TABLE OF CONTENTS An important aspect of every form of communication is to be sure to have a common frame of reference. In our consulting engagements, we spend a lot of time talking to our clients to create this common view. However, in a book, interactive communication is not possible. Therefore, it is important for us to state the meaning of the words we use.
In this chapter we will briefly introduce the basic concepts of IT performance management. These are IT cost, IT value and the output of the IT organization: services. These services are supplied to match the demand for services as defined by the business units. The performance of the IT organization is measured in terms of quality of service, added value to the business and the costs of service providing.
Some other basic concepts of performance management to be introduced are investment, project, the planning and control cycle and measurements of performance indicators.
We will categorize the demand and supply of IT, resulting in the performance management grid. Additionally we will cover the concepts of IT portfolio management.
The last section of this chapter will cover the different phases of the IT value perception model, where the perception of cost and value, demand and supply shifts significantly.
In this book we will use the terms organization, business and IT. The organization is the entity that produces products, goods and/or services to external parties. It may be either a profit...
