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

2Basic

• Practice

  Begin to use analysis in the IT function to inform planning of future IT expenditure and adjust IT budgets for a limited number of budget allocation categories and larger projects.

  Outcome

  A review of the strategic impact of IT budget performance analysis is focused on larger projects and some budget categories. Future IT spend for larger projects can be predicted based on the analyses of current IT budget performance, allowing for better planning. Planning takes into consideration that IT budgets can be adjusted for larger projects and some budget categories.

  Metric

  $ deviation from budget at year end as % of original planned budget for large projects.

3Intermediate

• Practice

  Consistently use analysis in the IT function to inform planning of future IT expenditure for most budget allocation categories, and, with input from some other business units, to adjust IT budgets accordingly.

  Outcome

  Analysis can be used to predict future IT spend for most budget categories and adjust IT budgets, providing more accurate data for more flexible planning.

  Metric

  $ deviation from budget at year end as % of original planned budget.

4Advanced

• Practice

  Ensure analysis is used jointly by IT and the rest of the business to inform planning of future expenditure for all budget allocation categories, and to develop business cases based on predicted future savings from IT budget performance analysis.

  Outcome

  Analysis can be used to predict future IT spend for all budget categories. 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 versus 'change the business' IT costs).

  Metric

  $ deviation from budget at year end as % of original planned budget.

5Optimized

• Practice

  Continually review the impact of IT budget performance analysis on IT expenditure planning and improve strategic planning by acting on insights gained from the performance analysis.

  Outcome

  IT budget performance analysis is used to inform key strategic planning decisions for business value.

  Metric

  $ deviation from budget at year end as % of original planned budget.