Percentage of IT operating costs, excluding depreciation/amortization, dedicated to develop and manage IT customer relationships

This measure calculates the percentage of IT operating costs, including depreciation/amortization, allocated to the process group "develop and manage IT customer relationships," which manages the communications and interactions between the customers of IT and the providers of IT services and solutions; helps the customer to develop justifications for requested IT services and solutions; and monitors customers' satisfaction with the development, deployment, and ongoing support of IT services and solutions. In this measure, operating expense includes internal personnel cost, external personnel cost, hardware cost for both owned and leased hardware excluding hardware dedicated to data and voice networks, software cost to include both purchased software and software as a service, data and voice network costs as well as equipment dedicated to data networks and allocations to IT for shared sites and services (e.g., and allocation for corporate facilities and general overhead). It is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "develop and manage IT customer relationships" process.

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Measure Category:
Supplemental Information
Measure Id:
106448
Total Sample Size:
554 All Companies
Performers:
25th
– Median
– 75th
–
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Percentage allocation of IT operating costs, excluding depreciation/amortization, to developing and managing IT customer relationships

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (7.3.0)

  • 8.1.1 - Understand IT customer needs (20609) - Assessing the customer communities along with current IT operational capabilities and usage.
    • 8.1.1.1 - Understand IT customer communities (20610) - Interacting with IT customers to understand the IT needs through a collaborative community through involvement, connection, and informed communication.
    • 8.1.1.2 - Assess IT customer operational capabilities (20611) - Evaluate the ability of the group of staff dependent on information technology, to align resources and critical processes according to organizational vision being able to deliver effectively and efficiently.
  • 8.1.2 - Identify IT customer transformation needs (20612) - Identifying changing needs of staff dependent on information technology based on continuous improvement to deliver results according to organizational goals.
    • 8.1.2.1 - Understand business requirements for IT capabilities (20613) - Understanding business requirements for the existing IT environment as well as future IT needs.
    • 8.1.2.2 - Understand IT landscape (20614) - Understanding the complete logical structure and working of the organization's IT landscape. Assess the configuration of hardware and software (IT Assets) across the organization that supports overall business operations.
    • 8.1.2.3 - Develop IT visioning (20615) - Developing goals to define IT vision. Define and document ideas, direction, and activities which enable information technology to reach these goals.
    • 8.1.2.4 - Outline IT service expectations (20616) - Defining a roadmap to meet organizational expectations from information technology services while considering how it will affect the business.
  • 8.1.3 - Plan and communicate IT services (20617) - Create and design an organized and curated collection of all IT-related services that can be performed by, for, or within the organization. Maintain and convey information about deliverables, prices, contact points, and processes for requesting an information technology service.
    • 8.1.3.1 - Manage IT customer expectations (20618) - Managing customer expectations of the existing IT environment while considering how it will affect the business.
    • 8.1.3.2 - Define future IT services (20619) - Defining the expected demand and usage of information technology services to meet organization's future business goals. Gather necessary information about the processes, resource requirements, and structures pertaining to planned business growth.
    • 8.1.3.3 - Determine IT performance indicators (20620) - Determining IT KPIs crucial to the organization's success. Measure indicators such as IT costs as percentage of revenue, IT maintenance ratio, and system downtime in an effort to evaluate the performance of IT across the organization.
    • 8.1.3.4 - Create IT marketing messages (20621) - Developing concise statements that position the value proposition around the pressing concerns of the internal IT user base, thereby showing how the IT offerings are the right fit for a segment of IT customers.
    • 8.1.3.5 - Create IT service marketing plan (20622) - Creating a marketing strategy for IT offerings to customers. Plan processes for making budgets; identifying and developing media; and managing marketing content and promotional activities.
  • 8.1.4 - Provide IT transformation guidance (20623) - Understanding the necessity of IT transformation for the business. Collect and analyze customer requirements. Identify opportunities and prioritize outcomes. Develop and support business case for transformation. Develop transformation plan and roadmap.
    • 8.1.4.1 - Develop IT transformation plans (20624) - Developing a robust plan to replace or upgrade an organization's information technology systems. Understanding the business need of IT transformation from current to an expected state for the business. Developing a strategic plan for IT operating model, governance, service delivery, and workforce transformation.
    • 8.1.4.2 - Collect IT customer requirements (20625) - Identifying existing or potential IT gaps between the expected business performance levels and current business outcomes.
    • 8.1.4.3 - Analyze IT customer requirements (20937) - Assessing identified IT gaps to plan for remediation efforts to allow outcomes to meet established performance levels.
