The Modern CIO: Managing Business-Driven IT
Today’s CIO is faced with the important endeavor of aligning IT investments with business strategy in order to drive digital innovation. IT has become an integral component of the enterprise, as internal business units continue to rely heavily on internal and cloud technical services to meet their objectives.
Business Units Drive IT Spend
According to a recent Gartner survey, up to 29 percent of IT spend is made by business units rather than traditional IT, and this percentage is projected to increase for the next few years. Today’s tech-savvy business people leverage new applications to adapt to shifting market expectations quickly and seamlessly.
Business Leaders Demand Financial Clarity
Although the business units are embracing digital transformation, many of them do not recognise how their demands affect the IT budget. This puts the CIO in the difficult position of having to explain the financial impact of implementing a new technology solution. The CEO and CFO will undoubtedly expect a quantifiable analysis to determine the return on their IT investments. In the age of big data and analytics, IT executives are under more pressure than ever to generate accurate financial reports.
Forecasting Is Challenging for IT Leaders
As crucial as this quantifiable information is, a staggering number of organisations cannot fully explain their IT spend. In a recent survey by CIO Insight, only 17% of responding CIOs said they can accurately plan and forecast service demand costs. Given that number, it’s no surprise that only 28% of surveyed IT leaders claimed to be confident that their IT budget aligns with business priorities.
IT Business Management Best Practices
In order to stay in tune with business objectives, IT leaders must form strong relationships with key business stakeholders and implement an efficient financial reporting system. With purpose-built software, IT leaders can pinpoint exactly which business units are driving their IT spend. This information equips CIOs with the information they need to evaluate their IT investments and hold internal departments accountable for how they influence the budget. Plus, the business leaders can easily see if their IT spending is aligned with their priorities and strategies.
Now that affordable IT Business Management software solutions are available, modern CIOs can effectively analyse their spending, optimise their investments, and communicate with key business leaders using language they understand.