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IT Spending

The “new normal” requires further IT spending cuts despite economic recovery

In previous articles, The IT Value Challenge discussed protecting IT budgets by reallocating non-value creating IT spend to efforts creating tangible business value and maximizing available IT funding by recapturing a portion of non-value creating IT spend. Even when those two approaches are implemented successfully, the “new normal” may drive still more demands to reduce IT spending.  Failing to respond to such demands strategically — even when the mandate itself is arbitrary — can put the funding for critical IT services and initiatives not recognized for creating business value at risk.  Fortunately, many IT departments will have yet-untapped non value-creating IT spending that can be eliminated. (more…)

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A CFO Speaks: Three Mistakes to Avoid When Pitching IT Spending

In a new article on CIOUpdate, Logicalis CFO Greg Baker shares three critical failings he often has encountered in a population of hundreds of IT spending requests.  Two of these, warnings about unexplained jargon and incomplete paperwork are valid points that hopefully most executives will already have learned to avoid.  The third of his points, however, is highly valid and reflects an unfortunately common occurence:

The most common mistake is when IT concentrates too much on how a project solves technical issues―things like bandwidth constraints or deployment requirements―but then fails to talk about payback; how the project can improve sales or reduce costs. (more…)

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Recapture IT spend to increase available IT funding

In a previous article, The IT Value Challenge discussed protecting IT budgets by reallocating non-value creating IT spend to efforts creating tangible business value. While that approach can protect or even expand IT budgets, it may not be enough.  A second approach — recapturing non-value creating IT spend — can also be applied to preserve funding for critical IT services and initiatives that cannot be tied directly to business value. (more…)

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Don’t let technology vendors get the upper hand

The IT Value Challenge’s author advises CIOUpdate.Com readers about some of the common challenges to keeping negotiations with technology vendors focused on maximizing the buyer’s benefit from the proposed contract and provides practical, actionable advice on how to manage the negotiation process to that end in this article by prolific IT writer Jeff Vance.

Click here to read the article or visit CIOUpdate.com.

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Protect IT budgets by reallocating non value-creating IT spending

Recent efforts by companies to minimize IT budgets are widely expected to become part of the “new normal.” One way IT executives can safeguard their IT budgets and preserve funding for critical initiatives is to reallocate non value-creating IT spending to efforts that create direct and measurable business value. In this environment, creative approaches are required to ensure availability of funding for critical IT services and initiatives.

(more…)

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