The IT demands of today’s businesses are rapidly expanding. An increasing dependence upon the cloud for growth and the availability of new and changing technologies to support corporate operability are shining a light on the pressures of IT financial management to enact an effective, measurable plan for technical growth and financial stability.
Contrary to somewhat prevailing perception, the challenges faced by IT financial management are often not due to poor methodology, but instead are hindered by ineffective, inefficient, and outdated tools. IT Management will benefit from the appropriate tools and software which can provide accurate, detail-driven visibility into who is spending, on what, and whether that spending is an effective allocation of the existing budget. At the same time, the best solutions will ease the reporting burden placed upon IT staff and enhance accountability and transparency for the entire organization.
A former study by Duke University and CFO magazine found that top executives identified the difficulty of forecasting results as a major internal concern – a concern shared by leaders and managers alike.
The issue for IT finance is then, how to identify the most appropriate, cost-effective resource to address the issue of visibility and forecasting, and how to use that resource to enact positive, measurable change.
Who’s really making the decisions?
The evolving world of IT requirements and the financial implication of those needs impact numerous organizational decision-makers with different priorities and objectives. Among them:
- C-suite executives who have the capability to drive IT decisions but are focused on the big picture versus the smaller details. While CEOs, CFOs, and the like need a broad perspective to plan strategically for a business’ overall growth and success, other concerns often take priority over the level of detail dealt with at the managerial level.
- CIOs who are ultimately responsible for a company’s IT bottom line but do not have the visibility or, at the very least, the time to gain visibility into the details of IT financials to enact much change below a certain level.
- IT finance managers who can enact change as needed but need some direction from leadership toward solutions that provide the most accurate, reliable data vs. the most impressive visual overview.
- Product and application managers who need to be able to make educated requests for IT services and products within their departments and rely on accurate financial reporting to make their case.
This may seem like too many chefs in the kitchen, but the right, detail-driven allocation and budgeting tool can become a conduit for transparency, collaboration and more effective overall communication between these groups, rather than foster a minefield of competing objectives.
Download this eBook to continue reading how to move the needle in IT Finance- including overcoming barriers to change (like moving beyond spreadsheets) and the right tools for your ITFM journey.