Rapid Assessment for Total IT Expenditure Determining where and how much to invest in IT is the biggest challenge to every CIO and senior executive. It is not sufficient just to invest resources in IT; investments must be made in the appropriate areas, at the appropriate time and as efficiently as possible. Failure to invest effectively, efficiently and in a timely manner can render IT offerings valueless. This comparative assessment provides an evaluation of performance in all key IT functional areas and identifies those functional areas that offer the greatest opportunities for improved performance. Because most enterprises continually are faced with increased pressure from external forces (i.e., intensified competition, deregulation, cost justifications), the requirement to balance cost containment with business alignment is inescapable. Although cost efficiency is very important, what value is being added if IT services are not aligned with the business requirements and strategic goals? In some cases, IT may be adding value, but the perception by the lines of business may be quite different. The perceptions of the CIO and/or senior IT executives regarding IT alignment must be assessed and compared to the perceptions of the lines of business. This powerful combination of efficiency and effectiveness analyses provide the CIO with the vehicle needed to communicate relative performance, improvement initiatives and IT's contribution toward business success. Understanding your technology costs and comparing them to others in a meaningful way reveals opportunities for improvement, as well as areas in which you are a best-in-class performer (figure 7). Addresses the following business issues: Identification of problems or opportunities that may exist within each of the many functional IT areas (This may necessitate the need for more detailed analysis of certain areas.) Gaining a big-picture look at the entire IT structure and allowing for analysis of resource deployment among IT areas (This insight can be leveraged to affect change not only within a particular IT functional area but also across all of IT.) A cross-functional impact assessment, which provides an understanding of the influence of one IT area on others A gap analysis that offers insights into the alignment of the IS organization/CIO with the lines of business A gap analysis that indicates the relevance of IT cost performance to the requirements of the enterprise A vehicle, i.e., analysis report, to communicate relative performance, improvement initiatives and IT's contribution toward business success figure 7 Contact Information: For more information about Gartner Measurement services please e-mail measurement.info@gartner.com