IVI Framework Viewer

Funding Levels

A2

Set the overall level of IT funding for the organization based on, for example, strategic priorities and competitive benchmarks.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Funding Levels at each level of maturity.

2Basic
  • Practice
    Base funding levels on last year's budget with some adjustments.
    Outcome
    The annual budget is the same as last years +/- targets.
    Metric
    % of funding based on last year's budget.
3Intermediate
  • Practice
    Review most funding levels annually and adjust them based on the IT strategy, predominantly cost-only benchmarking, and some defined IT improvement opportunities.
    Outcome
    IT funding levels become more aligned with IT's strategic and opportunistic goals.
    Metric
    % of funding linked to specific IT initiatives.
4Advanced
  • Practice
    Determine funding levels by analysing IT and business strategies, and by regular cost-quality benchmarking.
    Outcome
    IT funding levels are in line with industry norms.
    Metric
    % of funding linked to external benchmarks.
5Optimized
  • Practice
    Develop and utilize extensive (industry) benchmarks, directly correlated to risk/return objectives, as a key input for setting funding levels for development and operational initiatives.
    Outcome
    The objective benchmarking of IT funding levels avoids over or under investment based on industry norms.
    Metric
    Funding levels directly correlated to return/risk objectives.