Show Me the Value (and the Money)

How can we ensure our ambitious IT initiatives (like AI projects) actually deliver real business value? In an age when everyone’s excited about the latest tech, it’s all too easy to chase shiny objects and forget the fundamentals. Let’s explore how to avoid “tech for tech’s sake” and focus on what really matters: the results.

The Hype vs. the Hard Value
We are living through an AI boom. Organisations everywhere are experimenting with generative AI tools and clever new digital solutions. Yet, evidence shows a startling reality: over 80% of companies using generative AI have seen no significant impact on their earnings. In other words, despite all the hype (and spending), most aren’t yet reaping tangible financial benefits. McKinsey has dubbed this the “generative AI paradox”: lots of apparent potential, but elusive real-world value.

Why does this ROI gap happen? Often, it’s because new technologies are adopted without a clear plan for how they’ll improve the business. Many firms rush to deploy “innovative” tools like chatbots or copilots just to say they’re doing AI, but their impact is diffuse and rarely shows up on the P&L. A chatbot might lighten someone’s workload a bit, but that small productivity gain isn’t moving the profit needle. Meanwhile, the truly high-impact applications of AI,  the ones that could transform entire processes or create new revenue streams, often stall out in pilot mode or never get fully funded. Why? Because without rethinking processes or proving the value, companies end up just layering new tech onto old workflows. It’s like slapping a turbocharger on a clunky old engine: the car looks modern, but you’re not really getting faster. Until we make these initiatives business-driven rather than tech-driven, the returns will remain limited.

And it’s not just AI. This pattern repeats with many IT trends. From big data projects to IoT deployments, plenty of promising pilots never break through because decision-makers can’t see the business case. When budgets tighten or scrutiny rises, those projects are the first to go on the chopping block. The lesson? No matter how exciting a technology is, we must connect it to real outcomes, whether that’s boosting revenue, cutting costs, improving customer satisfaction, or reducing risk. If we don’t, even the coolest tech will struggle to get executive buy-in or continued investment.

Finding the “Why”: From Cost Centre to Value Centre
In last month’s edition, we considered how IT can sometimes be seen as a mere cost centre. To change that perception, IT leaders need to speak the language of value. That starts with clearly answering “Why should the business invest in this idea at all?” It might sound obvious, but it’s amazing how often this vital question is glossed over in our enthusiasm for how a solution works.

As one famous CEO, Jack Welch, bluntly put it: “Without a solid business case, you’re just guessing.” A well-crafted business case is the foundation for informed decisions and ensures any investment aligns with strategic goals. In other words, the “why” is what links a technology initiative to business success. It turns an IT project from a nebulous expense into a compelling opportunity.

Yet too often us IT folks struggle to create compelling business cases. It’s not usually part of our formal training, and by the time we realise we need it, we’re already trying to convince a sceptical board or CFO. We focus a lot on what we’re going to do and how much effort or money it will take but give only a cursory nod to what’s in it for the organisation. We might outline the costs and timelines in detail, but leave the benefits section looking a bit… thin. The result? We expect stakeholders to infer the value on their own or take it on faith. That’s a recipe for disappointment.

Think about it: “The business won’t accept this idea” is a refrain you may have heard (or said). Why not? Most likely, because the value wasn’t demonstrated clearly enough[1]. From experience, when a proposal gets rejected it’s usually because of one (or more) of these gaps[1]:

• Benefits not fully articulated: Did we spell out exactly how this initiative will help the company? Vague promises like “improve efficiency” aren’t enough. We need specifics: e.g. “reduce customer wait times by 30%” or “save 5 hours per week for each salesperson.”
• Risks and trade-offs not addressed: Every project has risks. If we don’t acknowledge and quantify them, stakeholders assume the worst. Similarly, if there’s a potential downside (like disruption during implementation), call it out and explain mitigation.
• Lack of context or strategic alignment: We must connect the project to the bigger picture. How does it support the organisation’s goals or solve a pressing problem? If we can’t tie it to a top priority (be it growth, cost savings, customer experience, compliance, etc.), it will seem like a nice-to-have, not a must-have.
• People impact overlooked: Ultimately, technology is used by people: employees, customers, partners. How will it affect them? Will it make lives easier, or require a painful adjustment? A proposal that considers change management, training, and user experience will instil far more confidence than one that doesn’t mention people at all.

