Think about an Information Output in your organisation. It might be a Report, a Purchase Order, an Invoice. How much does it cost to produce that Information Output? Few organisations will be able to answer that question today. With LINQ's new Cost Allocation capability, you will be able to.
Why does the ability to measure the cost of an Information Output matter? Several reasons:
- If you don't know how much something costs, how do you know whether it's worth doing?
- If you have a really valuable Information Output that's critical to the business, how do you know whether to increase costs in order to improve outcomes?
- How do you know the impact of change on Information production costs?
- How can you compare costs of doing business with peers and competitors?
Cost Allocation will create a performance baseline to measure improvement against. This baseline can then support a number of approaches to change:
- Continuous Improvement: measuring the improving productivity of Information Outputs by monitoring cost / value changes
- Digital Transformation: measuring the elimination of Information Waste in Information Outputs to define a roadmap towards Digital Transformation
- Infonomics: measuring the improving performance of Information assets over time
LINQ's Cost Allocation approach is described here.