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Are you lot a CIO that us running your department every bit a business, considering it seems so logical and information technology sounds like it should be of tremendous benefit to your organisation. It really does sound like a great idea, but just what are the real benefits to a company if information technology chooses to operate its IT center as a concern – and why should it be the approach that your company adopts?

The reply lies in getting the well-nigh out of your IT department, and that means more just efficient operation, but it includes alignment with all other departments in the corporation, so information technology can exist a true business partner. The goals of the company should likewise be the goals of the IT department, and IT technology should be employed in a manner which best supports company goals and objectives. I volition touch base of operations on how to reach that kind of synchronicity, and then your IT department can stand alongside every other department of the company, committed to a mutual purpose – the success of your company.

ten steps to running IT equally a business concern

Starting time with appropriate CIO philosophy – The department leader should be thinking like the CEO of the department, which means managing the department profit-and-loss properly, and staying within budget while delivering the best possible experience to the system's customers and users.
IT budgeting – This is the companion step to the philosophy noted higher up – being able to effectively manage the IT budget is a foundation for every other business principle to be built upon it. Without proper direction of the departmental budget, the CIO and IT section heads will constantly be engaged in dialogue about how to command it and manage information technology better. There's no since proceeding to the next footstep until this one is mastered.
Investment planning – Equally much as one-tertiary of all Information technology expenditures are on new initiatives and projects, which makes it understandable that the corporation considers the project portfolio to be the near valuable deliverable of the department. This makes it critical that an terminate-to-end view is made visible to corporate management for all projects in the portfolio, so that their true costs can be understood and planned, every bit opposed to implementation costs merely.
Chargeback/showback – While this is a much-debated practice in business, proper chargeback practices can meliorate marshal IT with business goals, raise demand direction, provide justification for It costs, and increase Information technology fiscal transparency. The nigh businesslike approach to chargeback is to apply service-based pricing, because it expresses Information technology services in business concern terms.
Benchmarking – The real value of benchmarking is that it provides an effective way to monitor department performance over fourth dimension, while comparison it to the performance of other departments. It takes very piffling to implement benchmarking and it can be extremely helpful in identifying areas of opportunity where improvements could exist made that are highly beneficial to the company.
Cost optimization – While the principal focus of cost optimization has traditionally been the It operational budget, and 'doing more with less', the total onus of cost optimization should not be placed on the Information technology section alone. The residue of the corporation should be involved with input about which projects are to be undertaken, which services are to be provided, and what kind of customer service levels the company can actually beget.
Functioning metrics – Performance metrics need to be much more than just 100 percent system availability, only should include metrics concerning other deliverables like projects and services, performance to budget, operational performance, innovation, and alignment to visitor objectives. In the long run, these can be much more telling about the overall effectiveness of the IT department and how well information technology'south doing.
Clearly define It processes – Every other section in the organization has clearly defined methods for carrying out its function, whether it be purchasing, shipping, or processes on the store flooring. The IT department should accept the same clarity of process and the same uniformity of method.
Communicate successes – In many cases, the IT department is an afterthought within the company, only considered when the computer organization goes downwards or when system performance is sluggish and hindering productivity. To be viewed as an equal partner inside the system, IT successes should be communicated to the remainder of the corporation, to provide a more than authentic motion picture of their value to the company.
Alignment with corporate strategy – This is a critical step to bringing focus to It planning, and mapping IT strategy to the visitor's overall objectives. From management'southward perspective, the IT department should not exist considered in terms of its cost to the corporation, but in terms of its capacity to back up long-term strategic goals.

Here is my advice for CIOs to run their department as a business. I would love to hear your feedback in the annotate sections and transport me your questions for the adjacent #askcio blog. I am bachelor on the various social channels beneath and snapchat.

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David Chou is a senior healthcare technology executive with experience working in the healthcare space throughout the world. David is a dynamic keynote speaker and industry commentator working with organizations to transform their business organization models using technology. He has spoken around the earth at healthcare tech-related conference including keynotes for leading industry events and intimate executive settings. Chou is also ane of the most mentioned CIOs in the media and well quoted in outlets such as the Wall Street Periodical, Mod Healthcare, HIMSS Media, ZDNet, CIO.com, Huffington Post, and Becker'south Healthcare. David is an agile fellow member of both ACHE and HIMSS while serving on the board for Chime.