Is the IT budget the One Ring in terms of business significance? Well, no, but CIOs can produce a lot more value for the organization when they have a deft hold on it. In an article for ITProPortal, Dale Quayle discusses a few ways to manage IT budgets well.
Most businesses are at least maintaining their current IT budget for the new year, if not increasing it, and there are ways CIOs can make the best of their improving fortunes. One way is to look for the IT costs that are not adding value. This includes simple cases of waste and duplication, and cases of legacy technology that costs more to maintain than to replace. But it also includes looking at demand versus consumption too; what this means is that the amount of IT resources requested may be more than what is actually used to complete the task. On that front, Quayle recommends at least limiting the size of virtual machines that are available through self-service.
To be able to see demonstrably the value that is created from your efforts, you need to bring in metrics:
Like in any department, CIOs must create benchmarks to be able to measure their success – whether it’s to help inform future decisions, or to show the rest of the organization what benefit its investments are having on the rest of the transition. However, in IT, creating these metrics are much more complicated than it is for other departments such as human resources or engineering. This means in order to develop effective metrics, CIOs need to couple the latest solutions with tactics for best gauging IT value.
One of the most popular ways of measuring IT value is taking a look at spend as a percent of overall revenue.
For further thoughts on unlocking more value in IT, you can view the original article here: https://www.itproportal.com/features/uncovering-opportunities-to-deliver-value-with-it-business-management/