Budgeting for IT without breaking the bank
Budgeting for the organization's IT is a challenging and delicate task. While it's all about balance, there's a fine line between preparing for the unexpected without exceeding the budget due to resources that may not be essential.
4 popular misconceptions about technology budgets
Error #1 : Choose the cheapest option -
There is this famous expression : "A rich man buys it once, a poor man buys it twice. " There is so much truth in so few words. Indeed, technology today is far from being an afterthought or a secondary tool. It has an integral place in most operations.
It is by investing in quality technological tools that you will see a direct correlation with the streamlining of workflows and the increase in employee productivity, which can lead to better customer satisfaction.
Error #2: Copy-pasting last year's budget for the new year
It is understandable that the IT budget is tight and that there are several important areas where investment is necessary. It may seem counterintuitive to spend on new systems when the old ones are still functional. Technology evolves just as much as cybersecurity threats, which justifies updates and upgrades.
It is important to take into account needs such as end-of-life software or aging systems, as these can potentially stop functioning unexpectedly and cause service interruptions or financial losses.
You can overcome the challenge of budgeting for technology in the new year by identifying points of friction and areas that require special attention. Being proactive enhances long-term business success.
Error #3: Thinking in the short term
Following up on the last point, thinking short-term is an excellent way to encounter surprises along the way and cause unforeseen breakdowns. This approach can lead to rapid deterioration in budget planning.
Conversely, falling into the trap of purchasing solutions that cannot evolve with the company is a challenge. A concrete example would be replacing obsolete equipment with something that will also become obsolete in a short period. Temporary solutions cost you time and energy, not to mention the risks of impacting production and tarnishing the user experience.
Always keep in mind the company's overall goals when evaluating the purchase of a solution so that it can evolve in line with the company's interests.
Error #4: Only one person can manage the IT department.
In every field, each person has their strengths and weaknesses, especially in the vast domain of IT. It would be inhumane to master everything. Those who wear this hat are very skilled little ninjas. The "but" is that even geniuses need rest and deserve vacations, knowing with peace of mind that they will not compromise the company's IT services.
Another crucial aspect, which we'll discuss in a future blog article, is everything a "vCIO" can handle. They can balance the capacity and mental energy allocated to the four major categories of an IT department: Support & Infrastructure, Communications, Cybersecurity, and Process Optimization.
To conclude,
By paying attention to the errors mentioned here, you will certainly get more value for your money, allowing you to "have something to butter your toast with." Maintaining your infrastructure and evolving your solutions will undoubtedly come at a cost. From experience, the return on investment will be highly profitable for both the company, employees, and clients alike.
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