The bottom line is always at the top of every business’s list of priorities. For IT departments, that means maximizing operational uptime and facilitating company growth.
That’s especially important when you consider a single minute of downtime can cost a financial institution $9,000 — an hourly rate of more than half a million dollars.
When it’s incumbent upon every department to contribute to efficiencies that drive uptime and growth, though, where does that leave the IT department?
Let’s explore how IT departments at financial institutions can help maximize operational uptime and facilitate growth.
To manage or not to manage
It’s difficult for IT departments to innovate new efficiencies when managing the myriad switches, routers and other infrastructure that keep the organization’s digital footprint healthy. This also includes hardware, software licenses, maintenance, support and cybersecurity. Offloading systems management to a third-party firm can keep IT from getting bogged down in the details of keeping the network up.
Consider Total Cost of Ownership (TCO)
If you decide to manage your IT in-house, calculate the total cost of ownership of IT infrastructure over its lifecycle, including initial investment, maintenance, upgrades and eventual decommissioning. Compare the TCO of different technology options to determine the most cost-effective solution. Which leads us to …
CapEx vs OpEx
While larger institutions are generally more able to absorb upfront costs than smaller institutions, treating IT expenditures as capital expenditures may not be ideal. For example, purchasing IT gear as an operating expense versus a capital expenditure allows a company to spread the cost over a long amortization period, freeing up resources in the immediate term that can be used for growth.
Increase productivity
Assess how IT infrastructure improvements contribute to increased productivity among team members, measuring factors such as reduced downtime, faster access to information, automation of repetitive tasks and improved collaboration. Surveys or productivity analysis metrics before and after implementing IT initiatives can quantify the improvements.
Risk mitigation
Evaluate the impact of IT infrastructure on risk mitigation and compliance efforts. How can technology investments help mitigate cybersecurity threats, comply with regulatory requirements, and prevent costly downtime or data breaches? Quantify the potential financial losses avoided due to improved security and compliance measures.
Customer satisfaction and retention
Measure the impact of IT infrastructure improvements on customer satisfaction and retention rates by analyzing customer feedback, retention metrics and customer lifetime value to assess how technology investments enhance the overall customer experience. For example, improvements in website performance or self-service options may lead to higher customer satisfaction and loyalty.
Long-term strategic value
What is the long-term strategic value of IT infrastructure investments beyond immediate financial returns? Evaluate how technology initiatives align with business objectives, support future growth opportunities and enable innovation. Quantify the strategic benefits of building a flexible, scalable IT infrastructure that can adapt to changing business needs.
