Advocate

TFM: Changing the conversation

How the CIO can move from cost to value

Woven into the TFM maturity journey is the critical transition from talking about IT costs to talking about IT value. Forward-thinking CIOs recognize that as long as their conversations with the CFO and other business leaders remain centered on costs, the CIO will remain in an administrative position—and the IT organization will be limited to a reactive approach.

To advance TFM maturity and get buy-in for the proactive investments needed to anticipate and drive business growth, CIOs need to shift the conversation with business leaders from cost to value. But how?

Redefining the ‘R’ in ROI

Most CIOs know that ROI is the universal language of value in the business world. Unfortunately, most IT organizations define ROI in terms of IT-specific costs and IT-defined business cases. But defining the “return”

in terms of bits and bytes—more bandwidth, faster server response, improved network resiliency, etc.— doesn’t create a compelling value proposition for non-technical business leaders. To grab attention and demonstrate the value of technology spending, CIOs need to define the “return” in terms of business outcomes: new customers acquired, faster customer response times, shorter time to revenue, etc.

Demonstrate that technology IS the business value

Critically, this redefinition of ROI is not about simply linking technology to business outcomes—it’s about showing that technology spending and business outcomes are completely interwoven. Increased network bandwidth directly drives customer service levels. Server response time directly drives both customer satisfaction and sales conversions. Streamlined revenue management technology puts dollars in the bank days (or weeks) sooner.

Conclusion:

Realizing the potential in proactive, predictive TFM

As IT leaders balance increased technology demands with budget pressures, IT organizations in every sector are successfully leveraging TFM solutions to justify IT budgets and optimize IT costs. However, as more businesses recognize that technology is the critical driver—and inhibitor—of business growth, there is tremendous potential to look beyond the “run” and leverage predictive TFM insights to drive proactive technology investments for business growth. With the right expertise and support, IT organizations can advance their TFM maturity, going beyond cost attribution to reveal how technology spending drives measurable business outcomes today—and leveraging bold new TFM analytic capabilities to define the technology investments that will unlock growth tomorrow.

Comments (0)