The CIO’s next big challenge: Making money, not spending it. CIO strategies: Tech leaders have to support how their business generates revenues and profits if they are to be taken seriously.

The best CIOs have moved beyond just operational IT concerns and now spend most of their time thinking about how they can help their company to make bigger profits. That’s a big change for an executive who has traditionally been tasked with spending money, not making it.

“Follow the money might be an old phrase but it’s a great summary for what all CIOs should be doing now,” says Albert Ellis, chief executive at recruitment specialist Harvey Nash, whose annual IT leadership survey for 2019 with consultant KPMG reports that 76% of CEOs want their technology projects to ‘make’ rather than ‘save’ money.

Ellis says CIOs need to understand how the business acquires its customers and revenues, and how it uses that acquisition process to generate profits and growth. He says CIOs who are on top of that relationship will be “absolutely aligned with the CEO”, particularly if they can support new business models and new ways of working.

“If you do that, then you’ll get a seat at the top table,” says Ellis. “You need to understand, not only the regulatory environment, but also the drivers for investment. Always focus on the potential revenues and returns for the business.”

So, how are CIOs focusing on making money for the CEO? Three IT leaders give their best-practice tips on generating profits for the boss.

Focus on how to develop new business models

Richard Gifford, CIO at logistics firm Wincanton, is currently exploring how robotic process automation can be used to help his firm reduce its operational cost bases. But while cutting costs can play a crucial role, Gifford believes the best way that CIOs can help their bosses is by helping the top execs to develop new business models.

“All of that work clearly has to align with the CEO’s objectives,” he says. “CIOs are looking in the marketplace for new opportunities, such that we end up having a conversation with the CEO and other leaders of the business about the art of the possible.”

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Source: https://www.zdnet.com/article/the-cios-next-big-challenge-making-money-not-spending-it/