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Business funds enterprise IT projects

More than 60 per cent of enterprise technology projects are funded by business rather than IT, according to IDC research.

The survey of 1,200 line of business executives revealed that IT spending driven by the functional business areas will continue to outpace IT spending by the IT organisation in the future.

Marketing takes the top position with five year CAGR standing at more than nine per cent, according to The Implication of Shifting Technology Buying Centers on Your Business.

The link between technology and business results has never been greater and is shifting the buying centre away from IT and towards the business

Eileen Smith, IDC
This is backed up by findings from Gartner Research VP Laura McLellan, which state that by 2017, the CMO will spend more on IT than the CIO and that nearly one-third of marketing-related technology and services is bought by marketing already.

Meanwhile, Bruno Di Leo, senior vice president of sales and distribution at IBM, said at the company’s annual conference that in 2012 the CMO was responsible for deciding on US$38 billion of IT investments and in a few years they will be responsible for US$80 billion in IT spending.

"The link between technology and business results has never been greater and is shifting the buying centre away from IT and towards the business,” commented Eileen Smith, programme manager of IDC's Global Technology and Industry Research Organisation. “Navigating these waters requires a change in your go to market approach focusing now on understanding the unique pain points and investment priorities across the various business functions."

“As today’s business executives are more tech savvy, have easier access to technology through the cloud, and are under pressure to implement new technology initiatives more quickly, it’s not surprising that line of business executives are spearheading more IT projects,” said Meredith Whalen, IDC senior vice president. “In fact, today’s line of business employees are looking more and more like an extension of the IT department as, on average, eight per cent are technical personnel.

“The survey also found that IT continues to be a strong partner to its business colleagues. According to respondents, 85 per cent suggest that ‘compared to three years ago, IT is becoming a more valuable partner to my functional area’.”

IDC some tips to help IT improve its relationship with business to successfully execute and implement innovative IT projects:

  • Learn the business and unique business processes
  • Bring new process ideas on how to run more efficiently
  • Build relationships with key stakeholders in the group
  • Bring new technology ideas that could positively impact the business.

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