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Article #489Re: IT costs as a percent of total budget
From: Russell A. Pflughaupt
Date: Wed, 08 Jan 1992 17:47
Date: Wed, 08 Jan 1992 17:47
45 lines
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2919 bytes
This is some mail I received from you addressed to Dick Peters. I think the problem is that Berkeley is changing the way mail is received (my login is rap@miro.berkeley.edu I appear to also be receiving mail from rap@ucbvax.berkeley.edu). > From @cmsa.berkeley.edu:BILLING@HEARN.Berkeley.EDU Wed Jan 8 08:32:31 1992 > Date: Wed, 8 Jan 92 11:25:00 EST > Reply-To: "Chargeback of (computer) resources" <BILLING%HEARN.BITNET@cmsa.berkeley.edu> > Sender: "Chargeback of (computer) resources" <BILLING%HEARN.BITNET@cmsa.berkeley.edu> > From: Sam Fairchild <SAMF%OHSTMVSA.BITNET@cmsa.berkeley.edu> > Subject: Re: IT costs as a percent of total budget > To: Dick Peters <rap@ucbvax.berkeley.edu> > Content-Length: 1435 > > > I think Information Technology cost as a fixed percentage of total > budget is a fallacious assumption. > Todays IT costs permeate budgets at all levels, so it's hard to measure. > It can work as a guideline on costs and profit estimates. > It is a leadership decision whether your investment in IT will guide > you toward your goals. > If it is used as absolute law, you will pay the difference in human > terms as you burn out your valuable staff. (But then if you need some > turnover...) > You might pick a percentage on a year-to-year basis, revising the > percentage figure as needs dictate. One the other hand you could fund > IT investments on a project-by-project basis (using the percentage as > curiosity figure). The bottom line is performance, no matter which > accounting practice you choose. > > Here is an example: The Limited Inc. (seven years ago) had a law that > total IT costs could not exceed 2.0 percent of gross sales. That was > just before they brought personal computers into their offices > worldwide -- so I think things have changed somewhat since. > Three things have not changed, according to my contacts: > Personnel policies still encourage employees "to stretch" to meet > assigned goals. Some folks still burn out in the various divisions > of the company. The Limited Inc and its divisions still market the > best clothing styles, so my common stock has done well. :-) > BTW I don't work there anymore. > Sam Fairchild > ============= >
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: ffa18,7d51efba3dbf6090 X-Google-Attributes: gidffa18,public X-Google-ArrivalTime: 1992-01-08 09:59:24 PST Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU Path: arc1-ca.pugleaf.net!sparky!uunet!paladin.american.edu!auvm!MIRO.BERKELEY.EDU!RAP Message-ID: <9201081747.AA04462@miro.Berkeley.EDU> Newsgroups: bit.listserv.billing Date: Wed, 8 Jan 92 09:47:28 PST Sender: "Chargeback of (computer) resources" <BILLING@HEARN> From: "Russell A. Pflughaupt" <rap@MIRO.BERKELEY.EDU> Subject: Re: IT costs as a percent of total budget Comments: To: BILLING%HEARN.BITNET@cmsa.berkeley.edu