Let's face it: Your department is a cost center without a revenue stream to offset your cost structure. Hence, you are totally reliant on the revenue-producing units within the company to pay your way.
IT budgets - News, Features, and Slideshows
Lately, much of the furor encircling ERP costs has revolved around software maintenance and support fees. The global recession has forced customers of Big ERP vendors-SAP, Oracle, Lawson, Infor-to question the value they receive from the fees.
CIOs are from Venus. CFOs are from Mars. And nowhere is this more obvious than at budget time.
As is the case with selling McMansions, Mercedes SUVs and 63-inch HDTVs, pushing expensive technology products and services during a global recession isn't an enviable task. Late last year, when the economic meltdown began and corporate IT budgets went under the CFO's knife, tech vendors had to hastily reevaluate their marketing messages and overhaul their sales tactics.
Enterprises facing tight IT budgets should not be looking at cost-cutting but should focus on working their under-used enterprise applications harder.
Worldwide IT spending is expected to decline by a further six percent this year, according to analyst firm Gartner.
Savvy business leaders will always support wise IT spending. Meanwhile, astute financial management of IT gives CIOs flexibility to respond quickly to corporate actions such as the sale of a business unit or an acquisition.
Having a positive ROI may no longer be enough to get your next major ICT project over the line, according to Gartner.
No one has to remind CIOs just how bad the last 10 months have been: New data from our exclusive survey of top IT executives shows that CIOs may have hit rock bottom with their budgeting and cost-cutting measures.
Early 2008, well before the financial meltdown in mid-September, CIO Michael Twohig met with the executive leadership at Clean Harbors Environmental Services, to discuss the company's 2009 budget. It was the first of many meetings intended to address what they saw as a troubling economy in the coming year, given conditions in the financial markets and general economic indicators.
Peter Weill, the director of MIT's Center for Information Systems Research, says there are six key IT decisions that CIOs and the business must collaborate on. Ignore them at your peril . . .
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