IT and Business Alignment Report: Measuring IT Performance and Value

This report analyzes the article "Measuring IT Performance and Communicating Value" by Mitra, Sambamurthy, and Westerman (2011). The report summarizes the importance of IT performance measurement and communication, highlighting the role of CIOs in managing IT resources. It explores the use of IT metrics, including IT costs, spending, and investments, and their impact on business strategy, profitability, and revenue. The report discusses the framework for measuring IT performance, including IT-specific and business-related KPIs, and provides examples across five domains: Internal IT Focus, Project Focus, Business Operations Focus, Business Process Focus, and Innovation Focus. The analysis emphasizes the need for CIOs and managers to consider IT performance measurement to improve efficiency and revenue, incorporating monitoring tools and techniques aligned with business strategies. The report emphasizes the importance of IT in business processes and the necessity of measurement for training and education. It also mentions the impact of IT performance on an organization's long-term value and the need to modify operations based on performance and profitability. The report concludes by referencing the original article and its contribution to understanding IT performance in organizations.

3/11/2020
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IT and Business Alignment
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Summary
IT performance is necessary to develop new processes and changes in other processes.
According to Mitra, Sambamurthy, and Westerman, (2011), there are various reasons to
improve the performance of employees in various industries. The article has provided
executive summary in which all the parts have described in brief. Besides, CIOs is
responsible for managing Information Technology (IT) resources using various concepts and
tools including monitoring and communicating performance.
The authors have explained the role of various things that have affected performance
of IT metrics, such as IT costs, IT spending, and IT investments. The article has based on the
interview of 23 CIOs and managers, which has provided a better outcome to manage overall
organization.
There are many changes in the basic studies on IT performance. In addition, IT
investment is an important part of a business strategy. It has affected profitability and revenue
of an organization, which is necessary for an organization. Moreover, business capabilities
can be grown using IT performance measurement and other techniques including IT metrics.
Besides, measurement of Its performance can be based on the various factors, which
has based on the IT-specific performance. The authors have provided definitions of various
processes, which are suitable for the company as well. It is a basic need to provide proper
understanding of IT performance to the stakeholders, which is necessary to manage other
parts of a system as well.
The portfolio of metrics has provided by the authors, which has provided a summary
of all the processes. Business KPIs has discussed in the article, which is an important part of
a system as well. Most of the people in the IT industry have used performance measurement
tools and techniques.
Project performance has used for improving the value-based processes in an
organization. However, innovation management is necessary for managing various things in a
firm. However, operations of an organization have affected different parts of a system.
Moreover, performance measurement is helpful in the improvement of operations, projects
and innovations in an organization.
The article has focused on the five domains within the portfolio, which areas;

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 Internal IT Focus: A Pharmaceutical Company: an organization can grow in
the market based on the performance measurement and utilization. As an
example, PharmCo has developed different processes, which are
commercialization, development, and others. The company has employed
more than 1000 employees, which has provided more than $500 million
revenue for the company as well. It is an important lesion to manage IT-
resources, which is a good source of operation management.
 Project Focus: Video Manufacturer: CIO has worked hard in a company to
improve revenue and profit. VidCo has generated more than $2 billion in
revenue as well as 8000 employees.
 Business Operations Focus: Telecomm Manufacturer: telecom industry has
based on the IT resources. PhoneCo has included IT performance to generate
approximately 30 million subscribers and 15000 employees. Customer
relationship is necessary for managing all the processes. Moreover, it is
necessary to improve the basic processes of a firm.
 Business Process Focus: Insurance Company: insurance company has used IT-
resources for managing their different works, which is necessary for the
company as well. FinCo is a well-known company, which has provided
various facilities to the company as well.
 Innovation Focus: Career Website: career website has based on the global
career, which has required high level of IT assets to manage all the things.
JobCo has managed more than 9000 job websites. In this work, IT resources
have required to manage business functions and infrastructure.
There are many changes in the business processes based on the IT performance, most
of the performance measurement of different processes. In addition, performance
measurement can be used for training and education of employees, which can be better option
to impure performance of an organization. Most of the firms have hired experts for managing
their IT assets. However, CIOs have considered various things before investment of IT assets.
There are many ways to manage internal and external resources of a system, which
are helpful in the measurement of performance. Besides, internal processes can be used for
measuring performance, as those processes can be modified using differ approaches. Most of
the processes have used for particular work. However, based on the requirements, those

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processes can be optimized, which has generated huge value for an organization as a
customer’s value and other things.
Moreover, the article has included good examples and framework to elaborate IT
performance in an organization. Besides, CIOs have shared their opinions toward IT matrices
and investment, which is the best way to improve performance of the system based on lower
cost. In addition, there are many changes in the system, which can be used for managing all
the services in an organization.
Furthermore, the authors have considered various impacts of IT performance and
communicating value on an organization in long terms. Besides, most of the industries have
managed their IT resources, which has used for performance measurement as well.
In addition, there are many changes in the systems based on the suggestions and
measurement of IT assets in an organization. Operations can be modified based on the
performance and profitability. However, some firms have included different types of theories
and practices to improve profit of a firm.
Besides, most of the firms have included IT-resources for better performance. It is
necessary to manage all the things in a proper manner. It will improve the revenue and profit
of an organization. CIOs have selected monitoring tools and techniques, which has based on
the business strategies as well as strategic management. It is the best way to improve the
basic knowledge of an administrator to improve profitability of an organization.
Therefore, IT performance measurement should be considered by CIOs and mangers
to improve their efficiency and revenge as well. It will helpful in the changes and
modification of IT assets. However, technical issues can affect performance of a firm as well.

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References
Mitra, S., Sambamurthy, V. and Westerman, G., 2011. Measuring IT performance and
communicating value. MIS Quarterly Executive, 10(1).