Businesses expect IT departments to deliver the ability and flexibility to keep up with innovation in the marketplace, whilst lowering operating costs.
As a result, technology for technology’s sake is no longer sufficient. Before they sign on the dotted line, business leaders need to be assured that new technologies will offer financial and practical worth. It is widely accepted that up to 80 per cent of a company’s IT budget is spent on the everyday running of their IT environment. Therefore, it’s hardly surprising that leaders require such assurances before they invest in new technology.
A recent survey conducted at the European Business Awards reveals that 68 per cent of respondents believe innovation will speed business growth as economic conditions improve. This shows that business leaders see the benefits associated with innovation. However, out of the 80 business leaders questioned, over half admitted that they do not have a way to measure and show innovation return on investment (ROI). This is surprising considering 80 per cent stated that a ROI model is essential for growth.
With the importance of monitoring ROI equal to the importance of keeping up with innovation, what can CIOs do to keep track of their IT innovation ROI?
Cloud, BYOD and incubation are widely hailed as ways of the future. But measuring these against old methods of ROI calculation such as head count and operating cost saving modules causes confusion since they’re hard to track. Consequently, the true worth of investment is often unknown because comparisons cannot be drawn.
Getting an overview of the entire IT Infrastructure is one way of keeping up with innovation and monitoring ROI simultaneously.
For our customers, it is scale, security, automation, and resilience that ensures they keep up with innovation. Yet what companies need to be conscious of is that these are also key in terms of ROI. Managing resources and data that are constantly in motion, gaining visibility, and maintaining control of IT resources is fundamental for calculating true ROI. This must must include dynamic resources in real-time for private, public and hybrid clouds. No matter where they are located an entire overview is needed.
This overview can be obtained with integrated management and visibility of cloud and data centre resources. Only this way can ROI be tracked, and the true value of IT innovation for a company understood. This also provides CIOs with the assurance they need to prove to business leaders that financial and practical worth has been obtained.
There is enough adoption of new technology taking place to show that old-school ROI analysis has been overhauled by probabilistic benefit analysis. CIOs just need assistance gaining the visibility they require to calculate innovation’s true ROI.