Information Technology Financial Management
Information Technology financial management is one aspect of your project that you should never joke with. I have over flogged that in my previous article. It cannot be over-emphasized.
I have said it that, having a proper financial management in place allows you to make decisions easily. In this article, I want to look at what is and what is not part of I.T Financial Management Plan. Follow me as we look at that in this article.
Similar to market- facing companies
When we talk of market-facing companies that means you are putting yourself in a position where you are analyzing your customers. You are playing the roles of marketer or salesperson in an organization.
The marketer wants to market his organization product. The same thing also applies to an I.T Project manager that is working on one product or another for any organization. He has to have a marketing mindset.
Analyse, deliver and conceptualize the product
There is the need for you to analyse, deliver and package your services. You need to conceptualize the product. This involves talking to your stakeholders internally and externally so as to know what they want.
You will not want to develop products that will not be acceptable to end users. That is why communication is very important in a project.
Controlling demand and supply
One other vital element of financial management in Information technology project is that it allows you to control demand and supply. Before you embark on production, you will be sure there is a market for the product.
The demand projection will also determine the amount of effort that you will put into the production, you will not want to develop products that will remain on your shelves. This also involves a critical look at what your competitors are doing.
This will determine what you should do and what you should never attempt.
The main reason why you are also carrying out Information Technology financial management projection and management of your project is to save cost. Anytime an organization want to embark on a project, they will always analyse their alternatives.
Also, in executing Information Technology Financial Management, they will have to compare cost and decide on the best alternative. In doing that, they will never choose an option because it is very cheap. They want to be sure that they can afford the alternative chosen. The bottom line is to save cost and achieve the desired result.
Maximize visibility into the cost structure
Also, in carrying out an effective Information Technology financial management, you need to maximize visibility into cost structure. After you might have decided that the whole project is visible, you now need to divide the cost into different stages.
This will allow you to determine the overall cash flow of the project. You need to know how the required capital will be raised, even though you do not have all the required capital at once.
Provides operational decision-making data
I also said it in my previous article that financial management projection in information communication technology. It will allow you to have data that you can use for business decisions.
You can always revert to it in order to decide on what should be prioritized at any given time. This will allow the project to move smoothly. This will allow you to turn your project from what is to what ought to be.
a common language with business
In conclusion, when you have a good financial management plan as an Information Technology Project Manager, you will be able to speak a common language with the business. You should know that the focus of the business is to make a profit.
With your financial analysis, the business will be able to decide whether the project is viable or not. This will determine whether the top management will give you the necessary support or not.
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