What aspect of IT governance helps in measuring the value of IT investments?

Performance metrics and KPIs (Key Performance Indicators) are essential for measuring the value of IT investments because they provide quantitative and qualitative assessments of how well IT initiatives align with organizational goals. These metrics help organizations track progress, evaluate effectiveness, and gauge the return on investment (ROI) of their IT expenditures. By establishing clear performance indicators, organizations can analyze how IT projects contribute to overall business objectives, identify areas for improvement, and ensure resources are allocated efficiently.

Moreover, KPIs allow for benchmarking against industry standards or past performance, offering insights that help organizations make informed decisions regarding future IT investments. By focusing on metrics that reflect both operational and strategic performance, organizations can justify their IT budgets and demonstrate the value IT brings to their business operations. This creates a framework for continuous improvement and accountability within the IT governance process, making it an integral aspect of maximizing the value derived from technology investments.