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

2. Budgeting for IT CIO wisdom (2004) p323

3. Major Assignment Implementation of an IT Capital Planning and investment management process Best strategy to infuse technologies into organisations Stakeholder analysis Collaboration / influence strategy Change leadership Governance Metrics – to measure usefulness of technologies Strategy to balance portfolio of projects Governance structures

4. A Simplified Budget Generation ProcessCIO wisdom (2004) p326 Rogue IT & internet support? Research, interviews, planning Prioritise and classify investment proposals OPEX staff HW SW Svc Misc Compare to previous budget Executive Review Authorise projects Significant deviations Document or rework Budget Qtr spending Calc. impact on annual budge (depn, maint, leases, svcs) Insert new invest. impact (30-35%) Compile total budget and headcount Generate metrics IT/Revenue, $/call, etc Create summary presentation

6. End of life replacement

7. DR & BCP

8. Backup

9. Security & Network tools

10. Tech conversion

12. Developing KPIsCIO Wisdom (2004) p364, Smith (2006) p196 Express Budget in terms of business & strategic needs Tie spending to a business owner Come with multiple options and a recommendation % of budget Operational and fixed spending Strategic investments Link Financial and Operational measures

13. Monitoring in Bhutan

14. Metrics IICIO wisdom (2004) p323-324

15. Major Assignment Implementation of an IT Capital Planning and investment management process Best strategy to infuse technologies into organisations Stakeholder analysis Collaboration / influence strategy Change leadership Governance Metrics – to measure usefulness of technologies Strategy to balance portfolio of projects Governance structures

16. Questions & Discussion