For CIOs (Length: 13 pages)

February 6, 2008

Justifying And Funding Infrastructure Investments

by Craig Symons

with Alex Cullen, Tim DeGennaro


Executive Summary (This is a document excerpt)

IT-enabled business change investments by definition are linked to business strategic objectives and business benefits. These benefits can and should be quantified using an IT value methodology and documented in a business case. This makes for straightforward decision-making with respect to justifying and funding these proposed investments. IT infrastructure investments can rarely be linked directly to a single strategic business objective — making it much more difficult to quantify the business value. Furthermore, the benefits of many infrastructure investments are intangible and/or position the organization to realize benefits in the future, making them difficult to justify using standard financial tools and business case templates. As a result, many organizations try to fund these investments on faith without rigorous analysis of a business case and, too often, fail to get them funded at all. But it doesn't have to be this way — tools and techniques exist for valuing infrastructure investments.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemFunding Infrastructure Investments Is Problematic At Best

itemInfrastructure Value Can Be Measured — And New Investments Justified

itemHypothetical Example — Acme Wireless Network Infrastructure

recommendations

itemEstablish An Infrastructure Value Chain

WHAT IT MEANS

itemIT Is A Business

Forrester interviewed vendors and user companies.

Related Research Documents

itemFinancing IT Improvements

August 29, 2007

itemEstablishing And Verifying Business Benefits

July 31, 2007

itemMeasuring The Business Value Of IT

September 25, 2006

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Analyst: Craig Symons
Technology: Budgeting & Forecasting, Infrastructure Measurement, IT Infrastructure & Operations, IT Management, IT Spending & Budgeting, IT Strategy, Planning, & Governance
Geography: Asia Pacific, Europe, North America

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Rating: 7 out of 10
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