The Xceptional Blog

How To Accelerate ROI of Technology

Written by Natalie | Apr 11, 2022 10:59:21 PM

Organizations of all sizes, across all industries are working to recover from the global pandemic. Despite this challenge, Gartner predicted that the total global spending on IT will grow 5.1% this year to reach over $4.5 trillion.  

While IT and Security spending continues to grow globally, organizations and leadership teams report ongoing struggles with realizing tangible business value or return on these investments. Each year hundreds of new technology and security solutions pour into the market. Today, thousands of IT and Security vendors offer tens of thousands of products, devices, and business applications.  

With this glut of solutions, vendors, and options, how can organizations capture a return on future IT and Security investments or realize the value from previous investments? 

IT Industry Realities Impacting ROI

IT project failure rates and IT system downtime negatively affect technology return on investment (ROI).  

Project Failure

Most IT projects fail. According to IT project managers, these projects fail because of: 

  • Budget overrun 
  • Lack of alignment between business and IT objectives 
  • Unclear goals and flawed requirements 

 Most successfully completed IT projects had support from executive sponsors. Designing, building, operating, maintaining, and supporting business IT systems and applications is a time-consuming, costly, and complex task that requires specialized skills, robust project management, and executive oversight to be successful. The odds are against most organizations that attempt to run IT systems, applications, or major projects in-house with minimal funding and resources. 

Downtime

Downtime also prevents companies from seeing optimal return on technology investments. The top causes of system downtime are: 

  • Human Error 
  • Cyber Attack 
  • Equipment Failure 
  • Software Failure 
  • Natural Disasters 
  • Power Surge 
  • User Surge 

Internal Gaps that Prevent ROI

Internal gaps that prevent ROI occur in 4 key areas: 

1) Goals & Objectives 

Business, IT, and Security initiatives, goals and spending priorities can be misaligned or not understood across various business units or functions.  

 Business and IT projects might not have clear alignment with corporate goals and objectives. Do you know if your IT department and team members understand your short-mid and long-term goals, objectives, and priorities? 

2) IT Program Maturity 

The current state of IT and Security program maturity is understood at the leadership, management, and employee levels of the organization. The IT and Security team’s effectiveness and capabilities are understood by the leadership and management teams, while system functionality is understood by the leadership team.  

Do you know your current state of IT program/team maturity and effectiveness and how to evolve this to create business value and reduce or eliminate risk? 

 3) Spend Alignment 

IT and Security investments and ongoing spending should be aligned with and support business goals and objectives. IT and Security spending should be within industry averages for your type and size of company. 

 IT and Security investment and project ROI should be tracked, measured, and reviewed continuously. Do you know when and how your IT investments are adding value to the organization? 

 4) KPIs & Metrics 

IT and Security initiatives, projects, and activities should have defined key performance indicators (KPIs) and Metrics. KPIs and Metrics for IT and Security initiatives and projects should be tracked, measured, and reviewed continuously. 

 Vendors, Partners, and Suppliers of IT and Security solutions and services should be reviewed, assessed, and ranked in terms of the value they provide to the business. Do you know how IT projects and teams are performing against their KPIs, metrics, expectations, and outcomes? 

IT Investments to Accelerate Value

Reporting and communications are key to tracking return on technology investments. Your company should create dashboards, reports, or summaries and communicate the value of IT investments in terms that the business understands. 

 Organizations across various industry segments are accelerating the return on IT and Security investments and are capturing greater value from investments using these approaches: 

Assessments 

Business and IT alignment assessments identify IT investment gaps, waste, or misalignment negatively impacting the business. Network, IT, and Security assessments identify assets and vulnerabilities that are a high risk to the business. IT and Security project reviews, assessments, and prioritization help reallocate resources and spending to projects that create the most value. 

 Program Maturity 

Create or update IT system and data usage and access policies and procedures to evolve IT and Security program maturity. This process reduces risk and helps ensure regulatory compliance. Use off-payroll virtual IT, Security, or Compliance subject matter expert assistance to enhance internal capabilities. Partner with outsourced IT, Security, or Compliance as a Service. 

 Training & Awareness 

IT, Security, and system awareness training and phishing simulations ensure user system and process adoption and reduce cybersecurity attack risks. Management training on system usage, data access, disaster recovery, cybersecurity risks, and best practices help defend the organization against internal and external attacks and threats. 

Layered Security 

A layered security strategy may include: 

  • Cybersecurity Insurance 
  • Endpoint Protection 
  • Data Encryption 
  • Next Generation Firewalls 
  • Data Loss Protection & Monitoring Software 
  • Network Monitoring Services 
  • Managed Security  
  • Detection and Response Services 

Containing Costs and Making Wise Technology Investments

Over the last couple of years, organizations across the world have been impacted by the global pandemic. As organizations begin to move beyond the pandemic, they are looking for ways to contain or reduce costs and invest in areas that will help stabilize and even accelerate the growth of their business.

Most executives are seeking ways to align IT systems and applications with the needs of the business. Based on the surplus of IT solutions and vendors in the market, they are trying to figure out who they can trust to help. 

 The amount of time, energy, effort, and resources required to keep IT systems, back-office applications, and IT devices updated to keep pace with the demands of the business — let alone updated, patched, and secure — is significant.  

Don’t tackle this alone. Xceptional can help your organization accelerate the return on your IT investments. As a leading, award-winning provider of Managed IT Services, Networking, and Security Solutions, Xceptional is committed to helping our customers align their IT systems and applications to the current needs of their business, employees, and customers.

Find out how to get more from your IT investments. Embrace the Xceptional experience and visit our website or contact us today by filling out the form below.