The ITCentrix Value Methodology

The ITCentrix Value Contribution Model (See Figure) provides a strategic framework to assess IT's contribution to business value. It is based on a proprietary and tested methodology that combines cost, technology and business modeling to more accurately predict how changes in IT will impact business results. The data from the model are calibrated using real world case studies of Global 2000 (and smaller) corporations and other public and private sector institutions.

The model uses assumptions based on actual customer data and allows users to make changes to reflect specific applications and environments (e.g. application value, levels of availability, planned downtime, network costs, etc.).

Three high-level Business Value Contributors are quantified and analyzed to assess the value contribution of a particular technology approach:

Operational Costs - [Metric: Cost Savings] - Emphasizing factors such as staff efficiencies, hardware utilization and network costs.
Service Levels - [Metric: Incremental Revenue or Productivity Dollars] - Emphasizing application availability, performance and associated costs/value.
Flexibility - [Metric: Incremental Revenue or Productivity Dollars] - Emphasizing the time to develop and introduce new applications (i.e. time-to-market) and the value generated from faster deployment times.

Each of these high-level value contributors contains numerous sub-elements and data points solicited from actual customer situations. These factors are assessed to develop an accurate view of current technology approaches (The Base Case) and compared to alternatives. The explicit intent of the model is to allow customers to compare tradeoffs of changes to the Base Case in business value terms. [All components of the model are quantified in value terms and represent real dollars - e.g. cost savings, revenue potential and/or productivity gains].

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