Transcript: 

A lot of organizations these days seem to be very interested in value, especially value as it's related to technology and customer outcomes. There's a growing emphasis on the value delivered to customers.

Much of this interest stems from a shift in how technology is funded. In the 20th century, under older ways of working, technology was often funded as a business initiative, then handed off to the technology team as if in a vendor relationship. The business would expect the tech team to deliver exactly what was requested — but that model has proven ineffective.

In today’s modern ways of working, what the business originally asked for is often outdated by the time it’s delivered. So we now need technology teams to be more responsive to the evolving needs of the business and the value being delivered to customers.

We want the technology function to be aligned with the business’s success metrics — the very ones the business has always been accountable for. For example, in financial services, these might include total accounts or assets under management. In consumer goods, inventory turns might be the key metric.

Technology should contribute to and be measured by these same business metrics. The assumption is that the business understands the value it delivers to customers — after all, that's why it exists. Aligning technology with those same metrics ensures both functions work toward delivering real customer value.

    
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