Gartner Research

Calculating the IT-Contributed Cost of Doing Business

Published: 01 July 2013

ID: G00245884

Analyst(s): Darryl Carlton

Summary

The value of IT operations and infrastructure is defined in terms of "price for performance." CIOs need to calculate the price their organizations pay for IT and understand how a new approach to IT budgeting — one that focuses on the IT cost per unit of work — can be beneficial.

Table Of Contents
  • Key Challenges

Introduction

  • How Much Should We Spend on IT?

Analysis

  • Map Applications to an Agreed-Upon Business Process Model
  • Develop a Model of the Business Capabilities Being Used to Deliver Business Value
  • Capture the TCO for Applications That Support Infrastructure and IT Personnel
  • Divide the TCO for the Set of Applications That Enables a Business Process by the Total Number of Transactions Supported to Determine the IT-Contributed Cost of Doing Business

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