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".

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Measure Category:
Cost Effectiveness
Measure ID:
Total Sample Size:
914 All Companies
Key Performance

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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

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Measure Scope

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Cross Industry (7.3.0)

  • 8.2.1 - Define business technology and governance strategy (20653) - Defining the need of technology in business and systematic implementation of IT investments. It comprises of assessing competitive technology components to ensure structural analysis, development, usage and security of technology for efficient business operations.
    • - Build and maintain IT strategic intelligence (20654) - Building and maintaining intelligence towards changing organizational goals, supporting management, and operational or functional levels of the business. It is the ability to understand business trends that present threats or opportunities for IT in an organization.
    • - Monitor and map current and emerging technologies (20655) - Monitoring and evaluating existing and forthcoming technologies to meet the current and future growth plans for business operations.
    • - Define and communicate digital transformation strategy (20656) - Defining the integration of digital technology into business operations and service delivery, and convey the strategy to different segments of business. It is always backed by continuous improvement followed by periodic review and change per requirement of the business.
    • - Develop IT strategic alignment (20657) - Developing the process of aligning the organization's business divisions and staff members with the organization's planned objectives for IT.
    • - Articulate IT alignment principles (20658) - Systematic approach to clearly communicate and operate the usage of information technology as it relates to business objectives.
    • - Maintain IT strategic alignment (20659) - Maintaining alignment of the organization's business divisions and staff members with the organization's planned objectives for IT.
  • 8.2.2 - Manage IT portfolio strategy (20660) - Strategy for systematic management of IT investments, projects, and activities. Analyze and examine the value of the IT portfolio and allocate resources based on business objectives.
    • - Establish and validate IT value criteria (20661) - Create and certify the standards to determine the value of the investments, projects, and activities of IT function for the overall business objectives.
    • - Determine IT portfolio investment balance (20662) - Determining the uninvested amount out of the total approved amount for overall IT management, IT investments, projects, and activities.
    • - Evaluate proposed IT investment projects (20663) - Evaluating IT investment projects to achieve overall business objectives in regard to implementation, efficiency, and profitability.
    • - Prioritize IT projects (20664) - Listing the IT projects in the order of most important to the least. Determining which of many IT projects are most important or critical to business operations.
    • - Align IT resources to strategic priorities (20665) - Aligning physical IT resources like software, IT infrastructure, networks, and non-physical resources like technology expertise, to strategic objectives ranked by their importance in achieving the strategic goals.
    • - Align IT portfolio to business objectives (20667) - Aligning IT investments, projects, and activities to achieve overall business objectives.
  • 8.2.3 - Define and maintain enterprise architecture (20668) - Outlining and maintaining the organization's IT architecture. Establish the IT architecture definition and framework. Ensure the relevance of IT. Create and confirm the approach for IT maintenance. Create rules and regulations to guide IT architecture. Authenticate and finalize all IT related research and innovation that takes place within the organization.
    • - Create and publish enterprise architecture principles (20670) - Creating and publishing high level statements of the fundamental values (principles) based on the organization's objectives that guide Information Technology decision-making and activities, and are the foundation for enterprise architecture.
    • - Establish and operate enterprise architecture governance (20671) - Establishing and operating a structure by which an enterprise defines appropriate strategies and ensures development alignment with those strategies. Create and establish the rules, regulations, policies, and standards that will govern the individual components of the IT architecture, as well as the architecture in its entirety.
    • - Research technologies to innovate IT services and solutions (20672) - Systematically investigating and studying materials and sources relevant to the IT function. Reach meaningful insights and conclusions in the form of new ideas and innovation for delivering IT services and solutions.
    • - Provide input to definition and prioritization of IT projects (20673) - Analyze the value driven through IT projects and redefine and/or reprioritize. Evaluate planning, organizing, and implementation of IT projects based on research outcomes and business objectives.
  • 8.2.4 - Define IT service management strategy (20674) - Defining perspective, position, plans, and patterns needed to execute designing, delivering, managing, and improving the way information technology is used within an organization.
    • - Establish IT service management strategy and goals (20675) - Implementing strategy for designing, delivering, managing, and improving the way information technology be used in the organization. The goal of IT Service Management is to ensure that the right processes, people, and technology are in place to meet business goals.
    • - Identify IT service operating and process requirements (20676) - Identifying operating and process requirement for designing, delivering, managing, and improving the way information technology be used in the organization.
