7 IT metrics that matter most
Metrics are essential tools that help IT leaders focus their teams and resources on important core business areas, such as transformation and operations. Yet while highly useful, metrics can also be dangerous when improperly used. It’s easy, for instance, to rely on the wrong metric to track a specific operation, a mistake that can lead to inaccurate or misleading results. Complicating things is the constant flow of new metrics, many of which have yet to prove their long-term value.
For the CIO assembling an analysis package that enterprise leaders can use to glean IT’s impact on transformations and operations, metrics minimalism is key. Avoid clutter and confusion to instead focus on a core set of fundamental metrics that provide clear insight into critical issues and challenges. While additional analysis tools can be added over time to augment and illuminate important trends, it’s best to begin with just a few basic tools.
Here’s a look at the seven fundamental metrics that should have a home in every CIO’s analysis toolkit.
1. Return on investment
As it has for years, return on investment (ROI) continues to be the central metric associated with transformation. “Transformation is all about doing business differently and generating value,” says Lou DiLorenzo, managing director and US CIO program and technology strategy lead at Deloitte Consulting. Besides providing insight into value, ROI, when performed correctly, will highlight the joint ownership between business and IT that’s necessary to bring transformation to life.