IT Business Value

Abstract

Previous chapters described the concepts of Enterprise Governance of IT and business/IT alignment, as well as the relationship between them. The first chapter explained that the ultimate outcome of Enterprise Governance of IT is (the creation and protection of) IT business value. More specifically, Enterprise Governance of IT enables IT business value, through the mediating mechanism of business/IT alignment. The concept of IT business value deals with the contribution of the (current and future) use of IT to organizational performance. In other words, it deals with the question “are we getting the benefits out of our IT (operations and investments)?” This chapter starts with a brief discussion about the IT productivity paradox and the IT productivity cycle. Then, two important management instruments are introduced that are helpful in managing and realizing IT business value: the business case (process) and the IT balanced scorecard. Lastly, this chapter draws on recent EGIT-related literature to facilitate a discussion in line with the conceptual model underlying this book: i.e., EGIT enables IT business value, through the mediating mechanism of business/IT alignment.