How to finance IT and handle change: IT is constantly changing and is expensive, yet it's also become a necessity for every organization as both a force and a byproduct of change.

• Author: Kibiloski, Marty
• Position: IT FINANCING - Information technology

For the past 25 years, CFOs around the globe have been grappling with information technology (IT) spending decisions. They know IT is necessary to grow their companies, capture market share and increase revenues. At the same time, however, they're concerned with finding ways to control costs.

Indeed, among the IT-related questions CFOs are still asking are: "What do you mean the current information technology (IT) infrastructure isn't enough to support our organizational plans?" "Didn't we just invest significant dollars two years ago?" "Can spending more money on IT really help us and ultimately increase shareholder value?" "With so much change occurring in technology, shouldn't we just wait and put off IT acquisitions as long as possible?"

Basically, it boils down to this question: Is there a way to take advantage of technology without spending so much of a company's capital?

Putting off IT acquisitions sounds like a reasonable approach, given perpetual technology advances and falling prices for newer equipment. The flaw in that thinking, however, is competition. CFOs recognize they need well-thought-out strategic competitive advantages. So, perhaps the best approach lies in the answer to this question: "What is the best way to grow, while using technology to our advantage while keeping our costs lower than our competitors?"

Managing IT change is a formidable task that is rarely achieved, especially since change--both good and bad--is so often unplanned, and exists in every organization. Although planning for unplanned change may be an oxymoron, there are certain strategies that business leaders can implement to generally prepare for change. Understanding what drives change in your business, the potential outcomes and what options are available in the marketplace are keys to overcoming some of the obstacles posed by this dilemma.

Aligning Change, IT Infrastructure

Business executives are tasked with building the most effective and efficient infrastructure to meet the rising demands of internal and external customers--all while trying to increase revenues, decrease costs and endure change. This can be quite a feat, given the many external and internal variables that cause an organization to change or make changes.

A number of factors drive change. These can include: the economy; growth; your industry; your customers; increased competition; mergers and acquisitions; internal infrastructure demands; technology innovation or lack thereof...