Centralised IT remains favoured local model

Removing duplication in IT management is a major priority for businesses in our region, analyst firm Forrester says

New Zealand and Australian companies clearly favour a centralised IT management structure but could be lagging US and European organisations in eliminating competing centres of IT management.

According to a report released this month by Forrester Research, 57% of Australasian organisations prefer a centralised approach to IT management compared with 72% in the US and 70% in Europe. A further 39% of ANZ organisations prefer a mix of centralised and decentralised IT responsibility.

However, centralised or not, it is clear the business is now intimately involved in both setting IT budgets and guiding IT investment. In that regard, Australian and New Zealand organisations are outpacing others in the Asia-Pacific region, with 44% of organisations surveyed by Forrester Research reporting lines of business were “very involved” in setting the organisation’s 2006 IT budget and deciding what to fund.

A whopping 91% of ANZ organisations reported they had a committee of senior business leaders to oversee IT investment, compared with just 56% in the Asia-Pacific region as a whole. Further, 60% of the ANZ organisations surveyed indicate organising IT around company-wide business processes is either a top priority or a major investment.

This tight focus on aligning IT with the business, however, does not drown out other management objectives. Investing to improve IT’s contribution to business innovation is a top priority or a major investment for 59% of the organisations surveyed.

These two major areas of focus appear to have driven other activities down the IT management agenda. For instance, marketing the value of IT is only a major area of focus or top priority for 28% of organisations, project management certification for staff 30%, and the adoption of portfolio management 33%.

Similarly, ITIL (IT Infrastructure Library) has eclipsed other IT management programmes, with 47% of the respondents rating it a major investment or top priority investment. In comparison, programmes such as the implementation of COBIT, ISO 9000 and Six Sigma appear to be struggling for traction.

The Forrester Research Technographics Study surveyed 719 Asia-Pacific enterprises, 150 of these from ANZ. Twenty of these were from New Zealand.

New Zealand and Australian companies clearly favour a centralised IT management structure but could be lagging US and European organisations in eliminating competing centres of IT management.

According to a report released this month by Forrester Research, 57% of Australasian organisations prefer a centralised approach to IT management compared with 72% in the US and 70% in Europe. A further 39% of ANZ organisations prefer a mix of centralised and decentralised IT responsibility.

However, centralised or not, it is clear the business is now intimately involved in both setting IT budgets and guiding IT investment. In that regard, Australian and New Zealand organisations are outpacing others in the Asia-Pacific region, with 44% of organisations surveyed by Forrester Research reporting lines of business were “very involved” in setting the organisation’s 2006 IT budget and deciding what to fund.

A whopping 91% of ANZ organisations reported they had a committee of senior business leaders to oversee IT investment, compared with just 56% in the Asia-Pacific region as a whole. Further, 60% of the ANZ organisations surveyed indicate organising IT around company-wide business processes is either a top priority or a major investment.

This tight focus on aligning IT with the business, however, does not drown out other management objectives. Investing to improve IT’s contribution to business innovation is a top priority or a major investment for 59% of the organisations surveyed.

These two major areas of focus appear to have driven other activities down the IT management agenda. For instance, marketing the value of IT is only a major area of focus or top priority for 28% of organisations, project management certification for staff 30%, and the adoption of portfolio management 33%.

Similarly, ITIL (IT Infrastructure Library) has eclipsed other IT management programmes, with 47% of the respondents rating it a major investment or top priority investment. In comparison, programmes such as the implementation of COBIT, ISO 9000 and Six Sigma appear to be struggling for traction.

The Forrester Research Technographics Study surveyed 719 Asia-Pacific enterprises, 150 of these from ANZ. Twenty of these were from New Zealand.

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Tags managementaustralia-new zealandcentralised it

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