Can IT deliver value? If IT can position as a strategic partner and communicate the value (economics) to the greater business units, then IT can be seen as an innovator, and enabler of value.

It must be seen as a two sided horse, Business/IT alignment, both business units and IT units must commit to this alignment process.

IT TRENDS CONFIRM LACK OF CAPACITY TO INNOVATE

IT is not effective enough at deploying resources. Most IT organizations admit that: they still offer one-size-fits-all services to the business; they do not charge back their services; and they have no mechanism to slow demand other than drawing a line at the capacity limit.

IT is losing its capacity to innovate because of its maintenance burden. Forrester?s most recent spending survey of 400 IT decision-makers revealed a disheartening change: The average percent of budget allocated to maintenance and operations is now 80%, up from 76% in 2005.

Shrinking" innovative capacity

IT experiences "shrinking" in its innovative capacity, the portion of the budget available to do new work.

IT lifecycle role, moves through the enabling of growth, improving of business margins and finally to reduce fixed and variable costs.

Should the IT Lifecycle simply stop here? Can IT react?

IT must align with the business and establish the core objective of delivering, communicating and measuring the value of IT services to the business units. If the Business only recognizes "half the picture" of IT Governance (Control and expenditure), and not the value enabling delivery of efficiencies to the business, IT will remain in the last part of the curve, shrinking budgets, additional demand and loss of recognition as a strategic value enabler to the business.