Percentage of IT operating costs, excluding depreciation/amortization, dedicated to develop and integrate services/solutions

This measure calculates the percentage of IT operating costs, excluding depreciation/amortization, allocated to developing and integrating services/solutions, in which the core of this is classic development activities including design, development, testing; does not include project management. In this measure, operating expense includes internal personnel cost, external personnel cost, hardware cost for both owned and leased hardware excluding hardware dedicated to data and voice networks, software cost to include both purchased software and software as a service, data and voice network costs as well as equipment dedicated to data networks and allocations to IT for shared sites and services (e.g., and allocation for corporate facilities and general overhead). It is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere related to the process group "Develop and manage services/solutions".

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Measure Category:
Supplemental Information
Measure Id:
106454
Total Sample Size:
550 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Percentage allocation of IT operating costs, excluding depreciation/amortization, to developing and integrating services/solutions

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (7.2.1)

  • 8.5.1 - Develop service/solution and integration strategy (20785) - Developing service/solution along with creating a strategy that provides a base for delivering service/solution aligned with overall business needs. Conduct research within the services/solutions field for development and integration.
    • 8.5.1.1 - Determine IT service/solution development (20786) - Determining the development of IT service/solution. Analyze the pros and cons of IT service/solution and it's methods on the basis of their cost effectiveness and development value.
    • 8.5.1.2 - Define IT service/solution development processes/standards (20787) - Establishing the methods and processes as the foundation for developing new IT platforms, components, software, and explore new standards for better IT usage in the organization.
    • 8.5.1.3 - Identify, deploy, and support development methodologies and tools (20788) - Identifying and implementing techniques and tools for development based on overall value addition to the IT environment.
    • 8.5.1.4 - Establish service component criteria (20789) - Establishing standards for selection of IT service components.
    • 8.5.1.5 - Understand and select reusable service components (20790) - Understanding and selecting reusable service components so that they can be cost-effective and efficient.
    • 8.5.1.6 - Maintain service component portfolio (20791) - Creating and establishing service component portfolio by defining investments, and activities. Analyze and examine the value of the service component portfolio, and allocate resources towards it.
    • 8.5.1.7 - Establish development standards exception governance (20792) - Creating standards and procedures for developing IT services/solutions outside of defined business parameters.
  • 8.5.2 - Manage service/solution lifecycle planning (20793) - Executing life-cycle planning for IT services and solutions. Develop new requirements and feature-function enhancements. Create and design a life cycle plan that addresses the current and future state of IT services and solutions.
    • 8.5.2.1 - Monitor and track emerging technology capabilities (20794) - Perform a systematic investigation to new and future technology capabilities for future upgrades.
    • 8.5.2.2 - Identify IT services/solutions (20795) - Identifying processes and supporting procedures that are performed by an organization to design, plan, deliver, operate, and control information technology services/solutions offered to customers.
    • 8.5.2.3 - Determine IT service/solution approach (20796) - Determining an approach to create a base for delivering IT service/solution aligned with overall business needs while maintaining a tight control on delivery and costs.
    • 8.5.2.4 - Define IT solution lifecycle (20797) - Defining solutions to satisfy business needs. IT solution lifecycle provides a means to address the full life cycle of an information technology solution and addresses the current and future state of IT services and solutions.
    • 8.5.2.5 - Develop IT service/solution "sunset" plans (20798) - Developing plans to retire IT service/solution resources when the service/solution is no longer feasible.
  • 8.5.3 - Develop and manage service/solution architecture (20799) - Creating the architecture for the IT services and solutions. Assess architecture and business constraints in order to understand integration requirements. Promote existing architecture. Manage exceptions.
    • 8.5.3.1 - Assess IT application and infrastructure architecture constraints (20800) - Assessing limitations in IT application and infrastructure architecture that may hinder expected performance.
    • 8.5.3.2 - Assess business constraints on IT service/solution (20801) - Evaluate business limitations that may hinder IT service/solution performance.
    • 8.5.3.3 - Determine IT component integration requirements (20802) - Determining the requirements to integrate IT components such as hardware, software, database, telecommunication, and network.
