How can Spend Analytics help CIOs/CTOs manage technology investment and fast-track digital transformation?
November 23, 2022
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5 min
As the chief information and technology officer (CITO) of a midsize insurance company, Jane faced challenges in finding the most effective way to invest in new technologies. Customer demands were continually changing, and with the entry of several new Insurtechs, it was very imperative to be agile to meet customer needs. She needed to stay ahead of the curve for her company to remain competitive. However, like most companies, limited budgets made it difficult to invest in cutting-edge technologies to provide agility and speed to launch innovative products and services quickly.
That's when one of her friends told her about how spend analytics helped her identify cost optimization opportunities across her legacy IT estate. As a result of the savings she achieved from her existing IT OPEX, she could fast-track her digital transformation journey, which helped her business improve its market share by over 5% in a highly competitive environment.
Intrigued, Jane decided to do some more research on the topic. The more she learned about spend analytics and spoke to some experts in the field, the more convinced she became that this precisely was what her company needed.
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She put together a proposal explaining how spend analytics could benefit her department and presented it to her boss. Jane's initial business case was built upon how she could reduce her new customer onboarding (KYC) costs by over 50% using new technologies and tweaked business processes. She also demonstrated how the lower customer onboarding cost could be passed on to their new customers by offering a very aggressive and competitive price that no other competitor could offer. Her boss was initially hesitant, but after seeing all the research and number crunching that Jane had done, he agreed to try it. And so began the company's journey into spending analytics to improve competitive advantage.
The results were terrific. Jane, for the first time, saw a significant portion of shadow IT spend that she never had visibility. Some of her colleagues on the business side had purchased IT products and services that sat outside the control and governance of Group Technology. On conducting a deep dive into this shadow IT spend, Jane identified certain significant risks to her business that came to the surface for the first time. Thanks to spend analytics!
Jane was able to quickly identify which technologies were worth investing in and which ones weren't. She was also able to identify risk mitigation strategies. These insights ultimately allowed her department to make much wiser decisions about where to allocate its resources. As a result, they could stay ahead of the competition and enhance their overall customers' experience.
Jane's success story has been recognized by her peers in the insurance and financial services sectors, and she often gets consulted by peers in her industry to share her experience and best practices. Jane's initiative has received recognition from various professional and industry bodies, and she has received several awards for her achievements.
With traditional cost-cutting measures failing to drive business growth, finance leaders are discovering a new approach to cost control and growth — one that is focused on data-driven decision-making and continuous improvement.
With Spend Analytics, finance leaders can achieve greater accuracy in their budgeting and forecasting processes, which can lead to improved financial performance for their organisations.
In today's uncertain economic environment, Spend Analytics emerges as a transformative solution for finance leaders to meet the imperative of driving business growth.
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