CIO OPINION
Value and contribution as well as cost and efficiency technology and underscores the role of IT as a strategic business enabler .
When considering the topic of financial management , there is a tendency to think cost control . While it is clearly important to optimise the growth and profitability of a company , businesses also need to ensure that funds and resources are well spent to invest in innovation . In fact , more than three-quarters ( 78 %) of CIOs focus on IT Financial Management ( ITFM ) to ‘ ensure IT-related investments have maximum business impact ’ while just under half ( 48 %) view evidencing ROI across the project portfolio as a key driver .
While more than two out of five ( 42 %) CIOs recognise reinforcing IT as a revenue enabler and not just a cost-centre as a big driver , significantly , almost two-thirds ( 64 %) see freeing up time / budget for new developments as a secondary driver for ITFM . This research highlights that against the backdrop of major economic and geopolitical disruptions , business and IT leaders are coming to recognise that they can ’ t save their way to future success but there is further work to be done to ensure that organisations reap the full rewards of ITFM . Digital and business transformation are critical , which in turn shines a spotlight on
Going hand-in-hand with this is a recognition that smarter ITFM can help raise IT ’ s credibility with business stakeholders and reinforce its position as a revenue enabler , not just a cost saver . The aim is to set aside any initial views of IT as simply a cost centre and get it working as a trusted and integral part of the overall business strategy . Failing to effectively communicate how ITFM enhances the broader business functions can lower its perceived value and create resistance .
Increasing focus on collaboration between the CIO and CFO
Cutting costs and fostering transparency is more complicated than just selecting one of the many software tools on the market . Alignment and collaboration between CFOs and CIOs is critical to empowering organisations and ensuring that implementation of the tools is used effectively across the business . ITFM tools for enterprise services are vital in enabling businesses and leaders to gather vital analytics , real-time operational , project and vendor cost data – in essence , to uncover the truth around
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