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IT has become embedded in every aspect of business operations. Consequently, the demand for IT far outstrips available resources and capacity for organizational change. To ensure that precious resources are allocated to the great, not merely good, opportunities, companies must become facile at managing IT demand. The ability to manage IT-enabled value is the acid test of demand management the single most important factor that distinguishes IT-smart from IT-dumb companies.

IT-smart companies understand that realizing IT-enabled value requires managing operational performance measures that serve as “leading indicators” of financial performance. By expanding the definition of value and using a value-driven development approach, it is possible to implement a closed loop investment management process that funds the right initiatives, keeps initiatives focused and on track, and reinforces the accountability for results.

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