Third (Key): it is up to the management to decide if they want to take action on this indicator or not.
KPI recommendation: don’t pile up on KPI to generate a nice dashboard, if no one willing to take action on a KPI then this is an unneeded effort that can be directed elsewhere.
Value Chain Analysis
The term value chain used in business for years; there are three major blocks in any value chain:
The service provider.
The final customer.
Figure 7 Value Chains
There are some areas in every block, it is quite tricky to calculate the added value to each action taken in a service, but in today’s world it must be done, sometimes one weak area will naturalize the strength of another area, even when analyzing some complementary functions, that might not create a value-add itself. However, it impacts other areas positively, think of air-conditioning /heating does not create value for the business, but think if it does not exist? The productivity will drop significantly.
When considering the value chain, consider the entire system, not the individual activities. Not a long ago, the only customer to the IT services was the internal business users, but now the users are much more than that, think ATM, web stores, the point of sales... Such change indicates an increasing level of sophistication in the value, and more expectations as well. most business now is expected to have some online front that’s reachable from anywhere. This means potential company customers and future revenue are now dependent on the IT systems.