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IT Performance Management addresses the way organizations should balance the demand and the supply of information technology, optimizing the cost and maximizing the business value of IT. In this book several aspects of IT performance management are described. The way this management is executed and the techniques, which should be used, depend on the maturity of the relationship between the IT function and the lines of business of an organization. The foundation of the authors' approach is based on the flow of money and related management objectives. However, performance management is primarily based on perceptions. Therefore, this book introduces the IT value perception model. This model describes four separate levels of perception for the business value of IT. If the demand and the supply of IT do not share the same perception level, the balance is lost, which will lead to friction and inefficiency within an organization. This book is not about what is good or what is bad, but rather is about the 'what', the 'why' and to a limited extent the 'how' of managing the performance of IT.
Therefore, the book finishes with a 'back-to-business' section in which a self-assessment checklist, a potential growth path and ten next steps are provided. This enables the reader to start applying this book in his every day working environment immediately. IT Performance Management: * Provides an overview of best practices and available thinking on the subject of IT cost and value * Describes the subject of IT cost and value related to management issues on IT strategy, portfolio management, service management, architecture and sourcing * Addresses differing degrees of maturity between IT and the business, illustrated by case studies
Peter Wiggers is a senior consultant with IBM Business Consulting Services in the Netherlands and focuses on IT Strategy issues. He is a member of IBM's international IT Cost and Value community core team. He has 15 years of IT experience of IT Cost and Value, IT strategy and the effectiveness of application development. Before joining IBM, he worked for a market leading software house. Peter has a master degree in Business Economics with a specialization in Information Technology. Maritha de Boer-de Wit is a senior consultant with IBM Global Services, she focuses on IT Cost and Value. She has performed several studies in the area of IT optimization and performed project management roles in executing the optimisation activities. Before joining IBM five years ago, she worked for two years in several IT-management roles. Mrs. De Boer has studied Computer Science at the University of Twente with a focus on Business Administration and Ergonomics. She has in depth knowledge of CMM and Information Economics Henk Kok recently joined the Essent Corporate CIO organization as an IT Strategist. Essent is the largest Utility and Energy Company in the Netherlands. He has over 35 years of IT experience within the areas of Strategy, IT Architecture and IT Economics and include operational, consultancy and managerial responsibilities. Before joining Essent he worked as a senior IT strategy consultant with IBM Global Services.
Introduction and framework: Introduction; IT as a business within a business; The added value of IT; Reader's Guide; What is IT performance management about? Introduction; Some basic concepts; Performance management basics; The IT Performance Management Grid; The Terminology Used; Balancing the demand and supply of IT; Demand and supply in the IT value perception model; Summary; IT Service and IT Service Provisioning: Introduction; Structuring IT Services; Defining and describing services and service structures; The introduction of new IT services; Performance management of IT service provisioning; Summary; Managing the cost of IT: Introduction; Cost of IT; Understanding IT Cost; Controlling the cost of IT; Focus of IT optimization; Summary; Measuring the added value of IT: Introduction; Context of value; The business value of the organization; The business value of the IT department; The business value of IT investments; The investment proposal (the business case); Financing the investments; Summary; Managing the IT portfolio: Introduction; Strategy and strategy alignment; The role of architectures in IT performance management; Practical approaches to the alignment of business and IT; Managing the demand axis of the IT portfolio; Managing the supply axis of the IT portfolio; Managing IT performance; Summary; The Marketplace for IT Services: Introduction; Classification of marketplaces; The internal marketplace of IT Services; IT services in the context of the IT value chain; The maturity of IT service provisioning; Pricing and charging of IT services; IT vendor management; Summary; Sourcing and Managing a Mixed IT Portfolio: Introduction; Building an IT sourcing strategy; Crafting IT sourcing deals; Managing the integral IT services portfolio; Some lessons learned in outsourcing IT; Summary; Organizing the Demand and Supply of IT: Introduction; The key roles in IT performance management; Model A- Decentralized in business units; Model B- Centralized in corporate information services; Model C- the service centre; Model D- Business and IT fusion; Illustrating the IT Value Perception Model: Introduction; Level 1- IT is a facility; Level 2- IT is a service; Level 3- IT is a partner; Level 4- IT is an enabler; Back to Business: Introduction; IT value perception model; Self-assessment checklist; The 10 next steps per percetion level; The growth path through the IT value perception model; Practical guide on migration; Glossary; Bibliography.
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