MIS4596 – Tony Messina – Section 002 – Spring 2016

The Challenge of IT Business Value


This article by The London School of Economics tackles the continuing challenge of how to measure the business value of IT.  In the CIO article it was argued that there is nothing as “intangible” and everything can be measured.  This article agrees overall, but focuses more on the intricacies of how this value should be measured.  What stood out to me was, “Business value is considerably weaker when investments alone are considered for information technology used in an organisation’s internal activities.”  They are arguing that we can’t just look at the monetary investment on whether the value is being met.  We have learned that as members of IT organizations we must consider the business our customer and understand that we must continually solve their problems or improve their processes.  When an investment is made in IT, the value that it adds has to be looked upon the entire business.  It has be measured in the improvements that is makes for the entire business.  I agree with both the CIO and this article that is can be measured.  I think because the impact of IT is so widespread across an organization in the past this was looked at as “intangible” to measure.  Looking towards the future, IT business value can be measured by the value it creates for business groups within and outside the organization.

Question to Consider:

What is the best metric for measuring BVIT?

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