IVI Framework Viewer

Future IT Expenditure

B2

Inform decision-making for planning of future IT expenditure.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Future IT Expenditure at each level of maturity.

1Initial
  • Practice
    Rely on the best endeavours of available personnel.
2Basic
  • Practice
    Use analysis to predict future IT spend for large IT projects and some IT budget categories.
    Outcome
    Review of the strategic impact of IT budget performance analysis is focussed on large projects and some budget categories.
    Metric
    Total $ deviation from budget at year end as % of original planned budget for large projects.
  • Practice
    Use budget performance analysis to adjust IT budgets for large projects and some budget categories.
    Outcome
    Planning takes into consideration that IT budgets can be adjusted for large projects and some budget categories.
    Metric
    Total $ deviation from budget at year end as % of original planned budget for large projects.
  • Practice
    Use analysis to predict future IT spend for large projects.
    Outcome
    Future IT spend for large projects can be predicted based on analyses of current budget performance allowing for better planning.
    Metric
    Total $ deviation from budget at year end as % of original planned budget for large projects.
3Intermediate
  • Practice
    Use budget analysis to predict future spend for all budget categories.
    Outcome
    Analysis can be used to predict future IT spend for all budget categories providing more accurate data for planning.
    Metric
    Total $ deviation from budget at year end as % of original planned budget.
  • Practice
    Use analysis to adjust IT budgets for all budget categories.
    Outcome
    Analysis can used to adjust IT budgets based on current data, for all budget categories, providing for more flexible planning.
    Metric
    Total $ deviation from budget at year end as % of original planned budget.
  • Practice
    Use analysis to predict future spend for all IT projects.
    Outcomes
    • Analysis can be used to adjust IT budgets, and predict future IT spend for all projects.
    • Plans can improve their accuracy.
    Metric
    Total $ deviation from budget at year end as % of original planned budget.
4Advanced
  • Practice
    Use IT budget performance analysis jointly with the rest of the business to predict future spend for all budget categories and agree future budget requirements.
    Outcomes
    • Project business cases can be managed by their anticipated impact on future IT savings.
    • The IT function is able to better plan the IT portfolio (e.g., “run the business” IT costs vs. “change the business” IT costs).
    Metrics
    • % of projects meeting expected TCO.
    • % of projects meeting expected ROI.
    • Annual cost of IT per IT employee.
    • Annual cost of IT per employee.
  • Practice
    Develop project business cases based on predicted future savings from IT budget performance analysis.
    Outcomes
    • Project business cases can be managed by their anticipated impact on future IT savings.
    • The IT organization is able to better plan the IT portfolio (e.g., “run the business” IT costs vs. “change the business” IT costs)
    Metrics
    • % of projects meeting expected TCO.
    • % of projects meeting expected ROI.
    • Annual cost of IT per IT employee.
    • Annual cost of IT per employee.
5Optimized
  • Practice
    Continually improve strategic planning by acting on insights gained from IT budget performance analysis.
    Outcomes
    • The organization is familiar with IT budget metrics and understands variances.
    • Budget performance analysis is used to inform key strategic decisions for business value.
    Metrics
    • % of projects meeting expected TCO.
    • % of projects meeting expected ROI.
    • Annual cost of IT per IT employee.
    • Annual cost of IT per organization employee.
  • Practice
    Continually improve annual planning performance, influenced by IT budget performance analysis results.
    Outcome
    Budget performance analysis is used to inform annual planning decisions for business value.
    Metrics
    • % of projects meeting expected TCO.
    • % of projects meeting expected ROI.
    • Annual cost of IT per IT employee.
    • Annual cost of IT per organization employee.
  • Practice
    Continually improve IT project budget performance by reducing and merging projects based on budget performance analysis.
    Outcomes
    • The organization is familiar with budget metrics and understands variances.
    • Budget performance analysis is used to inform project and programme decisions for business value.
    Metrics
    • % of projects meeting expected TCO.
    • % of projects meeting expected ROI.
    • Annual cost of IT per IT employee.
    • Annual cost of IT per organization employee.