IT Performance Management

Chapter 10: Illustrating the IT Value Perception Model

10.1 Introduction

The IT value of a company depends on the strategic focus of the company and the level of perception of the IT services that are delivered to that company. Therefore, the IT value perception model has been introduced (Figure 10.1).


Figure 10.1: Illustrating the IT value perception model

In this chapter the four levels of the IT value perception model will be elaborated using four virtual IT organizations. These departments do not exist in real life; they are used for illustrative purposes only. The descriptions are partly based on our working life experiences, both as employees from within, and as external consultants with clients. The other part, though, is based on our imagination.

It is important to note that the four cases in this chapter are not linked to the demand/supply models in the previous chapter. The cases will have a mixture of these models implemented, as any organization will have.

10.2 Level One: IT is a Facility

Tom Alpha Engineering (TAE) was founded in 1981 by an electrical engineer named Tom Alpha. He was an employee of an electronic multinational. He had a lot of ideas to improve the production lines of his company, but did not succeed in getting the top managers attention. Therefore, he left the company and started his own. Now, at the age of 52, Tom is the owner of a successful company with more than 500 employees.

TAE produces small electrical home appliances. These markets are characterized by many vendors and low...

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