Gartner Research

7 Rules for
Demonstrating
the Business
Value of IT

By Robert Naegle, Chris Ganly, Galliopi Demetriou

14 April 2022
7 Rules for Demonstrating the Business Value of IT
Published 14 April 2022 - ID G00766761 - 6 min read
By Analyst(s): Robert Naegle, Chris Ganly, Galliopi Demetriou

Defining, measuring and communicating the business value of IT

is challenging for many CIOs. There are seven rules that all CIOs
should follow as they craft and articulate their business value
stories.

Overview
Key Findings
■ CIOs commonly struggle to tell a value story that resonates with their business
leadership, supports decision making or aligns to their primary objectives or
concerns.

■ A summary of IT operational metrics shared with business leaders does not

communicate the value IT provides.

■ Effective business value of IT (BVIT) communications must articulate IT’s impact on

the outcomes and goals that matter to a specific audience.

Recommendations
CIOs seeking to effectively communicate the business value of IT should:

■ Maximize the impact of business value messaging by leveraging these seven rules
when defining, measuring and communicating the value of IT.

■ Articulate a value story with supporting metrics that resonate with your audience by
adapting the seven rules to your organization’s and leadership’s unique objectives
and priorities.

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Strategic Planning Assumption
Through 2027, CIOs that implement these seven rules will be 75% more successful in
elevating their strategic contribution to their organizations’ missions and increase
approval rates for funding requests by 30% over current levels.

Introduction
Communicating the business value of IT requires a focus on business outcomes
delivered, not IT systems managed or work done. Efforts to tell an IT value story using
measurements of work performed, tasks accomplished or resources deployed will fail to
have the intended effect. CIOs must communicate outcomes delivered to tell a compelling
business value of IT story.

Analysis
Use the following seven rules to more effectively articulate the business value of IT. Adapt
the rules for your organization to make value communications more relevant, clear and
impact focused. Consider these seven rules as a starting point for framing and guiding
your value of IT narratives (see Figure 1).

Figure 1: The 7 Rules of Business Value of IT

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For each of these rules ask:

■ Does this rule apply to our organization?

■ How should we customize this rule for our organization?

■ Can we emphasize this rule in our business value of IT communications? When and
how?

■ What else should we do differently to communicate a more clear and impactful

value message?

For greater insights into each rule, read the related research for more about
implementation opportunities and challenges (see Table 1).
Table 1: The 7 Rules of Business Value of IT
(Enlarged table in Appendix)

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Table 1: The 7 Rules of Business Value of IT
(Enlarged table in Appendix)

Evidence
Conclusions are based on Gartner inquiry data and IT Score data collected over the
trailing 22 months.

Document Revision History

The 9 Rules for Demonstrating the Business Value of IT - 22 May 2020

10 Absolute Truths for Measuring the Business Value of IT - 13 January 2015

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Gartner, Inc. | G00766761 Page 4 of 5

Table 1: The 7 Rules of Business Value of IT

Implication /
Rule Recommendations Related Research
Consideration

1 Value is always determined ■ IT’s stakeholders, not IT, ■ Identify your key ■ Tell an IT Value Story That
by the IT stakeholder or determine what is of value. stakeholders and/or Matters to Business
consumer, not the consumers. Leadership
■ Teaming with the business
provider/producer.
is required to identify what ■ Start with business leaders
is valued. as primary stakeholders. ■ The CIO’s Essential Guide:
■ Without a clear line of sight ■ Capture and validate Digital Product
to the business priorities, stakeholder needs. Management
IT is likely to remain
■ Regularly reassess
focused on the delivery of
stakeholders’ needs. ■ How to Communicate
technologies and
Value in the Languages of
platforms, rather than
IT, Finance and Business
business objectives,
Outcomes
benefits or outcomes.

■ Strategic Benefits
Realization: IT as an
Engine for Coherent
Execution of Strategy

Gartner, Inc. | G00766761 Page 1A of 7A

 Implication /
Rule Recommendations Related Research
Consideration

2 Not all outcomes are equally ■ Impact to mission and/or ■ Team with business ■ 3 Ways CFOs Must Rethink
valued. revenue growth are leaders to identify and Digital Technology
typically considered more rank their business Investments to Meet Board
valuable to the business priorities (for example: Priorities for 2022
than spend avoided and value/revenue increase,
cost reductions. cash savings then
efficiency gains). ■ Strategic Pillar Investment
■ These in turn are Targets (Brocade)
considered more valuable ■ Align IT resources to
(and easier to measure) deliver the prioritized
than efficiencies gained outcomes. ■ A Pragmatic Engagement
through process Approach to Quantify
■ Capture and validate Strategic Business Value
improvements.
quantified benefits with
of IT Contribution
key stakeholders and
leadership.
■ 10 Rules for Rapid IT
Spend Reduction

