Archive for January 11th, 2008

Has your 2008 IT budget been cut?

Friday, January 11th, 2008

David Linthicum makes some recommendations on what to do if your SOA project is threatened by budget cuts.

Focussing on ROI and $$$ measures is certainly a good idea.  I also totally agree that if you can’t justify a business case to yourself then you should cancel the project.  Shifting around resources and reallocating from other projects is only a good idea if those resources end up being allocated to the biggest business case – i.e. they are targeted at achieving best value.

My personal view is that budget holders will give much more support to business case and $ ROI arguments than any other justifications.  However, the current climate is very short term.  Most enterprises are focussed on short term cash and short term profit.  Directors are targeted on short term measures.  They are also ever less likely to hold their role for more than 2 years.

So when you try to justify your project, bear this in mind.  There is no point in demonstrating that your $25M investment will pay back handsomely over 10 years.  You must find ways of proving that your project will deliver incremental short term benefits so the longer term project funds itself and delivers ongoing business value as well.

Longer term management views may well return when the economy starts the next upwards cycle.  In the meantime, we all need to live within the current constraints.