Leaders of many IT companies complain about difficulties they face. Clients want new services but cannot afford to pay for its customization. At the same time, another group of users complains that information technology sphere nowadays are given too much money and until new services rendered the payments should be postponed. Eventually, it comes to a vicious circle. Technically, even the state of literal bankruptcy couldn’t stop from investing in IT. This could be a case of ransomware needed to be fought or any other data breach emergency. If bankrupted companies apply to the judges, the expenditures will be approved as it is believed to be necessary for the business protection in the whole.
So, you are a head of an IT company, and you are working out your IT investment management plan. The first part of your agenda should be dedicated to planning the budgeting process. It means that money will be potentially available during the whole year. While sending requests, make sure that your business case is compelling.
Compelling business case
The compelling case should address a significant opportunity or a serious problem. It could be some highly visible security issue, and the need of your services will be widely acknowledged by the higher ranks of the company. Any solid reason to spend money on you will work.
The assumptions in your case should be traditional, even conservative and the expectations specific. Separate on-time costs from annually receiving ones, thus technology ROI will be easier to calculate, and it will look more presentable.
The case itself should be neatly written and easy to comprehend. The signal for hastily written documentation is bad grammar and lack of clarity. Such documents could be easily dismissed or ignored.
The second thing to discuss with your partners is the ideas on how to find a committed executive sponsor.
Once you found someone with big money and the understanding of the importance of investment in IT things should become easier for you. The sponsor has probably dealt with IT sphere already and fully acknowledges its business problems, boundaries, solutions and the coming benefit. A savvy sponsor will be able to persuade other partners to support you because the software customized by you will at the same time support their priorities and make them more powerful in the world of business.
Well-matching executive sponsors usually are quite a commitment to your project and are working as a word of mouth of your services. Some of them could even announce the figures and freely talk about the return on IT investment and the bonuses. They also discuss the reasons why the services ordered are necessary and how it could be life-changing.
Anyway, we all understand that the best commitment these sponsors could make is to reallocate business funds to invest in your project. Note that if profit and revenue goals are on the table business officials might have a significant percent of discretion over funding you.
Credible IT management is another key element to bringing investment in your IT project.
IT management skills
The main idea is to have a successful delivering services history; your projects should be visible to the goals of businesses. The ones less fortunate usually have fewer resources during the annual funding processes. Additional funding requests while having a poor delivery history are usually rejected.
If the leadership of a company is lacking IT investment management skills, they should start working on a plan how to become better. If you do not deliver value to the business sphere, your chances to get proper funding is almost zero.
The last important key component to getting somebody investing in IT is leadership optimism.
It’s delightful to do business with the managers who are positive. They are affirmative on a new client, good earnings and a successful launch of the project. Such little things are inspiring optimism and make you trust the company. It’s a good sign to have all your forthcoming projects be appropriately funded.
Finding the right investors for your projects is a hard thing to do, but not every company who is ready to help should be considered. Do small research and if the management of your potential investor has some issues with government or is in the process of finding a new CEO, having troubles with the product recall, etc. think twice before making a contract. Sometimes postponing a decision-making process is not a bad thing to do.
Return on IT investment is an excellent opportunity for any business and IT leadership has to change its predictions from scarcity to abundance. Always focus on your possibilities instead of focusing on limits. Companies do like to save and keep their money protected, but you are capable of changing this attitude and showing that new rules could be set, the rules that are favorable to all parties.Alexandra