Three Metrics to change our business

In a previous post, Research Outline,3 sets of metrics were proposed that, if applied consistently across large organisations, would change the face of our industry (IT&T), perhaps even support the transition to a Profession.

"IT is done for a Business Benefit"

After 50+ years of doing it, we are looking at the end of the Silicon Revolution by 2010. Already we've passed the end of Moore's Law for CPU speed [Q1-2003]. But more than that - Business & Government are getting hard-nosed about IT&T delivering 'value'.

The IT recession we're just coming out of was a direct reaction against the perceived needless waste of Y2K. The other in 1991 was the marker that all the 'easy wins' in IT had been achieved and IT itself could be cut.

Big Business and Government account for over 60% of the Australian GDP. Around 45% of GDP is influenced directly by IT&T - with an investment rate of around 10% - $45Bn/year for 'the majors'. Globally, multiply this by 50-60 times. [Source: ABS surveys]

Compare this to the ~$50Bn earnings by all companies listed on the ASX. Leveraging IT&T whilst containing costs is a central concern of all good business execs - and becoming more so. Shaving 1% off IT&T inputs goes directly to the bottom line and allows good companies to easily outperform their competitors.

My belief is that the first people to adequately address these questions in quantifiable terms will dominate the market . And what better way than to charge than a percentage of the realised savings? For a consulting firm, that's putting it's money where it's mouth is...

Metrics

The three sets of figures I'd like to produce are linked to this central question:
Doing More with Less.

• What's the leverage IT&T gives us? [Virtual Employees]
  • Year on Year reporting from a consistent base.
• Where do our IT&T costs go? [Standard reporting in Business Inputs andOutputs]
  • Are we getting a good deal from our IT&T?
  • Comparing to what?
• How effective are our IT&T processes? [Benchmarked KPI's]
  • If ITIL is the answer, how well are our folks doing it?
  • How much more room for improvement is there?

And the worst thing that could happen is:
You find out your IT&T people do a good job.