In short, if an IT proposal fizzles, it’s often because we haven’t fully developed the business case around it. The idea might be brilliant, but if we don’t package that idea into a credible story of benefits > costs, it remains an uphill battle.

Making the Case: Show Me the Value (and the Money)
So, how do we do it? How can we craft a business case that even the most hard-nosed finance director will appreciate? A few guiding principles can help:

• Translate Tech to Business Outcomes: Frame your initiative in terms of business results, not technology features. Instead of, “Deploying an AI-driven analytics tool,” say, “Improving fraud detection rates by 50% using AI analytics, which could save £2M annually in prevented losses.” Always connect the tech to an outcome that matters to your organisation’s bottom line, competitive position, or mission. Ultimately, a project will only be approved if its expected benefits outweigh its costs.
• Quantify Tangible Benefits… Wherever possible, put numbers on the outcomes. Increased revenue, reduced operating costs, time saved, error rates lowered – estimate them. Even if they are rough estimates or ranges, it’s better than vague assertions. For example: “This automation will save ~500 man-hours per month, which equates to about £20,000 in payroll cost avoidance annually.” Or, “By enhancing the customer experience, we aim to lift retention by 5%, adding an estimated £500k in yearly revenue.” These figures make the upside feel real.
• …and Acknowledge Intangibles: Not every benefit is easily measurable, and that’s okay. Some advantages are strategic or qualitative: better customer trust, improved employee morale, stronger decision-making. Don’t shy away from these just because they’re hard to put into a spreadsheet. Instead, describe them convincingly and, where possible, link them to tangible outcomes. For instance, improved employee experience might reduce staff turnover (which has a clear cost), or better data insights might lead to faster innovation cycles. It’s fine to include a benefit that “enhances our industry reputation as an innovator”, just pair it with concrete evidence or a logical argument as to why that matters.
• Include Costs – All of Them: A business case isn’t just about selling benefits; it must also reckon with the costs. And not just the big-ticket fees like software licenses or new hires. Think about implementation effort, training, change management, potential downtime, maintenance subscriptions – the full picture. Breaking costs into categories (e.g. one-time project costs vs. ongoing operational costs) can help stakeholders see you’ve done thorough homework. Plus, it lets you calculate things like payback period or 3-year ROI, which many boards will ask for. Being honest and comprehensive about costs builds credibility.
• Tell the Story: Facts and figures are vital, but on their own they don’t sell. Narrative matters. The best business cases read like a story of a desirable future. Set the stage by concisely describing the problem or opportunity. Paint the picture of how your initiative solves that problem or seizes that opportunity. Introduce the “hero” (maybe a new system or approach) and how it overcomes obstacles. Address the risks (every hero has challenges!) and how you’ll mitigate them. And conclude with the happy ending – a vision of the business after implementation, enjoying the fruits of the project. Storytelling isn’t fluff; it provides a cohesive thread that makes all those numbers meaningful. It appeals to both the rational and emotional motivations of your audience. Remember, a good story is essential for successful approval of any proposal – it brings the numbers to life in the minds of your stakeholders.

By following these guidelines, we do more than just get a project approved – we set it up for success in execution. A clear business case becomes a reference point throughout the project, helping the team stay focused on delivering the promised value and measuring progress against expectations. It’s a lot easier to keep everyone motivated and aligned when you all know why you’re doing this in the first place.

Until Next Time… Remember the “Why”
The bottom line is this: in IT (as in any domain), great ideas need great business cases. This is especially true when budgets are tight or when the initiative involves emerging tech that people may not fully understand. If you can articulate how a technology investment will translate into tangible improvements or competitive advantage for your organisation, you’ve already won half the battle. You’ll turn doubters into supporters and move IT from being perceived as a cost centre to being recognised as a true value driver.

I’ve been working a lot on this topic myself (developing a new course on building compelling business cases for AI, in fact – more on that next month!). And it has reinforced my belief that bridging the gap between technology and business value is the most important skill an IT leader can cultivate. When you get it right, you not only get your projects funded – you ensure they make a meaningful impact.

If you found these insights helpful, please feel free to share this newsletter with colleagues or peers who might benefit. As always, I welcome your thoughts and feedback.

Until next time, remember: IT strategy matters!

Dan - The IT Strategy Coach