Business value

1 of our books defines this term.

A difficult-to-define term that is often used incorrectly in discussions of IT investments. In my earlier book, The Art of Business Value, I discussed how misuse of the term has led to poor IT decision-making and ineffective IT delivery. In theory, when choosing among IT investments, the one that adds the most business value should be preferred. In practice, different investments deliver different types of value which cannot practically be compared. Furthermore, because of uncertainty, business value forecasts verge on the meaningless. There are better ways to make investment decisions.

War and Peace and IT: Glossary, Mark Schwartz

See also Value · alignment gap · Flow Distribution · Flow Framework · flow item · Product Model

Filed under Metrics & Economics

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