Application development cost as a percentage of total IT cost, excluding depreciation/amortization

This measure calculates the cost of application development as a percentage of the total IT cost, excluding depreciation/amortization. Total IT Cost or Budget (excluding depreciation/amortization; i.e., based on cash flow) includes operating and capital expenses for performing the entire IT function. Operating expenses are independent of including or excluding depreciation/amortization. Capital expenses should include costs for all capitalized IT assets acquired during the reporting period. The IT function concerns the development, delivery, support, and management of IT business/strategy, IT customer relationships, IT resilience/risk/security, IT information, and IT services/solutions. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the IT function.

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
107882
Total Sample Size:
915 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
Yes

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Compute this Measure

Units for this measure are percent.

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Application development cost as a percentage of total IT cost, excluding depreciation/amortization

Key Terms

There are no key terms associated with this measure.
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Measure Scope

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Cross Industry (7.4)

  • 8.1 - Develop and manage IT customer relationships (20608)
    • 8.1.1 - Understand IT customer needs (20609)
      • 8.1.1.1 - Understand IT customer communities (20610)
      • 8.1.1.2 - Assess IT customer operational capabilities (20611)
    • 8.1.2 - Identify IT customer transformation needs (20612)
      • 8.1.2.1 - Understand business requirements for IT capabilities (20613)
      • 8.1.2.2 - Understand IT landscape (20614)
      • 8.1.2.3 - Develop IT visioning (20615)
      • 8.1.2.4 - Outline IT service expectations (20616)
    • 8.1.3 - Plan and communicate IT services (20617)
      • 8.1.3.1 - Manage IT customer expectations (20618)
      • 8.1.3.2 - Define future IT services (20619)
      • 8.1.3.3 - Determine IT performance indicators (20620)
      • 8.1.3.4 - Create IT marketing messages (20621)
      • 8.1.3.5 - Create IT service marketing plan (20622)
    • 8.1.4 - Provide IT transformation guidance (20623)
      • 8.1.4.1 - Develop IT transformation plans (20624)
      • 8.1.4.2 - Collect IT customer requirements (20625)
      • 8.1.4.3 - Analyze IT customer requirements (20937)
      • 8.1.4.4 - Identify and prioritize IT opportunities (20626)
      • 8.1.4.5 - Facilitate solution design activities (20627)
      • 8.1.4.6 - Prioritize IT outcomes (20628)
      • 8.1.4.7 - Develop business cases (20629)
      • 8.1.4.8 - Support business case (20630)
      • 8.1.4.9 - Develop transformation roadmap (20631)
    • 8.1.5 - Develop and manage IT service levels (20632)
      • 8.1.5.1 - Understand IT service requirements (20633)
      • 8.1.5.2 - Forecast IT service demand (20634)
      • 8.1.5.3 - Maintain IT services catalog (20635)
      • 8.1.5.4 - Define service level agreement (20636)
      • 8.1.5.5 - Maintain IT customer contracts (20637)
      • 8.1.5.6 - Negotiate and establish service level agreements (20638)
      • 8.1.5.7 - Develop and maintain improvement processes (20640)
    • 8.1.6 - Manage IT customer relationships (20641)
      • 8.1.6.1 - Establish relationship management mechanisms (20642)
      • 8.1.6.2 - Understand IT customer strategy (20643)
      • 8.1.6.3 - Understand IT customer environment (20644)
      • 8.1.6.4 - Communicate IT capabilities (20645)
      • 8.1.6.5 - Manage IT requirements (20646)
    • 8.1.7 - Analyze service performance (20648)
