TowerGroup has launched a new analytical tool-the TowerGroup Technology Index (TTI)-it said is designed to help financial services executives assess the effectiveness of technology investments and infrastructure.
In development for more than a year, the Technology Index is a quantitative and qualitative tool that identifies both the detrimental "gaps" between overarching business objectives and technology investments-and the actions needed to bring them into alignment, the firm said.
"In working with major financial institutions, we too often find that technology investments don't accurately reflect the larger objectives of the organization," said John Stone, managing partner of TowerGroup's Consulting/Advisory practice. Regardless of the specific scenario, added Stone, "the wider the gap between business objectives and technology, the greater the detriment to the overall effectiveness of the organization."
The six major components it measures include management practices and processses; strategy development and alignment of technology with business objectives; applicability, scalability and modernization of an organization's current technology architecture; appropriateness of an organization's total portfolio of applications; appropriateness of its people and level of technology-related staffing; and overall technology investments and operating costs.
Once completed, the organization receives a "score" for a number of sub-categories within each major component area, from which the overall "gap" assessment is drawn. Specific recommendations are then made to narrow the "gap" based on the business strategies of the organization. For info: www.towergroup.com.