IT Budget
This is a two-part assignment. For this assignment, you are the Chief Information Officer, or CIO, of Reynolds Tool & Die. To complete this assignment, you will:
1. Create a Microsoft® Excel® spreadsheet proposing the Reynolds Tool & Die company’s IT operations’ annual budget, including maintenance, licensing, and any proposed new investments, such as hardware, software, cloud services, and/or outsourcing.
2. Create a 1- to 2-page executive summary defending your budget choices in terms of innovation and efficiency.
Part 1: Spreadsheet
The example spreadsheet that begins on page 2 is a rough suggestion of an annual, itemized budget. You will create your budget in Microsoft Excel. Your budget headings may vary, but your budget needs to be as specific as possible. Within each category, you should include purchases for the IT strategic plan. For example, if, as the CIO, you are contemplating moving applications to a cloud solution, your budget needs to reflect that process. If you are implementing or expanding VMWare as a virtualization solution, your budget needs to reflect those purchases.
The actual numbers can be approximate. A little research can point you in the right direction. For example, desktops run about $200-$300. You can use approximate figures for items such as licenses, maintenance agreements, servers, etc. Just make sure you have some justification (i.e., references) for the numbers you use.
Part 2: Executive Summary
Your executive summary needs to explain your budget. Possible headings include:
I. Predictable Annual Expenditures
Simply put, fixed operational expenditures keep the lights on. They are mainly hardware and software maintenance items, licensing, etc. These are expected costs of doing IT business. If, however, you are purchasing more hardware or software that will require additional annual maintenance and license agreements, you’ll need to defend those purchases and the annual expenditures that will remain for the company.
II. New Purchases
Any new purchases you recommend need to be justified. Why are you purchasing them? What benefit do you expect from the purchases? You’ll need to justify the purchases relative to the previous week’s assignments—Reynolds’ business situation and goals. For example, how will a new investment in hardware, software, or services achieve a competitive advantage for the company? What do you think the company needs to purchase to achieve its expansion goals? How much will outsourcing cost?
III. Special Projects and Long-term Strategic IT Investments
As CIO, you need to look at technologies in the context of long-range strategic planning. Think of this section as your wish list. The investments in this category may not help the organization achieve its short-range goals, but they’re considered a long-term investment in innovation to remain competitive. For example, a manufacturing facility may consider artificial intelligence and robotics as a long-range plan. Example S ...
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IT BudgetThis is a two-part assignment. For this assignment,.docx
1. IT Budget
This is a two-part assignment. For this assignment, you are the
Chief Information Officer, or CIO, of Reynolds Tool & Die. To
complete this assignment, you will:
1. Create a Microsoft® Excel® spreadsheet proposing the
Reynolds Tool & Die company’s IT operations’ annual budget,
including maintenance, licensing, and any proposed new
investments, such as hardware, software, cloud services, and/or
outsourcing.
2. Create a 1- to 2-page executive summary defending your
budget choices in terms of innovation and efficiency.
Part 1: Spreadsheet
The example spreadsheet that begins on page 2 is a rough
suggestion of an annual, itemized budget. You will create your
budget in Microsoft Excel. Your budget headings may vary, but
your budget needs to be as specific as possible. Within each
category, you should include purchases for the IT strategic plan.
For example, if, as the CIO, you are contemplating moving
applications to a cloud solution, your budget needs to reflect
that process. If you are implementing or expanding VMWare as
a virtualization solution, your budget needs to reflect those
purchases.
The actual numbers can be approximate. A little research can
point you in the right direction. For example, desktops run
about $200-$300. You can use approximate figures for items
such as licenses, maintenance agreements, servers, etc. Just
make sure you have some justification (i.e., references) for the
numbers you use.
Part 2: Executive Summary
Your executive summary needs to explain your budget. Possible
2. headings include:
I. Predictable Annual Expenditures
Simply put, fixed operational expenditures keep the lights on.
They are mainly hardware and software maintenance items,
licensing, etc. These are expected costs of doing IT business. If,
however, you are purchasing more hardware or software that
will require additional annual maintenance and license
agreements, you’ll need to defend those purchases and the
annual expenditures that will remain for the company.
II. New Purchases
Any new purchases you recommend need to be justified. Why
are you purchasing them? What benefit do you expect from the
purchases? You’ll need to justify the purchases relative to the
previous week’s assignments—Reynolds’ business situation and
goals. For example, how will a new investment in hardware,
software, or services achieve a competitive advantage for the
company? What do you think the company needs to purchase to
achieve its expansion goals? How much will outsourcing cost?
