Show Me the Cost Structure

The problem with many IT sales reps is that they think mainly in terms of making deals.

“The minute you’re walking in the door, you’re talking about the deal,” laments Mark Lutchen. “But that’s not what IT is about anymore. First, you have to show me the cost structure. You have to pull together the information I would need to make a business case for your product. Then we can talk about a deal.”

Lutchen’s pointed advice underscores just how much the IT function has changed over the past 35 years. Contrary to popular belief, early IT managers weren’t any more logical or disciplined than any other group of managers at the time. They just seemed smarter and brighter than everyone else because they worked with computers.

As a group, today’s IT executives are really and truly bright people. Well educated and well traveled, they have interests outside of IT. They know that they’re living in a global economy that’s driven by information. They think of themselves as businesspeople.

And they think of IT as a business, not as a function.

When you visit with an IT executive today, it’s not unusual to see a copy of Thomas L. Friedman’s The World Is Flat sitting on the bookshelf, along with books about leadership, management, economics, finance, and accounting. You may see a book about programming tucked away in a corner.

IT executives see themselves managing technology to drive shareholder value, not for technology’s sake. Managing IT as a Business lists seven ...

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