      • 8.1.7.1 - Assess SLA compliance (20649)
      • 8.1.7.2 - Triage SLA compliance issues (20650)
      • 8.1.7.3 - Collect feedback about IT products and services (20647)
      • 8.1.7.4 - Synthesize and distribute IT performance information (20938)
  • 8.2 - Develop and manage IT business strategy (20652)
    • 8.2.1 - Define business technology and governance strategy (20653)
      • 8.2.1.1 - Build and maintain IT strategic intelligence (20654)
      • 8.2.1.2 - Monitor and map current and emerging technologies (20655)
      • 8.2.1.3 - Define and communicate digital transformation strategy (20656)
      • 8.2.1.4 - Develop IT strategic alignment (20657)
      • 8.2.1.5 - Articulate IT alignment principles (20658)
      • 8.2.1.6 - Maintain IT strategic alignment (20659)
    • 8.2.2 - Manage IT portfolio strategy (20660)
      • 8.2.2.1 - Establish and validate IT value criteria (20661)
      • 8.2.2.2 - Determine IT portfolio investment balance (20662)
      • 8.2.2.3 - Evaluate proposed IT investment projects (20663)
      • 8.2.2.4 - Prioritize IT projects (20664)
      • 8.2.2.5 - Align IT resources to strategic priorities (20665)
      • 8.2.2.6 - Align IT portfolio to business objectives (20667)
    • 8.2.3 - Define and maintain enterprise architecture (20668)
      • 8.2.3.1 - Create and publish enterprise architecture principles (20670)
      • 8.2.3.2 - Establish and operate enterprise architecture governance (20671)
      • 8.2.3.3 - Research technologies to innovate IT services and solutions (20672)
      • 8.2.3.4 - Provide input to definition and prioritization of IT projects (20673)
    • 8.2.4 - Define IT service management strategy (20674)
      • 8.2.4.1 - Establish IT service management strategy and goals (20675)
      • 8.2.4.2 - Identify IT service operating and process requirements (20676)
      • 8.2.4.3 - Define IT service catalog (20677)
      • 8.2.4.4 - Establish IT service management framework (20678)
      • 8.2.4.5 - Define and implement IT service management (20679)
      • 8.2.4.6 - Define and deploy support service management process tools and methods (20680)
      • 8.2.4.7 - Monitor and report IT performance (20681)
    • 8.2.5 - Control IT management system (20682)
      • 8.2.5.1 - Determine IT performance measures (20683)
      • 8.2.5.2 - Define IT control points and assurance procedures governance model (20684)
      • 8.2.5.3 - Monitor and analyze overall IT performance (20685)
      • 8.2.5.4 - Monitor and analyze IT financial performance (20686)
      • 8.2.5.5 - Monitor and analyze IT value and benefits (20687)
      • 8.2.5.6 - Optimize IT resource allocation (20688)
      • 8.2.5.7 - Manage IT projects and services interdependencies (20689)
      • 8.2.5.8 - Report IT service and project performance (20690)
      • 8.2.5.9 - Select, deploy, and operate IT performance analytics tools (20692)
    • 8.2.6 - Manage IT value portfolio (20693)
      • 8.2.6.1 - Assess performance against IT service and project value criteria (20694)
      • 8.2.6.2 - Quantify value of IT service and project portfolio investments (20695)
      • 8.2.6.3 - Communicate business technology value contribution (20696)
      • 8.2.6.4 - Determine and implement IT portfolio adjustments (20697)
    • 8.2.7 - Define and manage technology innovation (20699)
      • 8.2.7.1 - Establish selection criteria for research initiatives (20700)
      • 8.2.7.2 - Analyze emerging technology concepts (20701)
      • 8.2.7.3 - Identify technology concepts and capabilities (20702)
      • 8.2.7.4 - Execute IT research projects (20703)
      • 8.2.7.5 - Evaluate IT research project outcomes (20939)
      • 8.2.7.6 - Identify and promote viable concepts (20704)
      • 8.2.7.7 - Develop and plan IT investment projects (20705)
  • 8.3 - Develop and manage IT resilience and risk (20706)
