KELOMPOK 4

A solid relationship between the IT department and the rest ofthe corporation is critical for both IT personnel and IT unit success.

Ability to engage at the senior management level on both IT and business issues. Improved ability for department to endure difficult times. Ability to sell technology initiatives to the business. Greater IT employee satisfaction, alignment, and productivity. Increased ability to attract and retain talented IT people.

Increased success oftechnology initiatives. Increased use ofcorporate IT department

Reliability Quality Appeal Leadership Management Customer focus Employee quality Financial performance Satisfaction

Key components ofIT spending. Typical budget component ratios. How to budget effectively. Using zero-based and run-rate processes in creating budgets. Key drivers ofyear-to-year budget variances. Managing capital expenditures. Cost and budget variance containment. IT budget chargeback mechanisms. Managing out-of-budget business requests.

Actualoperating, capital, and budget variance figures from the previous year. Initial statistics on employment growth or decline at the company. Initial statistics on profit and sales expectations for the company for the coming fiscal year. Any changes to company operating policies. Anychanges to major applications in the past 12 months affecting support or development. Current approved IT project inventory and prioritization. Estimation ofcurrent peer spending (see Chapter 3). Payroll statistics for the IT department.

Schedule a regular monthly meeting with the CFO Give senior direct reports When large variances occur, take fast action, as it takes time for changes to be reflected in the numbers.

Relationship between risk and cost in IT decision making. How IT decision making suboptimizes in four specific areas: capital expenditures (cap-ex), IT emergencies, service level setting, and capacity setting. How creative approaches can identify options for minimizing both risk and cost. How to avoid the all-or-nothing thinking that characterizes many IT decisions, replacing it with just right approaches. How to avoid the tragedy ofthe commons and the associated high costs in IT. What the senior management team can do to help IT improve decision making.

Capital expenditure or other spending requests. IT emergencies/disaster recovery. Setting and maintaining service levels. Setting staffand technology capacity levels.