Chapter 15. Agile Management in the IT Department
Corporate IT's Value-Added Contribution
To show the effectiveness of a corporate IT department, it is necessary to show that it can add value to the business, that IT is a source for profit in the overall value chain. This completely reverses the traditional view, based on cost accounting, that IT departments are cost centers. IT has been seen as a pure operational expense, not a source for value generation.
What information is necessary to know whether or not the IT department adds value to the organization? To determine this, it is necessary to examine what represents Throughput (T).
When an IT system is deployed in the corporation, the IT department has essentially delivered and sold that ...