How is budget planning evolving for CIOs?
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CTO in Education2 years ago
The amount of cyber security products and services we now buy has changed my budget. It is never enough. Planning involves convincing others we need these services and they cost a lot less than a incident. Additionally I have started to think of desktop/laptop hardware as a service. No longer can I keep devices until they die. Again part of this is cyber security reason. But it has help get some devices on a refresh cycle. Without that departments wait too long to replace hardware and don’t like the price tag to replace. PCs as a service give department heads a consistent cost that makes budgeting easier for them.C-PIO in Software2 years ago
Budget planning has changed markedly over the years. Hardware was the big ticket item software came second. With the pass of technology security and software innovation software has taken the brunt of expenditures. In addition we used to be reactionary now we plan out for the foreseeable future and try to acquire sufficient funds. Today planning is paramount to staying on top of an IT infer structure.
IT is now considered an integral part of the organization and is part of the planning for change and innovation. We are no longer just a service but a vital component of any modern company.
Sr. Director, Head of Global Omnichannel Capabilities Delivery Center in Manufacturing2 years ago
It’s a lot more tied to revenue generation and no longer just about cutting costs. We are engaged a lot more with business unit leaders like sales and marketing and are measured for creating new opportunities for revenue and leads.COO in Healthcare and Biotech2 years ago
Budget planning is going from an annual planning cycle to a continuous planning cycle, in many progressive organizations.Gone are the days of submitting a budget in Q4 and being stuck with your decisions for the next 15 months, despite changes in competitive pressure, internal prioritization, or other adjustments needed.
Astute CIO’s are making adjustments quarterly and negotiating based on changes in projects, business dynamics, etc.
It should be noted that these changes are not always increases in budget. When other business functions like Sales are under-performing, it may be necessary for IT to reduce its spend to ensure margins are met. (Just don’t forget to articulate the enterprise risk of foregoing certain projects or not hiring planned resources.)
Look at the industry trend, tie your budget to organizations growth and profitability.
Allow for a contingency.
Leverage spend management tools.
Plan and forecast based on business threats and opportunities.
Leverage interactive data visualization.
Establish a cause effect relationship. Be able to anticipate behavior and results.