APAC CIO Outlook
  • Home
  • CXO Insights
  • CIO Views
  • Vendors
  • News
  • Conferences
  • Whitepapers
  • Newsletter
  • Awards
Apac
  • Agile

    Artificial Intelligence

    Aviation

    Bi and Analytics

    Big Data

    Blockchain

    Cloud

    Cyber Security

    Digital Infrastructure

    Digital Marketing

    Digital Transformation

    Digital Twin

    Drone

    Internet of Things

    Low Code No Code

    Networking

    Remote Work

    Singapore Startups

    Smart City

    Software Testing

    Startup

  • E-Commerce

    Education

    FinTech

    Healthcare

    Manufacturing

    Retail

    Travel and Hospitality

  • Dell

    Microsoft

    Salesforce

    SAP

  • Cognitive

    Compliance

    Contact Center

    Corporate Finance

    Data Center

    Data Integration

    Digital Asset Management

    Gamification

    HR Technology

    IT Service Management

    Managed Services

    Procurement

    RegTech

    Travel Retail

Menu
    • Smart City
    • Managed Services
    • Blockchain
    • CRM
    • Software Testing
    • E-Commerce
    • Cyber Security
    • Gamification
    • Microsoft
    • Data Integration
    • Low Code No Code
    • MORE
    #

    Apac CIO Outlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIO Outlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    • Smart City
    Editor's Pick (1 - 4 of 8)
    left
    For a Smarter City: Trust the Data, Ignore the Hype

    Brad Dunkle, Deputy CIO, City of Charlotte

    Smart Community Innovation for the Post Pandemic

    Harry Meier, Deputy Cio for Innovation, Department of Innovation and Technology, City of Mesa

    How Smart Cities can make us healthy

    Joelle Chen, Director, Global Partnerships & Marketing, Intelligent Air Solutions, Mann+Hummel

    Smart Cities Breed Smart People

    Peter Auhl

    Journey to the Cloud - Getting Things Straight

    Alex Konnaris, Group CIO, RMA Group

    Redefining the CIOs role

    David Kennedy, Group CIO, Transaction Services Group

    At the Pinnacle of Smart City Aspirations

    Peter Auhl, CIO, City of Adelaide

    IT Revolutionizing Smart City Solutions

    Scott Cardenas, CIO, City and County of Denver

    right

    Managing IT Budgets to help foster Innovation

    Subbu Murthy, CIO, Howard Building Corporation

    Tweet
    content-image

    Subbu Murthy, CIO, Howard Building Corporation

    The role of the CIO is multi-faceted. To the business, the CIO is the bridge to technology. To marketing, the CIO is the innovator that drives new sources of revenues. To finance, CIO is the enabler of organization’s efficiency. Independent of the size of the company, perhaps the most challenging aspect of the CIO’s role is developing a meaningful IT budget that caters to all three.

    In the past, presenting IT budgets was not unlike visiting the Dentist. We all had to do it, but hated it. We all tried to compare how well we did in reducing costs. We used metrics such as cost of IT per employee or percentage of revenues and compared it with our peers. For example, mid-sized companies spent around $15K per employee on IT and large companies spent about 20 percent less. These cost centered IT Budgets are a thing of the past in most companies. In construction companies like Howard Building, where margins are tight, technology has to provide sound value before we can jump into it. Most construction companies are in the early stage of maturity with respect to assimilating technology. Wikipedia has a great definition for BIM (Building Information Modeling) as an intelligent 3D model-based process that gives architecture, engineering, and construction (AEC) professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure. Most people regard BIM as the ultimate sign of maturity. Our experience tells us that BIM is great but one in a series of technology innovations that will change the construction industry.

    From a technology perspective, construction companies can be classified into five levels of maturity. At the Basic level, technology usage is limited to office productivity tools and back office accounting. At the Developing level of maturity, Cloud based management of projects, Integrated projects/customer interactions with field/sub-contractor interactions, building Information Modeling (BIM) is just an idea.

    As the organizations mature to the Refined level, Estimation, Biz-Dev, Precon, Project Management, Field Management, Sub-Contractor Management, Finance are fully integrated across a seamless technology platform that connects demand to delivery with the GC, Customer and Subcontractors all operating on the same platform driven by BIM.

