Future IT Expenditure
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.