    • 8.5.3.4 - Identify opportunities for IT component reuse (20803) - Identification of opportunities for reusing IT components so that they can be cost-effective and efficient.
    • 8.5.3.5 - Promote adoption of existing service/solution architecture (20804) - Encouraging acceptance of existing IT service/solution architecture in the organization.
    • 8.5.3.6 - Develop and maintain service/solution architectures (20805) - Creating and maintaining a services and solutions architecture over a network that can be revised as needed or even eliminated in case of inefficiencies.
    • 8.5.3.7 - Assess IT service/solution architecture conformance (20806) - Assessing functional compliance of the IT service/solution architecture. Safeguard compliance with guidelines for the architecture.
    • 8.5.3.8 - Manage architectural exceptions (20807) - Identifying and resolving any architectural exceptions. Address the internal inquiries related to architecture that cannot be addressed immediately. Research inquiries that require the need of exceptional methods.
  • 8.5.4 - Execute IT service/solution creation and testing (20808) - Understanding customer requirements. Design the IT services and solutions based on the requirements. Develop components for providing the requirements. Train resources to provide support. Test the IT services and solutions in advance. Confirm the customer experience post-sale.
    • 8.5.4.1 - Execute IT service/solution development lifecycle (20809) - Executing an information system, aiming to produce a high quality system that meets or exceeds customer expectations, reaches completion within time and cost estimates, and is inexpensive to maintain and cost-effective to enhance.
      • 8.5.4.1.1 - Assess and validate IT service/solution requirements (20810) - Evaluating and validating the requirements and needs of IT service/solution.
      • 8.5.4.1.2 - Create service/solution design (20811) - Formulating a design for service/solution that helps an organization to meet its objectives. Develop a new framework for molding the service/solution processes into a coherent and structured form.
      • 8.5.4.1.3 - Build and test IT service/solution components (20812) - Building and testing new components required for the development of IT services and solutions.
      • 8.5.4.1.4 - Integrate IT components and services (20813) - Combining the newly built IT component along with IT services in order to gain optimum output.
      • 8.5.4.1.5 - Execute IT service/solution validation (20814) - Validating that the proposed IT service/solution is feasible and provides the needed services for the customer.
      • 8.5.4.1.6 - Bundle service/solution deployment packaging (20815) - Creating and implementing a strategy for the deployment of IT service/solution by defining all of the activities that make the IT function available for use. Define the deployment process, procedures, and tools. Select the most feasible and practical methodologies for the deployment process.
      • 8.5.4.1.7 - Manage service/solution process exceptions (20816) - Identifying and resolving internal needs/inquiries for service/solution that cannot be resolved immediately. Research inquiries that require the need of exceptional solutions.
  • 8.5.5 - Perform service/solution maintenance and testing (20817) - Engaging in all aspects of service/solution maintenance and testing includes all preventative, routine, and corrective activates. Ensure that IT service/solution are functioning properly and regulations where applicable.
    • 8.5.5.1 - Execute IT service/solution maintenance lifecycle (20818) - Executing IT service/solution maintenance lifecycle in order to reduce maintenance costs and increase reliability of IT infrastructure concerning service/solution related problems.
      • 8.5.5.1.1 - Assess IT remediation (20819) - Evaluate plans to address information technology environmental adulteration for rectification efforts.
      • 8.5.5.1.2 - Modify service/solution design (20820) - Redesign the roadmap to seek solution or service with an overall process flow and impact timeframe.
      • 8.5.5.1.3 - Perform IT service/solution remediation (20821) - Administering the efforts and activities for IT service/solution remediation. This process element requires the organization to create plans for corrective action in collaboration with government agencies and pertinent professional services agencies which specialize in remediation efforts relevant to the organization's service/solution. Additionally, the organization needs to consult experts to validate the plan, determine resources allocation, resolve any legal concerns, and formulate a company-wide policy for IT service/solution remediation.
      • 8.5.5.1.4 - Manage service/solution operations (20822) - Understanding customer requirements. Managing services/solutions based on the requirements. Develop components for providing the requirements. Train resources to provide support. Confirm the customer experience post-sale. Evaluate the performance of service/solution. Communicate the results to the management.
      • 8.5.5.1.5 - Prepare fixed/enhanced service/solution packaging (20823) - Developing packaging for fixed/enhanced service/solution based on the standalone or bundled offerings to be used by the organization.