Female executives can leverage a data driven approach to make an impact in business

Sixty-three percent of IT leaders say their IT budget is increasing, according to the 2015 Society for Information Management (SIM) IT Trends Study. More than 1,000 senior IT leaders and CIOs responded, and based on the results, one trend is clear: IT budgets are growing not only in scale, but importance as well.

This equals power for executives who take data seriously enough to grasp its effect on the bottom line. Understanding a notoriously costly IT asset portfolio can influence business and budget decisions, for both IT and the entire company. For example, an organization may uncover that the human resources department uses 15 unique enterpris applications, which cost $1.3 million annually in subscriptions. What they do not see is the cost of maintenance and risk, the infrastructure it sits on, the IT support, and the human capital and headcount associated with those assets.

Imagine that a female executive leverages the company’s IT asset portfolio through data analytics to discover it can save millions by culling valueless applications. She has now played an instrumental role in bolstering the budget, and her strategy is rock solid because she has based it on numbers. In most cases, numbers do not lie. She has asserted her value to the organization and made a significant impact.

Women in technology leadership roles seem to understand IT’s impact on business. Gartner reported that in the fourth quarter of 2013, female CIOs expected to increase their IT budgets 2.5 percent in 2014, whereas male CIOs reported an average increase of 0.2 percent.

Awareness is especially critical now, as the business landscape shifts in terms of budgeting strategies. Just as a CEO would evaluate cost centers and money pits, eradicating those that don’t drive business value, CIOs need to evaluate their own operation and eliminate valueless IT assets. For example, while software represents 34 percent of enterprise technology spending, CIOs spend 55 percent of the applications budget on maintenance and support, according to Forrester Research’s most recent “State Of Enterprise Software And Emerging Trends” report.

Studies show, however, technology leaders are failing to cull wasteful applications, as leadership in other departments has a tendency to regard it as an intense and long-term effort. As a result, CIOs feel pressured to allocate talent to keep IT running rather than transform it.

But armed with numbers, a female executive could step in and make the case for more thorough asset portfolio analysis. After all, it does not matter who has the loudest voice in the room when millions of dollars are at stake. Money talks, regardless of gender.

Plus, executives who enter the data analytics fray are making a positive impact on operations in several ways. In 2011, Gartner predicted that by 2015, at least 50 percent of organizations would be “regularly assessing business value relative to application costs and risks as a part of the IT budget process.” This process would provide great value, revealing which applications were worth the expense, which they should phase out, and which IT assets would benefit from extra security precautions.

“Sadly,” Gartner writes in the latest report on the topic from 2014, “most organizations don’t have an application strategy, and, because APM (application portfolio management) is one of the poorest-scoring disciplines in our ITScore assessment, we can assume that most organizations don’t have APM, either.”

The risks that come with not having an application strategy could also spell trouble as cyber security concerns rise. Respondents to PwC’s 2015 Global Information Security Survey reported the total number of detected security incidents in 2014 exceeded 42.8 million, a 48 percent increase over 2013. Moreover, the survey found security-breach-related financial losses to be 34 percent higher than the year prior.

So this female executive would not only contribute to budget health, she would also play a role in facilitating more efficient processes and tighter cyber security.

Identifying applications and their associated business functions enterprise-wide reveal redundancies, as well as applications that do not justify the high overall costs. These valueless IT assets perpetuate the idea that IT is only “keeping the lights on,” consistently maintaining status quo projects rather than introducing new digital capabilities.

Forrester Research experts surveyed more than 3,700 IT leaders in late 2013, and respondents estimated that an average of 72 percent of the money in their budgets was being spent “keeping the lights on,” meaning supporting ongoing operations. Only 28 percent went toward spending on new projects. This is a recipe for business growth stagnation.

Identifying and removing valueless assets can help the entire organization achieve a more balanced split of innovation to maintenance. When female executives step up to the plate with a data driven approach, they can transform IT into a business driver that pushes the bottom line company-wide, and make a name for themselves in the process.

Guest Contributed by Lindsay Bather, Business Operations Manager, KillerIT

KillerIT, a division of Forsythe Technology, Inc., is a Gartner-recognized IT program and portfolio management (PPM) software suite that provides a data-driven roadmap to optimize IT and accelerate digital business. In 2014, Gartner named KillerIT both a “Cool Vendor in Program and Portfolio Management” and in the Visionaries Quadrant of its “Magic Quadrant for Integrated IT Portfolio Analysis Applications.”