Published on November 26, 2008
Case Study: Strategic Alignment and Cost Transparency November 20, 2008 Krischa Winright, AVP, Information Technology Priority Health
Number of FTEs (% outsourcing varies widely) Overall IT spend (varies widely by industry, growth phase) IT spending on ongoing operations and maintenance relative to total expenses
Number of FTEs (% outsourcing varies widely)
Overall IT spend (varies widely by industry, growth phase)
IT spending on ongoing operations and maintenance relative to total expenses
IT budget has two components: Innovation Capacity and IT “M.O.O.S.E.” 65% 35% Spending on new initiatives Spending to M aintain and O perate IT O rganization, S ystems and E quipment
Decrease Core (MOOSE) as a % of overall spend Maintain service levels (don’t grossly exceed) Bend cost curve of Core Increase ability to contribute to Discretionary/New (enterprise competitive position)
Decrease Core (MOOSE) as a % of overall spend
Maintain service levels (don’t grossly exceed)
Bend cost curve of Core
Increase ability to contribute to Discretionary/New (enterprise competitive position)
IT PLAN FOR WORK QUEUES
IT Expense & Capital
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