February 16, 2012, 10:35 AM — Some IT organizations get stuck, always having a cost conversation with upper management. The CEO and CFO want to know why IT costs so much , why its costs increase so fast and why the business isn't seeing any return on its considerable investment in IT.
These are one-sided conversations focusing on cost, cost and cost. What's missing is the value side of the conversation.
CEOs, CFOs and most senior leaders want to know that their investments are generating a healthy return. When they can't make the connection between spending and output, then the conversation turns to cost control and cost reduction. In other words, what they are really saying is not that IT costs too much, but that they do not see the value and benefits that are being generated from the investment being made.