IT strategy and governance cost as a percentage of total IT cost, excluding depreciation/amortization

This measure calculates the IT strategy and governance cost (portfolio strategy and value management, technology strategy, governance strategy, enterprise architecture; IT management system control, financial control, HR planning and administration, sourcing/procurement/contract coordination and vendor service coordination, internal IT customer contracts and pricing) as a percentage of the total IT cost. 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 Function "manage information technology (IT)" (20607) includes [Managing process groups relevant to the business of information technology within an organization. The process groups include "Develop and manage IT customer relationships", "Develop and manage IT business strategy", " Develop and manage IT resilience and risk", " Manage information", " Develop and manage services/solutions", "Deploy services/solutions", and " Create and manage support services/solutions".]. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Develop and manage IT business strategy".

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
107888
Total Sample Size:
915 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are percent.

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IT strategy and governance 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 (7.3.1)

  • 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)