This is a presentation describing a unique framework to measure and develop the value creation of the IT organization. It can be used framework that ken be used to improve value creation through a whole value chain - not only IT. The result of implementation shows +15% value creation per year and changed business IT relationship. Please contact The Goodwind Company to learn more and for demo.

1. WHITE PAPER
VALUE OF IT FRAMEWORK
Hans Gillior
2014-06-03
“Every business is a digital business. You cannot be the
best in your industry by not being best at IT”

2. This White Paper has been produced by The Goodwind Company and focus on The
Value of IT framework. The paper is describing the background, workings and
unique selling points of the Value of IT framework.
Note that the Value of IT framework is a generic framework to measure and
development value between two parts in a value chain. The framework can work
between any two units excluding IT.
The framework is based is influenced and combining other management models.
For further reading and inspiration, please read about SERVQUAL model
developed in the mid-1980s by Zeithaml, Parasuraman & Berry.
For further questions or comments, please do not hesitate to contact The Goodwind
Company.
Hans Gillior
The Goodwind Company
hans@thegoodwindcompany.se
WHITE PAPER
VALUE OF IT FRAMEWORK : INTRODUCTION
© Property of The Goodwind Company – All rights reserved

3. WHITE PAPER
VALUE OF IT FRAMEWORK : BACKGROUND
¢ Many IT organizations have difficulties to justify their
position as Strategic Partner to business units
without providing proof of value creation. The effect is
a production role of IT and a potential “blame game”
culture between IT and business.
¢ Traditionally, there is no model or method for
measuring and developing IT value creation in
business IT value chain.
¢ Many IT organization launch IT Strategic Initiatives
without strategic context (creating value for business
units) and hence IT is unable to create sustainable
engagement.
¢ With a changing business environment, it is essential
that the expectation are channeled through the value
chain to all contributors.
Background
© Property of The Goodwind Company – All rights reserved

4. WHITE PAPER
VALUE OF IT FRAMEWORK : PURPOSE
© Property of The Goodwind Company – All rights reserved
¢ The purpose of the Value of IT framework is to
measure and develop IT value creation in the
Business IT value chain - based on a service
orientated delivery format, and Plan/Do/Check/Act
cycle.
¢ The Value of IT framework is a generic framework to
measure and develop the value creation in any part of
the corporate value chain.
Purpose
Unit X
ServiceProvider
ServiceReceiver
Unit Y ServiceProvider
ServiceReceiver
Unit Z
ServiceProvider
ServiceReceiver
Coordination forum
Generic value chain model
Value creation & Cost
Expectations
• Common vision/
strategy
• Coordination
“Value of IT is defined
as IT’s ability to meet
and exceed business
expectations on IT role
in value chain.”
- The Goodwind Company

5. Guiding Principles:
1. The level of Service Value depends on the service receiver’s expectation
and how these expectations are fulfilled by the service provider.
Expectations need to be mapped and tracked.
2. Different service provider contribute with value in different ways
depending on their role in the chain. The role of IT is different from the
role of a Product Responsible Units. A common generic model would not
work (tested earlier).
3. The strategic initiatives must support the value creation in the value
chain.
4. Key success factors for increasing value: learning, transparency and
constructive dialogues.
WHITE PAPER
VALUE OF IT FRAMEWORK: GUIDING PRINCIPLES
© Property of The Goodwind Company – All rights reserved

6. ¢ The framework is based on a Performance
Management cycle (Plan/Do/Check/Act) includes
the following activities and functions:
1. Detailing the purpose and value-criteria of
each role in the Business IT Value chain
(PLAN)
2. Mapping expectations on across each
intersection (service provider/receiver) in the
business value chain (PLAN)
3. Discussing (business and IT) the fulfillment of
the expectations (CHECK)
4. Defining activities to improve value creation
based on outcome of business IT dialogue
(ACT)
5. Enhance value creation by cultural learning
based on excellent value creation/
performance. (ACT)
Definition
Plan
Do
Check
Act
Continuousprocess
WHITE PAPER
VALUE OF IT FRAMEWORK : FRAMEWORK
© Property of The Goodwind Company – All rights reserved

7. (Client example 2012)
Expectation Expectation
Expectation
Expectation
Expectation
A key success factor for implementing the Value of IT
framework is to define the value chain, and the expectations
on each role in the chain
WHITE PAPER
VALUE OF IT FRAMEWORK : CASE EXAMPLE GOVERNANCE STRUCTURE
Governance
¢ The IT governance structure plays a pivotal role in the
Value of IT framework – defining how IT creates
value in the business IT value chain, roles and
responsibilities, flow of cost and expectations.
¢ The IT organization is divided between different roles
that collaborate to optimize business value
© Property of The Goodwind Company – All rights reserved

