How should CIOs/CTOs manage cost concerns when proposing a modernization project?
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Senior Executive Advisor in Software3 years ago
Cost savings is not what people need to aim for when they have to modernize, it’s just table stakes at that point. There are so many other metrics to focus on: Are you reducing your technical debt? Are you becoming much more nimble?CIO / Managing Partner in Manufacturing3 years ago
Exactly: Are you transforming the business?
CIO in Education3 years ago
I've always said, “Don't think of IT as a cost center, think of IT as a profit center.” I've had so many discussions about why IT shouldn’t be treated from a financial standpoint. What’s helped me is asking, "How much have I removed the touchpoint for data generation and data consumption by doing X, or by doing Y?" The touchpoint is what I can put a dollar value to, good or bad. At least there's a value attached to it. That doesn't always go through the straight ROI-type calculation.CIO / Managing Partner in Manufacturing3 years ago
The problem there is making sure that the CEO sees the proper value IT delivers. That could be a very difficult discussion.
Director of IT in Software3 years ago
My tagline is, "technology drives revenue." Period. That is the purpose of what we're here to do: to increase productivity, increase optimization, and drive revenue. That’s it.
CEO in Services (non-Government)3 years ago
Two things to remember. The first one which everyone has said before me. Mordernization is about expanding business value - impact to top line. So do not define a project by cost. Define it by the impact it can make. Second, once defined then determine the most economical way to deliver in it without impacting scope or quality. This helps preserve the top line impact and increase the bottom line.
They two steps are to be done in a sequence - not together.
CTO in Education3 years ago
Focus on business outcomes achieved, and risk reduction as well. Also articulate long-term cost reduction over short-term expenditureSenior Data Scientist in Miscellaneousa month ago
For any investment, a RoI calculation is highly recommended. Especially when this also includes a certain risk mitigation (e.g. CyberSecurity enhancements), the figures should be clear and no doubts are supposed to remain.In addition, if compliance requirements (e.g. European NIS2 directive) require a certain modernization, any additional discussions and re-discussions most often only cause delays and unnecessary cost increases.