Is cost becoming increasingly important? Is the CFO view now critical to defining the IT decision making and strategy?

In his blog, Mark P. McDonald of Gartner writes –

“…..
* IT spend is more driven by your choices about product, process, organization, and customer views as well as service levels, structural costs, and contracting terms which all have little to do with sales.

* Finally, there is little causality at best, between sales levels and IT.  Sure when IT systems fail, it is tough to book revenue, but there is no general relationship between changes in IT spend and changes in sales levels.  IT spend is not like marketing or sales spend in this regard
…..”

There really are so many pieces of software and IT that go into running the business that computing and ROI on individual pieces becomes tough work. If at all one can get ones hand around it. The more important question that needs to be asked whether a piece of software or IT is necessary for business. The task of the CFO therefore is important from the point of what it costs to bring in these. And if at all there are lower cost alternatives that are sufficient for the purpose.

References

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