8. Hans Gillior • 26/01/2012
8 •
© Property of The Goodwind Company – All rights reserved
WHITE PAPER
VALUE OF IT FRAMEWORK: CASE EXAMPLE (ROLE OF IT)
Focus Area Question Definition Rational
Cost & Risk
Transparency &
Levels
Cost Transparency & Levels BCIO’s ability to explain, in business
vocabulary, the deviation in activity cost (RFF/
CPR) according to set targets. Ability to
facilitate discussion to reduce demand driven
cost
• Many comments in survey
relate to BCIO’s inability to
explain cost/risk levels and
deviations.
• IT/Business cooperation and
common understand of cost
levels are needed to drive
reduction of risk and cost.
Risk Transparency & Levels BCIO’s ability to explain, in business
vocabulary, the deviation in risk (audit log)
according to set targets. Ability to jointly
facilitate discussion to decrease risk.
IT Service Quality
& Responsiveness
IT Service Quality The operative service quality based on agreed
SLA/OLA:
• Application availability
• Incidents & Disturbances
• Customer impact
• Responsiveness to sever incidents or errors
• BCA analysis
• Efficiency trends
• Operative dimension of
Business/IT cooperation.
• Important for business and IT
have the same view and
expectations regarding the
service quality delivery.
• Based on ITIL Operational
Services processes
IT Service Reliability &
Responsiveness
BCIO’s willingness and ability to support
business
• The willingness to help business and
provide prompt service
• Effort and knowledge to understand
business needs
• Level of communication and cooperation
Focus Areas: Defines the role of Solution Provider role
in IT. Each Focus Areas is broken down into questions
and definitions that further defines the Solution Provider
role.

9. Hans Gillior • 26/01/2012
9 •Note: Based on extensive research in client organization
© Property of The Goodwind Company – All rights reserved
WHITE PAPER
VALUE OF IT FRAMEWORK: CASE EXAMPLE (ROLE OF IT)
Focus Area Question Definition Rational
Value of IT Advice
and Support
Value of IT Advice & Support BCIO’s ability to support business with advice
on:
• IT/Business Strategy
• IT Investment Portfolio,
• IT Project Portfolio Management
• IT Resource Optimization
• IT Pro-activeness
• A forward looking dimension
based on the collaboration
between IT and business to
define how to get the best
possible “value for money”.
• Based on the expected
behavior of a BCIO.
IT Contribution to
Business Value
Chain Objectives
IT contribution to business
value chain objectives
Defining how well IT deliveries contribute to
the business objectives (to be defined).
• How well the benefits of the business cases
have been achieved?
• Have IT contributed to business strategy
(operational excellence, customer intimacy,
project innovation)?
• To agree on the value that IT
has delivered through the IT/
Business strategy.
• Based on the expected
behavior of a BCIO and
Business Representative
Business understanding to IT
pre-requisites for fulfilling
business value chain
objectives
Business representative’s ability to
understand IT’s ability and prerequisites for
contributing to business value chain objectives

10. Manager name: BCIO X
Unit name: Retail Segment Household (L3)
Division name: IT Retail
Gov. category: IT Solution Provider
Period: 2013 Q3
Basic information
Value of IT results
Cost & Risk Mgmt.
IT Service Quality
Value of IT Advice
IT Business Value
AVERAGE
IntervieweeA
IntervieweeB
IntervieweeC
IntervieweeD
IntervieweeE
4 5 4 5 5 4,6
4 3 5 3 2 3,4
5 6 4 6 7 5,6
4 3 6 5 3 4,2
4,5
Key comments 2013 Q3
Grade
2013Q2
2013Q1
4,2 4,0
3,5 3,4
4,8 4,6
4,4 4,2
4,2 4,1
2012Q4
2013Q3
4,3 4,2
3,8 4,2
4,4 4,3
4,3 4,4
4,3 4,3
DivisionAvg.
ITAvg.
4,8 4,9
4,2 4,7
4,8 4,4
4,8 4,6
4,7 4,7
Trend analysis BenchmarkUnit scores (2013 Q3)
Annualtrend
(%)
+10
-19
+30
-4
+5
Interviewee A
Interviewee B
Interviewee C
Interviewee D
Interviewee E
Need help to reduce cost by 15%
Need better and faster response
when application failure occurs.
Overall happy with collaboration
Not happy with service delivery!
Awful service quality! Action plan
needed.
Comments
Suggestions on cost reduction
Improve responsiveness
Implement strategic planning
Improve service quality in area X
Improve service quality in area Y
Actions
BCIO / August 31st
Manager Y / September 15th
Manager Z / October 1st
BCIO / September 1st
Manager Y / September 31st
Responsible/Due date
Scorecard
Value of IT Score
4,4
Value of IT trend
WHITE PAPER
VALUE OF IT FRAMEWORK: VALUE OF IT DASHBOARD (UNIT PERFORMANCE)
The Value of IT scores can be aggregated to different
hierarchy levels in the IT organization
© Property of The Goodwind Company – All rights reserved
Benchmarking:
Comparing Value
Creation between
different IT roles
and IT units
Trend analysis:
Displaying unit
trends on unit
performance.
Score sheet:
Scores per focus
area and
interviewees
(business
partners)
Action plan:
Detailed action
plan agreed in IT
Business
dialogue.
IT Learning:
Units with high scores are interviewed
for organizational learning..

