IT financial management

IT financial management - Week 9 or week 10 Balanced...

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1. IT cost management: Supply perspectives: What company can deliver: wireless, service Demand perspectives: What department really wants. How the resource should be allocated. What would be the most important for company. Read Mc Kindzie article the mystery of IT cost. Responsibility center: Cost center: make each department responsible for their budget Profit centers: have to manage their cost + generate revenue from outside Investment centers: unit become another business that can generate income, very few. EX: American Airline – Saver 2. IT Opertaional financial management and avaluation Cost classification: direct vs indirect cost Cost behavior: 3. IT capital investment decision making: system u would build, access you would buy. - Payback period and ARR: Do not concern about time value of money 4. Additional tools for IT management decision making
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Unformatted text preview: Week 9 or week 10 Balanced scorecard method: help to identify full cluster of objectives, benefits. II Criteria are missing: Standard , Space. Financial is not only the main criteria for making decision. Benefits are rarely generate by IT alone, it generate by people. Business benefits will become overtime by users. Managing: 1.) Value: strategic, use 2.) Assest Benefits: lot of benefits are beyond IT control. Michael Portal Challenges and Limitations of Using Analytical Tools: Qualitative: customer satisfaction, branding. Intangible cost: measure customer satisfaction by doing survey. Proxy measure: using the data we have to measure percent of customer retention. In reality, decision making is not bases entirely on financial numbers. Cost & Benefit Gartner HypeCycle for Emerging Technologies...
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