    In construction companies like howard building, where margins are tight, technology has to provide sound value before we can jump into it

    Most construction companies, particularly in the Mid-market have started to evolve from the Basic level to the Refined level. However, construction companies will need to move to Advanced level and rapidly to the Innovative level to sustain their market presence. The Advanced level is characterized by design-initiated BIM, automation, and analytics drive significant cost efficiencies across the enterprise with end to end visibility into trends giving the enterprise a strategic advantage. The Innovation level leverages state of the art technology including analytics-based management, block chain, robotics and virtual reality to help the enterprise stay innovative and nimble.

    While the five levels of technical maturity help, from a budgeting perspective, In Levels 1 and 2, IT is somewhat cost-centered. In Level 3, enterprises begin to realize the value of IT, and then they reach Levels 4 and 5, they have transformed from a construction company into a information management company, and IT is treated as critical component of the value chain.

    One challenge CIOs face is in defining value. The question naturally that comes is how do we measure value. In general, there are three types of value:

    Real–actual benefits/value received that can be measured;

    Algorithmic–where benefits/value is calculated algorithmically; and;

    Perceived–subjective assessment of benefits/ valuation

    While you can spend enormous resources in identifying value, we argue it can be done relatively quickly if you use a combination of the three approaches. Value centered IT is the practical way to align IT to organizations. Technology can provide a 360-degree view of enterprise to align resources to activities that provide most value to the enterprise. Value centered IT helps bridge the gap between business and IT, and tools are emerging to provide an elegant solution to help construction companies.

    A word of caution: Budgets mean a lot to Construction companies. They are used to delivering on time and under budget despite significant scope creep. They achieve cost and schedule goals by managing scope changes effectively through change orders. CIOs need to recognize the importance of managing scope changes. The organization questions are always "we spend a lot on IT and what are we getting out of it". Innovation is one thing, and necessary– but must be in conjunction with business growth. CIOs need to demonstrate how all IT project, resources, and spend are directly aligned with defined business priorities– and to publish such updates regularly to keep it as an open dialog. When resources are then constrained–it is a business decision to make trade-offs, or agree to fund additional IT expenditures.

    tag

    Building Information Modeling

    Virtual Reality

    Weekly Brief

    loading
    Top 10 Smart City Solutions Companies - 2022

    Featured Vendors

    Reneon Technologies

    Ashwin Menon, Founder and Director

    ON THE DECK

    Smart City 2022

    Top Vendors

    Smart City 2019

    Top Vendors

    Smart City 2018

    Top Vendors

    Smart City 2017

    Top Vendors

    Previous Next

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Digitalization with the use of digital technologies/Improving business through digital technologies

    Digitalization with the use of digital technologies/Improving business through digital technologies

    Wilbertus Darmadi, CIO, Toyota Astra Motor
    How Marco's Pizza Leaned On Technology To Succeed Amid The Pandemic By Quickly Pivoting To Contact-Free Delivery And Curbside Carryout

    How Marco's Pizza Leaned On Technology To Succeed Amid The Pandemic By Quickly Pivoting To Contact-Free Delivery And Curbside Carryout

    Rick Stanbridge, VP & Chief Information Officer, Marco’s Pizza
    Bunnings  Diy Digital Transformation

    Bunnings Diy Digital Transformation

    Leah Balter, Chief Information Officer, Bunnings
    For a Smarter City: Trust the Data, Ignore the Hype

    For a Smarter City: Trust the Data, Ignore the Hype

    Brad Dunkle, Deputy CIO, City of Charlotte
    Smart Community Innovation for the Post Pandemic

    Smart Community Innovation for the Post Pandemic

    Harry Meier, Deputy Cio for Innovation, Department of Innovation and Technology, City of Mesa
    Artificial Intelligence Enriches Personalized Experiences

    Artificial Intelligence Enriches Personalized Experiences

    Josh Goode, Chief Information Officer, Scan Health Plan
    Investing In Data and Ai to Drive Our Success

    Investing In Data and Ai to Drive Our Success

    Françoise Russo, Chief Information Officer, Tabcorp
    Thai Union-Building a Sustainable Business with Digital Enablers

    Thai Union-Building a Sustainable Business with Digital Enablers

    Rajiv Kakar, Group CIO, Thai Union Group PCL.
    Loading...

    Copyright © 2023 APAC CIOoutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy and Anti Spam Policy 

    |  Sitemap |  Subscribe |   About us

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://smart-city.apacciooutlook.com/ciospeaks/managing-it-budgets-to-help-foster-innovation-nwid-5895.html?utm_source=google&utm_campaign=apacciooutlook_topslider