Can you share your approach to discussing IT spending with your CFO? Any tried and true methods you've developed over the years to effectively communicate business value of technology spending in a way that resonates?
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It's about value to the business as others have already said. In many cases, it's the cost of keeping a system alive where resources may not be available, or the need to add heads where a system could mitigate that specific need or risk.
My approach is really to come up with concrete facts of comparative data on the problems encountered, particularly in terms of digital transformation and access to technologies I always try to demonstrate the loss of efficiency and the process automation approach to make us even more efficient without adding staff so that's the lever I often use to demonstrate the business value of a technology spend.
IT must be shown as investment versus expense. Most C suites outside of IT may view IT as a deep blackhole or money pit without the conceived value. Therefore business value must be the ultimate outcome of any conversation or communication.
As Andrew says, growth & risk are key. Relating to financial metrics as well if you can.
The discussion needs to start and centre around business impact, how will making these purchases help grow the business, make it more nimble, easier to do busines with, more customer centric, or reduce risk, remove problems.
Key questions you need to also answer:
- What are the alternatives?
- What is the impact if we do not do it?
- Why do we need to do it this year vs next?
The language of business is Finance, so be prepared to speak in his language. I think everyone in the comments has it right. Talk about ROI, talk about value, risk, technical debt...etc.