Driving Innovation Through Technology Investments

In today’s highly competitive environment, the companies that can move beyond simply maintaining the systems that their business depends on and achieve true innovation will be the most successful. The key to reaching that state is having full control, visibility and understanding of the company’s technology use across the organization and the costs of running those systems.

 

When an organization can accurately forecast and budget its IT costs, it can make better, more informed decisions to ensure that its investments align with its overall company strategy. Yet, as companies grow and expand, their ability to identify and contain technology costs across departments, divisions and locations becomes diminished. Key IT data is often stored in disparate systems and silos, making it impossible to understand how each function uses its technology and the costs involved. Without clear insight, it is difficult to forecast the company’s spend on IT, and its ability to fund innovation is hindered.

 

With increasing pressure to connect IT budgets with revenue-generating activities, the IT department needs to show how its current investments tie into positive business outcomes. The first step to achieving this is to understand several key factors, such as the costs of providing a particular IT service, how current IT services spend compares to industry benchmarks, how technology is consumed across the business down to the user level and whether supply is aligned with business demands.

 

To identify those factors and understand what the company currently spends on its technology – and to ensure it invests in applications that can spur innovation – the company will benefit from utilizing a robust IT financial business management (ITFBM) solution. The intelligence gained from such a solution allows the company to perform more strategic planning by illuminating opportunities to optimize or reallocate unspent IT budget dollars and reinvest them in revenue-driving initiatives. As a result, the company can gain iterative enhancements in the areas of budgeting, planning, cost modeling and cost recovery, contributing to continuous improvement.

 

Before starting on the path to ongoing innovation through smarter technology investment, the company must first find a provider offering the specialized software that can deliver enhanced insight into their IT spend. The right ITFBM solution is key to aligning the company’s technology investments with overall priorities and strengthening the connection between the IT organization and the rest of the business. With the resulting increased financial transparency and visibility, the company can better control its IT costs and take a more accurate approach to governing its investments to achieve continuous innovation. Essential for success, however, is a partner that can provide not just the software, but also the expertise, domain knowledge and proven best practices that will help the company expand far beyond a business as usual approach.


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