Study reveals need for change in IT measurement

by CXOtoday News Desk    Feb 04, 2013


There is a growing need for IT performance measurements to be more automated and closely aligned to organizational objectives in Asia Pacific and Japan, according to a study by Coleman Parkes Research, commissioned by HP. The research showed that 90 percent of business and technology executives recognize IT performance measurement as a critical tool. However, less than 50 percent of the respondents said they are using this measurement data to help informed decision making.

It is critical for business and governments to have real-time visibility into and control over the IT that underpins many of the innovations they provide to their customers and citizens including online payments, mobile solutions and social media services, believes HP analysts. These enterprises need to manage not only the delivery of the services but have the right insight to balance resources and IT investments.

More than 70 percent of executives believe IT should be measured against their organization’s core performance metrics. However, the survey revealed that the most common assessments of IT performance today are traditional IT metrics, such as quality of service as told by 71 percent respondents and speed of ticket resolution as informed by another 66 percent. Meanwhile, business-focused metrics, such as cost and customer satisfaction are used by only 56 percent and 41 percent of respondents, respectively.

As organizations use IT to communicate and deliver services to customers and citizens, it is critical that IT performance is measured against business metrics to ensure alignment with an organization’s objectives, the research said.

The research also suggests that information silos are hindering alignment between IT and the organization. Only 44 percent of executives said that IT performance information is shared widely across the organization. This figure underscores a deficiency in the important communications link between IT and the business.

The study also highlights a need for increased IT automation. More than 70 percent of executives said that manual processes are part of their IT monitoring. Among them, 71 percent said manual processes add time to or delay valuable information and feedback to the organization. These delays combined with insufficient IT measurement further hamper organizational agility.

“As IT is increasingly expected to align with business objectives and to respond quickly to changing priorities, IT leaders need ways of monitoring and reporting performance that is relevant, insightful and timely,” said Amit Chatterjee, Country Director, HP Software, India. He believes that IT can achieve this by automating manual processes and focusing on how IT contributes to more strategic measures such as customer satisfaction, cost and revenue growth.