AIM for measuring IT value
the paper, Missing Millions: Unlocking strategic IT Value, Sapient
and the Kellogg School present the Application Investment Management (AIM) framework
as a tool to help businesses measure the value of their existing IT portfolios
and identify new areas for creating value.
In a survey of 179 Fortune 1000 firms, 44 percent did not have well documented
applications and infrastructure. This shows that there is tremendous opportunity
to unlock business value from the existing IT applications portfolio. According
to the paper, the AIM framework can help companies create competitive advantages.
Some of the other benefits that companies can hope to achieve by applying the
AIM framework are:
- Gaining a better understanding of the value, cost
and dependencies across the entire applications portfolio.
- Identifying areas of over- and under-investment
in order to focus investments on applications and initiatives that support
strategic business goals.
- Reallocating non-essential operational spending
to new development to fuel innovation and efficiency.
- Enhancing IT-business alignment on an ongoing basis.
- Evaluating enterprise technology for regulatory
- Reducing the risk of outsourcing and offshoring