Method for benchmarking of information technology spending
OwnerHoward A. Rubininventor
Life of this patent
Estimating the term…
Abstract
IT spending by a subject entity is assessed against an industry-wide optimal value of an IT benchmark and a result of that assessment displayed. Importantly, the IT benchmark developed by the present inventor accounts for the subject entity's IT spending as a percentage of the entity's revenue and the entity's IT spending as a percentage of the entity's operating expenses. For the industry as a whole, the optimal value of the IT benchmark is determined on the basis of profitability measures for individual companies within the industry. This process may be performed as part of a larger analysis concerning the subject entity's operations to provide an overall assessment of the entity's financial performance, health, etc.
Claims14
A process for evaluating sufficiency of spending on information technology (IT) resources by a target company, the process comprising:
- determining, for a subject industry, as represented by a set of selected companies within the industry, an optimal value of an IT metric, the optimal value of the IT metric determined by a maximum value of a profitability metric for the selected companies;
- comparing a value of the IT metric computed for the target company with the optimal value of the IT metric for the subject industry;
- and based on a result of the comparison, determining whether the target company is spending too much or too little on IT resources and providing an output of that determination, wherein for a subject entity the IT metric is computed based on the subject entity's IT spending as a percentage of the subject entity's revenue and the subject entity's IT spending as a percentage of the subject entity's operating expenses.
A computer-readable medium having stored thereon computer-readable instruction, which instructions when executed by a computer processor cause the processor to perform steps, comprising:
- determining, for a subject industry, as represented by a set of selected companies within the industry, an optimal value of an information technology (IT) metric, the optimal value of the IT metric determined by a maximum value of a profitability metric for the selected companies;
- comparing a value of the IT metric computed for a target company with the optimal value of the IT metric for the subject industry;
- and based on a result of the comparison, determining whether the target company is spending too much or too little on IT resources and displaying an output of that determination, wherein for a subject entity the IT metric is computed based on the subject entity's IT spending as a percentage of the subject entity's revenue and the subject entity's IT spending as a percentage of the subject entity's operating expenses.
A method for assessing spending by a subject company on information technology (IT) resources, comprising determining whether a value of an IT benchmark for the subject company is greater than or less than a value of the IT benchmark for an industry in which the subject company operates and displaying a result of the determination, wherein for a subject entity, the IT benchmark is computed based on the entity's IT spending as a percentage of the entity's revenue and the entity's IT spending as a percentage of the entity's operating expenses.
Dependencies are inferred from the claim text.