Tools for qualified decision-making
The trend is clear: an increasing amount of corporate IT investments and responsibilities are moving from IT departments to the business managers. Change requests and new investment initiatives often come from process owners or the CFO. The CIO may be involved on some level, but the budget decision is not theirs to make.
Business managers tend to make decisions that focus on reducing time-to-market and solving customer needs. At the same time, many business managers are also in charge of IT budgets it can lead to short-term decisions that do not consider the impact on the organization’s IT architecture. The IT department is still responsible for the operation and maintenance of the technical solutions, and must deal with the practical consequences of these decisions.
We strongly recommend that you do not go for the “quick wins”. It may seem appealing and provide a decent solution for the time being, but it’s important to consider the long term costs of maintenance, upgrades and modifications.
ROI and TCO
ROI (Return On Investment) and TCO (Total Cost of Ownership) are two key performance indicators that will provide you with superior administrative power if used correctly. Our experience tells us that a clear integration strategy based on business objectives will result in outstanding TCO over time. A good ROI is relative to the short-term business objectives.
Business integration investments are normally “middle to long term” investments. If you put time and effort into strategy, platform and projects you will soon see a positive effect on both ROI and TCO. You will get control of your integration costs, which are often a significant (but hidden) part of IT project costs.
Prepare before you decide
At iCore, we have a lot of experience from advising companies about their IT investments. Analysis and advice are central services that can improve your knowledge of your organization and business processes. You will become more competitive and learn how to turn your data into profit.