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How should CIOs/CTOs manage cost concerns when proposing a modernization project?

I've always said, “Don't think of IT as a cost center, think of IT as a profit center.” I've had so many discussions about why IT shouldn’t be treated from a financial standpoint. What’s helped me is asking, "How much have I removed the touchpoint for data generation and data consumption by doing X, or by doing Y?" The touchpoint is what I can put a dollar value to, good or bad. At least there's a value attached to it. That doesn't always go through the straight ROI-type calculation.

Anonymous Author
I've always said, “Don't think of IT as a cost center, think of IT as a profit center.” I've had so many discussions about why IT shouldn’t be treated from a financial standpoint. What’s helped me is asking, "How much have I removed the touchpoint for data generation and data consumption by doing X, or by doing Y?" The touchpoint is what I can put a dollar value to, good or bad. At least there's a value attached to it. That doesn't always go through the straight ROI-type calculation.
3 upvotes
Anonymous Author
Focus on business outcomes achieved, and risk reduction as well. Also articulate long-term cost reduction over short-term expenditure
1 upvotes
Anonymous Author
Cost savings is not what people need to aim for when they have to modernize, it’s just table stakes at that point. There are so many other metrics to focus on: Are you reducing your technical debt? Are you becoming much more nimble?
0 upvotes
Anonymous Author
Two things to remember. The first one which everyone has said before me. Mordernization is about expanding business value - impact to top line. So do not define a project by cost. Define it by the impact it can make. Second, once defined then determine the most economical way to deliver in it without impacting scope or quality. This helps preserve the top line impact and increase the bottom line. They two steps are to be done in a sequence - not together.
0 upvotes