    • 8.3.1 - Develop IT compliance, risk, and security strategy (20707)
      • 8.3.1.1 - Determine and evaluate IT regulatory and audit requirements (20708)
      • 8.3.1.2 - Understand business unit risk tolerance (20940)
      • 8.3.1.3 - Establish IT risk tolerance (20709)
      • 8.3.1.4 - Establish risk ownership (20710)
      • 8.3.1.5 - Establish and maintain risk management roles (20711)
      • 8.3.1.6 - Establish compliance objectives (20712)
      • 8.3.1.7 - Identify systems to support compliance (20941)
      • 8.3.1.8 - Identify and evaluate IT risk (20713)
      • 8.3.1.9 - Evaluate IT-related risks resiliency (20714)
      • 8.3.1.10 - Create IT risk mitigation strategies and approaches (20715)
    • 8.3.2 - Develop IT resilience strategy (20716)
      • 8.3.2.1 - Determine IT delivery resiliency (20717)
      • 8.3.2.2 - Determine critical IT risks (20718)
      • 8.3.2.3 - Prioritize IT risks (20719)
      • 8.3.2.4 - Establish mitigation approaches for IT risks (20720)
    • 8.3.3 - Control IT risk, compliance, and security (20721)
      • 8.3.3.1 - Evaluate enterprise regulatory and compliance obligations (20722)
      • 8.3.3.2 - Analyze IT security threat impact (20723)
      • 8.3.3.3 - Create and maintain IT compliance requirements (20724)
      • 8.3.3.4 - Create and maintain IT security policies, standards, and procedures (20942)
      • 8.3.3.5 - Develop and deploy risk management training (20725)
      • 8.3.3.6 - Establish risk reporting capabilities and responsibilities (20726)
      • 8.3.3.7 - Establish communication standards (20727)
      • 8.3.3.8 - Conduct IT risk and threat assessments (20728)
      • 8.3.3.9 - Monitor and manage IT activity risk (20729)
      • 8.3.3.10 - Identify, supervise and monitor IT risk mitigation measures (20730)
    • 8.3.4 - Plan and manage IT continuity (20731)
      • 8.3.4.1 - Evaluate IT continuity (20732)
      • 8.3.4.2 - Identify IT continuity gaps (20733)
      • 8.3.4.3 - Manage IT business continuity (20734)
    • 8.3.5 - Develop and manage IT security, privacy, and data protection (20735)
      • 8.3.5.1 - Assess IT regulatory and confidentiality requirements and policies (20736)
      • 8.3.5.2 - Create IT security, privacy, and data protection risk governance (20737)
      • 8.3.5.3 - Define IT data security and privacy policies, standards, and procedures (20738)
      • 8.3.5.4 - Review and monitor physical and logical IT data security measures (20739)
      • 8.3.5.5 - Review and monitor application security controls (20740)
      • 8.3.5.6 - Review and monitor IT physical environment security controls (20741)
      • 8.3.5.7 - Monitor/analyze network intrusion detection data and resolve threats (20742)
    • 8.3.6 - Conduct and analyze IT compliance assessments (20743)
      • 8.3.6.1 - Conduct projects to enhance IT compliance and remediate risk (20744)
      • 8.3.6.2 - Conduct IT compliance control auditing of internal and external services (20745)
      • 8.3.6.3 - Perform IT compliance reporting (20746)
      • 8.3.6.4 - Identify and escalate IT compliance issues and remediation requirements (20747)
      • 8.3.6.5 - Support external audits and reports (20748)
    • 8.3.7 - Develop and execute IT resilience and continuity operations (20749)
      • 8.3.7.1 - Conduct IT resilience improvement projects (20750)
      • 8.3.7.2 - Develop, document, and maintain IT business continuity planning (20751)
      • 8.3.7.3 - Implement and enforce change control procedures (20752)
      • 8.3.7.4 - Execute recurring IT service provider business continuity (20753)
      • 8.3.7.5 - Provide IT resilience training (20754)
      • 8.3.7.6 - Execute recurring IT business operations continuity (20755)
    • 8.3.8 - Manage IT user identity and authorization (20756)
