(Length: 26 pages)

June 6, 2005

The Economics Of IT

Context And Maturity Drive IT Spending

by Laurie M. Orlov

with Bobby Cameron, Heather Liddell, Jessica Lynch, Natalie Lambert

Executive Summary (This is a document excerpt)

CIOs rationalize IT spending to their bosses and business exec peers by comparing their own spend to industry averages. But — as many CIOs admit — this comparison makes the most sense within the context surrounding IT and the degree to which the firm's IT practices have matured. The IT Spending Context and the IT Maturity Index together predict whether IT spend will be above or below industry averages and deliver value.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemCIOs Stress About IT Spending Comparisons Out Of Context

itemBusiness And IT Realities Define The IT Spending Context

itemIT Maturity Index: How Well IT Runs Affects Spend, Too

itemIT Maturity And Spending Context Predicts Spending Profiles

itemCase Study No. 1: Eli Lilly And Company's IT Wants To Enable New Capabilities

itemCase Study No. 2: Intel Deploys An IT Business Value Index

itemCase Study No. 3: UPS' IT Economics Are Designed To Drive Efficiency And Revenue

WHAT IT MEANS

itemIT Spending Context Offers Understanding, But IT Maturity Index Drives Change

itemSupplemental Material

Forrester interviewed the CIOs of Eli Lilly and Company, Intel, and UPS for the three case studies detailed in this report. We also talked with seven other CIOs and CFOs.

Related Research Documents

itemUS IT Spending Benchmarks For 2005

May 24, 2005, Best Practices

itemThe Forrester Portfolio Management Matrix

December 22, 2004, Best Practices

itemThe Basis For IT Portfolio Management Thinking

December 21, 2004, Market Overview

itemTrends 2005: IT Portfolio Management

November 5, 2004, Trends

itemThe IT Balanced Scorecard — Metrics That Count

September 30, 2004, Best Practices

itemDefining IT Portfolio Management

September 29, 2004, Best Practices

itemGuidelines For The Structure Of IT

September 10, 2004, Best Practices

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Technology: B2B Sales & Marketing, Budgeting & Forecasting, IT Management, IT Spending & Budgeting, IT Strategy, Planning, & Governance, Product & Solutions Strategies
Geography: Asia Pacific, Europe, North America
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Jam Session No. 5: Tuning Your Agenda To Economic Realities
Original air date: Friday, December 05, 2008
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