Ventana Research's New Research Study Shows CIOs Are Sitting on a Gold Mine

SAN MATEO, Calif.—(BUSINESS WIRE)—September 11, 2006—A just-released research study – Unlocking the Value of IT - from Ventana Research confirms rigorous management of IT operations leads to more effective IT spending and revealed that companies that take this approach also have had the fastest growth in IT budgets over the past three years. Moreover, CIOs in companies with more effective spending practices also had greater influence in setting IT budgets than those that did not. 

Almost all large companies have implemented more stringent IT governance practices over the past five years, but their focus has been on hardware and software purchases, not operations. Ventana Research found that consistent use of disciplines such as IT portfolio management, asset management and having spending visibility are critical to getting the most bang for the buck.

“Too often, companies focus almost exclusively on their IT capital budget and do not pay enough attention to management practices that we believe would enable many of them to save at least 5 percent of what they are spending on day-to-day activities, support and maintenance contracts and so on,” observed Robert Kugel, who directs Ventana Research’s Financial Performance Management practice. “CIOs that employ these sorts of best practices are rewarded with faster growing budgets and greater control of them.”

Companies that manage IT operations effectively have detailed visibility into their spending and use objective data consistently report more effective use of their IT budgets:

• Companies with real-time visibility into projects and performance metrics rated their IT spending effectiveness 64% higher than those that did not.
• Companies with a formal application review process rated their spending effectiveness 22% higher than those that do this on an ad hoc basis.

Ventana Research, the leading provider of Performance Management research and advisory services, will expand on the key findings of the research study Unlocking Value from IT at a live interactive webinar on September 21, 2006 at 9am PDT.

Sign up for the webinar at www.ventanaresearch.com.

The research, sponsored by technology providers Planview and Business Objects, investigated how companies can increase the value of their investments in information technology.  The findings are based on an analysis of 311 validated respondents.  The survey was conducted with the assistance of media partners that included CMP’s Intelligent Enterprise, GDS International’s CXO Magazine and Business Management US, IT BusinessEdge, Montgomery Research’s CFO Project, Penton Media’s Business Finance, SoftwareMag.com and TechTarget’s SearchCIO.com.

Among the key research findings, Ventana Research found:

• The Pay Off:  IT departments and the CIOs that lead them are rewarded for using corporate resources wisely. Companies that spend their IT budget more effectively reported faster budget growth over the past three years than those that did not. CIOs in companies that spend their IT budget effectively have much greater influence on setting the IT budget than those that do not.  
• The Key to Effective Spending:  Companies with well-defined processes and fact-based metrics consistently reported a higher level of IT spending effectiveness than those with less well-defined processes.
• The Difference Between Good and Great:  IT managers think they are doing the right things but the study revealed there was a wide gulf between their perceptions of their processes and the details of how they actually worked. CIOs must ensure all of the right processes are in place and that people are accountable for their performance.
• Make IT Governance Operational:  This research confirms the commonsense assertion that companies that are able to track their IT costs very accurately spend their budgets more effectively - sometimes far more effectively - than those that cannot.

About Ventana Research

Ventana Research is the leading Performance Management research and advisory services firm.  By providing expert insight and detailed guidance, Ventana Research helps clients operate their companies more efficiently and effectively. These business improvements are delivered through a top-down approach that connects people, process, information and technology.  What makes Ventana Research different from other analyst firms is a focus on Performance Management for finance, operations and IT. This focus, plus research as a foundation and reach into a community of over two million corporate executives through extensive media partnerships, allows Ventana Research to deliver a high-value, low-risk method for achieving optimal business performance.  To learn how Ventana Research Performance Management workshops, assessments and advisory services can impact your bottom line, visit www.ventanaresearch.com.

Media Contact: Marisela Reynoso  

(925) 242-2579 marketing@ventanaresearch.com

© 2006 Ventana Research