I'm looking for tips on how to persuade our CFO that IT should be viewed as an investment rather than just a necessary cost. I work in a non-IT company, and I'm hoping to make a solid business case that highlights the value and potential returns from investing in technology. What arguments or strategies have worked for you in similar situations?
5 Answers
I break down computer and equipment costs into daily expenses. For instance, a $1,000 desktop becomes just a dollar a day over three years. Presenting IT as a cost-effective investment helps your CFO see the overall value rather than viewing it as a single big expenditure.
It's essential to demonstrate results over time. Build a history of reduced costs and improved workflows. Sharing success stories within your organization can also show why investing in IT is beneficial. Just remember, IT will often be viewed as a cost; it’s all about communicating its value effectively.
So true! It can be tough when some companies see IT merely as an expense, but consistent results will eventually shift perspectives.
To convince your CFO, I recommend showcasing solid evidence. Prepare a spreadsheet that outlines how much money your IT initiatives have saved the company, the value generated, and any productivity improvements you've achieved. Highlight compliance roadmaps and future capex plans to support major tech investments. It's crucial to focus on business outcomes instead of technical jargon—frame everything in terms of risk mitigation and ROI to get their buy-in.
Absolutely! Your boss will respond better if you relate your work to making or saving money. Remember, saving a dollar has less impact than generating ten!
Sometimes, being in the right place at the right time can help. I got my chance after a ransomware attack, and that really opened the door for discussions about the importance of investing in IT. It seems many companies only take IT seriously when there's a crisis, which is a shame.
Ah, the classic reactive approach! It highlights the need for proactive strategies—wish they would learn before disasters!
At the end of the day, it's all about managing organizational risks. Use metrics to show the value of uptime and performance improvements. For example, outline the impact of downtime and illustrate potential losses associated with different IT solutions. Money talks, so relate everything back to cost and risk.
Exactly! And don’t forget to highlight time savings. Time is money, and quantifying time saved can drive the point home.
Great point! I love this approach. It makes it easier to frame purchases as worthwhile investments rather than just expenses.