Conclusion: The perceived relevance of information technology varies greatly, depending on who is being asked. In software intensive industries, the overall IT budget consumes between 10–20% of the overall operating expenses. In software product development organisations the number is close to 100%. When defining the business strategy, it is easy to focus on costs and to underestimate lost opportunity costs and business risks. The biggest impact of IT budget cuts is on the resulting increase in operational risks, and conversely, the biggest potential for gaining value out of IT investments lies in the area of operational risk reduction.

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Jorn Bettin

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Jorn Bettin