Commentary

By Bruce Ballengee and Susan Paul

How well does your organization communicate across functions and between levels regarding technology priorities? In most organizations, communication is lacking. 

 
Goals are communicated at a high level, but how they are applied is spotty. This leads to organizations spending more on their IT operational and maintenance budgets than desiredComputer Economics reports that the average company in 2011 spent 75 percent of its IT budget on ongoing expenses and only 25 percent on new initiatives and research and development. (See Fig. 1.) Some organizations are able to reduce their ongoing spend to 50 percent, freeing money for strategic technology investments. Generally, governance processes manage large dollar spending, but companies are less disciplined regarding ongoing IT spend, which is where leakage occurs and good communication can mitigate the loss.

Read more to learn how Business leaders better direct their technology spend by empowering teams to manage their priorities, featured in Software Magazine