Gartner Research

One More Time: This Is How You Express Costs in Business Value Terms

Published: 28 March 2014

ID: G00260050

Analyst(s): Kurt Potter, Michael Smith, Jim McGittigan

Summary

IT costs are constantly under pressure by enterprise stakeholders because the benefits of these costs are shared and not easily understood. Expressing IT costs in terms the business relates to will help CIOs and IT budget leaders change the discussion from cost (reduction) to value.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Link IT Costs to Business Value
  • Use ROI to Express Change Costs in Business Terms
  • Use Price for Performance to Express Operate/Run Costs in Business Terms
    • Expressing Operational Spend Using Price for Performance Is a Two-Step Exercise
  • Consider Other Metrics That Can Be Used to Link IT Cost to Business Value

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