Today’s CIOs are expected to do more than simply enable business value — they’re responsible for driving and accounting for it. Yet, many find that external factors frustrate the level of impact they can achieve, whether it’s shadow IT or the underutilization of deployed systems and software.
To tackle this pressing issue, InformationWeek asked three IT leaders for their takes on how CIOs demonstrate business value. The short answer: Calculations can’t be done in a vacuum.
### Building Strong Business Relationships and Embracing Shadow IT
Michael Ringman, CTO at business process outsourcing and AI-powered customer engagement technology solution provider Ibex, underscored the need for strong business relationships. He believes that shadow IT is a litmus test of IT effectiveness.
Ringman likens the relationship between business and IT to a marriage. “You both come together and bring 50%. It isn’t one part of the organization bringing 100%, or even 75%,” he explained.
He also emphasized that understanding what shadow IT is occurring within the company should be seen as an opportunity rather than a negative. According to Ringman, finding shadow IT in the organization is “super cool” because it indicates that the business has recognized a problem and identified a solution.
“It shows you where you’re not engaging with the business to help create and drive that value. I seek that stuff out,” Ringman said.
Rather than undertaking big-bang projects, Ringman achieves a higher percentage of successful projects by making many small investments and failing fast.
### Change Management Is Relentless and Adaptive
The need for change management has always been important, but it has become critical as businesses undergo digital transformation, said Scott Weller, CTO of AI-powered credit risk analysis and monitoring company EnFi.
“AI amplifies the need for change management — at a much more rapid pace,” Weller said. “IT is not only being asked to measure themselves at the end of a project, but also to measure the efficiencies or revenue they’re creating [during the project], while serving as the hyper evaluator of technologies, so that they can connect these two things.”
Weller stressed that evaluating technology requires intimate knowledge of the business use cases you’re supporting. Large enterprises adept at digital transformation are those that reorganized IT to collaborate closely with the business to capitalize on specific market opportunities.
As enterprises undergo AI transformation, Weller believes it’s important to embed technologists inside business units, either temporarily based on expertise or as part of a hub-and-spoke model.
“The companies having more successful AI proofs of concept and trials generally don’t have AI councils. They’re embedding AI expertise in the business team and helping to procure solutions almost as separate nodes that can work independently,” he said.
This approach is top-down versus bottom-up to ensure strategic impact while being intentionally incremental. Specifically, it requires a clear mandate — not just executive buy-in, but the vision and structure to make it happen.
“It’s no longer massive implementations across teams. It’s being intentionally incremental, starting with very small, practical use cases and expanding that over time,” Weller explained.
His team’s initial two-week sprints have evolved into a mandated assessment of impact every three days. This alignment between business and IT leaders helps articulate the end-state goal for each sprint.
“I think those three-day cycles help the team reevaluate — should we keep going? Are we getting closer? Are there new decisions? What did we learn from this new thing? It also allows you to decide if there’s something new coming — whether we should pause for a moment and see what that is. You can also make new decisions,” Weller said.
### Expect Chaos, Behave Accordingly
Many external factors affect the value of IT, from the vendors and solutions selected to regulatory changes, shifts in market conditions, and technology innovation. To cut through the chaos, Dmytro Voloshyn, CTO and co-founder of global language learning marketplace Preply, emphasized that data helps.
“For example, last year, everyone at Preply was excited about the new enterprise AI tools they would be able to use,” he said. As part of the project, Preply partnered with OpenAI to assess the impact of the tools on productivity.
By calculating the time saved using OpenAI across different departments in its first year after deployment, it was possible to predict the total amount of money that could be saved. Money talks.
“The easiest way to have a common denominator [between IT and the business] is to talk about what [a project] will cost and what value it will bring to the business, without getting into the technical details,” Voloshyn said, echoing the common refrain from the other experts: “If you want to impact the business, you should understand how the business works.”
One of his biggest internal partners is the CFO, with whom Voloshyn does long-term planning. Having a shared language facilitates more effective collaboration, resulting in a shared vision and roadmap.
While details can change over time — such as which AI company is the “leading vendor” — there is general agreement between Voloshyn and the CFO on longer-term investment, so that appropriate investments can be made in technology and workforce upskilling.
“It’s a bit of an art to remain operationally effective and still strategic. One of the most important things is to stay agile and human-centered, because with all this automation and changes we see with AI, human connection will become an even more valuable element of how organizations operate,” Voloshyn said.
https://www.informationweek.com/it-management/ask-the-expert-how-cios-prove-business-value
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