Business value. It’s something that every single organization seeks, yet so few truly understand how to achieve it. Why? Because it’s a complex and ever-changing concept that means different things to different people. But there are some tried and true methods for demonstrating the business value of IT, and these seven rules are a great place to start.

In today’s highly competitive business landscape, businesses of all sizes must demonstrate their value proposition. But what if your business is technology? How can you prove your business value when you’re not a traditional company like Microsoft, Dell, or HP? A successful technology company must demonstrate its business value to investors, customers, and the media. I’ll share some simple ways to prove the business value of your technology company.

The first rule is that the business must understand and agree to the business case for IT. The second is that the IT organization must be committed to the business’s success. The third is that IT must demonstrate that it has delivered value in terms of cost savings and increased productivity. The fourth rule is that IT must provide the data on which those claims are based. The fifth rule is that the IT organization must be able to explain what IT has done.

Business Value

The different types of business value

You can start by looking at your product and how it relates to the market. For example, if you sell enterprise software, you must look at the market you’re competing against. What are the most common features and capabilities? What does the competition offer? What is your unique selling proposition (USP)? If you’re a service-based company, consider your target market. Why do they buy from you instead of the competition? What are your unique selling propositions (USPs)?

When to measure the business value of IT

Businesses are not typically good at measuring their business value. They may be able to measure things like sales, but the business value of IT can be a bit more difficult to pin down. For example, how much money does your IT department save the company? How much time do you spend on tasks that could be automated? Are you doing more work for less money? These questions are a good start, but they are just the beginning. It would help if you dug deeper. It would help if you found out what IT does for the company.

What is the business impact of IT?

A business value statement is a one-page document that describes the business impact of IT. It describes the measurable effects of the IT department. The paper says, “we did X, Y, and Z for our company, and we saved $Z million.” A business value statement shows the potential for your business to grow. It gives your company an edge over competitors and allows you to position yourself as the most effective technology company.

How to effectively demonstrate the business value of IT

When you’re talking about the business value of technology, it’s easy to think about how much money a company makes. However, that’s not always the best way to prove the business value of a technology company. Instead, establish your business value by demonstrating the business impact of technology. One of the easiest ways to do this is by looking at customer retention rates. Companies that retain their customers longer are more valuable than those that don’t.

Another way to demonstrate the business value of technology is to look at revenue growth. If you can generate higher revenue growth, you’re proving that you’re more valuable than your competitors. Another way to show the business value of technology is to measure the rate at which new employees are hired. Higher employee retention rates mean that your technology is more valuable than your competitors.

The benefits of demonstrating the business value of IT

You can’t rely on traditional advertising to generate leads and sales if you’re a technology startup. You must build an online reputation, create a digital brand, and communicate your value. Technology startups often lack credibility and visibility. They’re seen as a risky venture by most investors and consumers, and there’s a perception that you’re either a scam or a flash-in-the-pan. That’s why you need to demonstrate the business value of your technology company. If you do this effectively, you’ll quickly attract interest from investors and customers. You’ll also create a strong digital brand that can compete against traditional brands. And if you’re a tech startup, your business value is your competitive advantage.

The challenges of demonstrating the business value of IT

Technology companies face unique challenges in establishing the business value of their products and services. For example, the average tech company has a much smaller customer base than a traditional company. It’s often challenging to quantify the ROI of a technology product because many businesses have no IT department.

Frequently Asked Questions Business Value

Q: What’s the biggest misconception about demonstrating the business value of IT?

A: There are so many different ways to show it. For example, when you go to the doctor or dentist, the most important thing is how your teeth look. If you have bad teeth, your whole appearance is affected, so you can demonstrate the business value of IT by helping others in terms of appearance.

Q: What’s the best thing about demonstrating the business value of IT?

A: The best thing about demonstrating the business value of IT is that you can see the difference it makes. The difference is huge if you have been using an old Windows OS and now switched to a new one. You’ll be able to clearly show that your company was able to make a dramatic change with a new OS.

Top 5 Myths About Business Value

1. People need to understand IT and business.

2. IT needs to understand business.

3. IT and business need to be aligned.

4. IT needs to demonstrate business value.

5. The business case should be done at the beginning of a project.


It’s been said many times before, but it still repeats: “People don’t care how much you know until they know how much you care.” I want to take this opportunity to show you how much I care about you. If you take the time to read this, I’d be honored. The only way to demonstrate the business value of information technology (IT) is to explain the cost savings associated with using that technology.