A Practical Approach for IT Governance

Are you old-school CIO?

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Those of you like me who have been in IT for three decades know cycles by now.  We have gone through the centralized IT to decentralized IT and back to centralized IT cycles more than once.  We broke up corporate IT to divisional IT only to reintroduce shared services.  Remember the days of timeshare:  What does it remind you of? The New IT Architecture is really the Old IT Architecture.  If the differences are only in nomenclature, are there really any advances?  Clearly, the new IT Architecture is more user friendly, faster, cheaper, needs more configuration, less customization, and less resources to support technology.  These changes are great but what matters most is that the business model has changed – we are all switching to the pay as you go service versus the days of huge maintenance and upkeep.  While the changes have taken effect, many CIOs, particulalry those in the Fortune 1000, still manage IT with the old business models.  Shown below is a a good litmus test to see if you are old school CIO or not:

  1. If you are spending less than 30% of your IT budget on projects that bring innovation and increased value to the enterprise, you are old school.  Note:  If you are spending more than 50% on innovation, you are worthy of admiration.
  2. If you are spending more than 50% of the product costs in modifying it to meet your business needs, you are old school.
  3. if you are spending more than 25% of your IT costs on infrastructure (data center, network, voice/multimedia and user devices), you are old school.
  4. If you are spending more than 20% of the IT budget on software license costs, you are old school.
  5. If you are spending more than 10% of the IT budget in managing the business of IT (including your PMO, service desk, tools, dashboards),  you are old school.

If you are old school, I am not asking you to jump in the lake (your CEO might be).  I am just asking you to look within and make the changes needed.  Think of your enterprise-not technology.  You will emerge from the old school to becoming the CIO who will benefit your enterprise.

Written by Subbu Murthy

July 17, 2012 at 4:12 pm

Posted in IT Governance

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