Riordan Manufacturing: Amended IT Budget
University of Phoenix
Riordan is a global manufacturing company producing custom plastic parts. The company is globally successful with their three United States locations including San Jose headquarters. In addition the have a sight located in China. Riordan is in constant research and development of the next way to employ innovation. In effort to assure Riordan maintains a steady stream of success we have a few recommendations of how to efficiently manage the IT budget. Establishing a clear approach to the IT budget can streamline success tied other departments. Today’s objective is to assure the IT financial planning lines up with the overall strategic goals of the company. A good format to follow is the run, grow, transform model. This model helps prioritize IT budget allocation based on what is most important to the organization. Based on the recommended budget adjustments there may still be some changes to be implemented in the future to help free up resources as the company continues to grow.
The recommendation is to restructure the current IT budget reflecting prioritization of current and future IT expenses. The proposed format defines a three step categorization:
Phase 1, Run defines all of the resources and expenses that it takes to operate. The run aspect of the budget defines all the mission critical functions such as hardware replacements, upgrading current software and operational expense. When evaluating the IT budget run expenses should not be sacrificed. If the company begins to experience a financial crunch; network operation is the last place that should be affected due to the criticality of the systems and operations being supported.
Phase 2, Grow is where updates to the existing IT architecture should take place and where new can be implemented. The grow aspect of the companies budget should not be part of...