I.T Financial management
I.T Financial management is very important. This has to do with how you manage the financial resources allocated to your project. In all cases, you will have to account for how the money was spent.
If care is not taken, it might be very difficult to give an account of these resources. That is why proper planning is required to achieve I.T project success.
In this article, I want to look at how you can achieve proper financial management of Information Technology projects. I will be looking at purpose, goals and objectives I.T financial management. Let us jump into that discussion.
enhance decision making
One of the main reasons why you should properly plan the resources for your I.T projects is for proper decision making. In any I.T project, you will have to decide on what needs to be done. This will involve spending money on one tool or the other.
It is very unlikely that you will have all the money at once. You will have to prioritize your requirements. If proper care is not taken, you may end up spending money on frivolities.
The individual might be like someone planning to build a house, who have paid the Painter but do not have money to settle the Bricklayer.
enablement of rapid change
Having a good financial management plan will also improve the rate at which you make changes. When changes need to be made, you can at once decide on what to remove and what to add.
This will go a long in improving effective I.T project management in your organization.
You can use that to decide on which activity needs to happen now and which one can be postponed until a future date.
enablement of service portfolio management
Service portfolio management is more or less like offices that need to be created so that I.T Projects can run effectively. With proper financial management plan, you will be able to decide on how the project will be supported after you might have completed it.
It is one thing to execute the project. It is another thing to support the continuity of such project. In supporting I.T projects, you can decide to manage it internally or externally. You can also assign it to a third party who has adequate resources to keep it going.
Now the objectives…
Having a proper financial management plan ahead of your project is a good strategy. It allows you to have a business case that can be used to support a business decision. A business case is more of a feasibility plan.
It can help the project manager to decide whether a project can be done or not. It is a supporting tool when you need to decide on the viability of any decision that you want to make.
enable compliance and control
When you have a proper and well documented financial management plan in place, it will ensure compliance and control for your project. It is just like an Architect working on a building, he needs to always revert to the architectural drawing so that he will not deviate from the original plan.
This will allow your team members to reference it and comply with the project standard. Without a proper financial management, everyone will just be doing what they like.
support operational controls
Apart from the fact that proper financial management helps you to deliver a project successfully, it will also allow you to keep the deliverables going. You will be able to manage the resources and employees for the project.
This will allow you to make adequate preparation for resources that are needed for the project to be a success. This is very vital.
value capture and creation
Effective financial management of I.T projects will ensure that you get value for your money. With it, you can always analyse whether you have really achieved what you want to achieve. No organization want to waste their hard earned fund.
Having a proper plan in place will help to decide whether the project is delivering according to promise or not.
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