Budget by Phase, Not by Project

By Tim Pacileo  |  Posted 2008-11-30 Print this article Print

Success factor No. 4: Budget by phase, not by project

Positioning an application development modernization initiative as a "project" wrongly implies a beginning and an end to what will, in fact, be a continual process over the long term. This distinction is essential, in part to enable the reinvestment strategy outlined earlier.

In addition to allowing for continued investment, a phase-based approach facilitates a broader perspective. A phase-based approach makes it easier to leverage the benefits of enterprisewide applications as an enterprise resource planning (ERP) solution, or to leverage the benefits of enterprisewide data storage capabilities as a storage area network (SAN) solution-rather than simply focusing on discrete infrastructure operations.

This change in perspective, meanwhile, can allow organizations to transcend the longstanding silo-based model of IT investment, whereby each business unit funds development and support of its own application. This traditional approach often results in redundant capabilities and duplication of efforts, with the IT organization left holding the bag of supporting and maintaining the dysfunctional environment. Application modernization represents an opportunity to break out of this trap and to adopt a more strategic approach to operational management-one that links IT to business requirements and to improving the efficiency of critical business processes.

Tim Pacileo is a Business and IT Management Consultant at The Board Room Advisors. Tim has 30 years of experience developing and managing a variety of strategic business and IT initiatives. His experience includes IT strategy, architecture design, sourcing, network and telecommunications, IT security, enterprise application selection, implementation and oversight, disaster recovery and business continuity planning, software and hardware evaluation and selection, and infrastructure design, focusing on data center and server consolidation and SANs. Prior to joining The Board Room Advisors, Tim was an Executive Consultant at Compass. Prior to Compass, Tim was a VP at Gartner, where he established the firm's Global Data Center practice. Prior to this, he was Global Manager of Client Systems for AEI (a global logistics company), where he had responsibility for all client/server applications development, PC hardware and software standards, hardware and software purchases negotiation, network design and configuration, Internet application development, infrastructure design and security, and a Lotus Notes implementation supporting a global sales team of 300 individuals. Tim's experience also includes a stint as an IT consultant, specializing in application selection, and network design and implementation for the healthcare and mortgage banking industries. Tim received a Bachelor's Degree from Central Connecticut University. He attended graduate school at Fairfield University in Connecticut. He can be reached at TPacileo@TheBoardRoomAdvisors.com.

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