The IT functions in all large organisations are under pressure to demonstrate significant cost reductions, gain measured improvements in service delivery and process efficiencies.  Moreover, they are required to prove the value of IT to the business.  Benchmarking against other successful organisations and comparing best practice can be a major factor satisfying these demands.  

Conventional benchmarking is an expensive, resource hungry and inevitably ‘one-off’ process.  Expensive consultants have to be supplemented by scarce in-house resource.  This makes it difficult to justify unless guaranteed improvements and cost savings can be gained from the process.   Typically, benchmarking often fails to offer explanations for poor performance.  The opportunity to debate relevant best practice actions, and innovation, with other organisations, is simply not available.    This is because it focuses on consultant-driven processes rather than comparison of cost and performance measurements as part of good IT management.  CPI addresses all of these issues by making benchmarking user-driven, affordable and results orientated.

What is CPI Benchmarking?

CPI is an intensely practical, results oriented and solution-led process.   Compare costs on: 

• Server Infrastructure by platform
• Data and Voice Network services including WAN, LAN, RAS,
• Internet, & Security
• Desktop services Help & Service Desks
• Business Application development & support
• Staff by ITIL role

Then use key comparative performance measures and customer satisfaction ratings to identify where costs and service delivery can be improved.  

The real value for CPI subscribers is delivered through participation in facilitated workshops and brokered one-to-one discussions.  By enabling collaborative interaction with organisations that have implemented best practice in key areas of under-performance, subscribers can dramatically reduce time to implementation. By using a common set of metrics, including normalisation metrics, CPI ensures that all participants are able to compare costs and performance on a like for like basis.  CPI allows rapid development and implementation of actions that lead to improved performance. The aim is to learn from other benchmark organisations and to adopt and adapt elements of their best practice as are relevant to your business, culture and structure. 

International - CPI offers great flexibility to organisations operating across international boundaries by offering automatic currency conversion.   

Multiple IT organisations - It can also be applied to groups of companies to provide an internal benchmark or outside comparison.  The Results Model also allows analysis against a wide range of differentiators such as across business sectors or size of organisation. 

With CPI:

• Compare key performance metrics against those of similar organisations.
• Evaluate the service delivered against IT costs.
• Assess the trade-offs between IT resources and the service value to the business.
• Make decisions based on actual, real-world data from comparable organisations.

Why use CPI Benchmarking?

• Identify areas for cost reduction.
• Understand what your KPIs should be.
• Measure and improve IT performance.
• Highlight areas of weakness and learn how to improve them.
• Demonstrate costs to senior management.
• Reinforce or inform future strategy.
• Identify opportunities for innovation.
• Benchmark suppliers' performance.
• Substantiate supplier negotiations from real-world data.
• CIOs use it as a governance tool.
• Managers use it as a communication tool.

CPI for Outsourced Services (CPI OS)  

Where organisations wish to benchmark specific outsourced services, as distinct from the organisations’ IT service as a whole, a specialised, separate, CPI benchmarking service for Outsourced Services (CPI OS) has been designed to meet these needs precisely. 

Whereas the CPI process incorporates a number of high level metrics for outsourced services, CPI OS should be considered if benchmarking an outsourced, or managed service, is the priority. Every outsourcing contract and IT environment is unique, but there are key common factors that can be used to provide a common contract “scope” profile to enable valid performance and value comparisons to be made. CPI OS provides an easy way to measure one managed or outsourced service in comparison to another.  Benchmarking options may be built into outsourced contracts but these typically occur infrequently, with a high cost, and usually in conjunction with contract reviews.  

CPI OS allows organisations to continuously monitor comparative financial, performance and quality indicators as part of good contract and service management in a way that can be readily communicated to all stakeholders. CPI OS covers services delivered in these areas: 

Desktops Service and Help Desk

Data and Voice Networks

Server Infrastructure

CPI OS will help to ensure an effective relationship between outsourcer and supplier, while measuring the quality of service delivery throughout the entire outsourcing lifecycle. At the beginning of the process CPI provides onsite support workshops to guide personnel in understanding terminology, definitions, and requirements.  Telephone support is available throughout the subscription period.