The purpose of the International Function Point Users Group (IFPUG) Business Applications Committee (BAC) is to contribute to C-level (CEOs, CIOs, CFOs, etc.) software development decision-making by suggesting best practice, quantitative approaches. The BAC encourages and supports the definition and development of standardized software metric-based business practices using units of size based on IFPUG software user requirement sizing standards.
C-level leaders know that in this highly competitive business world it is important to have the right data at the right time, which is well-analysed to make informed decisions. Also, defining, measuring, and communicating the business value of IT can be challenging. IT Value Metrics Key Enablers to the Business focuses on IT industry best practice key metrics, measurement practices, and analytics. It also focuses on measuring IT value metrics.
Measurement of software development is relatively easy to do. But measurement of the business value of software development has not been as widely recognized as it should have been. Too often, project prioritization is driven by other factors. These include the technology being used, the time to completion, resources required, the difficulty of the project, or even who is shouting the loudest.
The insights provided here can serve as a guide to C-level leaders.
Many CIOs and their IT departments have long been engaged in the use of software metrics to perform management tasks. These include estimating and predicting outcomes, measuring productivity performance levels, and tracking defects. While these measures and the resulting analytics help IT managers to better design, develop, and deploy software they must also be formulated to quantify business value.
IT value metrics programs are simply collections of key data with corresponding analytics to provide valuable insight into the business and increase its value through IT.
The IT value metrics described in this publication can improve a CIO’s ability to gain knowledge regarding how to better manage risk and performance optimization. The ultimate value of measuring IT is quantifying its return on investment for the organization — measurable in one way using a form of balanced scorecard (BSC) in terms of finance, customer satisfaction, business processes, and learning and growth.