Chief Information Officers (CIOs) are increasingly expected to contribute not just to operational savings but also to revenue growth through digital projects. Traditionally, digital project proposals have focused on return on investment (ROI) through cost reductions. However, with boards now demanding a more business-oriented approach, CIOs are challenged to explore avenues that generate actual revenue.
Many digital initiatives, such as automating manufacturing processes or digitizing document workflows, primarily aim for back-office efficiency. Yet, opportunities exist for projects that can directly enhance corporate revenue. For instance, companies are increasingly developing digital portals that enable consumers to purchase products and book services. Notable examples include e-commerce platforms and car rental agencies that create separate profit and loss (P&L) centers to track the revenue generated by these digital channels. The results have been impressive, showing a significant potential for monetization.
One major credit card provider has taken this a step further by developing new digital card products that generate revenue. By establishing a dedicated P&L center, the company effectively tracks and manages revenue from these innovations. Similarly, large credit unions have transitioned their banking operations to a cloud-based Software as a Service (SaaS)Zelle exemplifies another approach to revenue generation. While Zelle does not operate as a direct P&L center, the increase in transaction volumes and associated fees for member banks is substantial. As of March 2025, Zelle has processed over $1.92 trillion in transactions, highlighting the revenue potential of digital services in the financial sector.
Recognizing the need for a shift in mindset, CIOs must evaluate the revenue-generating potential of every digital project. It is crucial to move beyond the conventional focus on operational savings. A former CIO shared an experience where a digital project was transformed into a SaaS offering, attracting subscription fees from smaller companies. Unfortunately, the initiative was limited by a conservative approach from leadership, which restricted its growth potential. Today, companies are more receptive to the idea of digital initiatives driving top-line revenue growth.
To facilitate this shift, CIOs should actively engage their teams in identifying monetization opportunities. Innovative ideas often arise from staff members who are familiar with operational challenges. For example, systems programming staff may develop infrastructure modules that other businesses find valuable enough to purchase. Encouraging such entrepreneurial thinking within IT teams can lead to significant revenue opportunities.
Many digital projects aimed at streamlining shipping and billing processes have resulted in faster cash flows. Despite these advances, CIOs often emphasize operational efficiencies rather than the revenue benefits of quicker billing and collections. Failing to do so misses a crucial aspect of the digital transformation narrative. Strengthening relationships with executives focused on revenue generation can help CIOs pinpoint and maximize the revenue potential of their digital projects.
In summary, the evolving landscape of digital initiatives compels CIOs to rethink their strategies. By prioritizing revenue generation alongside operational savings, organizations can unlock new avenues for growth. As companies continue to embrace digital transformation, the focus on creating revenue-generating opportunities will become increasingly vital for success.