    • 8.1.4.4 - Identify and prioritize IT opportunities (20626) - Identifying IT opportunities on the basis of collection and analysis of IT customer requirements, then prioritize the identified IT opportunities on the basis of their importance.
    • 8.1.4.5 - Facilitate solution design activities (20627) - Providing a plan of action to provide solution to IT customers. The solution design should be based on the collection and analysis of IT customer requirements.
    • 8.1.4.6 - Prioritize IT outcomes (20628) - Prioritizing IT outcomes based on need, effectiveness, and efficiency.
    • 8.1.4.7 - Develop business cases (20629) - Create a business case with value proposition indicating current situation, proposed solution, financial analysis, and measurable benefits to the IT customers.
    • 8.1.4.8 - Support business case (20630) - Supporting business case with supporting research, business analysis, and background information on IT transformation.
    • 8.1.4.9 - Develop transformation roadmap (20631) - Creating a blueprint for execution of IT transformation from the existing state to the planned organizational structure based on the value proposition and projected business growth.
  • 8.1.5 - Develop and manage IT service levels (20632) - Establishing and maintaining service levels for the provision of IT services and solutions. Design and maintain the IT services and solution catalogue, as well as service level agreements. Evaluate the performance of IT service level agreements. Communicate the results to the management.
    • 8.1.5.1 - Understand IT service requirements (20633) - Understand requirements related to information technology services considering enterprise-level effects and understand potential achievements in the business environment.
    • 8.1.5.2 - Forecast IT service demand (20634) - Forecasting demand for IT services using current business growth, research, and customer feedback. Refine these forecasts, inspect the approach used in creating forecasts, and determine its accuracy.
    • 8.1.5.3 - Maintain IT services catalog (20635) - Maintain information about IT deliverables, prices, contact points, and processes for requesting a service.
    • 8.1.5.4 - Define service level agreement (20636) - Designing and maintaining commitment of service by performance evaluation of IT services and communicate the results to the management.
    • 8.1.5.5 - Maintain IT customer contracts (20637) - Maintaining and documenting commitment of service to staff for information technology contracts including providing software or hardware solution through communication channels like phone, email, and on-site services.
    • 8.1.5.6 - Negotiate and establish service level agreements (20638) - Establish a service level agreement, which is a negotiated agreement designed to create a common understanding about services, priorities, and responsibilities.
    • 8.1.5.7 - Develop and maintain improvement processes (20640) - Conveying the improvement opportunities for the business and level of IT services. Leverage the results obtained from the performance metrics of the business and IT service levels to identify and recognize any opportunities that would improve or enhance the efficiency of the business and IT service-level structure. Communicate these opportunities to management in order for the improvements to take effect.
  • 8.1.6 - Manage IT customer relationships (20641) - Managing the IT relationship with its customers by systematically coordinating interactions over multiple touch points on a regular basis. Coordinate the IT's efforts to reach out to its customers, which include emails, social-media interactions, newsletters, and direct conversations.
    • 8.1.6.1 - Establish relationship management mechanisms (20642) - Create mechanisms for effective public relationship in order to preserve the image and goodwill of the organization through the process.
    • 8.1.6.2 - Understand IT customer strategy (20643) - Understanding the strategy for staff dependent on information technology. Create a plan to create services and solutions, conduct daily operations, and train new employees.
    • 8.1.6.3 - Understand IT customer environment (20644) - Understanding the environment of staff dependent on information technology. Assess and evaluate services and solutions used by customers to conduct daily operations, and train new employees.
    • 8.1.6.4 - Communicate IT capabilities (20645) - Conveying the goals and objectives of the IT function and how it contributes to the overall business objectives to staff and departments across the organization.
    • 8.1.6.5 - Manage IT requirements (20646) - Managing the IT requirements for business objectives. Identify the requirements of hardware and software equipment to store, retrieve, transmit, and manipulate data related to business operations. Consider factors such as functional, design, growth phases, and delivery schedule while managing IT requirements.
  • 8.1.7 - Analyze service performance (20648) - Proactively manage IT service levels against IT customer requirements.
    • 8.1.7.1 - Assess SLA compliance (20649) - Gather data from each service target defined in an SLA for a time segment or review period to evaluate an overall performance percentage.
    • 8.1.7.2 - Triage SLA compliance issues (20650) - Prioritizing SLA compliance issues and plan for remediation.
    • 8.1.7.3 - Collect feedback about IT products and services (20647) - Collecting customer feedback about IT products and services effectiveness based on overall satisfaction. The data is collected through surveys, customer responses, and feedbacks based on the delivered products/services.
    • 8.1.7.4 - Synthesize and distribute IT performance information (20938) - Providing stakeholders with collected IT performance measures for further development based on evaluation.