IT Controlling represents a function within the IT department for reviewing IT performance. IT performance here refers to the value contribution of deploying information technology (IT) in support of the company's own corporate objectives.
The key task of IT Controlling is to determine this value contribution and compare it against the defined IT goals. Based on these analyses, appropriate measures are then derived to steer improvements and optimisation of the IT value contribution.
The determination of the value contribution can be divided into essentially two categories: the monetary (financially oriented) and the non-monetary value contribution (performance-oriented) of IT to overall business success.
To support this analysis, appropriate tools are used to ensure complete capture and evaluation against the defined IT goals. A concept proven particularly effective in practice is the Balanced Scorecard (BSC). This consists of several so-called perspectives (including People and Finance), each containing several Key Performance Indicators (KPIs). The KPIs assess particularly significant aspects within a perspective and thereby enable a holistic derivation of the IT value contribution.
In this context, IT Controlling is also associated with the term Performance Management, which further emphasises the relevance of performance orientation (including non-monetary metrics).
Another important element of IT Controlling is the distribution of responsibilities for specific key metrics. Only through the targeted engagement of the relevant decision-makers can compliance with defined threshold values be ensured.
Furthermore, the results of IT Controlling — which represents a sub-area of overall corporate controlling — must be made available in a form comprehensible to top management. Dashboards are well suited for this purpose, as they transform the broad data basis into a coarse-granular overview for the top management level. IT Controlling thus fulfils a decision-support function for the management tier.
What value does this create for your business?
Through the deployment of an effective IT Controlling process, the relevant data for upcoming decisions is always available to you, significantly simplifying decision-making and providing a solid data basis to support your theses.
You are also continuously informed about the performance of individual departments, enabling you to quickly identify weaknesses and optimisation potential.
IT Controlling further gives IT management the ability to substantiate its decisions and actions, and present them to top management using meaningful key metrics (KPIs).
IT Controlling therefore ensures, above all, improved transparency within your company.
IT Controlling can also be used for benchmarking, which additionally enables external comparison of IT service delivery. This primarily requires a standardised approach to measurement, analysis and reporting — which ultimately allows you to compare yourself with other companies and their IT departments, and to identify and realise further improvement potential.
Interested in consulting on the implementation of an effective IT Controlling process? Please don't hesitate to contact us.
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