Northwestern Polytechnic University Business of Information Technology Paper write a discussion of 250 words about the lecture present in the pfd (Please take a moment to share your thoughts, ideas, comments ? Funding Method
Description
Why do it?
Why not do it?
Chargeback
Charges are calculated
based on actual usage
Fairest method for
recovering costs since it is
based on actual usage
Must collect details on
usage; often expensive &
difficult
Allocation
Expenditures are divided
by non-usage basis
(revenues, headcount)
Less bookkeeping for IT
Users can question rates
& basis of allocation
Free riders
No billing to the businesses.
No rates to compute.
Encourages use of new
technologies
Have to compete with all
other budgeted items for
funds.
Potential for overspending
Corporate Budget Corporate allocates funds
to IT in annual budget to
general P & L
Category
IT Principles
Description
How to determine IT assets that are needed
IT Architecture
How to structure IT assets
IT Infrastructure
Strategies
How to build IT assets
Business
Application Needs
IT Investment &
Prioritization
How to acquire, implement & maintain IT (insource
or outsource)
How much to invest & where to invest in IT assets
Examples of Affected IT
Activities
Participating in setting strategic
direction
Establishing architecture &
standards
Managing Internet & network
services; data; human resources;
mobile computing
Developing & maintaining
information systems
Anticipating new technologies
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