Thoughts ideas and explaination !
Dillu
Lecture-05v21.pdf
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• TRANSACTIONAL SYSTEMS
• INFORMATIONAL SYSTEMS
• STRATEGIC SYSTEMS
• INFRASTRUCTURE SYSTEMS
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Funding Method Description Why do it? Why not do it?
Chargeback Charges are calculated
based on actual usage
Fairest method for
recovering costs since it is
based on actual usage
Must collect details on
usage; often expensive &
difficult
Allocation Expenditures are divided
by non-usage basis
(revenues, headcount)
Less bookkeeping for IT Users can question rates
& basis of allocation
Free riders
Corporate Budget Corporate allocates funds
to IT in annual budget – to
general P & L
No billing to the businesses.
No rates to compute.
Encourages use of new
technologies
Have to compete with all
other budgeted items for
funds.
Potential for overspending
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• CENTRALIZED
• DECENTRALIZED
• FEDERALISM
Category Description
Examples of Affected IT
Activities
IT Principles How to determine IT assets that are needed Participating in setting strategic
direction
IT Architecture How to structure IT assets Establishing architecture &
standards
IT Infrastructure
Strategies
How to build IT assets Managing Internet & network
services; data; human resources;
mobile computing
Business
Application Needs
How to acquire, implement & maintain IT (insource
or outsource)
Developing & maintaining
information systems
IT Investment &
Prioritization
How much to invest & where to invest in IT assets Anticipating new technologies
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THANK YOU! (AND PLEASE DON’T FORGET TO POST QUESTIONS TO THE “I’VE GOT
A QUESTION!” DISCUSSION FORUM)
