Technology has become central to business performance. It drives efficiency, enables innovation, and opens new paths to growth. But with that shift comes a challenge for financial leaders—how do you actually measure the value that IT delivers?
For many CFOs, traditional metrics no longer tell the full story. In fact, a McKinsey survey found that only 14% of companies that embarked on digital transformation initiatives saw sustained performance improvements over time, highlighting the difficulty of measuring and achieving true value from IT investments. It’s not enough to track spend and timelines. What matters is how IT contributes to profitability, competitiveness, and strategic outcomes. That means finance and IT leaders need to move beyond parallel tracks and start speaking the same language when it comes to measuring impact.
Why cost tracking alone falls short
For years, IT success was measured by whether a project was delivered on time and within budget. That approach might still be relevant for basic infrastructure upgrades or routine system maintenance, but it does little to capture the business value of more strategic investments.
When a new platform helps teams collaborate faster, reduces errors, or improves visibility into performance, the return is there—it’s just not captured on a project ledger. In today’s environment, where most businesses rely on software to enable everything from sales to supply chain, the financial impact of IT is deeply embedded across functions. CFOs need ways to quantify that value beyond the budget spreadsheet.
Connecting IT outcomes to real business results
The real measure of an IT investment should come from its effect on how the business operates. That means looking at how systems improve workflows, eliminate friction, or create new capacity for growth.
This is where financial and technology leaders need to align. Before a solution is implemented, it should be clear what problem it is solving, what outcome is expected, and how success will be measured over time. That could involve looking at time saved, errors reduced, cycle times shortened, or customer experiences improved.
Understanding those links makes it easier to assess whether the investment has paid off. It also allows future decisions to be guided by evidence, not just assumptions or enthusiasm.
Moving beyond project-by-project ROI
Measuring value only at the project level creates a short-term view that can miss broader benefits. Some returns play out over months or years, while others are realised through improved flexibility, reduced risk, or stronger operational performance.
CFOs can expand their perspective by looking at how IT investments affect broader business metrics. According to IDC, organisations that take a strategic approach to measuring IT impact are 2.5 times more likely to report significant improvements in business outcomes. These might include revenue growth, profit margin, productivity per headcount, or customer lifetime value. When viewed through this lens, IT becomes part of the overall performance story—not a standalone function.
The goal is to treat IT outcomes as you would any other financial lever. They should be tracked, reported, and evaluated for how they support the organisation’s most important goals.
Speaking the same language
IT and finance have historically worked in silos, each with their own systems, metrics, and planning cycles. But as digital transformation accelerates, that divide no longer works. Technology touches every department. Financial leadership now includes understanding how systems contribute to efficiency, risk, and growth.
That starts with collaboration. Finance and IT leaders should work together from the outset of any initiative to define shared objectives and identify meaningful metrics. These metrics should be specific, measurable, and relevant to both operational performance and financial outcomes. When this alignment happens early, it becomes easier to measure progress, adjust as needed, and communicate value clearly to senior leadership and the board.
Making impact visible
Even when IT investments deliver value, that impact is not always seen or understood across the business. CFOs play a crucial role in translating outcomes into financial language.
For example, if automation reduces manual processing, the value should be quantified in terms of hours saved and costs avoided. If a new data platform improves decision-making, the focus might be on the quality and speed of business responses. If a system upgrade leads to better risk management, the impact could show up in reduced downtime or improved insurance conditions. By making these results visible, CFOs can reinforce IT as a value enabler, not just a cost centre.
IT is no longer just about infrastructure or systems. It is about enabling the business to do more, move faster, and perform better. Measuring its financial impact is key to understanding where the organisation is gaining value and where there is room to improve.
For CFOs, this is an opportunity to lead with insight. By helping to bridge the gap between technology and financial outcomes, finance teams can drive smarter decisions, unlock greater return on investment, and shape the way technology supports long-term success.
