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Fujitsu Australia Study Highlights Lack of Transparency in IT Service Management

  • 30 November, 2007 09:36

<p>IT Departments Struggle to Measure Value and Communicate ROI</p>
<p>Australian companies still struggle to demonstrate the true value or effectiveness of their IT investment, according to new research from Fujitsu Australia and New Zealand – IT Service Value: There is No Silver Bullet.</p>
<p>The study debunks the idea that frameworks like ITIL are a “silver bullet” for service delivery, confirming that technology and process are only part of a successful IT service management (ITSM) transformation.</p>
<p>Fujitsu canvassed the views of over 200 delegates at the 2007 itSMF Australian National Conference, discovering that nearly 89 per cent of respondents find it difficult to report on the value IT delivers in a way that is meaningful to management and users.</p>
<p>“At a time when business is increasingly demanding greater structure, transparency and accountability around IT, CIOs and other IT executives are telling us they struggle to measure the effectiveness of their services or the value they deliver to the organisation,” said Trent Gale, Principal Consultant, Fujitsu Australia.</p>
<p>Culture and Management Key to ITSM Success
Rather than seeing frameworks like ITIL as a sure-fire method for effective service delivery, the research found that companies must also address issues such as organisational structure, staff attitudes and resourcing issues to ensure a successful outcome.</p>
<p>Cultural change was identified as the biggest challenge organisations face in implementing ITSM at just over 30 per cent, closely followed by management support/commitment (29.5 per cent) and then resourcing issues (14 per cent).</p>
<p>“For companies to truly capitalise on the potential benefits of IT, they must move beyond frameworks like ITIL to develop a values-driven mindset that identifies specific organisational drivers and establishes structures to support the organisation in achieving its strategic outcomes. This will require support and commitment from the highest levels of the business as well as changes in staff attitudes, behaviours and communication strategies,” said Mr Gale.</p>
<p>IT Fails to Measure or Articulate Value
Fujitsu believes that part of the problem is the lack of measurement undertaken by most organisations. According to the study, only 26 per cent have established service level agreements (SLAs) or key performance indicators (KPIs) with their customers, while 30 per cent have no or only informal ways of measuring performance.</p>
<p>“This research makes it clear that CIOs do not have the information they need to demonstrate the value they deliver, or even to engage with senior management on how IT is performing for the organisation. Until this changes, executives will continue to question IT’s ability to be an effective service provider.”</p>
<p>Additionally, 35 per cent of respondents have no methods or only informal ways of identifying whether an IT project has been successful and only 10 per cent actually report on the benefits expected and delivered from their projects.</p>
<p>“With so few companies measuring project success or ROI, it’s little wonder that the business world is sceptical about the value that IT creates and the return on its IT investment,” Mr Gale said. “One has to ask why businesses are investing significant amounts of money in projects that have no outlined value proposition or demonstrated clear alignment with business goals.”</p>
<p>This lack of accountability is further highlighted by the fact that only just over 3 per cent of companies have a formal portfolio or value management method for selecting IT projects. Three per cent identified value as a key driver for implementing ITSM.</p>
<p>Need for Greater Alignment with Business Goals
Almost 45 per cent of organisations admitted they lack a specific framework for aligning their IT investments with business strategy, while a further 34 per cent were unable to answer the question.</p>
<p>“At Fujitsu, we know that it can be hard to demonstrate that IT functions are aligned with business goals without continually reinforcing the value that IT provides to the business. Whatever an organisation hopes to achieve by implementing ITSM, there must be a clear and common understanding of the specific benefits and business value this approach will deliver.”</p>
<p>Fujitsu suggests organisations must focus on two key areas to improve the outcomes being delivered by IT:
• Establish effective operational IT services to support the business in achieving its objectives; and
• Redefine IT projects so that they deliver real business value through a mindset shift:
o From IT projects to programs of business change
o From IT governance to business governance of IT.</p>
<p>“Improving the effectiveness of IT will require a transformational approach to changes in the IT area to establish IT service management capability that delivers operational services that are robust, reliable and repeatable,” said Mr Gale.</p>
<p>“Not only that, but organisations must become more value driven, owning improvements in their IT capabilities as part of larger, organisational initiatives that have the support and commitment both of senior executives and of users across the board.”</p>
Notes to Editors</p>
<p>The Survey
IT Service Value: There is No Silver Bullet was conducted in conjunction with itSMF, Australia’s national IT Service Management Forum. Fujitsu canvassed the views of over 200 delegates at the 2007 itSMF Australian National Conference to understand how ITSM frameworks have been successfully applied within their respective organisations. The survey further questioned respondents on how well they believe their IT departments are demonstrating value to their organisations. The respondents included IT CXOs, IT Managers and IT accountability (process) leads.</p>
<p>Fujitsu Australia Limited
Fujitsu is a full service provider of information technology and communications solutions. Throughout Australia and New Zealand we partner with our customers to consult, design, build, operate and support business solutions. From strategic consulting to application and infrastructure solutions and services, Fujitsu has earned a reputation as the single supplier of choice for leading corporate and government organisations. Fujitsu Australia Limited is a wholly owned subsidiary of Fujitsu Limited of Japan.</p>
<p>Visit for further information</p>
<p>About Fujitsu Limited
Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.1 trillion yen (US$43.2 billion) for the fiscal year ended March 31, 2007. See for further information.</p>
<p>For further media release information or a copy of the report, please contact:</p>
<p>Trent Gale
Fujitsu Australia
02 6221 6500</p>
<p>Shuna Boyd
02 9418 8100</p>

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