Question

Describe the ways in which effective IT budgeting is similar to effective financial planning. What are some of the short-term and long-term goals and constraints that must be considered?

Answer 1

Effective IT budgeting, as a concept, is similar to the effect that a financial plan has on the working of a business. The budgeting process involves the implementation of the new infrastructure, all the updates to the core technology, staffing budget and cuts with regard to the employment of individuals as well as the strategy that is employed systemwide. Usually, we see that a budget has the steps laid out for the department, which allows them the ability to be able to act on their behalf. It allows them to select the right course of action as well as create a plan for the next two to five years depending on the long and short-term goals of the company and rather allow the company. Depending on the scope of the implementation of the It department and its integration into the business process of the company we can understand how an organization’s goal can be considered as being similar to the goals of the other department, especially the It department which is deeply integrated into the processes of the business. Usually, all the functions that are provided by the IT department, allow the business, in general, to be able to be benefitted from the decisions. This includes processes like general business forecasts and data analysis. When the IT department is considered in its own right. Their long term and short term goals include the company’s goals such as analysis of data, the collection of data, creating forecasts and in the long-term effects, being able to create a suitable direction for the business to follow with respect to the goals, objectives and the scope of the company.