How Should Companies Plan Their IT Budget During Digital Transformation?
The costs of digital transformation come directly from the IT budget. For digital transformation to be implemented effectively, IT leaders much change their approach to the annual budget. Modern IT departments are tied to all major business units and are entrusted with delivering applications, devices, and platforms that support strategic goals.
When businesses use agile IT budgeting strategies, it helps to shift the focus to continuous improvement which assists in navigating new markets, improves performance, and increases revenue. The biggest budgeting constraint related to digital transformation is the need to invest in new technologies that drive innovation whilst still addressing basic IT needs such as maintenance, upgrades, and tactical projects.
To get the most out of the IT budget and implement a successful digital transformation strategy, chief information officers (CIOs) need to permeate the budgeting process, placing a focus on creating value and driving innovation. They must have a clear understanding of business objectives and discern the relationship between technology and how it helps to achieve strategic goals