Strategic Business
and IT Planning
Comparison between Cost and Value Service Models
COST DRIVERS
- Total Cost Ownership (TCO)
- Billing customers by consumption during a period or by number of users
- IT is a cost center with zero profit
- IT is seen as a cost center and not as a value generator
- The higher quality the higher the cost of having it
- Measurement by SLAs
VS
VALUE DRIVERS
- IT is a digital transformer of business processes
- IT is a key contributor to business results
- Its contribution is measured in value added or process optimization
- The quality of IT is the quality of the process
- Measurement by KPIs