Business Perspective: Value Realization - An Overview of the AWS Cloud Adoption Framework - Version 2

Business Perspective: Value Realization

The Business Perspective is focused on ensuring that IT is aligned with business needs and that IT investments can be traced to demonstrable business results.

Engage stakeholders within the Business Perspective to create a strong business case for cloud adoption, prioritize cloud adoption initiatives, and ensure that there is a strong alignment between your organization’s business strategies and goals and IT strategies and goals. Figure 2 illustrates Capabilities for the AWS CAF Business Perspective.

AWS CAF Business Perspective Capabilities

Figure 2: AWS CAF Business Perspective Capabilities

AWS CAF Business Perspective Capability Descriptions

IT Finance –Addresses your organization’s capability to plan, allocate, and manage the budget for IT expenses given changes introduced with the cloud services consumption model.

A common budgeting change involves moving from capital asset expenditures and maintenance to consumption-based pricing. The move requires new skills to capture information and new processes to allocate cloud asset costs that accommodate consumption-based pricing models. You want to ensure that your organization maximizes the value of its cloud investments. Charge-back models are another common change with cloud adoption. Cloud services provide options to create very granular charge-back models. You will be able to track consumption with new details, which creates new opportunities to associate costs with results.

IT Strategy – Focuses on your organization’s capability to leverage IT as a business enabler. For many organizations that have not yet migrated to the cloud, IT has devolved into simply ensuring that collaboration applications and line-of-business applications stay healthy and operational.

Cloud services provide efficiencies that reduce the need to maintain applications, enabling IT to focus on business alignment. This alignment requires new skills and both new and selectively modified processes between IT and other business and operational areas. IT teams may need new skills to gather business requirements and new processes to solve business challenges.

Benefits Realization –Encompasses your organization’s capability to measure the benefits received from their IT investments. For many organizations, this represents Total Cost of Ownership (TCO) or Return on Investment (ROI) calculations coupled with budget management.

Quantifying and evaluating TCO and ROI changes with cloud services. Cloud services offer new ways to directly link consumption with specific business processes. Measuring the value of technology investments becomes more meaningful when these investments can be directly linked to usage and business outcomes.

Business Risk Management – Focuses on your organization’s capability to understand the business impact of preventable, strategic, and external risks to the organization. For many, these risks stem from the impact of financial and technology constraints on agility.

Organizations find that with a move to the cloud, many of these constraints are reduced or eliminated. Taking full advantage of this newfound agility requires teams to develop new skills to understand the competitive marketplace and potential disrupters, and to explore new processes for evaluating the business risks of such competitors.