How CIOs Can Demonstrate the Value of IT

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By Brian Thomas, CIO, Swope Health Services

This article is by Featured Blogger Brian Thomas from his Divergent CIO blog. Republished with the author’s permission.

CIOs have an inherent duty to demonstrate the value of their departments, and this is never more true than with IT. It's the same across other platforms of a business, from sales to finance to operations. With technology becoming more and more commoditized, companies are measuring the value of their IT departments, and thus services, in regards to the preservation of business value, creating benchmarks as a result of those outcomes, points out CIO. NO matter what department you're talking about, the same principles of revenue generation and top-notch operations are used to not only evaluate but also prioritize and measure various projects to boost shareholder value.

The IT department in any given company is an important cog in the output machine. Take a mobile sales platform for a healthcare EMR system, for example. If something fails at the IT level, the whole system gets hung up, resulting in the possibility of a patient not gaining access to the medication they need to be healthy. It's too easy to imagine a bunch of IT pros sitting in a back room somewhere far removed from the daily operations of a business. Not so. They have just as much impact on the organization's failure or success as anyone else.

Flexibility

Being flexible in an ever-demanding and complex environment is an important facet of an IT department, one that can make or break the operational capacity of an organization. As such, IT is required to provide more service and solutions above and beyond just "keeping the lights on." In fact, IT and its partnership with business balance both past and present collaborations to determine future successes. Because IT is most useful when projects are delivered successfully to the end consumer, its value is dependent on persuading management to measure positive value-added contributions as well as maintain a steady presence -- even despite such a complex environment.

Business Capability

Much more than a technological-minded organism, IT offers a great value to the business capabilities of a given company, not just in the area of technology capability and contributions. IT as a cohesive unit can provide valuable input on business decisions, leading to solutions that benefit the company as a whole. So what can the CIO and IT do together to demonstrate effectiveness to the rest of the organization?

Business operates on a principle of "what's in it for me?" -- after all, this is how competition thrives. Therefore, IT needs to:

  • Realize what their pain points are
  • Identify areas of improvement, specifically in relation to IT
  • Provide a strategic advantage from a productivity perspective
  • Work on developing a partnership mentality
  • Demonstrate value instance by instance, with clear objectives

As the business strategist, the CIO needs to ensure IT's strategic value is visible to the rest of the organization. Their position of leadership enables them to execute IT strategy, goals and objectives, and ensure they are aligned with the culture of the company as a whole. Driving business process improvements, IT becomes just as important a link in the chain as every other department when it comes to solutions that align with the corporate vision.

Originally published on Divergent CIO