IT business value governance, financial management, portfolio management and performance management define the companies that are best at managing the business value created from IT investments.
More Efficient Than the Next IT Department
"Delivering IT Performance Through IT Business Value Management" also reports that top performers in IT BVM manage their IT project pipeline much more effectively than their peers — approving and funding only half as many project proposals and initiating and completing a much larger percentage of the projects they approve.
Those who excel at IT BVM are also nearly two times more likely to meet cost targets on IT projects as typical companies and nearly three times more likely to meet benefit targets, according to The Hackett Group. And, while most companies spend the largest chunk of their IT budgets on infrastructure refreshes, these companies put their money towards innovation and improvement, usually in the form of discretionary projects.
"In our model we advocate driving down your spending on infrastructure and utility through efficiency improvements, which frees up resources for investment and innovation," Dorr said.
However, he acknowledged that, in recessionary times, those freed-up resources may not be used to those ends. "Efficiency improvement in utility and infrastructure may be achieved, but under current conditions they may not be reallocated. The company may take the money and add it to the bottom line to absorb the impact of overall economic conditions."
That's OK, though, because when the good times start to roll again, Dorr said, "now you have an efficient IT foundation to add on additional investment to support that growth strategy."
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