3 Strategies for CIOs to Demonstrate higher RoI for IT Investments

3 Strategies for CIOs to Demonstrate higher RoI for IT Investments

IT has become the driving force behind the survival and success of many enterprises. Yet, many CIOs still find it difficult to get a seat at the table alongside their counterparts for taking strategic business decisions.

The year 2020 revealed how important it is for enterprises to focus their attention on the IT departments. Digital transformation initiatives have been instrumental in the survival of many enterprises. In fact, in a report published by Gartner, the total IT spending across the globe is projected to reach $3.9 trillion in 2021, a 6.2% increase from 2020.

Even though IT is viewed as a business-critical function, many CIOs still struggle to be involved in key business decisions. However, with the following strategies, CIOs can truly demonstrate the value of IT as a worthwhile investment and consequently earn their position at the table and positively influence the board.

Also Read: Developing Crisis Resistant Enterprises with Enterprise Service Management

Here are three strategies that CIOs must focus on for building a strong case as IT as a value center:

  • Addressing business challenges

IT Enterprises that are value-centered thrive in today’s enterprise landscape by addressing business problems. Hence, CIOs must bring their tech expertise at the board meetings to explain how investment in the latest technology aligns with the goals of their business partner.

CIOs must ensure that the tools and technologies they are implementing will address and contribute to resolving their business partners’ challenges and achieving their goals. They can help them understand how IT can improve the digital customer experience for their customers and launch digital solutions at an accelerated pace in the market.

  • Leveraging data to understand customers

Due to the rapidly changing needs and demands of the customers, real-time intelligence and optimization have now become more important than ever. This allows enterprises to uplift their pre-pandemic offerings as well as enhance their current and future touchpoints.

By leveraging innovative technologies like predictive analytics, CIOs can show their C-suite counterparts the various opportunities to differentiate themselves from their competitors in the marketplace. Furthermore, it will also help them have personalized interactions with the customers in real-time.

Since most enterprises have tightened their budget, CIOs must develop a feedback loop between data-driven decisions and real-world results. This will help them find efficiencies and eliminate waste, thereby further strengthening their case for IT as a value center.

Also Read: How can leaders avoid an AI project from potential failure?

  • Prioritizing value capture and creation

A recent survey conducted by IDG found that increasing operational efficiency has become the top digital priority among CIOs. Hence, when creating efficiencies and aligning IT expenditures with the business value, CIOs must ensure that they execute a rigorous, formal value capture system for measuring cost savings. This will not only enhance the customer experience of the product or service offerings but also improve the ROI for each initiative.

Hence, CIOs must ensure that their various IT investment initiatives not only strengthen the infrastructure of the enterprise but also act as a strategic differentiator for driving business goals.

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Vishal Muktewar is a Business News Reporter at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.