Posted by: Karen Goulart
CIO, IT financial management, IT investments, monetizing IT, value of IT
It’s a question as old as information technology itself: “How do I prove the value of my technology investments to the business?” What makes the question so vexing is that there’s never been an easy answer — or any answer, period. There is no one-size-fits-all solution; and if someone were to come up with one, well, it probably would become obsolete in a matter of months. And then there’s the real kicker: This question has been plaguing CIOs for years, but it’s never been more important to answer it than it is right now, in the slippery era of all things global and mobile.
So, although I wish this paragraph contained some crazy, silver-bullet solution of the big “…until now!” kind, that’s sadly not the case. What I do have is some encouragement from CIOs who believe that proving the value of technology investments can reasonably be accomplished. One CIO is being practical in his approach, the other is scoring points with the business through creative thinking. Neither is trying to reinvent the wheel; they’re just looking at what they have to work with and running with it. And perhaps most importantly, both are being proactive: They didn’t wait for the business to come to them with demands for financial answers.
I’ll delve into more details in an upcoming story for SearchCIO.com about monetizing IT, but one CIO taking the practical approach is Raul Cruz, CIO at AECOM Technology Corp., an engineering and architectural design firm with more than 45,000 employees around the world. Two years ago, he implemented a financial management framework that gets truly detailed in its tracking of costs associated with services, activities and projects. He’s applying that information to a SaaS solution that will make all those figures accessible to his team and, of course, the business.
Then there is Larry Bonfante, CIO of the United States Tennis Association. What he’s done over the last few years might be considered a kind of “creative IT recycling.” This phrase, which I just made up, isn’t meant to cheapen his efforts by any means — in fact, they have made the USTA quite a bit of money. Here’s just one example: The USTA runs the widely attended US Open. The 700,000 or so attendees gotta eat; and when they do, they can visit the food village in the center of the event campus or an outlying kiosk. Choices are nice, but until recently, the outlying kiosks could accept only cash because they were too far away from the central village to connect to the system. Enter IT with a Wi-Fi solution, and those kiosks now can take credit and debit cards — and the USTA can take in an additional $200,000 in revenue. You know the business had to, ahem, love that.