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Post 2 – Andy Tse discussion # 1

Describe the relationship between strategic information systems and the annual budgeting and prioritization process. Include both the objectives to each and an example of an strategic project that would require capital budgeting over operational.

Strategic information systems are defined as the importance on identifying the needs to proceed with a long-term direction of utilizing information systems use and management decisions within an organization. The annual budgeting is a way to implement the tools and build pans based on the resources that are available within the company. Another way to use a yearly budget for an organization to determine the future needs for information systems and to determine how much it is needed to be spent there. Prioritization is another importance with annual budgeting where the company must decide which area(s) will be the most crucial to identify the success of the firm’s future as there are no easy answers to determine for it. It can be stressful in prioritization as there are many managers at different firms competing on who will perform the project. An example of implementing that scenario is a tech company allocating the resources on the information systems where the software department want to know how much budgeting is needed for support, capital budgeting and operational expenses on an annual basis (Gray, 2020). In that sense, funding its budgeting for information systems and to use it on an annual basis for all the departments are important, although using it to produce the goods for the public is much more important for the company to meet its goal for year-end.


Gray, P. (2020, Jul. 29). “IT budgeting: A cheat sheet.” TechRepublic. Retrieved fromhttps://www.techrepublic.com/article/it-budgeting-the-smart-persons-guide/ (Links to an external site.)

Piccoli, G. & Pigni, F. (2016). Information Systems for Managers with Cases, 3rd Edition. Prospect Press.

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