3. Performance Management
Enterprises that effectively monitor the activities of IT would ensure the activities are in line with the business goals that are set by using KPI or key measurement metrics. Performance metrics are used as a tool to evaluate the effectiveness and efficiency of business processes against the business goal. Besides, the performance metrics also help businesses to allocate and manage resources. The results shown from the performance metrics will also influence the leaders’ decisions that are related to the activities such as budgeting, priorities, and resources.
KPI and metrics are crucial tools for management to have a complete overview of the whole business performance and this is usually involving a huge investment in IT. Due to that, business owners usually will confirm that the IT investment is strategically aligned with the business goals and they are managed effectively to help the achievement of the common business goals. This includes ensuring the stakeholders expectations are met, and management uses IT governance process that is defined by global standards. The popular best practice framework includes ISO 38500 and COBIT.