For too long, CIOs have talked about having seat at the executive meeting table, but were often viewed as an expense to be managed and not a true business partner with cool ideas on how to move the company forward.
The CIO role has certainly grown more strategic in recent years, with nearly 50% of CIOs reporting directly to CEOs, according to CIO.com's 2017 State of the CIO survey. IT leaders have a role in leveraging technology to drive new revenue streams, lead product innovation and build customer relationships.
Yet CIOs are still expected to “keep the lights on” and maintain day-to-day operations. Today’s CIOs are under pressure to strike the right balance between business innovation and operational excellence.
The strategic CIO needs to successfully partner with counterparts in the Lines of Business (LOBs), yet in the CIO.com survey, a significant gap still exists between those LOBs and IT on the role of the CIO. 84% of IT leaders said the CIO is becoming more important to the business, while 59% of business executives agreed.
To become a strategic partner, CIOs must provide transparency to their stakeholders, demonstrating what they consumed and how it helped them to achieve their goals. IT financial management can help CIOs and IT departments to plan and report in a very straightforward way that clearly demonstrates their financial and strategic value to the company.
TechTarget defines it this way: “IT financial management is the oversight of expenditures required to deliver IT products and services. The discipline is based on traditional enterprise financial and accounting best practices, such as mandating documentation of expenses and requiring regular audits and reports. However, IT financial management methods and practices are adapted to address the particular requirements of managing IT assets and resources.”
In short, IT Financial Management aligns IT spend to run and grow the business—helping to strike that balance between strategic and operational demands.
Oracle’s new, cloud-based solution for IT financial management does just that. Among the benefits:
Influence demand for IT shared services via defensible and transparent IT chargebacks. Particular features to enable this include an end user-owned allocation model, IT service catalogue framework, and bill of IT invoice.
Gain greater insight into IT spend, and improve planning and forecasting through IT project planning, as well as IT spend planning and analysis. Quickly change assumptions to simulate the impact of decisions on running the business, growing the business, and transforming the business.
Data management and built-in integration with your key IT and business processes allows you to leverage your existing investments and complements your IT strategy.
As the CIO, you gain:
Many large, multinational IT departments already use Oracle Hyperion on-premises solutions to manage IT. Oracle is now announcing availability of our cloud based IT financial management solution. The capability has IT-specific content such as an IT service catalog, IT project planning frameworks, and IT dashboards, that make the implementation and use of the solution very intuitive for both IT and business users.
The CIO role truly is changing. An IT financial management solution can tip the scales in favor of making that role more effective and rewarding.