Rimini Street: The Need for IT Leaders to Deliver ROI
In today's highly competitive business landscape, IT leaders are under immense pressure to ensure their technology investments generate tangible returns and drive growth for the organisation. Gone are the days when IT projects could be greenlit solely based on promised capabilities or cutting-edge features. In the current climate of heightened scrutiny, CIOs must work hand-in-hand with their CFO counterparts to demonstrate the measurable value and profitability gains from each technology initiative.
This growing demand for return on investment (ROI) from IT spend is underscored by a recent global survey of nearly 3,000 CFOs and CIOs conducted by Censuswide on behalf of Rimini Street. The research revealed a strengthening partnership between these two C-suite roles, driven by the imperative to scrutinise technology budgets and ensure they align with overarching business goals.
According to the survey findings, an overwhelming 86% of respondents acknowledged that the relationship between CFOs and CIOs has deepened over time. This collaborative dynamic is reshaping how IT investments are considered, with 72% of CFOs taking the lead in setting technology budget levels and 41% of CIOs stating that their finance counterparts make the underlying technology decisions.
The rationale behind this heightened involvement is clear: nearly half (49%) of the CFO respondents attributed improved business outcomes to the positive CFO-CIO partnership.
CIOs and CFOs working together to tackle rising IT costs
Amidst escalating IT and cloud costs, CIOs are actively exploring strategies to optimise spending while fueling innovation. The survey revealed that 44% of CIOs are investing in emerging technologies, such as AI and data analytics, to streamline operations and unlock new revenue streams. However, a staggering 94% acknowledged the need for substantial data clean-up efforts to maximise the value of their AI projects for enterprise resource planning (ERP) systems.
Additionally, 36% of CIOs are turning to outsourcing application support as a cost-effective solution. By leveraging third-party expertise, organisations can benefit from support for customizations (33%), broader service offerings (33%), improved quality of service (32%), and faster issue resolution (30%), all while potentially reducing costs (26%).
Despite the best intentions, not all technology initiatives are delivering the desired value for businesses. The survey revealed that ERP upgrades or migrations were deemed the least valuable investments by 23% of CFOs. This sentiment underscores the need for CIOs to carefully evaluate the short and long-term impact of their technology strategies, as only 20% of CFOs expressed satisfaction with the results of their technology investments.
To address this challenge, organisations are increasingly turning to innovative support models that extend the lifespan of their ERP systems while enabling them to reallocate resources toward strategic initiatives and innovations that drive growth and profitability.
As the business landscape continues to evolve, the demand for IT investments to deliver tangible ROI will only intensify. By fostering a strong CFO-CIO partnership, organisations can navigate the complexities of technology budgeting, prioritise high-value initiatives, and ensure that their IT investments contribute directly to their bottom line and long-term success.
“Thousands of clients of Rimini Street who have taken the lead in maximising the value of their substantial ERP investments also benefit from the flexibility and freedom to innovate with best-fit solutions for their needs, on their own timeline,” comments Rimini Street CFO, Michael Perica. “It’s not just about the US$8bn we’ve saved our clients to date, we’ve helped them reallocate their people, time and money towards strategic initiatives and innovations that accelerate growth profitability for the business.”
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