Challenges Faced by CTOs in Planning for Future
The role of a CTO or CIO comes with a range of unique challenges that hardly any other top executive faces in organizations. They have to constantly make a decision whether to procure new technology or invest in the latest best practices, or wait it out till the fad comes to pass. These decisions accumulate over time and can either take the organization into a leading position in the industry or deviate it into the path to oblivion. These are some of the top challenges faced by the CTOs today, and a quick glimpse into how they tackle them.
Metrics with Intangibles
The majority of the CTOs openly admit that it is frustratingly difficult, if not impossible, to quantize the savings, profits, goodwill, and so on, generated by investing in new technology or systems. While CFOs demand objective evaluation of the technology’s potential to benefit the business, CTOs know that the benefits of most technologies are realized in the long run. This situation often leaves the CTOs crippled and without the budget to help the company realize the business goals.
The smartest of the CTOs overcome this challenge by developing their own metrics of how the investment in new technologies will benefit the company over time. Such a strategy will make an objective case for the CTO’s vision in front of the CFO. Some CTOs also have an excellent working relationship with the top management and are able to sell their technology vision to them. This requires great people management skills and charisma, both of which are traits of a great leader.
Contradictory Analysis
Different teams or people in IT, who analyze whether the company should invest in one technology or another, can often reach different conclusions. This is particularly the case when they have no clear idea about business goals, lack the experience, focus on different aspects of the problem, or when the organization’s business goals and strategic vision is in conflict. The CTOs are then left in the uncomfortable position to choose between different recommendations, with the added disadvantage that the recommendations may not be all effective.
CTOs with insight avoid such situations completely, as they would have to spend more of their time and energy on analysis. Instead, they rather spend them on taking constructive action. Firstly, they make the process of developing recommendations simplified and structured. All teams are brought together, are given metrics and tools to analyze the problem, the factors to consider, and other assistance, such that the entire process is given a specific direction. Now, the teams are required to only gather facts, and present their recommendations based on them, which is almost always unanimous. This way, the budgeting, and procurement decisions are kept agile, and any changes can be implemented in an expedite manner.
Compliance of Contracts
Organizations that plan on surviving the flux of time and market forces require strong partners in business. Smart CTOs understand this. Organizations that operate in technology industry require suppliers that are ready to invest in the latest technologies and follow best practices. Long term contracts help the organizations enjoy various benefits such as best prices, flexibility in procurement, and commanding priority during times of high procurement requirement. CTOs hate to witness non-compliance of these contracts, if and when business goals change. This affects the organization’s standing in the market as a procurer too, affecting its supply chain relationships, and therefore, overall profits. This is why CTOs demand and exercise significant decision making authority as far as contract and supplier management processes are concerned. All decisions are not always taken in favor of cost benefit, but to reflect the organization’s long term business goals.
How does this work in your organization? Share your stories in the comments below, or contact us for more information on how the RAY ALLEN solutions can make an impact in your enterprise.