Gartner, Inc. | G00766761 Page 2A of 7A

 Implication /
Rule Recommendations Related Research
Consideration

3 Build two value narratives: ■ The value of IT Run ■ Measure Change spend ■ Divide Business Value of IT
one of Change and one of (operate) and Change with metrics such as ROI. Conversations Into a Run
Run. (grow/transform) is Story and a Change Story
■ Delivery of returns
perceived differently by
(benefits) should be owned
stakeholders.
by those receiving the ■  How to Structure IT Like a
■ Value measures for Run benefit. Service Provider
and Change should
■ Measure the value of Run
therefore differ.
spend through price for
■ One initiative may cover performance — strive for
impacts to both Run and more performance at a
Change — better price.
communications should
highlight both the
differences and the
interdependencies.

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 Implication /
Rule Recommendations Related Research
Consideration

4 Measure IT’s impact on ■ Measure business ■ Document the ■ Use Digital-Outcome-

stakeholders’ objectives, not outcomes, not IT work. desired/intended business Driven Metrics to Quantify
IT effort expended or outcome, as agreed to with the Business Value of
■ The performance of
resources consumed. your stakeholders. Technology Investments
systems, platforms and
infrastructure are ■ Measure IT’s impact on
elements of IT production mission or contribution to ■ Expert Insight Video:
and do not represent business outcomes. Building Metrics That
quantifiable value to the Influence Business
■ Avoid metrics that
business stakeholder. Decision Making
communicate effort, work
or technical output.

■ Kick-Start Your IT Value

Story With Metrics That
Matter

■ The CIO’s Guide to

Powerful Strategic
Contribution

Gartner, Inc. | G00766761 Page 4A of 7A

 Implication /
Rule Recommendations Related Research
Consideration

5 Align IT costs to the business ■ Stakeholders will better ■ Cost the value delivered at ■ CIOs Must Master Multiple
services they enable. understand IT’s value the business outcome level Views of Spend to Manage
when IT costs are linked to (e.g., cost per seat of an IT Finances
the business services and application or cost per
capabilities IT delivers. transaction of critical
business services). ■ Include Cost and Risk to
■ Costing parts or Complete Business Value
technologies does not ■ Include both cost and of IT Conversations
support a value benefit in all project
conversation. proposals to determine net
value. ■ Define Your Objectives
■ Value conversations must Before Selecting
include both cost and
Chargeback, Showback or
benefit.
Building an ITFM Cost
Model

■ Why, What and How

Organizations Charge
Back IT Cost

■ Simplify and Depoliticize IT

Chargeback Through
Collaborative Governance

Gartner, Inc. | G00766761 Page 5A of 7A

 Implication /
Rule Recommendations Related Research
Consideration

6 IT value must be ■ Use business language, ■ Capture and respond to ■ How to Communicate
communicated in the not technical terminology the stakeholder’s need or Value in the Languages of
language of the stakeholder. and acronyms, when pain in their language. IT, Finance and Business
communicating IT’s value. Outcomes
■ Avoid deep dives into
technology and platform
■ Value communication for capabilities. ■ Value Stories to Tell About
business leaders should be ■ Translate value messaging Your Digital Initiatives
clear, relevant, quickly into actionable insights
understood and designed that support critical
to enable decisions. ■ A CIO’s Guide to Better
business decision making.
Storytelling and
Presentations

■ How to Identify Metrics

and KPIs to Measure IT’s
Business Value
Contribution

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 Implication /
Rule Recommendations Related Research
Consideration

7 Those funding IT (the ■ Finance and business ■ Engage economic buyers ■ Use Digital Value Stories,
economic buyer) must also leaders who fund IT must early in the value definition Not Dull IT Dashboards
understand the value and understand IT’s value and process.
impact of IT to stakeholder impact on business
■ Make spend justification ■ The Gartner Cost Value
objectives. outcomes, even when they
and value definition a Matrix: Optimize IT to Fund
are not the direct
collective effort between IT Digital Business
recipients of the value.
and key stakeholders. Acceleration

■ Case Study: CIO-CFO

Partnership on IT Cost
Optimization (Net4Gas)

Source: Gartner (April 2022)

Gartner, Inc. | G00766761 Page 7A of 7A

Actionable, objective insight
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