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Companies with $30-$100 million revenue

By Adrian Smith ·
Most articles and surveys are done with large, multi-billion dollar companies in mind. What about small to mid-size companies: $30-$100 million in revenue?
What should our IT budgets be?
How many IT staff should we have?
Do we need a CIO? If not where do we get our direction from?

What do you think?

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It depends

by James R Linn In reply to Companies with $30-$100 m ...

on a number of factors.

What should your budget be? That depends on the type of business you are in - some industries need more IT than others. We often do benchmarks based on IT budget as a percentage of revenue. Conceputually smaller companies should be less able to take advantage of economies of scale and should cost less, but reality tells me that smaller comanies are also more agile and able to move quicker on things, including money saving initiatives.

Staffing is a similar discussion - but there are other factors other than size. Geography for example plays a big part. For example, we have two sites with roughly the same number of people, but one has 5 large offices over 5 acres, the other has a campus of about 50 buildings spread out over 20 acres. The second site requires more desktop staff, more networking equipment etc.

Should you have a CIO? If IT is strategic to the success of your company, you should have a CIO. If you don't you should get connected with whoeveris responsible for corporate planning and connect with them. ITs job in most companies is to support corporate objectives, not do things on its own. But IT needs long lead times sometimes, and thats where a corporate planning group can be helpful.
James

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I agree- but...

by Adrian Smith In reply to It depends

You're right there are many factors that affect the answers to these questions. Each individual company needs to look at its own needs and business objectives and work to tie IT into those objectives...but..
Often these mid size companies have no resources to compare themselves to. Also, there is no strategic planning at all - the goal is the standard small business mentality - "produce more" "sell more" thus "make more money". Without some sort of basic industry guidlines and comparisons many of these companies will wander around in circles squandering their IT investment.

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That's easy to answer.

by UrNOTready In reply to Companies with $30-$100 m ...

Just as easy to answer is this question...

Q:How much does a red car cost?

A:it depends doesn't it?

There is no cookie cutter answer, sorry to disappoint you. There are MANY variables that have to be figured into the equation to get the correct answer.

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missing the point

by Adrian Smith In reply to That's easy to answer.

My point to the question/statement was to bring light to the fact that there isn't a lot of converstaion or stats on this size company (in terms of IT). I agree that there are numerous variables - but when I read magazines like CIO - I get lots of great ideas but unfortuneately not many of them are easily scalable to the 30-100 mil company. I was hoping to get feedback from other IT people in these size of companies and see what there ideas were.

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