By: Clint Crigger
IT Budget Planning season is wrapping up for most as the year draws to a close. As technology continues to evolve and play an increasingly important role in business operations and business leaders are driving organizations to rein in costs, it’s more important than ever for IT teams to carefully consider their technology investments and ensure that they align with the overall goals and business objectives.
Key Questions to Consider
- Does your IT organization have enough good, quality data to make timely decisions?
- Are you leveraging your vendors to the fullest? Do your vendors have other products that could be bundled together for a lower price?
- Are you ahead of your industry’s benchmarks?
- Will money be set aside for investing in team members’ IT certifications?
- What role will AI play in your budget this year?
Exercises IT leaders to consider before finalizing budgets
- Evaluate the previous year’s budget and performance
Reviewing the previous year’s budget and performance will help identify areas for potential cost savings, increased effectiveness of resources, and improving the adoption success of new investments in technology.
- Review the organization’s goals and objectives
In order to ensure that technology investments align with the overall goals and objectives of the organization, the IT team should work closely with other departments, such as finance, operations, and marketing to understand their priorities for the coming year. By doing so, IT can identify areas, early on, where technology can help drive business outcomes and collaborate on scheduling.
- Consider emerging technologies
Technology is constantly evolving, and it’s important for IT teams to stay abreast of emerging technologies that could help improve business operations or provide a competitive advantage. While it’s important to balance the potential benefits of new technologies with the associated risks and costs, IT teams should not be afraid to consider new and innovative solutions that could help the organization stay ahead of the curve.
- Prioritize cybersecurity
As cyber threats grow in sophistication and frequency, cybersecurity should be a top priority for the fiscal year budget. This includes investing in robust security measures, such as firewalls, intrusion detection systems, disaster recovery plans, and encryption technologies, as well as conducting regular security audits and employee training to mitigate the risk of cyber-attacks and have a plan in place for when/if they do.
- Plan for ongoing maintenance and upgrades
Technology investments are not a one-time expense, and it’s important for IT teams to factor in ongoing maintenance and upgrades when planning for the fiscal year budget. This includes the cost of software updates, hardware maintenance, down-time, and system upgrades, as well as any training or support required to ensure that employees are able to effectively use the technology.
- Adopt IT Financial Portfolio Management Best Practices
Organizations should follow industry best practices to efficiently manage budget, change management, risk management, resources and documentation in real-time with full transparency to the leadership team.
Failing to plan your IT budget effectively can impact the efficiency, security, and growth of your organization. Our team of experienced IT leaders and project managers can offer guidance to help ensure the complexity of your IT organization is accounted for in the coming year. To learn more, schedule a call with one of our IT consultants today!
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