Unlocking the value of IT
Organisations are reluctant to invest in IT without evidence of payback. Investors, meanwhile, driven by market volatility, are calling for greater transparency on where and how IT adds value to the business.
The importance of IT is often overinflated and the benefits of IT coming from these supporters rarely are achieved. On the other hand there is a strong warning that companies which are unable or unwilling to match productivity improvements or process innovations are generally eclipsed or acquired by more agile competitors.
But is unlocking the strategic value from IT really about spending less or spending more? We think not. We argue that the key to IT optimisation lies beyond the type used and cost of technology, in the governance models used to manage and integrate IT with the business.
In short, it is not what you spend but how you govern what you spend that matters.
Deloitte has determined that IT governance – how IT is linked to the business and the CIO’s role in defining the IT investment needs to underpin the business strategy determined in the boardroom – can reduce overall IT costs, without giving up on business growth ambitions.