III. Special Projects and Long-term Strategic IT Investments
As CIO, you need to look at technologies in the context of long-
range strategic planning. Think of this section as your wish list.
The investments in this category may not help the organization
achieve its short-range goals, but they’re considered a long-term
investment in innovation to remain competitive. For example, a
manufacturing facility may consider artificial intelligence and
robotics as a long-range plan. Example Spreadsheet
Your spreadsheet should look, roughly, like this:
Annual IT Budget for Reynolds Tool and Die
16. Monthly Totals
TOTALS:
Course ScenarioReynolds Tool & Die
Reynolds Mission Statement
“We are committed to providing our customers quality products
with the highest engineering standards.”
17. Reynolds Vision Statement
“We are committed to achieving our goal of being a market
leader for engineering solutions and will investment in technical
innovation. Our desire is to continue to expand our markets, our
technical competence, and our intellectual curiosity to serve our
customers.”
Additional Information
Reynolds Tool & Die is an automotive component manufacturer
supplying suspension pieces and technology to both other
suppliers and major U.S. and foreign manufacturers. Annual
revenue is around $50 million, and the company is profitable.
Reynolds has production facilities at their headquarters in
Akron, OH; in Bloomington, IN; and in Memphis, TN.
Approximately 300 people work for Reynolds, including 7 in
IT. The IT staff is broken down as follows:
· IT Director
· 2 Help Desk personnel
· 3 Network Engineers
· 1 Software Engineer, primarily supporting the company’s ERP
system
One network engineer works in Bloomington, one in Memphis,
and the rest of the IT staff is located in Akron.
The three sites are networked via an MPLS circuit. In addition
to SAP® software, the company uses Microsoft® Office 2010
for administrative work along with several specialized CAD
programs for design. The SAP software is two versions behind,
but not at end of its life. A data center is in Akron, while the
other two sites have smaller hardware footprints consisting of
Microsoft Exchange servers for email, a small file and print
server, and redundant Active Directory servers. EMC Storage
Area Network (SAN) devices are at each site. Redundant backup
appliances are in Akron and Bloomington, and data can be
cycled among the SANS for further redundancy. While some
server virtualization has been achieved, only about 20 percent
of all servers have been virtualized with the help of VMWare.
18. All sites use Cisco® switches, routers, and firewalls. Servers,
desktops, laptops and printers are all HP®, and are between 3
and 5 years old and the desktops and Laptops use Windows® 7
as the operating system. All servers are on Microsoft Server
2012.
There are no cloud applications. There has been a demand by
administrative personnel and engineers for integrating mobile
devices with Microsoft Exchange and other apps but to date the
company has not implemented a BYOD (Bring Your Own
Device) or a MDM (Mobile Device Management) solution.
The IT budget typically is between $1.2 and $1.5 million
annually, depending on capital expense. Note that this budget
ONLY covers hardware, software, services, and licensing.
Personnel costs are not included, nor do you need to include
them for the Week 4 budget assignment.
This year the company is embarking on significant expansion. A
joint venture has been signed with a firm from Mexico Peraltada
LLC in order to gain access to a new supplier market. Both
companies will remain independent, but Reynolds will exchange
engineering expertise for a percentage of sales in Mexico and
there will be joint development of intellectual property.
Peraltada uses Microsoft Office 2016 and Oracle as their ERP
solution. Desktop and laptops are HP, and they are running
Microsoft Server 2016. They employ around 200 people with 5
in IT. The company provides key employees with iPhones for
mobile access to their network.
In an effort to diversify, the company has purchased a small
company in Vancouver, Canada that makes light aircraft landing
gear components. P.T. Tracy, LLC employs about 80 people,
with 3 in IT. They also use SAP for an ERP solution but one
version newer than Reynolds. They use Microsoft Office 2013
and Windows 10 for their desktop OS. Their firewall solution is
Palo Alto and they use Cisco routing and switching equipment.
Servers, desktops and laptops are all Dell®. They also have
implemented a BYOD policy, using the MDM solution VMWare
AirWatch®, supporting both Apple® and Samsung® Galaxy
19. phones. They are running Microsoft Server 2016.
All three companies in the scenario have a Microsoft Enterprise
License in various stages of life; none will be up for renewal at
the same time.