Gartner Research

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

Published: 27 June 2016

ID: G00308477

Analyst(s): Ken McGee , Sanil Solanki , Kurt Potter

Summary

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
  • Key Challenges

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

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