Information Technology (IT) is focused on providing the most efficient and effective communication in the enterprise. This can range from the internet connectivity, to telephony, network services, and security to name a few. The understanding of how all of these technologies work, and how they align in the business is the primary role of the IT organization. As we are approaching a major deadline for the government budget in the US, it is appropriate to align the topic of Budgets via Revenues and Profits to the IT organization.

Revenues
Whether it is a dashboard or software that is used by the organization, there is ongoing monitoring of the revenues in the business. With the variety of business size and ownership (public vs. private) these metrics might be captured and shared on an hourly, daily, weekly or monthly basis. Working in the real time environment of today is expected in today’s world of “Always On”. The IT organization has the opportunity to act in a role where they are not only optimizing costs via procurement, operations and forecasting, but also in a revenue creating role where they help the enterprise use IT technologies and services increase revenue. It has been predicted by analysts that by 2016 the incentive of the new CIO will be based on the new revenue brought in by IT.

Profits
Business planning is a regular exercise in the IT organization. The attention toward the CFO and shareholders is increasing especially in the agile environments used by many R&D organizations. The understanding of the process to launch a product or service in the marketplace, and all of the steps to build, distribute and promote the product are critical to help link the IT organization to the profits in the company. Linking the benefits of the IT organizations to the business units and leadership objectives are key to success in this migration to the profit side. Similar to any other change in the business, executive alignment and support is critical to succeed.

With the positive transition in the economy this year, it is an ideal time to move the business focus from cost saving to revenue generating. The migration of rewards for the employees from cost savings to revenue generation will not happen immediately, but a time like now is ideal to re-evaluate that in your company. Contact the team at RAY ALLEN INC today to discuss your enterprise and how we can help your IT department make the transition.