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Bus2.0 - budgeting

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Bus2.0 - budgeting

  1. 1. Business 2.0 Business and IT fusion <br />Lecture 6: Budgeting & Measurement<br />Dr Raymond Young (MBA, GAICD) <br />Raymond.young@canberra.edu.au<br />
  2. 2. Budgeting for IT<br />CIO wisdom (2004) p323<br />
  3. 3. Major Assignment<br />Implementation of an IT Capital Planning and investment management process <br />Best strategy to infuse technologies into organisations <br />Stakeholder analysis<br />Collaboration / influence strategy<br />Change leadership<br />Governance<br />Metrics – to measure usefulness of technologies<br />Strategy to balance portfolio of projects<br />Governance structures<br />
  4. 4. A Simplified Budget Generation ProcessCIO wisdom (2004) p326<br />Rogue IT & internet support?<br />Research, interviews, planning<br />Prioritise and classify investment proposals<br />OPEX<br />staff<br />HW<br />SW<br />Svc<br />Misc<br />Compare to previous budget<br />Executive Review<br />Authorise projects<br />Significant deviations<br />Document or rework<br />Budget Qtr spending<br />Calc. impact on annual budge (depn, maint, leases, svcs)<br />Insert new invest. impact (30-35%)<br />Compile total budget and headcount<br />Generate metrics<br />IT/Revenue, $/call, etc<br />Create summary presentation<br />
  5. 5. Typical Classification Category (ISACA)<br /><ul><li>Redundancy
  6. 6. End of life replacement
  7. 7. DR & BCP
  8. 8. Backup
  9. 9. Security & Network tools
  10. 10. Tech conversion
  11. 11. Asset management</li></li></ul><li>Metrics I – managing the budgetCIO wisdom (2004) p327 <br />
  12. 12. Developing KPIsCIO Wisdom (2004) p364, Smith (2006) p196<br />Express Budget in terms of business & strategic needs<br />Tie spending to a business owner<br />Come with multiple options and a recommendation<br />% of budget<br />Operational and fixed spending<br />Strategic investments<br />Link Financial and Operational measures<br />
  13. 13. Monitoring in Bhutan<br />
  14. 14. Metrics IICIO wisdom (2004) p323-324 <br />
  15. 15. Major Assignment<br />Implementation of an IT Capital Planning and investment management process <br />Best strategy to infuse technologies into organisations <br />Stakeholder analysis<br />Collaboration / influence strategy<br />Change leadership<br />Governance<br />Metrics – to measure usefulness of technologies<br />Strategy to balance portfolio of projects<br />Governance structures<br />
  16. 16. Questions & Discussion<br />

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