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


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


  • 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

Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.