      • 8.3.8.1 - Support integration of identity and authorization policies (20757)
      • 8.3.8.2 - Manage IT user directory (20758)
      • 8.3.8.3 - Manage IT user authorization (20759)
      • 8.3.8.4 - Manage IT user authentication mechanisms (20760)
      • 8.3.8.5 - Audit IT user identity and authorization systems (20761)
      • 8.3.8.6 - Respond to IT information security and network breaches (20762)
      • 8.3.8.7 - Conduct penetration testing (20763)
      • 8.3.8.8 - Audit integration of user identity and authorization systems (20764)
  • 8.4 - Manage information (20765)
    • 8.4.1 - Define business information and analytics strategy (20766)
      • 8.4.1.1 - Establish data, information, and analytic objectives (20767)
      • 8.4.1.2 - Establish data, information, and analytic governance (20768)
      • 8.4.1.3 - Access IT data/analytic capabilities (20769)
    • 8.4.2 - Define and maintain business information architecture (20770)
      • 8.4.2.1 - Determine enterprise business information requirements (20771)
      • 8.4.2.2 - Define enterprise data models (20772)
      • 8.4.2.3 - Identify and understand external data sources (20773)
      • 8.4.2.4 - Establish data ownership and stewardship responsibilities (20774)
      • 8.4.2.5 - Maintain and evolve enterprise data and information architecture (20775)
    • 8.4.3 - Define and execute business information lifecycle planning and control (20776)
      • 8.4.3.1 - Define and maintain enterprise information policies, standards, and procedures (20777)
      • 8.4.3.2 - Implement and execute data administration responsibilities (20778)
    • 8.4.4 - Manage business information (20779)
      • 8.4.4.1 - Monitor and control business information (20780)
      • 8.4.4.2 - Maintain business information feeds and repositories (20781)
      • 8.4.4.3 - Perform internal usage audits (20782)
      • 8.4.4.4 - Implement and administer business information access (20783)
  • 8.5 - Develop and manage services/solutions (20784)
    • 8.5.1 - Develop service/solution and integration strategy (20785)
      • 8.5.1.1 - Determine IT service/solution development (20786)
      • 8.5.1.2 - Define IT service/solution development processes/standards (20787)
      • 8.5.1.3 - Identify, deploy, and support development methodologies and tools (20788)
      • 8.5.1.4 - Establish service component criteria (20789)
      • 8.5.1.5 - Understand and select reusable service components (20790)
      • 8.5.1.6 - Maintain service component portfolio (20791)
      • 8.5.1.7 - Establish development standards exception governance (20792)
    • 8.5.2 - Manage service/solution lifecycle planning (20793)
      • 8.5.2.1 - Monitor and track emerging technology capabilities (20794)
      • 8.5.2.2 - Identify IT services/solutions (20795)
      • 8.5.2.3 - Determine IT service/solution approach (20796)
      • 8.5.2.4 - Define IT solution lifecycle (20797)
      • 8.5.2.5 - Develop IT service/solution "sunset" plans (20798)
    • 8.5.3 - Develop and manage service/solution architecture (20799)
      • 8.5.3.1 - Assess IT application and infrastructure architecture constraints (20800)
      • 8.5.3.2 - Assess business constraints on IT service/solution (20801)
      • 8.5.3.3 - Determine IT component integration requirements (20802)
      • 8.5.3.4 - Identify opportunities for IT component reuse (20803)
      • 8.5.3.5 - Promote adoption of existing service/solution architecture (20804)
      • 8.5.3.6 - Develop and maintain service/solution architectures (20805)
      • 8.5.3.7 - Assess IT service/solution architecture conformance (20806)
      • 8.5.3.8 - Manage architectural exceptions (20807)
    • 8.5.4 - Execute IT service/solution creation and testing (20808)
      • 8.5.4.1 - Execute IT service/solution development lifecycle (20809)
