“Hope for the best. Prepare for the worst. Benefit from what is to come ” – Zig Ziglar, the late salesman, author and outstanding motivational speaker, was right. In both business and technology, we must always be prepared for everything that comes our way – and do what we need to do to benefit.
This is especially true when it comes to IT budgets. Things can change at any moment. In the beginning of 2019, did anyone suspect what would happen in the coming months ?! No one thought there would be a pandemic, that it would wreak havoc on our world and threaten our business. No one imagined working en masse and studying remotely. And many IT departments have not assumed that there may be a sudden need for many more resources on the horizon.
Due to the pandemic in many organizations, IT budgets have increased, he said TechRepublic. For intelligent IT professionals, the situation highlighted the need for improved technology infrastructure. Opportunities for remote work were urgently needed to digitalize the joint work of the teams. Customers had to be given opportunities to communicate easily and easily with service providers and executives.
Now IT budgets continue to increase to build on what we have learned through the difficult lessons of the pandemic. Global IT spending will increase by 5.5% in 2022, according to Gartner.
At the same time, one thing is certain: IT departments must be prepared for anything that may happen. This means keeping a close eye on potential costs and having a plan that takes into account both the best and the worst scenarios.
System downtime calculator
If one of the company’s digital systems crashes, all production stops. How much money will the company lose from this ?!
It’s no secret that business depends on computer systems. All critical business tasks require computer connectivity, whether it’s talking to customers or executing orders. When computer systems do not work, business stops, deliveries are delayed, customers are dissatisfied – all this can seriously damage revenue and especially the image.
For large businesses, every minute of downtime equals a loss measured in thousands of dollars or euros.
Each CIO must have his own calculator for the unforeseen downtime of the enterprise in the event of a computer system crash. It is important for the IT management to be aware of which system “costs” in case of incapacity for work.
This is actually one of the most important arguments in calculating the resources needed to ensure business continuity.
Cost / benefit calculator for IT projects
Although IT budgets are increasing, organizations still need to be selective about the IT projects they undertake. One of the key factors involved in determining which projects to move forward is the cost / benefit analysis. And unfortunately, this is one of the most difficult professional tasks.
Effective analysis requires experience in planning and implementing IT projects, developing accurate budgets and understanding how costs and benefits change over the life of the project.
Here, the costs at the beginning of the project, until the end of the “implementation”, as well as the subsequent costs in the second or third year should be taken into account. On the “scales” are placed the opportunities for income in the same time range.
Each department must take into account depreciation when it comes to finances. This is especially true for IT departments that manage laptops, servers, mobile devices and more.
Why? Depreciation must be taken into account to determine the true amount of profit. In addition, depreciation is directly related to understanding when is the right time to purchase new equipment. This is important for the balance of IT budget spending.