The document discusses IT budgeting and measurement. It outlines a simplified budget generation process that involves prioritizing investment proposals, comparing to previous budgets, and generating metrics. Typical budget classification categories include redundancy, security, and asset management. Developing key performance indicators involves expressing the budget in business terms, tying spending to owners, and linking financial and operational measures. The major assignment is to implement an IT capital planning process that balances project portfolios and establishes governance structures, with metrics to measure technology usefulness.

1. Business 2.0 Business and IT fusion Lecture 6: Budgeting & MeasurementDr Raymond Young (MBA, GAICD) Raymond.young@canberra.edu.au

2. Budgeting for ITCIO wisdom (2004) p323

3. Major AssignmentImplementation of an IT Capital Planning and investment management process Best strategy to infuse technologies into organisations Stakeholder analysisCollaboration / influence strategyChange leadershipGovernanceMetrics – to measure usefulness of technologiesStrategy to balance portfolio of projectsGovernance structures

4. A Simplified Budget Generation ProcessCIO wisdom (2004) p326Rogue IT & internet support?Research, interviews, planningPrioritise and classify investment proposalsOPEXstaffHWSWSvcMiscCompare to previous budgetExecutive ReviewAuthorise projectsSignificant deviationsDocument or reworkBudget Qtr spendingCalc. impact on annual budge (depn, maint, leases, svcs)Insert new invest. impact (30-35%)Compile total budget and headcountGenerate metricsIT/Revenue, $/call, etcCreate summary presentation

5. Typical Classification Category (ISACA)Redundancy

6. End of life replacement

7. DR & BCP

8. Backup

9. Security & Network tools

10. Tech conversion

11. Asset managementMetrics I – managing the budgetCIO wisdom (2004) p327