What is a key factor in managing demand according to Business-IT Governance?

Using business value as a guiding principle is fundamental in managing demand within Business-IT governance. This approach ensures that IT investments and initiatives are aligned with the strategic goals of the organization, thereby maximizing the return on investment and supporting overall business objectives. By prioritizing business value, organizations can better understand which projects and services will deliver the most significant benefit and effectively address the needs of the business units.

This focus on business value enables organizations to be more responsive to demand, as decisions regarding IT resources and capabilities are made with a clear understanding of their potential impact on the organization's success. It cultivates a collaborative environment where IT and business units work together to identify needs, tailor solutions, and prioritize efforts that foster growth and competitiveness.

Other considerations, such as solely focusing on IT capabilities, reducing costs, or centralizing decisions, may not adequately address the need for alignment with business objectives. While these factors can play a role in IT governance, they do not capture the broader importance of delivering value to the business, which is essential for effective demand management.