making the IT decisions in your company? Let us know.

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