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IT Budget Priorities in Perspective (continued)

Working in Concert
"Often, the disconnect between what IT and business goals should be stems from not understanding how the IT infrastructure can improve business," says Endicott. "Both sets of goals can get caught up in thinking that the latest and greatest technology will or will not help business. Because of this, budgeting errors can be easily made."

In the end, the alignment of business and IT goals must be credibly tied to productivity and revenue benefits -- but this is not a function of budget alone.

By itself, IT/business goal alignment has no impact on productivity or revenues. "But," Bartels adds, "goals are abstractions until there is execution at the project level. Implementation projects that both put the right technology in place and change the related business processes are the key to achievement of productivity and revenue benefits."

As the experts advise, budgets should be developed so as to support and promote the business units of the enterprise. And IT executives should make sure the business owners understand and support the goals of the IT projects included in the budget. And, of course, be prepared to revise the budget and its plans based on changes in the financial status of the organization and business units just as any other sector of the organization does.

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