Info-Tech Research Group's latest findings highlight the
pressing need for refined IT financial management in today's
digital-first landscape. As organizations navigate through periods
of potential economic uncertainty, precise budgeting and spending
have become paramount. The firm's newly published blueprint offers
crucial insights and strategies to enhance financial clarity,
optimize resource allocation, and align IT expenditure with
strategic business goals.
TORONTO, May 2, 2024
/CNW/ - As digital-first strategies have become increasingly
essential for organizations to compete, an emphasis on refined IT
financial management has also become vital. Precise IT budgeting
and spending are critical in the current economy, especially in
periods of market uncertainty and fluctuation. Info-Tech Research
Group's latest research, Develop a Fit-for-Purpose IT
Financial Taxonomy, offers IT leaders practical tools to enhance
financial clarity, optimize resource allocation, and align IT
expenditure with strategic business goals. This blueprint outlines
a structured approach to categorizing IT expenditures that supports
strategic business objectives, enabling enhanced financial
management and insightful decision-making in today's digital
economy.
"If IT needs to defend IT expenditures, forecast
future costs, demonstrate value, and have any credibility
with the CFO and other senior managers, it must not only
understand the finances but also have the right tools to
analyze, report on, and explain those finances,"
says Jennifer Perrier,
principal research director at Info-Tech Research Group.
"This starts with having access to good quality and
usable data and information about technology costs and
expenditures and, most importantly, knowing what that data
actually means."
Info-Tech's latest research identifies three main issues
contributing to inadequate IT financial data:
- Poor data reliability
- Poor data usability
- Poor data availability
"These three data problems are the root cause of many IT
financial management woes," explains Perrier. "Discovering
exactly what data is present and classifying it in a way that
provides context, enables financial analysis, and supports
effective communication are the critical first steps in improving
IT financial data quality and IT financial management capability
overall."
Communication challenges are further complicated by a
fundamental misunderstanding between IT and finance departments,
creating barriers that can hinder the effective management of
shared financial data. To bridge this gap, the firm advises that
leaders establish an IT cost taxonomy as an initial step. This
taxonomy will classify IT's financial data, enhancing the
department's ability to meet financial responsibilities and build
trust in decisions based on that data.
In the blueprint, Info-Tech explains that the primary purpose of
a taxonomy is to organize information by describing and
representing it in a way that simplifies retrieval, understanding,
and interpretation. However, implementing a new IT cost taxonomy
should be approached with care, thought, and diligence to ensure
that it is effective and yields the intended benefits over the long
term.
Info-Tech recommends leaders take the following three steps to
refine IT financial data and improve overall IT financial
management (ITFM) capabilities through a robust cost taxonomy:
- Understand what IT financial data is, where it
originates, and where it lives in an organization.
- Develop a meaningful taxonomy for classifying and
organizing IT financial data.
- Implement a meaningful taxonomy as part of the
overall IT financial management program.
An established IT cost taxonomy is the cornerstone of successful
communication between IT and business units, as it creates a shared
vocabulary that can be leveraged and understood in every
interaction within the organization. Info-Tech emphasizes the
importance of developing and implementing a practical IT cost
taxonomy, recognizing it as a vital step toward strategic
alignment, operational efficiency, better decision-making, and
financial transparency. Organizations are advised to prioritize
this integration to maximize the benefits of their IT and business
collaboration.
For exclusive and timely commentary from Jennifer Perrier, an expert in IT financial
management, and access to the complete Develop a Fit-for-Purpose
IT Financial Taxonomy blueprint, please contact
pr@infotech.com.
Info-Tech LIVE 2024
Registration is now open for Info-Tech Research Group's annual
IT conference, Info-Tech LIVE 2024, taking place September 17 to 19, 2024, at the iconic Bellagio
in Las Vegas. This premier event
offers journalists, podcasters, and media influencers access to
exclusive content, the latest IT research and trends, and the
opportunity to interview industry experts, analysts, and speakers.
To apply for media passes to attend the event or gain access to
research and expert insights on trending topics, please contact
pr@infotech.com.
About Info-Tech Research
Group
Info-Tech Research Group is one of the world's leading
research and advisory firms, proudly serving over 30,000 IT and HR
professionals. The company produces unbiased, highly relevant
research and provides advisory services to help leaders make
strategic, timely, and well-informed decisions. For nearly 30
years, Info-Tech has partnered closely with teams to provide them
with everything they need, from actionable tools to analyst
guidance, ensuring they deliver measurable results for their
organizations.
To learn more about Info-Tech's divisions, visit McLean &
Company for HR research and advisory
services and SoftwareReviews for software buying
insights.
Media professionals can register for unrestricted access to
research across IT, HR, and software and hundreds of industry
analysts through the firm's Media Insiders program. To gain access,
contact pr@infotech.com.
For information about Info-Tech Research Group or to access the
latest research, visit infotech.com and connect via
LinkedIn and X.
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SOURCE Info-Tech Research Group