How to Demonstrate Business Value from Technology Investments

Companies spend more money than ever on technology, but many struggle to see clear benefits. 

A 2024 CIO report from Gartner shows this clearly: 81% of company boards say they haven't achieved their technology goals, and 67% of financial leaders think recent technology purchases haven't worked as planned.

Chief Information Officers (CIOs) face increasing pressure to show results. How can they prove their technology spending helps the company?

How to Demonstrate Business Value from Technology Investments

1. Understand What Your Company Leaders Value

Focus on Real Business Results, Not Just Technology. Technology only matters when it helps the company work better. CIOs need to talk about specific improvements in company performance, like reducing costs, managing risks better, or making more money. According to a June 2024 survey by PWC, 58% of CFOs say they’re spending more time on tech investments - which means the investment just needs to be justifiable.

Every technology project needs to connect directly to what company leaders want to achieve. This means showing exactly how new systems and software make the company better at what it does.

Create Different Success Measures for Different Leaders. Each company leader needs different information about technology results:

• Financial Leaders: Need numbers about saved money, return on investment, and reduced financial risks
• Company CEOs: Want to know how technology makes the company better than competitors
• Department Heads: Need to see how technology helps their teams work better

2. Tell a Clear Story About Technology Value

Separate Daily Operations from New Improvements

• Daily Operations: Show how technology keeps the company running smoothly. Track things like system reliability, how fast problems get fixed, and whether you're spending money wisely.
• New Improvements: Prove how new technology makes things better. Show increased customer happiness, faster product releases, or new ways to make money.

Share Real Examples of Success Use actual situations where technology fixed problems or created new opportunities. For example, marketers that use AI in email marketing saw a 41.29% increase in revenue.

In the case of something like data analytics - business intelligence through data improves 80% of operational efficiency.

These are numbers that demonstrate value!

3. Share Information Effectively

Make Information Easy to Understand - Many CIOs lose their audience's attention by using technical terms. Instead:

• Create simple visual displays that connect technology numbers to business results
• Show clear comparisons between old and new ways of working

Adjust Your Message for Different Groups! Tell stories that connect with company executives, but use detailed numbers when talking to financial teams. Match your information to what each group cares about most.

4. Use Proven Methods to Show Value

Connect Technology Work to Company Goals: Every technology project should clearly support bigger company goals. Whether helping launch products faster or improving customer service, make these connections obvious.

Show Early Results: Company leaders respond better when they see immediate benefits. Show small successes early to build support for longer projects.

Keep Communication Regular: Proving value needs constant attention. Regular updates, meetings with leaders, and clear reports help build confidence in technology's importance.

the New Role of CIOs: Today's CIOs must show how technology drives company success. By focusing on what leaders care about, telling clear stories about results, and showing measurable improvements, CIOs can prove technology spending helps the company succeed and compete better.

Ready to change how your company sees technology value? Use these strategies to show how technology directly helps your company succeed.

Demonstrate Business Value With Analytics

CIOs should also remember that proving technology value takes time and patience. Build relationships with other leaders, understand their challenges, and stay updated on industry trends. Create a team that can translate technical achievements into business language. Document successes and lessons learned to improve future projects. Remember that small wins add up to big changes over time. Need help to translate this?Why not work with our team of data analysts to help you measure the value addition of technical investments and their ROI? Reach out for a free consultation with our expert analysts!