The path to IT shared services and standardization

Nearly every CIO I have ever met would like to change the IT conversation from one of cost to one of value.  A lot goes into driving this change, but the first step is getting a handle on what the company is actually spending on IT.

When John Kehoe became CIO of $2.6 billion industrial manufacturer Valmont Industries in 2014, he found that people talked about IT costs, but they were only telling part of the story. “When I arrived here, our key leaders and IT staff members would quote the costs of IT as a percentage of sales; they knew those numbers,” Kehoe says. “But with five autonomous businesses, they did not have a central view of what the company was actually spending on IT.” Kehoe’s peers tended to include only pieces of costs in their dialogue; they did not have a consistent view into the higher value IT spend, which was often driven within the divisions.

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