    • - Define IT service catalog (20677) - Create and design an organized and curated collection of all IT-related services that can be performed by, for, or within the organization.
    • - Establish IT service management framework (20678) - Create a layered structure for IT service management framework ensuring right processes, people, and technology are in place to meet business goals.
    • - Define and implement IT service management (20679) - Defining and implementing activities involved in designing, creating, delivering, supporting, and managing the lifecycle of information technology services within an organization.
    • - Define and deploy support service management process tools and methods (20680) - Establishing services for providing support to users of IT services and solutions. Define the plethora of services along with tools and methods by which the organization assists users of computers, software products, or other electronic/mechanical products.
    • - Monitor and report IT performance (20681) - Supervising, analyzing, and reporting performance of information technology to ensure they are on-course and on-schedule in meeting the organizational objectives and performance targets.
  • 8.2.5 - Control IT management system (20682) - Regulating the IT management system through performance measures, governance, analysis, and monitoring through a variety of analytic tools. Evaluate IT finances, resource, services, projects, and value for report out.
    • - Determine IT performance measures (20683) - Determining measures for evaluating the performance of IT services in the organization. Establish key performance indicators, including the IT services performance index.
    • - Define IT control points and assurance procedures governance model (20684) - Establishing a governance model with its own structure and functions from where full or partial control can be exercised over the entire IT management system. Specify evaluation and quality control procedures in the structure.
    • - Monitor and analyze overall IT performance (20685) - Monitoring and analyzing information technology performance measures to ensure timely completion, and that quality assurance is met at all steps of IT services.
    • - Monitor and analyze IT financial performance (20686) - Checking and analyzing predetermined financial targets and timelines of IT management system. Monitoring their profitability, feasibility, and consistency. Study the revenues generated.
    • - Monitor and analyze IT value and benefits (20687) - Examining and analyzing the value and benefits of IT service management to ensure benefits outweigh incurred costs.
    • - Optimize IT resource allocation (20688) - Create process to assign and manage IT assets that support organization's strategic goals.
    • - Manage IT projects and services interdependencies (20689) - Manage capabilities required for the successful delivery of information technology projects, which, by extension, affect the success of the overall IT services.
    • - Report IT service and project performance (20690) - Process of collecting, analyzing, and reporting information regarding the performance of IT services and projects.
    • - Select, deploy, and operate IT performance analytics tools (20692) - Select, establish, and operate analytics tool to analyze data and extract actionable and commercially relevant information on IT performance to evaluate or increase performance.
  • 8.2.6 - Manage IT value portfolio (20693) - Creating and establishing the value portfolio. Defining, analyzing, and examining the value of projects, investments, and activities of the IT function.
    • - Assess performance against IT service and project value criteria (20694) - Process of evaluating performance to collect and analyze IT services and projects. Ensure expected IT service and project value based on established criteria.
    • - Quantify value of IT service and project portfolio investments (20695) - Evaluate the value of the investments, projects, and activities of IT function by assigning it a quantifiable value with a profitable return to business operations.
    • - Communicate business technology value contribution (20696) - Conveying the value addition through adopting technology targeting towards integrated profitable business operations.
    • - Determine and implement IT portfolio adjustments (20697) - Determining and implementing IT investments, projects, and activities based on trending technological advancements in the existing environment in order to achieve overall business objectives.
  • 8.2.7 - Define and manage technology innovation (20699) - Outline and manage the innovation of technology within the organization. Research and understand emerging future technological concepts and capabilities. Plan for IT innovation investments. Plan and execute viable innovation projects.
    • - Establish selection criteria for research initiatives (20700) - Establishing the standard for selecting IT research initiatives to align with organizational criteria for implementing future technologies.
    • - Analyze emerging technology concepts (20701) - Assessing new and future technologies relevant to the organization's vision of its IT capabilities.
    • - Identify technology concepts and capabilities (20702) - Identification of conceptual elements that define the benefits of technology to business.
    • - Execute IT research projects (20703) - Implement information technology research projects that focus on meeting the goals of the organization's IT services and capabilities.
    • - Evaluate IT research project outcomes (20939) - Assessing IT research projects based on defined outcome expectations.
    • - Identify and promote viable concepts (20704) - Determine project viability. Promote relevant IT innovations that meet business objectives.
    • - Develop and plan IT investment projects (20705) - Develop and plan long-term allocation of funds for information technology endeavors to meet business goals.