How to Measure IT Efficiency?

Technology is defined as a revolution enjoyed by all. Because computers make life easier in many areas as well as easy access to information and ease of communication.

Technology is changing over time. When compared to the past and today, we observe the development in technology both in our daily life and in the business world. Businesses are increasing their IT investments day by day in order not to fall behind in the competition. But do businesses really measure their IT efficiency?

Advantages of Technology in Business

Thanks to technological developments, businesses have more options in terms of effective communication, increased productivity, automating business operations and processes, and saving business costs. Organizations and companies use computers, the latest software and applications, high-speed internet and IoT to transform their business from local to international markets to compete with giant competitors in the industry.

The advantages of technology in business are innumerable, no matter what industry you're in or what type of business you run. Let's list the benefits briefly:

• Increasing productivity and efficiency
• Effective communication
• Automated business processes with the help of software and applications
• Decreasing operating costs
• Increasing business mobility
• Meeting customer need
• Improving work-life balance

Let's answer the question"What is IT efficiency?".

What is IT Efficiency?

When technology is used correctly, it is a blessing for companies. It has benefits in many areas from increasing work efficiency to automation, reducing costs and branding. However, even if it is unintentionally used incorrectly, it can negatively affect performance. Companies can implement some strategies for technology to positively affect business efficiencies.

In this direction, IT efficiency can be evaluated as the compatibility of an enterprise's technology structure with its business goals and business needs. The main reason why most businesses fail digital transformation is that they think a high IT budget will always be successful. Of course, high budget does not always bring high IT efficiency. For this reason, businesses have to measure their IT efficiency.

Measuring IT Efficiency and Performance

Businesses must devote as much effort to analyzing current IT performance and efficiency as they are to creating their IT strategies. In this direction, we come across the importance of Enterprise Architecture, IT Service Management and IT Asset Management.

Here are ways to measure your IT efficiency:

Build Your IT Inventory

In order for a business to evaluate IT performance and competence, it must first know what it has. An IT inventory includes a list of all IT assets the business owns and important information about those assets. With this technology inventory list, businesses can easily access critical information about a software, hardware or integration.

An IT portfolio may include the following information:

• Name
• Function
• Using Team/Person
• Purchase Date
• Person in charge
• Purchased Company
• Cost
• Maintenance, Warranty and License Renewal Type

Evaluate your IT Portfolio

You will now have more information about your IT inventory at this stage. So, you can easily access critical data that can evaluate each IT asset. Many businesses continue to pay license fees for software they have purchased in the past but do not currently use. Or they make duplicate IT purchases. The biggest reason of these is that they do not have a portfolio.

• Is there another asset with the same or same functions?
• Is the asset actively used?
• Do the functions provided by the asset match the needs of your business?
• Have the equivalent assets of the asset been examined?
• What is the IT value of the asset?

Get Rid of or Replace Your Unnecessary and IT Undervalued Assets

After the analysis and evaluation process is completed, you need to take actions to reduce your costs. In this process, you should get rid of your assets that are a big burden for your IT budget but have a low IT value. You can also search for alternatives to the software in your existing IT inventory and replace the old ones with more budget-friendly solutions.

What is IT Visibility?

End-to-End IT Management Software

Loggle offers IT asset management software that enables businesses to monitor, manage and evaluate their IT structure end-to-end. By making the IT structure more visible, Loggle helps businesses reduce their IT costs. Find out how Loggle can lower your IT costs with a 15-minute demo call!

Top 5 Advantages of IT Asset Management Software