KuppingerCole BII: The Business Impact Indicator

The KuppingerCole BII is a Business Impact Indicator for Information Technology. It shows the business value a particular technology or initiative can deliver, in a single and clearly laid out graphic.

The KuppingerCole BII has two axis showing four dimensions. The horizontal axis illustrates the impact on Business Alignment and Business Enablement.

Business Alignment is defined as the positive impact on the current business of an organization.

Business Enablement is defined as the ability to catalyze new business models and opportunities for an organization that were not realizable without that technology (or only with disproportionate efforts).

The vertical axis adds our rating for two additional, important factors, Cost and Compliance.

Cost Savings shows the potential for saving expense, compared to the alternatives such as manual fulfillment.

Compliance Fulfillment illustrates the positive impact a technology can have on fulfilling the compliance requirements.

The KuppingerCole BII model complements other KuppingerCole research methodology such as the KuppingerCole CIO GPS that shows which technologies are best for achieving the targets in IT Spend Optimization, Business/IT Alignment, and Strategic Procurement.

The two graphics above illustrate the extremes in the KuppingerCole BII. On the left hand, there is the theoretical ideal, an information technology that perfectly supports all four dimensions. We have not seen such technology as of now. On the right hand, there is the “worst case scenario”, a technology that does not deliver to any of these dimensions. That, for instance, would apply to information technology that has no positive impact on the business, such as computer games for an average organization.

An example for a typical rating of a technology is shown for Access Governance/Intelligence. That technology delivers very well in the Compliance dimension. It might provide some Cost Savings, compared to the manual efforts of fulfilling audit requirements. However, there is still a significant investment behind it, thus it is not outstanding in that dimension. It has some potential for helping in Business Alignment, by being the business interface to Access Management. It allows end users to request and manage access directly, improving speed and reducing friction between Business and IT. It delivers only a little to Business Enablement. Access Governance helps in the “Extended Enterprise” and setting up new, secure business processes by supporting control about access to existing systems and information, but this is only a side condition to other Information Technology really enabling new business.

As of now, we have defined the KuppingerCole BII for the following areas:

Other KuppingerCole BII will be added over time.

For further information about the KuppingerCole BII and additional KuppingerCole Advisory Services based on the KuppingerCole BII and other KuppingerCole research methodologies, please contact clients@kuppingercole.com.

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