-- Innovation Vista, an IT consulting firm which places contract CIOs in short-term and part-term engagements, has released a controversial article “Innovation Capital: Beyond ‘Last year + x%’ IT Budgeting” which suggests a mindset change away from one of the longest-standing and most common budget approaches organizations take with their Information Technology (IT) budgeting – setting this year’s budget by comparing to last year’s.
In place of this traditional approach, the 1500-word article recommends that leaders draw a distinction between two different types of IT spend: the cost of keeping the lights on vs. what the firm calls “innovation capital”. The firm prescribes a different mindset for each of the different types of spend, neither of which aligns to the traditional top-down percentage adjustment approach.
The Founder and CEO of Innovation Vista, Jeff Roberts, says “The reaction to the article has been interesting for sure.” They are still happy to have published it. Of course, their intention is never to create tension, but if CIOs agree with their recommendations and are bringing this approach to their organizations, they believe that can only open more eyes to potential innovation opportunities which might otherwise stay hidden.
“Ultimately,” he added, “in organizations which adopt this approach, the decisions are being made on a commercial basis, with leadership’s eyes opened wider than ever before. The only criticism I can see against that philosophy is that change can be painful. But the digital revolution is here and ignoring that change will be even more painful in the long run. The best place for new thinking to take hold is in the IT budget process, and we hope our concept of ‘Innovation Capital’ is helpful in igniting this debate and exploration.”
With the disruption innovation has brought to business models, the pricing of goods and services, supply, and delivery chains, it’s no wonder that some organizations are sensing some disruption in their budgeting process as well. And it should not be a surprise that content like this would come from a consulting firm focused on IT strategy and leadership services.
Innovation Vista is a leading IT consulting firm offering digital expertise, IT strategy, and leadership for companies in need of a competitive edge from their technology. Tailoring their priorities to client needs, they ensure that an organization’s technology systems are stabilized, and their IT operations are optimized. Their specialty is taking clients beyond that point, empowering companies to monetize their technology and data capabilities for market-share and revenue growth.
Roberts is a veteran CIO IT leader and strategy expert who has achieved over $1B of revenue from technology initiatives and transformed multiple IT departments into profit centers.
The original Innovation Vista article about the innovation capital approach is available at: innovationvista.com/budget
Innovation Vista Website: https://innovationvista.com/
Release ID: 89047421