Run, Grow and Transform the Business IT Spending: Approaches to Categorization and Interpretation

Foundational Refreshed: 10 November 2017 | Published: 27 June 2016 ID: G00308477

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Business transformations of all kinds will drive CIOs and other strategic stakeholders to better categorize the value of investments. Use "run, grow and transform the business" views of IT spending as a catalyst for effective communication, decisions and forecasting.

Table of Contents

  • Introduction
  • Analysis
    • Use Industry-Standard Definitions for RGT
    • Categorize IT Assets, Resources, Projects and Outcomes as Either Run, Grow or Transform
    • Benchmark RGT by Industry Using Gartner IT Key Metrics Data
    • Use Industry-Standard Run Percentages for Long-Term Planning and High-Level Estimating
    • Triangulate RGT, the Level of IT Spending as a Percentage of Revenue, and Reduction of the Run for Goals of Doing More With Less
    • Modify the Definitions of RGT to Differentiate Your Investment Planning
    • Drive Competitive Differentiation by Adopting Other Portfolio Categorizations to Supplement RGT
    • Communicate Different RGT Figures for Different Business Unit or Business Capability Segments
    • Beware of Miscategorization or Gaming of IT Spending or Investments Using RGT
    • Show the Business Value of Run IT Spending by Benchmarking or Dividing It By Universal Business Outcomes
    • Use RGT Categories to Prioritize Business Capabilities During the Strategic Planning Process
  • Case Study
  • Gartner Recommended Reading
© 2016 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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