Powered by: CIONET and It's Value
Facing intense pressure to "do more with less," top CIOs and Digital Leaders at a recent CIONET roundtable agreed that simply cutting costs is no longer enough. The mandate is to quantify and prove IT's business value.
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Challenge |
Solution |
Key Actions |
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Quantifying Value: Benefits land in the business P&L, making value extraction hard to track from an IT perspective. |
Adopt TBM: Technology Business Management (TBM) provides the essential, shared language to translate technology costs into business-understandable services and outcomes. |
Commit to P&L: Require IT business cases to commit realized benefits directly into the business's Profit & Loss statements. |
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Accountability: Managing cloud spend (FinOps) often remains centralized, leading to uncontrolled sprawl and costs. |
Drive Accountability: Shift accountability for cloud consumption to the product and DevOps teams themselves, supported by architectural controls. |
First Baseline: Start by performing a TBM baseline assessment to secure the data needed for transparent decision-making and continuous improvement. |
In an era defined by digital transformation and economic uncertainty, the CIO mandate is clear: do more with less and prove it. As Gartner notes, proving the value of IT will be mission-critical for organizations by 2026. This necessitates a profound shift from merely managing operational costs (FinOps) to maximizing strategic returns through effective Portfolio Management for innovation.
This was the central focus of a recent Executive Roundtable Dinner hosted by CIONET in partnership with It's Value. Senior technology leaders from a diverse group, including a Tier 1 Dutch Bank, a Global Fashion Retailer, and a European Building Materials Conglomerate, exchanged insights on the practical hurdles of achieving data-driven IT management.
The discussion, led by IT Financial Management expert Peter van Loon (CEO of It’s Value), moved past theory to tackle specific challenges faced by highly complex, global organizations.
The biggest barrier shared by attendees was quantifying IT's true business value, especially when the benefits land outside the IT budget and are difficult to track.
Global Chemicals Manufacturer's Perspective: "We’re very good in managing cost, but impact on Business Value is more complex. Value Extraction or benefits tracking is hard. The value goes to the business function, not to IT!"
This challenge underscores the immediate need for a shared financial language and framework, leading to the consensus solution:
Attendees agreed that the fundamental misalignment between technology spending and business strategy requires a dedicated structure that acts as a translator.
When resources are tight and IT investment decisions are constantly scrutinized, leaders must focus on proving value and enforcing accountability.
In times of reorganization or cost reduction, the key to survival is prioritizing initiatives based on tangible value.
For organizations like a European Insurance Provider trying to "get a grip on costs," the roundtable provided clear direction on controlling complexity, particularly in the cloud.
The consensus among leaders, including those overseeing transformations across multiple brands like a European Biking Conglomerate (discussing TCO across 10+ brands) and strategic accelerators like a Global Investment & Technology Group (focusing on baseline assessments), is that this is a continuous journey.
This transformation—shifting mindset, establishing TBM, and enforcing financial discipline—is challenging. However, as one participant from a Global Internet & Technology Investor noted, the next step must be concrete: "We should do a first baseline assessment." Establishing this TBM baseline is the only way to secure the data needed to make the right decisions and finally turn IT spend into measurable business value.
Did the insights from this private executive roundtable resonate with your strategic goals? CIONET regularly hosts high-level, focused events designed to foster peer-to-peer learning and networking.
If your company is interested in partnering with CIONET to participate in or even co-host future exclusive events, share thought leadership, and connect with a select audience of top CIOs, CISOs, and Digital Leaders, please leave your details below: