Gartner Research

The Gartner Cost Value Matrix: Insights From the First 1,500-Plus Assessments

Published: 21 March 2016

ID: G00273942

Analyst(s): Sanil Solanki

Summary

The Gartner cost value matrix was introduced in 2014 as a tool for understanding the correlation between IT spending and business value metrics. Since then, Gartner has undertaken more than 1,500 assessments using the cost value matrix. Here we reveal the insights gleaned from these assessments.

Table Of Contents

Analysis

  • The Quadrants Explained
    • Cost-Inefficient (Renamed From "Low Cost, Low Value"; Value Score Less Than 1, Cost Score Less Than 1)
    • Revenue-Efficient (Value Score More Than 1, Cost Score Less Than 1)
    • Value for Money (Value Score More Than 1, Cost Score More Than 1)
    • Cost-Efficient (Value Score Less Than 1, Cost Score More Than 1)
  • Overall Figures — The Full List of Averages for 2015 Data
    • Average IT Spending as a Percentage of Revenue for Organizations in the "Value for Money" Quadrant Is 1.9% (vs. the 3.4% Overall Average of Companies Assessed)
  • Percentage of Organizations in Each Quadrant
    • Cost-Inefficient
    • Value for Money
  • Overall Move From Single Metric Measure to Using the Gartner Cost Value Matrix

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.