Are you a differentiator?

Irrespective of the type of organization, it has never been easy to sort out and select a perfect framework when you develop an IT strategic plan. Having served in both the private and public sectors, I started with my experience as a reference and tried to find common themes across industries to develop such a plan. Depending on the industry, the products may vary, but the problems in any organization are often the same: a tight budget, customer support, project portfolio management, SDLC, and change management responsibilities, among others.

Though the following approach is a fit for any type of industry, I use higher education here as an example. Since I work in the public sector, and it is mostly a monopoly, higher education is the next closest thing to nonprofit public sector structure.

The IT investment opportunities/challenges can be categorized into three categories”

1. Standard backend computing that keeps any organization running like, HR, finance, email, document share/storage, disaster recovery, etc.
2. Current differentiators: IT investments in business processes that give an organization a competitive edge over its peers.
3. Future differentiators: IT investments that will help to meet the organization’s vision and objectives in the future.

Standard backend computing is self-explanatory, and that is where the majority of an operating budget is spent. Cloud computing provides opportunities for reducing total cost of ownership for email, ERP application for HR and Financials, and storage issues. Whether it is on premise or in the cloud, the operating budget is a hostage to the needs for addressing these requirements. Of late, many higher education institutions have moved to cloud and start realizing the benefits.

Current differentiators: These systems give an organization an edge over its competition, but competitive edges are temporary. As competitors start copying each other, these differentiators become obsolete, and the CIOs need to pay attention to these projects. DELL’s supply chain management or Motorola’s six sigma were once differentiators for those organizations, but not anymore. In the context of higher education, campus-wide WIFI in early 2000 was a differentiator, but is not now. Online education supported by the reputation and structure of a physical university was a differentiator five years ago, but not anymore as more and more universities follow hybrid options.

The data analytics on the potential student recruitment pool from all high schools in the country could be a major differentiator. The algorithm that identifies the right candidate with the right fit will help to meet the target and keep the balance sheet healthy.

The IT investments to meet these initiatives are still good, but not enough. The CFO, CIO, and CMO need to focus their energy on the spawning grounds for current differentiators, which are the future differentiators.

Future Differentiator: These are IT investments in innovative projects, which can help to maintain or obtain an edge over the competition. Unfortunately, if CIOs need to find funds from their savings from the operating budget, it will never get their attention. For example, online education always struggles with retention. To improve student engagement, if a CIO wants to invest in a project that integrates Facebook’s Oculus VR or Microsoft’s HoloLens to revolutionize the student experience, he/she needs a capital investment that may or may not bring the desired ROI. It is a risky investment, but a differentiator nevertheless.

Investment in applications that predict where the next generations of jobs are going to be would be valuable to students for their future. If colleges and universities perfect the art, this will be clear differentiator, but a risky one. Post-secondary institutions have the knowledge and skill set among their faculty and staff; they simply need processes and investments to succeed.

The best CIOs in any industry will prioritize his/her IT investments in one of these categories and secure support of the leadership. Courage is the key to being different; you need a differentiator at the helm.