CIOs have to pick and choose wisely when it comes to investing in technology. And they need the ability to change investment strategy as certain technologies become obsolete.
Managing cost structure is no small task … but it can become easier with the right financing solutions.
In this episode of B2B Tech Talk, Keri Roberts is joined by Anthony Mackle
, SVP and Chief Financial Officer, U.S. and Latin America at Ingram Micro and Bob Gentile
, VP and CIO U.S. Information Technology at Ingram Micro, to discuss how Ingram Micro’s financing solutions benefit partners.
They also discussed:
- Financial challenges for CIOs
- How the shift to work from home impacted technology investments
- How a CIO can present financial information to the CFO
- Advantages of SaaS
- How Ingram Micro helps businesses make the best financial decisions
- The future of technology
Financial challenges for CIOs
CIOs have to be flexible when it comes to managing cost structure, as they’re expected to fund new development and incremental innovation through cost reduction and operating efficiencies.
The biggest challenges CIOs have, particularly in the area of on-prem, include long-term contracts, depreciation and other financial aspects of a budget that are hard to change quickly. So, they need the ability to change investment strategy to keep up with the times as certain technologies become obsolete.
CIO and CFO collaboration
Traditionally the CFO is the gatekeeper of the company’s money, and collaboration between the CFO and CIO in spending investment dollars is a critical part of their working relationship.
Because there are so many opportunities to automate, CIOs have to pick and choose wisely where they’re going to spend dollars. Conversations with the CFO on spending become more collaborative when the conversation expands to clarifying the business return on investment. What’s the end result? You have to reverse engineer those conversations.
Advantages of financing
Ingram Micro found that businesses who used financing grew their business 11% year over year.
Why? Financing options
encourage the end user to pull up projects they were deferring. The flexibility in financing generates business.
CIOs in particular need as many tools in their tool belt as they can find to manage the financial aspects of running IT. One of the most valuable tools they can have is software as a service
(SaaS). SaaS allows you to pay over time, so you don’t need to make a big investment upfront.
Another advantage of SaaS is if a team isn’t getting value out of a project, they can walk away from it without penalty. Alternatively, it rewards those who have helped the company achieve results they were expecting. SaaS helps pull projects forward and realize potential and savings sooner.
How Ingram Micro helps businesses make the best financial decisions
Most IT projects don’t fail because of the technology. They fail because of lack of adoption and good management.
Effective management equals high adoption levels. Every project Ingram Micro deploys has a change-management component, a post-deployment adoption measurement and KPIs to help the customer achieve success. After baseline adoption, measuring that adoption over time helps the customer realize the return on investment.
Providing assistance to the customer is a value-add proposition. Companies that help customers adopt technology to meet their ideal business outcomes are the ones that make repeat sales as well as help the end user.
Learn more about Ingram Micro’s Financial Solutions.