UK takes backwards approach to IT measurement

Research says UK fairs badly against France and Germany

The UK is taking a backwards approach by measuring IT as a cost centre and is failing to demonstrate its business value compared to other European countries, according to research published today.

UK IT is more than twice as likely to be measured as a cost centre than in France or Germany, says the survey of 300 IT decision-makers in European
organisations with over 1000 employees, conducted by vendor CA.

Cost was the primary measurement for the value of IT services for 86 per cent of respondents in the UK compared to only 37 per cent in France and 32 per
Germany.

While the primary method of IT measurement in France and Germany is IT metrics such as systems availability, they are more likely to be aligned to business objectives than in the UK.

In France and Germany, 31 per cent of IT metrics measurement are measured against business measurements, compared to just 17 per cent in the UK.

In France, 27 per cent are even measured as a profit centre, compared to only three per cent in the UK and 19 per cent in Germany.

However, the survey found that UK IT is more positive about its contribution to the bottom-line and its working relationship with the business than either
France or Germany, but the contribution is one of operational efficiencies rather than business outputs.

Some 60 per cent of UK respondents revealed they are planning to improve IT services over the next 12 months by better alignment with the business, but the biggest business driver for that improvement was operational efficiencies (39 per cent).

In France, the main business drivers behind improving IT services was to improve customer satisfaction and in Germany it was to support the launch of new products and services to customers.

Colin Bannister, director of enterprise IT management strategy for CA’s western region says that although UK IT plans on better alignment of services with the business, the fact the driver is operational efficiency implies they plan to continue in the ‘cost-centre’ role.

‘Until the business understands the strategic value of IT, CIOs can never completely stake their claim to sit on the management board,’ he said.

Respondents said the three biggest challenges to improving IT services to the business were changing business demands, lack of resources and complex infrastructure.

Gary Barnett, research director at Ovum, said:‘Service management is not just nice to have; it is now an essential component in demonstrating value to the business. The CIO’s ability to demonstrate the effectiveness of IT will not just determine their bonus - it will determine their job security.’

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