Constraint Management & IT - 21 What about I.T. budgets?


What about I.T. budgets?

Historically, enterprise constraints have been in production, distribution, engineering, or sales of goods or services. However, as enterprises have accumulated excess capacity, enterprise constraints have migrated to other business functions, including information technology.


For instance, when products or services contain embedded IT, such as the Internet of Things does, the processes monitored and controlled by IoT won't work if it's late or deficient. Likewise, when products or services depend on external IT, such as for configuration and ordering, those products and services cannot generate revenue if the enabling IT is missing or unreliable. In evolving markets, IT projects may dictate when new products or services can be delivered.


Thus, IT budgets are getting different scrutiny nowadays. Constraint management offers these solutions when IT is the enterprise constraint:

  1. Prioritize IT that generates revenue rather than reduces expenses.

  2. Use proofs of concept to evaluate the potential for revenue-generating IT with minimal investment.

  3. Ensure that the IT budget has appropriate investment across all strategic horizons: H1 the current business, H2 the growth phase, and H3 seeds of future business.

  4. Manage technical debt so legacy systems do not become the constraint.

  5. Recognize that some IT investment is mandatory despite generating no revenue (ex: tax reporting).


More applications of constraint management for IT are covered in "Exceeding the Goal."






To enhance your expertise, Marris Consulting organizes training sessions on Theory Of Constraints applied to production and projects environments



Marris Consulting, expert in Theory of Constraints & Critical Chain Project Management


Marris Consulting is an expert in the Theory of Constraints (ToC) and Critical Chain Project Management (CCPM). As industry consultants, we are focused on helping process and manufacturing industries reach their highest levels of performance by using Constraints Management  combined with Lean and Six Sigma. We also use Critical Chain Project Management which we sometimes combine with Lean engineering to improve project performance. If you are unsure about the actions which need to be implemented to improve operational efficiency, our industrial management consultants can also conduct a performance audit. Furthermore, our experts host numerous Theory of Constraints (ToC), lean and project management training sessions throughout the year.

About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean, ToC & CCPM training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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