The ideal IT budget: Best Practice vs Reality

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THE IDEAL IT BUDGET: Proportion of overall technology budget expected to be under CMO control by the end of 2015. “While the IT budget rarely includes all of the organisation’s technology spending, best practice dictates that the IT department still gather a holistic view of technology costs, regardless of where they reside.” Margaret Rouse, WhatIS.com “Organisations need to get to a position where they can know the true spend on IT and the business value the services yield, then start to evaluate the best options.” Roy Illsey, Ovum Principal Analyst, Computer Weekly “Most CIOs have limited budgets for innovation- related activities and report that risk aversion among other board members constrains them from making riskier IT investments.” The Deloitte CIO Survey 2014 – CIOs: at the Tech-junction Proportion of IT budget assigned to business growth, while 55% remains focused on supporting the delivery of core IT services. Social and Mobile tools, Analytics systems and Cloud computing are driving IT investment. of IT professionals expect their firms to spend more on SaaS and cloud services. of professionals expect their firms to spend more on enterprise analytics, data mining and BI. of IT professionals expect their firms to spend more on the development, upgrade and replacement of apps – including mobile. [Computerworld Forecast Survey 2014.] 10% 22% 40% 38% 38% vs BEST PRACTICE REALITY MARKETING MOVING IN GET THE COMPLETE PICTURE BEWARE THE ROGUE CLOUD BIG DATA BUDGET DEMANDS CHARGE BACK TRENDS DRIVING TECHNOLOGY BIG IT UP TAKEAWAYS HUNGRY CORE SERVICES RISKY LIMITATIONS THE RISE OF THE SMAC STACK IT BUDGET CHALLENGES MARKETING IT SPENDERS COLLABORATION The increase in the number of companies that have deployed or implemented big data projects in the last year. The number of companies which plan to implement big data projects in 2015. The number of companies that expect IT allocations for data-driven initiatives to increase in 2015. IT organisations that are charging back at least some IT expenses to other business units. Winning IT budget buy-in is all about communication: [Gartner] Tell stories that illustrate the financial journey of the IT department for stakeholders. Use your cash profile to build credibility across the business, showing how IT investment drives improvement in marketing and other areas. Benchmark the cost of your IT organisation with the rest of your industry. Become a marketer! Show them that IT is the department that delivers. Don’t miss an opportunity to demonstrate how a bigger budget could drive greater business value. Become a marketer: don’t undersell the benefits which IT has already delivered for the business. Charge them: making other business areas accountable for their IT spend is a great way to regain a clear picture. Embrace the cultural shift: if an IT budget belongs to everyone, they’ll look to you for best practice on how to spend it. [IDG Enterprise, 2015 Big Data and Analytics – Insights into initiatives and strategies driving data investments.] [Computer Economics, IT Management Best Practices 2014-15.] [IDG Enterprise, 2015 Big Data and Analytics – Insights into initiatives and strategies driving data investments.] [Econsultancy: Marketing Budgets 2015.] The number of companies who see limited IT budget as a challenge. The number of companies who see the ability to demonstrate ROI as a challenge. The number of companies concerned about rising infrastructure and maintenance costs due to data growth. Companies that plan to increase their spend on digital marketing technology in 2015. 125% 42% 36% 51% 45% 26% 20% 79% WWW.CRMTECHNOLOGIES.COM Discover how IT can join forces to ensure marketing campaign success by downloading: SUCCESSFUL EXECUTION OF YOUR MARKETING OPS STRATEGY THROUGH CROSS ENTERPRISE COLLABORATION DOWNLOAD NOW TRANSFORM STRATEGISE EXECUTE SUCCESSFUL EXECUTION OF YOUR MARKETING OPERATIONS STRATEGY THROUGH CROSS ENTERPRISE COLLABORATION “Marketers already have enough to contend with as the breadth and complexity of their remit continues to increase in other areas, independent of technology. What they do need to take responsibility for is communicating their tech requirements effectively within their organisation.” Adam Smith, Head of Media Strategy, Dunnhumby, B2Bmarketing.net “The big brand CMOs I speak to on a regular basis are increasingly involved in driving technology as this is becoming more core to Marketing’s success as ad spend moves from traditional media to online.” Mark Phibbs, VP EMEA Marketing, Adobe Systems Europe, B2Bmarketing.net

Transcript of The ideal IT budget: Best Practice vs Reality

Page 1: The ideal IT budget: Best Practice vs Reality

THE IDEAL IT BUDGET:

Proportion of overall technology budget expected to be under CMO control by

the end of 2015.

