Technology has become the common denominator in every key strategy for companies. Even though Technology is a crucial part of the business strategy, defining, measuring, and communicating IT value remains a challenge for many CIOs.
This post describes the specific value conversations CIOs can craft to bridge the gap between IT and the business.
Value conversations depend on facts about costs (TCO), performance, risk, ROI, cost structure, and data quality. CIOs can engage the board using four specific lenses:
Delivering the right performance for the best possible price. CIOs improve cost efficiency while maintaining quality (Focus: "Run the Business").
Spending resources to get the biggest return possible. IT leaders focus on what drives the most value to the company (Focus: "Run the Business").
Maximizing innovation and ensuring value over investment lifetimes. Executives govern and collaborate on growth spending (Focus: "Grow the Business").
Improving the speed at which the business responds. CIOs create an agile cost structure and accelerate decision-making (Focus: "Grow the Business").
CIOs often face pressure to cut budgets without a clear view of the impact on value. Cost Transparency provides the metrics to support these difficult conversations.
By using KPIs and setting goals, CIOs can start building a narrative on how technology trends enhance:
Cost Transparency reveals the total cost of infrastructure and business capabilities, including everything from hardware to labor. Calculating unit costs reveals efficiencies that help executives decide which applications to retire or scale.
Digitizing IT spending supports leaders in promoting the pursuit of better business outcomes.
Learn more about Cost Transparency