What really matters: The IT innovation budget
- IT TOPICS:Management
Many CIOs focus on metrics like IT spending as a percentage of revenue. Big mistake. A Forrester Research Inc. report says "innovation capacity" is a much more important metric. What's that?
The amount of available funds that IT can spend on new initiatives in any given year — typically total IT spending minus IT spending on ongoing operations and maintenance.
In other words, it's the potential for the IT function to support new products, processes and opportunities -- i.e., business innovation. It's the ability to focus on strategic information systems rather than just keeping the lights on. "Successful companies will grow their IT innovation capacity by focusing on how IT is sponsored, operated, and governed," Forrester says.
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For more information on this topic:
Making the leap: Retooling IT operations, by Mary K. Pratt
Innovation Interruptus, by Thomas Hoffman
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