Gartner research reveals that when it comes to preparing the IT budget, CIOs and IT leaders often work in isolation.
The IT budgeting process, which takes up to four months to conduct, usually works without a clear understanding of the business’ overall strategies and objectives and finds itself misaligned with the larger goals of the enterprise.
Gartner research reveals that this disconnect happens because:
While some enterprise strategic planning processes also suffer from similar challenges, it is essential for CIOs and IT leaders to be aware of the disconnect between enterprise planning process and IT budgeting.
They should, then, attempt to close this gap by making enterprise leaders aware of the investment “lead time” that IT needs to support strategic objectives. Also, instead of focusing on the IT budget primarily as a collection of line items, CIOs and IT leaders should use the budget process to ensure the right business decisions are being made which are in-line with the larger corporate strategic direction.
Sample Investment Evaluation Criteria Source: Gartner (March 2014)
Gartner’s recommendations on how enterprises can align their IT budgets to achieve larger corporate strategic goals: