Budget model

1 of our books defines this term.

The basis for choosing the numbers that will appear in the budget; that is, the assumptions and formulas that are used to justify a budget request. My argument is that given the uncertainties of IT and the seeming difficulty of controlling it, enterprises have often chosen targets in a way that does not consider the implications of an IT budget on the overall financial picture of the company, for example, limiting spending that will result in a positive marginal return.

War and Peace and IT: Glossary, Mark Schwartz

See also Business value · Call option · Cost of delay · Data asset · IT asset · Marginal cost

Filed under Metrics & Economics

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