IDC PeerScape: Practices for using KPIs to drive IT and business performance

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With the massive growth of data from all corners of both IT and business performance, the art and science of employing KPIs to drive performance is entering a renaissance. The "art" aspect of KPI design is stimulated by the need to measure things that were never measured before: How satisfying is a customer's experience? How should we measure cloud adoption? How do we track benefit realization? The "science" aspect revolves around what is needed to become a data-driven organization that can seamlessly create, track, report, and generate KPI insights, decisions, and actions across the enterprise with little intervention from IT.

This IDC PeerScape explores two organizations that are focused on exploiting next-generation KPIs and becoming more data-driven organizations. One is a cloud-based SaaS business whose KPIs are focused on creating world-class cloud-based software products and improving customer experiences; the other is a more traditional internal IT function whose KPIs are focused on contributing value to the company's internal and external customers. This study describes three KPI best practices that can be applied to the challenges of measuring IT as a software business and measuring IT's contribution to its customers' business. Best practices that will help the reader design and implement a modern set of next-generation KPIs include the following:

  • Clarify the new business and IT goals that drive performance.
  • Design KPIs around business outcomes, personas, and
  • Use KPIs to create an insight- and data-driven organization.

Readers will gain insights on how two companies are designing next-generation KPIs from the perspectives of a SaaS business and an internal IT department.

"The CIOs featured in this document have successfully developed a next-generation approach to designing and delivering KPIs that are driving important insights and actionable performance improvements," says Bob Multhaup, adjunct analyst with IDC's IT Executive Programs (IEP).

IDC PeerScape: Practices for Using KPIs to Drive IT and Business Performance