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Alternatives:
There are several ways/alternatives MM could come up with a suitable IT budget
process to meet the needs of each division while ensuring the new strategies are followed
through.
1. Find new ways to prioritize divisional IT projects as well as the two new strategic
ventures in order to determine value of each project. Base the budget on this.
2. Keep current budget the same with majority of funds allocated to the division that
generates the most profit (Fred Tompkins division). Instead, cut costs in IT maintenance
and operations. This will open up room for new strategic ventures.
3. Put some current IT projects on hold or eliminate any that do not contribute to key
corporate objectives. Shift finances towards most pertinent and profit-driven projects (i.e
new ventures)
4. Lobby for an increase in IT investment or a reallocation of funds from other business
processes (ex. marketing, accounting) in order to
Criteria:
- Enterprise perspective on IT
- Inclusive of all IT initiatives
- Re-engineer and reorganize current IT systems
- Connect IT work with corporate objectives
Ranking:
Enterprise
perspective
Inclusive of
all IT
initiatives
Re-engineer
and
reorganize
Corp.
objectives
connect with
IT
Total
Score:
2/5
2/5
3/5
4/5
- Doesnt
encompass
whole
enterprise
- All
initiatives not
equally
included
- Somewhat
fits this
criteria
- Links corp.
objectives
with best IT
initiatives
2. Keep current
budget. Cut costs
elsewhere
3/5
- Ensures
enterprise
perspective
5/5
- All IT costs
included
1/5
- No reengineering or
reorganizing
3/5
- Corp.
objectives
may not be
tied
12/20
3. Pause or eliminate
IT projects that do not
fit with corp.
objectives
1/5
- Enterprise
as a whole is
not
considered
0/5
- Does not
include all IT
initiatives
4/5
- Fits this
criteria to a
greater extent
5/5
- Connects IT
initiatives to
corp.
objectives
10/20
2/5
- Funds being
reallocated
from one part
of enterprise
to another
4/5
- Includes all
IT initiatives
4/5
- IT initiatives
will be reengineered
with more
available
funds
4/5
- An increase
in funds will
help MM
better meet
corp.
objectives
14/20
1. Prioritize divisional
IT projects
11/20
*Each alternative is ranked out of 5 against the above criteria in order to determine total
score.
The best alternative is the last one, which recommends lobbying for an increase in IT
investment or a reallocation of funds from one department to another. This alternative
best fits the aforementioned criteria.