Chief Information Officer – Challenges and new tasks
+++ The role of the CIO newly defined +++ Despite significant IT investments, many companies do not manage to reach their set goals. The crux of the problem rarely lies with the CEO or the CIO (Chief Information Officer); oftentimes it is due to issues with the transparency of expenses or missing IT standards when it comes to the company’s digitization strategy.
Digitization does not only change the role of the CIO but also the expectations towards this role and the IT budgets available – in the latter case, the tendency goes towards improvements. Based on a study by Capgemini, executives keep investing into IT. In return, they have a justified interest in comprehensible success monitoring by IT specialists. After all, money should not only be used efficiently but most of all in a way that accomplishes the company’s digitization goals in a way that increases the value add.
Collect data, gather insights
In most companies, IT service delivery happens in a rather general manner. In order to assess the profitability of IT you need to do a service-oriented calculation. This implies the complete and comprehensive breakdown of all IT services. Ideally, this allows for an analysis that allocates costs to the specific service layers and departments. The information gathered will tell you which service consumers are responsible for specific costs and whether you put your IT investments in the right spot. A simple example: Why are the IT costs of the finance department double of what HR is spending? The CIO should easily be able to answer this question since the answer will identify cost drivers and refute any faulty assumptions.
Support for the CIO
As the person responsible for the IT budget, the CIO has to manage various tasks in order to answer important questions on costs while keeping track of expenses in a transparent and economic way. Software solutions like anafee can be a great help in this situation. Software like this allows for a goal-oriented controlling of IT as well as a comprehensive use of the available resources. anafee in particular offers coherently processed reports listing all of the delivered services as well as the costs related to certain service qualities. Mere assumptions are backed by data and facts.
IT controlling compensates for shortage of specialists
Planning, controlling, and optimization of IT costs are necessary due to the current shortage of IT specialists. According to a current survey made by the Austrian Economic Chamber, the participating companies claimed that IT expertise is one of the most problematic areas when it comes to hiring new employees. This shortage of specialists puts a break on on-going digitization efforts and any prospective value generation. All the more important to utilize the limited human and available technical resources as efficiently as possible – which leads right back to the tasks of the CIO.
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Proper IT cost management is essential to the successfull expansion of an enterprise. There are many things to consider when it comes to optimizing the underlying processes:
- What does my IT cost?
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 Study IT trends 2018. Digitalisierung: Aus Ideen werden Ergebnisse, by Capgemini, pp 10-11
 Survey by the Austrian Economic Chamber https://news.wko.at/news/oesterreich/wie-sehen-die-betriebe-den-fachkraeftebedarf.html#heading_Fachkraeftemangel_nach_Branchen_3, Accessed on September 20, 2018