As CIOs continue to diversify their role within organizations, reaching across departments to solve multiple problems with single solutions, they are inadvertently working toward increasing revenue generation as well. There is no doubt that the best way for CIOs to demonstrate their value to their organization is by raising the literal value of the company itself. To that end, Pearl Zhu lists six ways in a blog how CIOs can directly focus their efforts toward increasing revenue generation:
- Engagement: CIOs will contribute to revenue generation when they are part of the senior exec team responsible for the revenue targets.
- Listening: The best way to achieve partnership is to listen to what the business says they need.
- Convincing: IT takes a strong CIO to convince management to continue IT investment to maintain that nimble state.
- Analytics: Better and efficient business analytics can provide visibility into the business.
- Profit: Determine how a CIO can help a business to improve net profit.
- Commercial: A good CIO needs to be “commercial” and have some market expertise.
CIOs should be able to contribute to the improvement of products and services like any other board member. They also need to be able to convince executives of the need for proper investment in IT, as IT is ever evolving and never simply finished once it reaches an acceptable level of functionality. Understanding how business unit planning and budget processing occur will further help CIOs distinguish where and how revenue is generated. On the subject of net profit, Zhu finds:
Improving revenue alone without improving net will not be enough as stakeholders will be more interested to see how much net generated from the business rather than revenue. The key question is what will improve the top line and at the same time decrease expenses to improve the bottom line. CIO can help business to improve net, by reducing cost of doing business by keeping cost down while at the same time maximizing its output so when the business revenue increase, IT cost remains the same, which will improve net.
With the final tip, it is recommended that IT be readied for business initiatives so that they take minimal time to market. Stopping revenue leakage due to IT errors is crucial, and retaining customers with better service management will spell revenue increase. Following all of these tips might help you to show that CIOs are worth their weight in gold.