Planning Your 2022 Budget – Prioritizing Long-Term Investments over Short-Term Fixes
In an ever-changing world, it can be nearly impossible to properly allocate resources for the IT department. Rapidly growing companies can struggle to properly set their IT budgets. As these organizations scale, their IT costs can rapidly climb. Businesses may be tempted to focus on short-term fixes, but that can put their business at a competitive disadvantage.
The pandemic has only highlighted the need to properly invest in IT infrastructure and projects. Companies that had put capital in long-term IT investments were well prepared for the rapid changes that were required. Accenture recently published a report that showcased the importance of IT investments. Businesses that invested more in IT were growing revenue at five times the rate of businesses that had not invested as much in IT.
Managers and executives could be tempted to focus on short-term gains that are easy wins, but that is not always the best decision in the long term. Short-term fixes may only be a band-aid for IT infrastructure and operational problems. Focusing on the symptoms and not the root cause can cause huge issues down the road.
IT departments need to take the proper steps and invest in long-term projects that will ensure a business can meet its internal and external needs. Getting management on board to invest in certain IT projects can be difficult. Executives may not fully understand the risks of poorly funded IT projects. The IT department should clearly outline the benefits and costs of properly investing in IT projects. Knowing what projects to prioritize can help businesses succeed in the long term.
The long-term investments that companies should focus on largely depend on their unique needs. Here are some key IT investments that businesses should consider for their 2022 IT budget.
The cloud is one of the most important business innovations in the 21st century. If your business has not already invested in cloud infrastructure, you are likely already behind some of your competitors. Cloud infrastructure can improve business productivity and performance. Your team can access data and applications from anywhere with internet access.
Hackers remain one of the biggest threats to businesses and will continue to in 2022. Businesses need to continually invest in cybersecurity initiatives to stay ahead of hackers.
Educating employees properly can ensure that your team can keep operations running and data safe.
Artificial Intelligence and Machine Learning
Investing in SaaS artificial intelligence and machine learning solutions can improve your ability to compete. Artificial intelligence can help businesses rapidly and efficiently analyze data to find actionable steps. IT departments can effectively automate many tasks, which can free up employee time to focus on more important tasks. These solutions can help solve any potential IT operational issues and identify potential threats.
Managers and executives need to start taking the steps to set their 2022 IT budget to ensure that their business can properly invest in all IT projects. The proper investments can pay huge dividends in the long term and keep businesses competitive.