Strategic IT Planning and Budgeting for ModMeters' Global Initiatives

This report examines the IT planning and budgeting processes at ModMeters, a North American manufacturing company aiming for international expansion and direct customer sales. The report analyzes the strategic initiatives, including global expansion and direct customer sales, and the crucial role of IT in supporting these projects. It outlines the IT planning process, emphasizing the importance of aligning IT criteria with business goals, identifying resource needs, and determining budgetary requirements. The report also covers monitoring strategies to measure project success and the budgeting process at ModMeters, including resource allocation and the introduction of pooled resources to minimize costs. The conclusion highlights the significance of effective IT planning and budgeting for ModMeters to meet its strategic objectives and prioritize IT projects in support of its new strategic initiatives. References from the provided sources are included within the analysis.

IT PLANNING AT MODMETERS

Contents
Abstract..........................................................................................................................................1
Introduction....................................................................................................................................1
IT Planning Process.......................................................................................................................1
Monitoring......................................................................................................................................2
Budgeting Process..........................................................................................................................2
Conclusion......................................................................................................................................2
References.......................................................................................................................................2

Case 3
IT Planning at ModMeters
Abstract
In this article, we will address the IT planning and budgeting process which will support
ModMeters in the coming years. We also explore the different aspects of Modmeters Company's
IT preparation, which has two plans for global expansion and direct customer sales. In the
expansion efforts of Modmeters, the function of IT is vital. The management of different
departments met to define budgetary expansion requirements.
Introduction
ModMeters is a North American company, one of the world's largest manufacturers of
mechanical and digital components. In Asia and Eastern Europe, the organization aims to go
internationally and develop its operations. ModMeters was in the IT sector since the 1960s.
Almost every element, from finance and accounting to supply chain management, was eventually
automated by the company. The only thing it lacked was a consumer website, and this was about
to change (McKeen & Smith, 2015). John John Johnson, ModMeters CEO, brought together his
executive team and created two new strategic strategies. ModMeters was the worldwide first
strategic project, and customer-direct sales are the second. CEO John needs to know whether
they will be helped or not by their IT, marketing and sales divisions. According to CIO Brian, IT
is integral to both projects, however, and it is becoming a problem due to existing IT
infrastructure and the lack of capital in marketing and others. So CIO Brian clarified to other
management the need for ModMeters to complete two new business strategic initiatives in
connection with current issues with IT infrastructures and budget IT planning (McKeen & Smith,
2015).
IT Planning Process
The initial stage of the strategy is to explain IT criteria and to raise resources to achieve the goal.
The management team will understand whether a new strategy will add value to the organization,
such as the global enterprise and the development of a new consumer channel. We must
determine what business units are required to participate in each of these initiatives, how many
IT resources are needed, and what the necessary budget is required. We also have to determine
the need for necessary work. At the same time, all overlapping work that will impact corporate
ventures must be remembered. IT should determine whether the existing infrastructure and
architecture help the initiatives (McKeen & Smith, 2015). If not, a few internal tasks must be
done to help. The key goal should always be to find the value to help the organization achieve its
aims.
The second stage of the program is the identification of the goals and objectives of the company.
To achieve this, business, as well as IT, need to be in line. Every senior executive must also
participate in the decision-making process. You should be in a position to determine which
project to start with and prioritize work accordingly (Downs, 2018). Through the involvement of
businesses and IT, we can ensure that business priority responsibility is taken up swiftly with
other departments during strategic planning and priority work. At the same time, the company

must decide how much it wants to spend on IT. It determines where to draw the line and what
companies can achieve in their projects.
Monitoring
The success of any project carried out in the organization can be measured using metrics. IT and
business are responsible for designing these measurements based on business terms. They should
therefore be responsible for any outcome (Downs, 2018). Internally, IT should also monitor the
success of IT in spaghetti reduction and new architecture implementation.
Budgeting Process
At ModMeters, budgets are typically assigned to business units based on the size and benefit for
each segment (McKeen & Smith, 2015). Changing the entire budget process will lead to a lot of
company turmoil. It is easier to take a small percentage of each company rather than remove a
single business unit from the budget and give it to IT to satisfy the IT requests for the initiative.
We may rely on the actual IT budget using the priority of the job and the amount of company
expenditure on IT. At the same time, R&D should be allocated similarly to the budget for other
divisions such as marketing.
Finally, pooled resources should be introduced by ModMeters because they minimize costs and
remove redundancies. The IT should update the existing software and applications and include a
roadmap to reduce operating expenses for the organization.
Conclusion
ModMeters currently does not fulfill IT needs and endorse strategic projects in its phase of
preparing IT and IT budget. ModMeters can meet most of the IT needs and prioritize each IT
project in support of the new strategic initiatives through the IT planning proposed in this paper.
This planning process also helps to recognize projects that have value for the organization.
References
Downs, B. (2018, November 19). The Strategic Planning Process in 6 Steps. Retrieved from
Business Benefits Group: https://www.bbgbroker.com/strategic-planning-process-6-steps/
McKeen, J. D., & Smith, H. A. (2015). IT strategy: Issues and practices (Third ed.). Pearson.