Driving and Communicating IT value by CIOs
– 30 March 2017
Increasingly, IT Leaders are under pressure to function within tighter budgets because of the overall economic environment that the world finds itself in: there are internal forces (cost pressures, declining margins, and smaller headcounts) as well as external forces (new regulations and technological developments) that drive the daily operations and the strategic direction of the IT departments. In such a challenging situation like this, IT Leaders have a tough time to navigate carefully in order to deliver the value required by their businesses. However, their very survival and success depends on their ability to communicate to their boards and stakeholders the value they contribute to their respective organisations.
To understand the nuances and the imperatives of IT value management, CIO Academy Asia (CIOAA) conducted a half-day workshop on 30 March in Singapore. Data management and cloud solutions provider, NetApp, was the main partner for the workshop. Over 30 IT leaders participated in this workshop where they discussed and learnt about how they can highlight the value of IT to their stakeholders and deliver IT value to the business.
IT Doesn’t Matter—Delivering IT Value Successfully
- Talk business, not technology – IT Leaders need to learn three skills : create value, find value and communicate value (to your boards and stakeholders).
- IT per se does not matter: you don’t just have to implement a project because that is par for the course; what matters is how you add value on top of that.
- Value changes over time – “Show value (of your IT) or someone else will eat your lunch”.
- Pay attention to strategy management in infrastructure projects
- Top priorities for IT Leaders range from saving with operational efficiencies to driving revenue growth and setting strategy and governance, running IT as a business, rationalising applications and managing by portfolio.
- Todays technology is shaping industries, and top priorities for innovation should be agility and nimbleness. IT Leaders should portray IT as a value centre, not a cost centre!
- IT Leaders should not focus on cost or timelines, it should be conveyed as value to the board quickly, securely and in a manner that the business can consume
- The new IT model, that has become the new touchstone in the market is characterised as software-defined, with elements such as cost, control, choice, agility, insight and risk that IT Leaders have to deal with.
- Align IT with business, and have a service catalogue, which offers both performance and protection.
- Devising a service cost model is important as it allows customers to pay for what they use.
- Caution IT Leaders against the challenge of transformation – Don’t underestimate it as it involves buy-in from various quarters, including the challenge of getting executive sponsorship.
- Customers today want services (even from infrastructure providers) and want to be consumers.
- The half-day workshop, packed with powerful presentations from industry veterans, ended with the concluding note that IT has to be seen as a business partner for IT Leaders to effectively communicate its value to the stakeholders.
To find the PDF version of this report, please head over here.