AFM241 Chapter 9: Ch. 9 IT Budgets & ITPM
13 Sep 2015
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Document Summary
Budgets reflect how organizations allocate financial resources to different units, based on the planned activities and the short term objectives of each unit. Organizational units have to provide the following info: forecast level of sales or level of service, st and lt expenditures to support projected level of sales. Projections and requests evaluated by senior finance managers. Budget provides way of communicating firm"s st financial goals to members. Help senior execs coordinate activities of an organization. Maintain control over multiple divisions and business units. Adhering to a firm plan limits agility and stifles innovation. Cfos serve multiple and often conflicting roles: cfo"s are it"s business partner, banker, and boss. This means that in a given work week, it"s not unusual for cfos to request additional it support, cut it budget, and criticize the cio"s progress in strengthening the company"s competitive position. Accounting managers think in terms of fiscal budgets, while technology managers tend to think in terms of functional budgets.