        • 8.5.4.1.1 - Assess and validate IT service/solution requirements (20810)
        • 8.5.4.1.2 - Create service/solution design (20811)
        • 8.5.4.1.3 - Build and test IT service/solution components (20812)
        • 8.5.4.1.4 - Integrate IT components and services (20813)
        • 8.5.4.1.5 - Execute IT service/solution validation (20814)
        • 8.5.4.1.6 - Bundle service/solution deployment packaging (20815)
        • 8.5.4.1.7 - Manage service/solution process exceptions (20816)
    • 8.5.5 - Perform service/solution maintenance and testing (20817)
      • 8.5.5.1 - Execute IT service/solution maintenance lifecycle (20818)
        • 8.5.5.1.1 - Assess IT remediation (20819)
        • 8.5.5.1.2 - Modify service/solution design (20820)
        • 8.5.5.1.3 - Perform IT service/solution remediation (20821)
        • 8.5.5.1.4 - Manage service/solution operations (20822)
        • 8.5.5.1.5 - Prepare fixed/enhanced service/solution packaging (20823)
  • 8.6 - Deploy services/solutions (20824)
    • 8.6.1 - Develop and manage service/solution deployment strategy (20825)
      • 8.6.1.1 - Assess IT deployment business impact (20826)
      • 8.6.1.2 - Establish IT deployment policies (20827)
      • 8.6.1.3 - Define and create deployment procedure workflow (20828)
      • 8.6.1.4 - Define IT change/release standards (20829)
      • 8.6.1.5 - Assign deployment approval responsibilities (20830)
      • 8.6.1.6 - Analyze deployments outcomes (20831)
    • 8.6.2 - Plan service and solution implementation (20832)
      • 8.6.2.1 - Assess IT deployment risk (20833)
      • 8.6.2.2 - Define implementation schedule and roll-out sequence (20834)
      • 8.6.2.3 - Determine implementation requirements (20835)
      • 8.6.2.4 - Plan and align user testing and resources (20836)
      • 8.6.2.5 - Develop IT training (20837)
      • 8.6.2.6 - Create implementation communications (20838)
      • 8.6.2.7 - Manage IT roll-back procedures (20839)
    • 8.6.3 - Manage change deployment control (20840)
      • 8.6.3.1 - Asses IT change/release impact (20841)
      • 8.6.3.2 - Confirm change/release compliance (20842)
      • 8.6.3.3 - Assess IT change/release risk (20843)
      • 8.6.3.4 - Consolidate IT change (20844)
      • 8.6.3.5 - Create and communicate deployment schedule (20845)
      • 8.6.3.6 - Approve change/release deployment (20846)
      • 8.6.3.7 - Document IT change/release outcome (20847)
    • 8.6.4 - Implement technology solutions (20848)
      • 8.6.4.1 - Confirm hardware/software operational status (20849)
      • 8.6.4.2 - Confirm operational availability (20850)
      • 8.6.4.3 - Execute internal IT implementation plan (20851)
      • 8.6.4.4 - Confirm implementation completion (20852)
      • 8.6.4.5 - Implement software change/release (20853)
      • 8.6.4.6 - Perform post-installation testing (20854)
      • 8.6.4.7 - Distribute software components network-wide (20855)
      • 8.6.4.8 - Verify change/release implementation success (20856)
      • 8.6.4.9 - Execute roll-back plan (20857)
    • 8.6.5 - Perform service and solution rollout (20858)
      • 8.6.5.1 - Conduct IT training (20859)
      • 8.6.5.2 - Prepare and distribute service/solution communications (20860)
      • 8.6.5.3 - Support organizational changes (20861)
      • 8.6.5.4 - Execute rollout plans (20862)
      • 8.6.5.5 - Provide rollout support (20863)
      • 8.6.5.6 - Manage rollout support capabilities (20864)
      • 8.6.5.7 - Monitor and record rollout issues (20865)
  • 8.7 - Create and manage support services/solutions (20866)
    • 8.7.1 - Define and establish service delivery strategy (20867)
      • 8.7.1.1 - Assess business objectives and IT service delivery (20868)
      • 8.7.1.2 - Define IT service delivery portfolio (20869)
