In a Thought Leadership Spotlight Presented by Alix Partners, Drew Carter, Managing Director at Alix Partners, Meade Monger, Managing Director and Global Leader of Income Information Management Services at Alix Partners, and Nord Samuelson, Managing Director at Alix Partners, shared their thoughts on how an organization can boost its returns on IT investments. During the joint presentation, “Maximizing Returns on IT Investments,” these managing directors at Alix Partners noted that IT can have a significant impact on an organization, especially if IT professionals are able to leverage data and technology.
According to Monger, running investments, the basic transaction systems that are needed to manage an organization, are common in today’s corporate world. However, an organization that separates its IT investments can make better decisions, Monger said: “Minimize [the costs of IT investments] and aggressively reduce these costs over time as technologies continue to get better and better all the time, and improve the IT investments. Develop ROI for each project. Each project should have a business case with a rigorous approach to it.”
In addition, Samuelson stated that IT can transform how a business operates, and capital investments in IT should produce positive cash flow within 12 months. Meanwhile, Carter acknowledged that analytics are also important for organizations to evaluate their IT investments. If an organization understands its IT investments and reviews them regularly, Carter said, it could boost its profits quickly: “You have to start with the business problem, you have to have the business processes, the accountability, the workflow and the change management, otherwise a predictive model [for IT investments] is super-handy for holding down paper.”