|Modern Middle Manager
Primarily my musings on the practical application of technology and management principles at a financial services company.
Preach It, Brother
Wednesday, January 12, 2005 Once in a while I run into a pretty good screed. This one from a psuedonymous Fortune 500 CIO is a beauty about the ambiguity of the statement, "IT must align itself better with the business." I agree on most counts that this commandment is a Red Queen statement, the words meaning what you want it to mean. What is the easiest thing for IT to do that shows value to the business? By putting results on the bottom line. What are three easy ways of doing that?
1. Cut costs.
2. Add revenue.
3. Retain profitable existing clients.
Cutting costs should be done intelligently, usually through automation. Sometimes cutting costs can be achieved through renegotiation with vendors or a revamp of the IT infrastructure. We've done both over the years.
There might be numerous ways to add revenue to a company. The trick is doing it with a return on investment. What good is adding $100,000 a year in banking fees if you spent $1,000,000 to do it with annual maintenance fees of $200,000?
posted by Henry Jenkins | 1/12/2005 01:13:00 PM
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