      • 8.7.1.3 - Create and maintain IT service delivery model (20870)
      • 8.7.1.4 - Determine IT service delivery locations and activities (20871)
      • 8.7.1.5 - Define IT service delivery sourcing strategy (20872)
    • 8.7.2 - Define and develop service support strategy (20873)
      • 8.7.2.1 - Assess business objectives and IT service support delivery (20874)
      • 8.7.2.2 - Define IT service support portfolio (20875)
      • 8.7.2.3 - Create and maintain IT support model (20876)
      • 8.7.2.4 - Develop IT support service sourcing strategy (20877)
      • 8.7.2.5 - Establish support service framework (20878)
      • 8.7.2.6 - Provide service support tools and technology (20879)
    • 8.7.3 - Plan and manage service delivery control (20880)
      • 8.7.3.1 - Plan operational activities for IT service delivery (20881)
        • 8.7.3.1.1 - Schedule service delivery resources (20882)
        • 8.7.3.1.2 - Maintain/optimize batch job schedule (20883)
        • 8.7.3.1.3 - Schedule change/release windows (20884)
        • 8.7.3.1.4 - Schedule/optimize backup and archive activities (20885)
        • 8.7.3.1.5 - Balance operational workloads across available infrastructure components (20886)
        • 8.7.3.1.6 - Determine specific problem support procedures (20887)
    • 8.7.4 - Develop and manage infrastructure resource planning (20888)
      • 8.7.4.1 - Develop IT service delivery strategy (20889)
      • 8.7.4.2 - Assess IT infrastructure business objectives (20890)
      • 8.7.4.3 - Determine ongoing IT infrastructure capabilities (20891)
      • 8.7.4.4 - Plan IT infrastructure change (20892)
      • 8.7.4.5 - Plan and budget IT license usage volumes (20893)
    • 8.7.5 - Define service support planning (20895)
      • 8.7.5.1 - Understand IT support demand patterns (20896)
      • 8.7.5.2 - Determine required support resource levels, responsibilities, and capabilities (20897)
      • 8.7.5.3 - Maintain service support knowledge repository (20898)
      • 8.7.5.4 - Maintain service support learning (20943)
      • 8.7.5.5 - Communicate service support needs (20899)
      • 8.7.5.6 - Define IT escalation mechanisms (20900)
      • 8.7.5.7 - Manage IT service support resources (20901)
      • 8.7.5.8 - Coordinate with external support providers (20902)
      • 8.7.5.9 - Triage IT service delivery incidents (20903)
      • 8.7.5.10 - Monitor IT service support performance (20904)
    • 8.7.6 - Develop and manage service delivery operations (20905)
      • 8.7.6.1 - Operate and monitor online systems (20906)
      • 8.7.6.2 - Run and monitor batch job schedule (20907)
      • 8.7.6.3 - Manage service delivery workloads (20908)
      • 8.7.6.4 - Manage infrastructure performance and capacity (20909)
      • 8.7.6.5 - Respond to unplanned operational issues (20910)
      • 8.7.6.6 - Produce and distribute output media (20911)
      • 8.7.6.7 - Monitor IT infrastructure security (20912)
      • 8.7.6.8 - Manage IT infrastructure/data recovery (20913)
    • 8.7.7 - Manage infrastructure resource administration (20914)
      • 8.7.7.1 - Manage infrastructure configuration (20915)
      • 8.7.7.2 - Perform infrastructure component maintenance (20916)
      • 8.7.7.3 - Install/configure/upgrade infrastructure components (20917)
      • 8.7.7.4 - Maintain IT asset records (20918)
      • 8.7.7.5 - Administer IT licenses/user agreements (20919)
      • 8.7.7.6 - Provide IT infrastructure service and capabilities (20920)
    • 8.7.8 - Operate IT user support (20921)
      • 8.7.8.1 - Triage IT issues/requests (20922)
      • 8.7.8.2 - Provide IT resolution capabilities (20923)
      • 8.7.8.3 - Manage IT user requests (20925)
      • 8.7.8.4 - Escalate IT requests (20926)
      • 8.7.8.5 - Resolve IT issues/requests (20927)
      • 8.7.8.6 - Execute IT continuity and recovery action (20928)