Here are 3 reasons for CIOs to make IT cost their top priority right now

In the middle of the ongoing global pandemic due to COVID-19, with full macro-economic implications still barely imaginable - our discussions with IT and digitalization managers in the last weeks reveal 3 interesting lessons learnt moving forward across industries.

• IT cost are still a significant burden on CxOs current top priority to secure short-term liquidity
• Past investments in new digital enablers do not deliver expected value, investment backlog in former “nice-to-have” topics (e.g. new work) slow down recovery from COVID constraints
• Companies struggle to find a good balance between cost optimization and need to invest – prioritizing areas “where to lose fat and where to build muscles”

We condensed 5 implications for IT managers, CIOs and CDOs to consider – not only to be prepared for this “new normal”, but take advantage of the current situation and retake driver-seat position moving forward:

From our perspective COVID outperformer:

• Take a hybrid approach managing their technology roadmap holistically – combining traditional IT and digital enabler in one integrated portfolio
• Streamline non-vital IT cost by up to 30% to regain room for smart digitalization decisions
• Adjust their priorities to digitalize their business- and operating model - taking an updated critical view on their digital maturity to identify the most urgent gaps
• Re-calibrate their strategic priorities and update their project portfolio of ongoing and planned initiatives critically
• Apply a rigid “Digital Performance Management” approach managing value-for-money of their Digital Transformation

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