
By Ringside Talent Partners
January 22, 2025
Innovation is essential for staying competitive in today’s fast-paced business world. However, funding IT projects that drive innovation requires strategic collaboration between finance and technology leaders. By aligning on priorities and leveraging the right tools, CFOs and CIOs can ensure that IT investments deliver measurable returns while fostering growth and agility.
The Financial Framework for IT Innovation
- Prioritizing High-Impact Projects
Successful IT project funding involves identifying initiatives that align with organizational goals. As discussed in our December 3rd post, “How CIOs and CFOs Drive Digital Transformation,” collaboration between these leaders is critical to ensuring IT investments align with broader organizational priorities. Projects like cloud migration, AI implementation, or cybersecurity enhancements often deliver significant ROI. Finance teams contribute by creating structured evaluation processes that prioritize high-impact initiatives. For instance, investments in generative AI saw significant growth in 2024, with companies now anticipating ROI three times higher over the next three years for substantial investments. - Balancing Risk and Reward
Every IT investment carries inherent risks, from cost overruns to delays in implementation. Finance teams mitigate these risks by conducting thorough cost-benefit analyses and collaborating with CIOs to develop realistic timelines and budgets. Notably, 47% of companies are already seeing positive ROI from their AI investments, underscoring the potential for long-term value creation. - Leveraging Alternative Funding Models
Innovative funding models such as Technology-as-a-Service (TaaS), leasing, or joint venture partnerships are becoming increasingly popular for financing IT projects. These approaches enable organizations to invest in critical technologies without significant upfront costs, freeing capital for other strategic priorities.
Measuring ROI for IT Projects
- Establishing Clear Metrics
Accurately measuring ROI requires clear, quantifiable metrics established from the outset. For example, in our January 14th post, “Data-Driven Decisions: The Role of CIOs in Enhancing Financial Forecasting,” we highlighted how advanced analytics and collaboration can improve financial transparency and ROI tracking. These metrics might include cost savings, efficiency gains, or revenue growth attributable to IT initiatives. For example, migrating to a cloud-based infrastructure could reduce operational costs by 30% while improving scalability. However, recent trends show that the ROI from AI projects has declined over the past three years, highlighting the importance of effective data management. - Tracking Long-Term Value
ROI is not always immediate, particularly for transformative IT projects. Finance and technology leaders work together to track the long-term value of investments, considering factors such as employee productivity, customer satisfaction, and competitive positioning. - Adapting to Changing Priorities
The dynamic nature of technology means priorities evolve rapidly. CFOs and CIOs collaborate to reassess ROI metrics and adapt as new opportunities or challenges emerge, ensuring resources remain aligned with strategic goals.
How Ringside Talent Can Assist
At Ringside Talent, we specialize in connecting organizations with finance and IT professionals who excel in funding and executing innovative projects. Whether you’re seeking experts to evaluate ROI or IT leaders skilled in delivering results, we can help you build a team equipped to drive business growth. The recruiters at Ringside Talent can help you find the right talent. Learn more here.
Looking Ahead
Join us next week as we explore “Building a Finance Team Ready for the Digital Age,” where we’ll discuss the skills and roles finance hiring managers should prioritize to thrive in a tech-enabled environment.