Gartner Research

The Gartner Cost Value Matrix: Assess If Cost Optimization Initiatives Balance Cost Reduction and Business Value

Published: 17 July 2014

ID: G00263134

Analyst(s): Sanil Solanki , Kurt Potter

Summary

CIOs often measure success of cost optimization plans by measuring total IT cost reduction. This can distract from the ultimate goal of helping to execute on business strategy. Use the Gartner cost value matrix to ensure that cost optimization plans maximize business value as well as reduce costs.

Table Of Contents
  • Key Challenges

Introduction

  • How to Use the Gartner Cost Value Matrix
    • Assessment
    • Scoring
    • The Quadrants

Analysis

  • Step 1 — Use Gartner IT Key Metrics Data to Provide a Baseline of Current-Year Metrics for Your Industry
  • Step 2 — Calculate Your Own Metrics of Each of the Four Categories, and Calculate the Ratios
  • Step 3 — Calculate the Current Cost Value Rating
  • Step 4 — Map the Index Scores Onto the Gartner Cost Value Matrix
  • Step 5 — Calculate the Future Cost Value Rating Based on Delivering Projected Benefits

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