Gartner Research

The Gartner Business Value Model: A Framework for Measuring Business Performance

Published: 20 March 2013

ID: G00249947

Analyst(s): Paul Proctor , Michael Smith

Summary

The value model is a set of the most common business outcomes resulting from IT investments and ongoing IT services. Each metric in the model is mathematically linked to the financial statements, providing an ability to simulate the impact of IT investments and services on financial results.

Table Of Contents

Analysis

  • Introduction
  • The Business Value Model Overview
  • Target Audience
  • Positioning the Business Value Model
  • Guiding Principles for Metric Selection
  • Applications of the Business Value Model
  • Implement the Business Value Model at a P&L Level
  • Risk-Adjusted Value Management
  • A Word of Caution
  • High-Level Business Aspects
  • Aggregate Measures
  • Prime Metrics
    • Business Aspect: Demand Management
    • Business Aspect: Supply Management
    • Business Aspect: Support Services
  • Industry-Specific Extensions: High Technology
    • Business Aspect: Demand Management
    • Business Aspect: Supply Management
  • Industry-Specific Extensions: Mining Industry
    • Business Aspect: Demand Management
    • Business Aspect: Supply Management
  • Appendix A: Frequently Asked Questions
  • Appendix B: Sigma Table for Defects per Million

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