“The survey showed that CIO IT budgets have been flat to negative ever since the dot-com bust of 2002. For 2013, CIO IT budgets are projected to be slightly down, with a weighted global average decline of 0.5%.”
The survey clearly shows that projections of huge IT spend increases are fanciful. CIOs are not only being asked to do more with less but are also being asked to help innovate and expand with less. New investments will need to show a clear ROIC if they are to be approved.
Ideas for innovative technological support to the business will not be the problem. CIOs will need create new ways of measuring the value they deliver to the business. In developing business cases for MIS they will need to move away from NPV analysis and start to measure the net increases in managerial decision making and knowledge capital. It is only then that IT departments can start to pull through emerging technology quickly to create corporate value faster.