Businesses today are challenged with ways to fund innovation as budgets remain flat or increase incrementally. The inability to efficiently invest in the future is one of the reason’s IT is becoming less relevant. It’s imperative that organizations make changes and not only gain a greater understanding of their spending dynamics but also adopt a new approach to decision making, one that focuses on strategic investments and their ability to create competitive advantage. How do you get started?
- Financial Intelligence: Organizations must have complete transparency into the current IT spend. Once they can view all proposed and current investments, they can work to identify cost drivers and connect IT spending to business operations and outcomes.
- Enterprise Investment Strategies: Capabilities that provide enduring sources of competitive advantage are usually built over time through a series of investments so consider projects, applications and assets together and estimate and approve investments with multi-year horizons.
- Cost Optimization: The key to cost optimization is to identify initiatives that make sense for the organization and the effort required for implementation. It can be achieved by rationalization, reusability, portfolio management and better sourcing.
Learn more about the risk of not investing enough in technology that drives business growth and innovation by reading UMT360 CEO Mike Gruia’s white paper Managing IT as if Tomorrow Mattered now available here.