Present IT Value Proposition as an “Asset Under Construction”

 IT must invest in and leverage appropriate technologies and solutions to generate invaluable insights and create differentiated business value. 

Forward-looking organizations transform IT from a cost center to a value generator, IT management has to learn and explore different methods to set better performance metrics, play the number game wisely, present IT value proposition as an “asset under construction,” or the crucial investment expecting the return.

IT investment justification: IT must invest in and leverage appropriate technologies and solutions to generate invaluable insights and create differentiated business value. IT investment is both risky and costly, it’s important to invest in IT as an “asset under construction,” make IT investment justification to ensure that IT spends the money in the right way, help the business open up new channels of revenue and monetization within the enterprise and their ecosystem, and get the right business results. IT leaders must learn how to leverage reliable information for helping business leaders demystify the IT investment puzzle, enable them to decide whether or not an IT investment is worth-making. Keep in mind though, there’s the difference between business requirements and IT requirements, IT has to oversee the full set of business requirements to ensure the cohesiveness and to determine all the customers, users, and stakeholders and obtain their involvement, to make better IT investment justification and run IT as a business inside the business.

Building consistent IT delivery ability as the soft asset: With rapid change and exponential growth of information, IT needs to shorten its product/services delivery cycle for speeding up and improving business adaptability. Business leaders should be aware that in the digital arena, IT application and its dynamics have a significant difference compared to the previous age. IT applications blended with current digital technology trends can deliver significant benefits to business growth. If you can present the IT portfolio in a manner similar to a business investment portfolio, it makes instant conceptual sense to the corporate board and C-level executives. To delight customers and optimize the customer's experience, IT needs to build consistent IT delivery ability as the soft asset and champion intuitive and easy to use customer-tailored solutions to achieve specified goals and optimize the customer experience in a continuous delivery way.

Review ROI: Return on Investment - ROI, is a ratio, a percentage of the dollar amount your company gains from IT investment effort over what it initially spent in simple terms. Return on Investment tells the business management how well an IT investment repays the company. The IT Return On Investment value proposition should be an overall measurement based on the combination of cost, schedule, quality, performance, and satisfaction of the customer, users, and stakeholders. IT executives should also continue to review upon the ROIs of existing IT investment, In IT management meeting, the focus point should shift to which IT-led business initiatives provide the greatest return; and which should be invested in the future. To gain IT reputation as a business partner, IT leaders should convey a data-based presentation to the board and top executive teams in looking and appreciating IT strategic value to the business.

You should spend to make a return. IT is the core of most parts of the business today and must, therefore, be visible and present all the time. IT leaders need to perceive IT as an “asset under construction,” or the crucial investment expecting the return, so the CIO is on the right track for becoming an enabler and architect of new business values.

Posted in: IT Finance,IT Transformation