Balancing the Budget for IT in the AI Age | Sadin on Digital

Cloud Wars Live with Bob Evans

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11M ago 34:06

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Episode 51 | Strategic IT Budgeting

The Big Themes:

Integrated investment approach: Wayne advocates for aligning IT investments with broader company goals, urging against treating IT as a separate entity. This approach ensures that IT projects are evaluated alongside other investments, prioritizing those with the highest strategic value.
Time allocation for CIOs: Wayne recommends that CIOs dedicate around 20-25% of their time to budget-related activities, including engaging with business stakeholders, discussing investment priorities, and strategic planning. This time investment is critical for ensuring that IT initiatives are aligned with broader business objectives.
Comprehensive project costing: A transparent and comprehensive approach to project costing, where expenses are aggregated to provide a holistic view of total project costs can be beneficial. This strategy prevents budget overruns and facilitates better decision-making throughout the project lifecycle.

The Big Quote: “Don't budget only for implementation. I see this all the time. If the project is going to be $10 million to put it in, what's your first year, first 18 months of costs? People say my project is to put in Product X. Now when the product is done, there's the ongoing cost — especially in the SaaS [software-as-a-service] world, that's not insignificant."

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