Gartner Research

How CIOs Build an Integrated Portfolio View to Prioritize the Value of IT Spending

Published: 10 October 2017

ID: G00328971

Analyst(s): Michael Smith, Stewart Buchanan

Summary

CIOs often ask for a single view of IT spending in response to senior executive, business or investor demand. Not a trivial exercise, this research explores how CIOs and their staff reconcile all technology expenditures into one coherent strategic report to optimize cost, risk and business value.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Build on Existing Portfolio Views to Maximize the Business Return on All Digital Technology Spending While Managing Its Risks
    • Start With Project Management Processes
    • Start With All Sources of Budgetary Data
    • Categorize Spending
  • Build From the Foundation Up by Including all Current Cost Commitments and Supporting Data to Align Total Expenditure (Totex) With Business Value and Eliminate Overspending
    • Normalize the Data for Consistency
    • Classify the Data by Business Priority
    • Quantify Value and Risk
  • Include all Strategic Options Being Discussed by Analyzing Where and How They Fit Into the Overall Portfolio to Deliver Timely Decision Support on Digital Technology Opportunities
    • Begin Strategies Within the Portfolio
    • Optimize Business Value
    • Modernize Outdated IT Financial Management
    • Continually Optimize Spending Against Budget
    • Work Within the Business Portfolio
    • Review Technology Governance

Case Studies

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.