Percentage of total IT cost, excluding depreciation/amortization, allocated to process group "develop and maintain information technology solutions"

This measure calculates the percentage of total IT cost, excluding depreciation/amortization for assets acquired during current reporting period, allocated to the process group "develop and maintain information technology solutions," which includes producing, developing and testing new, enhanced, and improved solutions; enabling services that meet all confirmed requirements; and setting solutions and discontinuing services no longer needed. It is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "develop and maintain information technology solutions" process.

Benchmark Data

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Measure Category:
Supplemental Information
Measure Id:
104992
Total Sample Size:
857 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are Percent.

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Percentage of IT operating cost (excluding depreciation/amortization) dedicated to process group "develop and maintain information technology 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 (7.1.0)

  • 8.5.1 - Develop the IT development strategy (10587) - Creating and implementing a strategy for developing the IT function. Establish sources for IT development. Establish processes, methodologies, and tools. Select appropriate development tools and methodologies.
    • 8.5.1.1 - Establish sourcing strategy for IT development (10666) - Designing and establishing an institutional procurement process that defines the sources and ways that continuously improve and re-evaluate the IT services. Outline how specific vendors and suppliers will deliver the IT components and activities to develop the IT function.
    • 8.5.1.2 - Define development processes, methodologies, and tools standards (10667) - Establishing the methods, processes, and tools that will set the foundation for developing the IT development strategy. Define the new components, technologies, tools, and software for the development process.
    • 8.5.1.3 - Select development methodologies and tools (10668) - Identifying approaches and equipment for developing the IT function and choosing the most appropriate approach and tools. Analyze the pros and cons of various tools and methods on the basis of their cost effectiveness, development value, etc.
  • 8.5.2 - Perform IT services and solutions life cycle planning (10588) - Executing life-cycle planning for IT services and solutions. Develop new requirements and feature-function enhancements. Create and design a life cycle plan that takes care of the current and future state of IT services and solutions.
    • 8.5.2.1 - Plan development of new requirements (10669) - Identifying and establishing new requirements of IT function in order to develop the IT solutions. Plan for new tools and components required for the development of IT services and solutions.
    • 8.5.2.2 - Plan development of feature and functionality enhancement (10670) - Creating a plan or strategy for the development of the distinctive attributes and the activities performed by the IT services and solutions.
    • 8.5.2.3 - Develop life cycle plan for IT services and solutions (10671) - Creating and implementing a life-cycle plan for developing IT services and solutions. Make plans, projections, and decisions based on the life cycle of the IT services and solutions. Determine current and future IT requirements, performance, goals, and objectives.
  • 8.5.3 - Develop and maintain IT services and solutions architecture (10589) - Creating the architecture for the IT services and solutions. Revise as needed. Retire in case of inefficiencies.
    • 8.5.3.1 - Create IT services and solutions architecture (10672) - Designing and developing a complex or carefully designed structure that lays out the specifications, models, and guidelines concerning IT services and solutions.
    • 8.5.3.2 - Revise IT services and solutions architecture (10673) - Reconsidering and revamping the IT services and solutions architecture, which lays out the specifications, models, and guidelines concerning IT services and solutions.
    • 8.5.3.3 - Retire IT services and solutions architecture (10674) - Withdrawing the IT services and solutions architecture in case of inefficiencies.
  • 8.5.4 - Create IT services and solutions (10590) - 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 - Understand confirmed requirements (10675) - Obtaining and comprehending the requirements for IT services and solutions in the market. Conduct market research to understand and analyze the possible market for the organization's IT services and solutions.
    • 8.5.4.2 - Design IT services and solutions (10676) - Designing specific applications of business and technical expertise. This will enable organizations in the creation, management, and optimization of, or access to, information and business processes.
    • 8.5.4.3 - Acquire/Develop IT service/solution components (10677) - Acquiring and creating the components needed for the provision and development of IT services and solutions. Design or acquire software, hardware, interfaces, servers, etc.
    • 8.5.4.4 - Train services and solutions resources (10678) - Preparing resources for the provision of IT services and solutions. Teach the skill or type of behavior through sustained practice and instruction to the employees who will provide the IT solutions and services.
    • 8.5.4.5 - Test IT services/solutions (10679) - Examining the developed IT services and solutions. Test the IT services and solutions in focus groups, etc.
    • 8.5.4.6 - Confirm customer acceptance (10680) - Analyzing the adoption of the IT services and solutions by customers, and confirming the customers' experiences met expectations. Use customer feedback, customer surveys, and customer reviews to effectively communicate and comprehend the experiences of the customers.
  • 8.5.5 - Maintain IT services and solutions (10591) - Updating and maintaining the requirements for IT services and solutions. Perform defect analysis, and design changes accordingly. Acquire or develop the components for changed IT services and solutions. Test changes. Retire the outdated and inefficient IT solutions and services.
    • 8.5.5.1 - Understand upkeep/enhance requirements and defect analysis (10681) - Comprehending the need to enhance the IT services and solutions by performing defect analysis. Update the requirements for IT services and solutions. Perform an analysis using defects as data for continuous quality improvement in IT services and solutions.
    • 8.5.5.2 - Design change to existing IT service/solution (10682) - Taking into account the updated requirements and design changes for the IT services and solutions.
    • 8.5.5.3 - Acquire/Develop changed IT service/solution component (10683) - Acquiring or creating components for changing IT services and solutions. Design or acquire updated software, hardware, interfaces, servers, etc.
    • 8.5.5.4 - Test IT service/solution change (10684) - Performing tests on a changed or updated IT services and solutions. Test the IT services and solutions by piloting solutions, creating trial runs, etc. to validate the impact of change. Ensure the IT function facilitates the required amount of support.
    • 8.5.5.5 - Retire solutions and services (10685) - Withdrawing inefficient and outdated IT solutions and services.