“While the IT budget rarely includes all of the organisation’s

technology spending, best practice dictates that the IT department

still gather a holistic view of technology costs, regardless of where they reside.”Margaret Rouse, WhatIS.com

“Organisations need to get to a position

where they can know the true spend on IT

and the business value the services yield,

then start to evaluate the best options.”

Roy Illsey, Ovum Principal Analyst, Computer Weekly

“Most CIOs have limited budgets for innovation-

related activities and report that risk aversion

among other board members constrains them from making

riskier IT investments.”The Deloitte CIO Survey 2014 –

CIOs: at the Tech-junction

Proportion of IT budget assigned to business growth, while 55% remains focused on supporting the delivery of

core IT services.

Social and Mobile tools, Analytics systems and Cloud computing are driving IT investment.

of IT professionals expect their firms to spend more on

SaaS and cloud services.

of professionals expect their firms to spend more

on enterprise analytics, data mining and BI.

of IT professionals expect their firms to spend more on the development, upgrade and replacement of apps –

including mobile.[Computerworld Forecast Survey 2014.]

10% 22%

40% 38% 38%

vsBEST PRACTICE REALITY

MARKETING MOVING IN

GET THE COMPLETE PICTURE

BEWARE THE ROGUE CLOUD

BIG DATA BUDGET DEMANDS

CHARGE BACK TRENDS

DRIVING TECHNOLOGY

BIG IT UP

TAKEAWAYS

HUNGRY CORE SERVICES

RISKY LIMITATIONS

THE RISE OF THE SMAC STACK

IT BUDGET CHALLENGES

MARKETING IT SPENDERS

COLLABORATION

The increase in the number of companies that have deployed or implemented big

data projects in the last year.

The number of companies which plan to implement big data projects in 2015.

The number of companies that expect IT allocations for data-driven initiatives to

increase in 2015.

IT organisations that are charging back at least some IT expenses to other

business units.

Winning IT budget buy-in is all about communication:

[Gartner]

Tell stories that illustrate the financial journey of the IT department for stakeholders.

Use your cash profile to build credibility across the business, showing how IT investment drives improvement in marketing and other areas.

Benchmark the cost of your IT organisation with the rest of your industry.

Become a marketer! Show them that IT is the department that delivers.

Don’t miss an opportunity to demonstrate how a bigger budget could drive greater business value.

Become a marketer: don’t undersell

the benefits which IT has already

delivered for the business.

Charge them: making other

business areas accountable for

their IT spend is a great way to regain

a clear picture.

Embrace the cultural shift: if an IT budget belongs to everyone, they’ll look to you for best practice on how to

spend it.

[IDG Enterprise, 2015 Big Data and Analytics – Insights into initiatives and strategies driving data investments.]

[Computer Economics, IT Management Best Practices 2014-15.]

[IDG Enterprise, 2015 Big Data and Analytics – Insights into initiatives and strategies driving data investments.]

[Econsultancy: Marketing Budgets 2015.]

The number of companies who see limited IT budget as a challenge.

The number of companies who see the ability to demonstrate ROI as a challenge.

The number of companies concerned about rising infrastructure and

maintenance costs due to data growth.

Companies that plan to increase their spend on digital marketing technology

in 2015.

125%

42%

36%

51%

45%

26%

20%

79%

WWW.CRMTECHNOLOGIES.COM

Discover how IT can join forces to ensure marketing campaign success by downloading:

SUCCESSFUL EXECUTION OF YOUR MARKETING OPS STRATEGY THROUGH CROSS ENTERPRISE COLLABORATION

DOWNLOAD NOW

TRANSFORMSTRATEGISE EXECUTE

SUCCESSFUL EXECUTION OF YOUR MARKETING OPERATIONS STRATEGYTHROUGH CROSS ENTERPRISE COLLABORATION

“Marketers already have enough to

contend with as the breadth and complexity of their remit continues

to increase in other areas, independent of technology. What they do need to take responsibility for is

communicating their tech requirements

effectively within their organisation.”

Adam Smith, Head of Media Strategy, Dunnhumby,

B2Bmarketing.net

“The big brand CMOs I speak to on a regular basis are increasingly

involved in driving technology as this is becoming more

core to Marketing’s success as ad spend

moves from traditional media to online.”

Mark Phibbs, VP EMEA Marketing, Adobe Systems Europe,

B2Bmarketing.net