By Toby Hatch, Senior Product Marketing Director, Oracle EPM Cloud
Executive meetings are changing. IT is becoming an active partner to the business—but many find it difficult to show their financial value to the business.
For CIOs to have a seat at the executive meeting table and be seen as an equal, they must be able to measure and report their value. IT financial management is making this possible.
Leading enterprises are now embracing best practice solutions that provide transparency into IT shared services and the impact of IT investment decisions.
In his 2011 Harvard Business Review article, “The Four Personas of the Next-Generation CIO,” Ray Wang wrote that CIOs have about 30% of their budget available for strategic projects, with the remainder being spent “keeping the lights on” (supporting infrastructure and software). Showing how their (typically large) budget is being spent is important, but showing the value that spend brings to the company is equally important.
Key capabilities to look for in an IT financial management solution include:
- Transparency into IT chargebacks. Showing the cost of IT support associated with operating expenses, projects, and LOB consumption—and providing a catalogue of applications and services given—enables other executives to appreciate and understand the value IT brings to the table.
- IT project transparency. Showing the details of which projects are funded, how they are progressing and showing project performance provides a better understanding into what IT does and how it impacts the company.
- Reporting and analysis. Providing easy-to-consume reports on charge-backs, spend by applications and services, spend by vendor, budget vs. actual variance, and opex vs. capex enables executives to evaluate activities and make informed decisions.
- IT best practices. IT service catalogues and project dashboards can provide value by reducing implementation time.
- Data management. Automated data collection and mapping can improve control and reduce manual data manipulation significantly.
- Ad hoc analysis capability. As IT is often comfortable using spreadsheets, being able to instantly grab and analyze data you need in a spreadsheet is convenient and time saving.
As the CIO, you gain:
- A strategic approach to planning costs
- The ability to balance innovation with operational investments
- Transparency and accuracy in reporting, leading to buy-in from the business
Oracle IT Financial Management can provide all of these capabilities and more. Learn about IT financial management and Oracle’s solution on April 5 in a live webcast featuring Marc Seewald, Senior Director of Product Management for Oracle Enterprise Performance Management.
More information about Oracle IT Financial Management