Strategically Exploiting IT Financial Constraints

June 2, 2009 · Filed Under IT Estimating  - 0 Comment(s)

A wonderful article on constraining IT costs and business value by Chris Potts.  Strategically Exploiting IT Financial Constraints... or “Why You Shouldn’t Have An IT Budget”

The cash that executives are planning to spend on IT is only one element of the total project investment necessary to  deliver the promised benefits. If the executives want to prioritize investments in projects involving IT they need to consider the entire project, not just the IT elements. They can choose not to invest in projects that promise the least bang for the business buck.  But a better process is to explore how they can achieve the same bang by spending less, or even nothing, by better exploiting existing systems. When they’ve finished, total IT spending within projects may be less or even the same, but the company will have the most productive portfolio of projects involving IT given the cash constraints they are
working within.

This article is worth a read and a re-read.


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