CIOs, perhaps more than anyone who works in the C-Suite, have a great potential to maximize a company’s ROI. But as Dr. Emma Byrne suggests in a post to Forbes’ BrandVoice, that’s a glass-half-full perspective. In the view of industry analysts, CIOs aren’t doing nearly enough to keep that cash from going up in smoke.
The Fire Drill Approach
Quite often, the CIO experiences IT cost optimization as a once and done deal. This “fire drill” approach to cost ignores the potential savings of delivering continuous IT solutions beyond any single reduction target. For the CIO, this means evolving beyond simply minding the budget. Referencing a Gartner Group analysis, Byrne lists the five burning questions every CIO needs to ask him or herself:
- Is your CIO proactive about cost optimization, setting their own cost reduction targets?
- Does your CIO have an ongoing program of value maximization?
- Can your CIO balance cost management and the effective delivery of IT projects and services?
- Is your CIO scanning the horizon for “quick wins” that will enable them to reduce costs effectively?
- Does your CIO resist resting on their laurels after successes—are they always striving for more?
A Culture of Fire Prevention
The above questions may hint at a general failure to recoup costs on the part of the CIO. However, let us not be too quick to place the burdens of cost management on a single individual or department. The overall culture of a given business is responsible for ensuring that IT is not just reactively cutting costs, but rather managing those costs preemptively. Chiefly, by auditing the organization’s service catalog, one can ensure that value to customers and employees is embedded in service delivery, and that low value services are outsourced or otherwise restructured to manage cost.
You can read the full article at: http://www.forbes.com/sites/netapp/2014/07/09/is-your-cio-burning-cash/