The Importance of CIO's Course of Action for Insufficient IT Funding

A.

When the IT function receives only 50% of the requested funding to support new business initiatives, the CIO (Chief Information Officer) must take the following actions:

1. Prioritize the portfolio: The first and foremost thing that the CIO should do is to prioritize the portfolio. The CIO must determine which of the new business initiatives are most critical to the organization and focus on them first. This would ensure that the limited funding is allocated to the most critical projects, thereby maximizing the return on investment.

2. Terminate less visible maintenance projects: Another option that the CIO can consider is to terminate less visible maintenance projects. Maintenance projects are important, but they may not be critical to the organization's success. By terminating less visible maintenance projects, the CIO can free up resources that can be redirected towards the new business initiatives that are critical to the organization's success.

3. Develop a new balanced scorecard: A balanced scorecard is a strategic planning and management tool that helps organizations align their activities to their vision and strategy. By developing a new balanced scorecard, the CIO can align the IT function's activities with the organization's vision and strategy, thereby ensuring that the limited funding is used to support the organization's strategic objectives.

4. Conduct a cost-benefit analysis: Finally, the CIO can conduct a cost-benefit analysis to determine the cost of each new business initiative and the benefits that each initiative would bring to the organization. This would help the CIO make informed decisions about how to allocate the limited funding.

In conclusion, the CIO's most important course of action before considering alternative resource options would be to prioritize the portfolio. This would ensure that the limited funding is allocated to the most critical projects, thereby maximizing the return on investment.