Where to invest IT budgeting for maximum agility
Your IT budget should focus on technology that helps your company respond rapidly to changing business conditions. This article shares expert advice about IT budgeting, the most critical areas to consider.
When the global consulting firm IDC surveyed midsize businesses in 2005 about their top IT priorities, the most pressing issue was adding and upgrading PCs to keep up with growth. Once these companies set that concern aside, though, they said their IT budgeting would to be spent on security and customer relationship management (CRM) solutions. Add to this scenario the facts that midsize businesses must be flexible and do more with less, and you have three prime areas on which to focus your IT budgeting to enhance agility.
1. Strong, simple security
Lost, stolen, or compromised data can undermine a company's reputation and profits. No wonder midsize businesses around the world put data security high on their list of priorities. "The IT managers we survey regularly are very concerned about security and the amount of time they have to spend on it," says Ed Daugavietis, senior analyst at Info-Tech Research Group in London, Ontario, Canada.
 | The areas in which we see the most increases in spending are solutions that empower users and make the infrastructure more flexible. |  | | Ed Daugavietis
Senior analyst, Info-Tech Research Group | |
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Yet with dozens of vendors on the market and new threats emerging almost daily, it can be difficult to choose the right security solutions. The answer, suggests Daugavietis, is universal threat management using sophisticated integrated solutions, such as Microsoft Forefront, that handle a wide array of threats from a single, easy-to-manage platform.
2. Better customer service through CRM
Info-Tech's surveys show that midsize companies have started to realize that they get as much benefit from CRM as larger companies do, for a proportionately greater return on investment, Daugavietis says. Of more than 1,000 IT directors that Info-Tech surveyed globally in late 2006, half called CRM a high priority, he notes.
A CRM solution that lets your employees turn customer data into business intelligence is "like vitamins in the morning," says analyst Michael Speyer of Cambridge, Massachusetts-based Forrester Research: It won't guarantee your company's health, but it can certainly boost performance. For a smaller business that needs to stretch its resources, "CRM that fits into your overall business processes can really add to the bottom line by allowing more effective decision-making," he adds.
3. Systems designed for flexibility
"The areas in which we see the most increases in spending are solutions that empower users and make the infrastructure more flexible," Daugavietis says. For example:
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Wireless connectivity and smartphones extend your network wherever your employees need to go.
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| • | Unified communications systems cut costs, improve productivity, and simplify IT management.
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| • | Automated backup and storage solutions archive critical data for disaster recovery and regulatory compliance. |
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Online collaboration tools like Microsoft Office SharePoint Server 2007 facilitate teamwork and innovation.
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Speyer suggests you consider why you want to adopt these tools and the specific ways they can make your business more agile, both now and in the future. Then make sure your network infrastructure is set up to support them for a number of years. That will make it easier for your company to adopt the latest technology and manage the total cost of ownership.
 | Fawn Fitter is a freelance writer in San Francisco who specializes in business and technology. She contributes regularly to the Microsoft Midsize Business Center. |
