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