11. WHITE PAPER
VALUE OF IT FRAMEWORK: VALUE OF IT DASHBOARD (VALUE FLOW)
Value Creation
Score: 5,6
Trend:
Value Creation
Score: 2,8
Trend:
Value Creation
Score: 3,9
Trend:
Value Creation
Score: 4,7
Trend:
The Value of IT framework allows the CIO to understand the strengths
and weaknesses in value creation and flow in the IT organization

12. Time
Value
Value of IT trend
Cooperation
Business IT Cooperation
Value of IT trends (%/year)*
High Performers +23%
Low Performers +/- 0%
AVERAGE +15%
The Value of IT Framework is a unique framework
provided by The Goodwind Company
Value chainSilos
High
Value
Creation
Low
+25%
Business
Growth
Political
Blame
game
Approval rate*
High IT Performers High
Low IT Performers Medium
Business Rep. High
*) Based on Client assignments
WHITE PAPER
VALUE OF IT FRAMEWORK: EFFECTS OF THE VALUE OF IT FRAMEWORK
© Property of The Goodwind Company – All rights reserved

13. © Property of The Goodwind Company – All rights reserved
WHITE PAPER
VALUE OF IT FRAMEWORK: IMPLEMENTATION OPTIONS
Designed Implementation
(analysis, design, and
implementation with client)
8-10 weeks of work
Designed Managed
Service
(Analysis, design,
implementation and running
of framework)
Continuous
Quick implementation
(Implementing standard
framework with clients)
5 weeks of work
Basic Managed Service
(Implementing standard
framework and running
process incl reporting)
Continuous
Full serviceOwn resource
GenericCustomized
There are different implementation approaches depending on
client needs.

14. Initiation Role of IT Validation Implement Report
Understanding
situation:
• Research
(external)
• Studying
strategy
documents
• Brainstorming
and discussions
3 weeks1 weeks
Role of IT:
• Defining IT
Business Value
chain
• Defining purpose
of each role in
Business IT
Value Chain
• In-depth
interviews
Validation:
• Discussing the
Value of IT set-
up with key
stakeholders
from IT and
Business
• Principles
• Workshop
Implementation:
• Designing
process and
templates to
support Value of
IT framework
• Roll-out of
framework
• Interview
structure
Assessment:
• Presentation of
deliveries
• Assessment of
project
• Planning next
step (assistance)
3 weeks 2 weeks 1 weeks
After implementation follows a continues coaching/support
and annual review of Role of IT
WHITE PAPER
VALUE OF IT FRAMEWORK: PROJECT PLAN (CUSTOMIZED OPTION)
© Property of The Goodwind Company – All rights reserved

15. Hans Gillior • 25/02/2013
15
•
WHITE PAPER
VALUE OF IT FRAMEWORK: UNIQUE SELLING POINT
¢ The Value of IT framework is the only framework
in the market that measures the IT Value Creation
(or effectiveness) in the Business IT Value Chain
¢ Proven effect of the Value of IT framework with
increase of 15% value creation per year at flat cost
and risk levels
¢ The CIO can easily understand quickly through
graphical dashboard the effectiveness of the IT
organization and its strength and weaknesses
¢ Improves the culture and collaboration between
business and IT by having the right dialogue, right
actions and learning.
¢ It is possible to measure IT Productivity by
calculating the ratio between Value of IT and IT
cost levels. Excellent complement to cost reduction
programs!
USP
© Property of The Goodwind Company – All rights reserved

16. Hans Gillior • 13/05/2013
16
•
Hans Gillior
Founder & CEO
Email: hans@thegoodwindcompany.se
Telephone: +46 768 643778
Blog: hansgillior.wordpress.com
Web: www.thegoodwindcompany.se
© Property of The Goodwind Company – All rights reserved