Gartner Business Value Model

Gartner Business Value Model

The Gartner Business Value Model is a framework for measuring the business performance of IT investments. It is based on four key components:

1. Value proposition: This is the statement of value that the IT investment is expected to deliver to the business. It should be clear, concise, and measurable.

2. Customer impact: This is the impact that the IT investment will have on the business's customers. It should be described in terms of customer satisfaction, loyalty, and advocacy.

3. Business benefit: This is the financial impact that the IT investment will have on the business. It should be described in terms of increased revenue, reduced costs, or improved operational efficiency.

4. Risk and uncertainty: This is the level of risk and uncertainty associated with the IT investment. It should be assessed in terms of technical risk, business risk, and implementation risk.

Example Business Case

Here is an example of a business case using the Gartner Business Value Model:

Value proposition:

The new customer relationship management (CRM) system will improve customer satisfaction by 10% by providing customer service representatives with a single view of each customer's account history and interactions.

Customer impact:

Customer satisfaction will improve because customer service representatives will be able to resolve customer issues more quickly and efficiently. This will lead to increased customer loyalty and advocacy.

Business benefit:

Increased customer satisfaction is expected to lead to a 5% increase in revenue. This is because satisfied customers are more likely to do repeat business and refer the company to their friends and colleagues.

Risk and uncertainty:

The technical risk of the CRM project is low, as the system is a proven product from a well-established vendor. The business risk is also low, as the company has a clear understanding of the benefits of the CRM system. The implementation risk is moderate, as the CRM system will need to be integrated with the company's existing IT systems.

Conclusion

The new CRM system is a low-risk, high-reward investment. It is expected to improve customer satisfaction, loyalty, and advocacy, which will lead to increased revenue.

Applying the Gartner Business Model Framework to Your Business Case

To apply the Gartner Business Model Framework to your business case, you should:

1. Clearly define the value proposition of your IT investment. What are the business benefits that it is expected to deliver?

2. Describe the impact that your IT investment will have on your customers. How will it improve their satisfaction, loyalty, and advocacy?

3. Quantify the financial impact that your IT investment is expected to have on the business. What is the potential increase in revenue, reduction in costs, or improvement in operational efficiency?

4. Assess the level of risk and uncertainty associated with your IT investment. What are the technical, business, and implementation risks?

Once you have completed these steps, you will have a comprehensive business case that you can use to convince senior leadership to approve your IT investment.

Sash Barige

Oct/20/2019