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For IT Spending & Budgeting Professionals

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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

Average:
(2 ratings)

This is an excerpt

Executive Summary

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.

TABLE OF CONTENTS

  • CIOs Stress About IT Spending Comparisons Out Of Context
  • Business And IT Realities Define The IT Spending Context
  • IT Maturity Index: How Well IT Runs Affects Spend, Too
  • IT Maturity And Spending Context Predicts Spending Profiles
  • Case Study No. 1: Eli Lilly And Company's IT Wants To Enable New Capabilities
  • Case Study No. 2: Intel Deploys An IT Business Value Index
  • Case Study No. 3: UPS' IT Economics Are Designed To Drive Efficiency And Revenue

WHAT IT MEANS

  • IT Spending Context Offers Understanding, But IT Maturity Index Drives Change
  • Supplemental Material
  • Related Research Documents

This is an excerpt

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