Campbell Soup Company\nI remember having a conversation with a CIO a few months ago who complained that her business partners thought IT was free. The business would have a need, tell IT all about it, and then be relatively oblivious about the true costs of the technology solutions that IT provided. What\u2019s more, after the implementation, the business partner who requested the solution would fail to look back to determine if the business outcome bang was worth the investment buck. \u00a0The business\u2019s general lack of understanding of the true costs and business results of IT, this CIO found, created major problems in performance, business impact, and IT credibility.\nThis is not the case at Campbell Soup Company.\n\u201cSeveral years ago, we saw mounting demand and increased operating costs, so we decided to design the organization for the work we were going to be doing and not for the work we had been doing,\u201d says Joe Spagnoletti, who has been CIO at Campbell since 2008. \u201cWe took a positon on the future of IT and designed an IT operating model that would allow us to be more adaptive, better integrated, and have higher business acumen to meet the changing flow of demand.\u201d\nSpagnoletti and his team used the concept of investment management to change IT from an order taking model to a \u201cdemand driving\u201d model. \u201cNow, we conceptualize IT as a portfolio that we invest in, where we are always making trade-offs about where to invest and how to balance the portfolio,\u201d Spagnoletti says. \u201cThis new perspective has allowed us to shift from focusing exclusively on our IT operating costs to focusing on business outcomes. \u00a0We now know which programs to put money behind and how we are impacting value.\u201d\nEducating the Business\nSpagnoletti, his team, and his business partners all look at four characteristics when making IT investment decisions: business outcome, operating performance, cost to serve, and risk. \u201cWe\u2019ve educated the executive teams and our business leaders about how to think of an IT investment more broadly,\u201d says Spagnoletti. \u201cIn their personal lives, our business partners have investment brokers, and they ask them \u2018how is my current portfolio doing?\u2019 before they make more investment decisions. We are bringing that view to our service owners. We show them how their current portfolio is performing so they think, \u2018In a silo, this one investment looks good, but how does it look as a part of a collection?\u2019\u201d\nBy exposing Campbell\u2019s business leaders to all of the factors that go into an IT investment decision, Spagnoletti has handed them more accountability for those decisions. \u201cWe transferred more decision making authority for business services to the business owners,\u201d he says. \u201cWe now drive decisions to where the value is realized. If the value is realized on the supply chain floor, then supply chain leaders have to own those IT investment decisions.\u201d\nNow, rather than ordering up new supply chain technology, for example, supply chain leaders have greater ability to make decisions about those IT investments. \u201cWe work with our business partners in a more tightly integrated way so they understand the impact of their choices,\u201d says Spagnoletti. \u201cWe\u2019ve taken it from \u2018I want some technology\u2019 to \u2018how can we have this business outcome? Let\u2019s work together to explore the options to getting there.\u2019 Shaping demand is an investment management practice.\u201d\nThe Challenges\nDeciding who owns the decision: Getting business leaders to think about IT as an investment portfolio can be tougher than it sounds. \u201cOur first challenge was to figure out which decision makers were actually involved in the investment discussion,\u201d says Spagnoletti. \u201cThe right business leader is the one who needs to own the outcomes and accept the risk. That\u2019s not always the person who has the money. We had to figure out the difference between the finance owner and the risk owner.\u201d\nEstablishing transparency: Another challenge is establishing the right level of transparency between IT and its business partners. \u201cWe decided to make those costs visible to the company so that people would start taking ownership of their investment decisions,\u201d says Spagnoletti. \u201cIt was important that they see the historical impact of the decisions they\u2019ve made. Showing them the bill of goods for what they\u2019ve invested in was eye-opening to them. It was hard to get them to understand what they owned. That was a real education process. But once they had that history, they were able to redirect those investments.\u201d\nOpening IT up for scrutiny: When you share IT costs with your business partners, you are also sharing information about IT\u2019s performance, which means exposing your IT team to more scrutiny than they are used to. \u201cWe are not just putting the investments in the business\u2019s lap,\u201d says Spagnoletti. \u201cWe all have to take accountability for how we are managing our investments. We had to remove the emotional attachment to historical choices and just look at those investments as a collection of facts. This means that they have a better view as to where IT is performing well and where it needs improvement. When you open the kimono, you\u2019ve got to open it all the way.\u201d\nThe Benefits\nAs a result of exposing the business to their portfolio of IT investments and empowering them to make better decisions, Spagnoletti is seeing improvements in business performance. \u201cNow that the business has a better view of the impact of IT, they are making smarter decisions and we are all seeing a positive impact,\u201d he says.\nAs an example, Spagnoletti cites a department that wanted to implement a new transaction system and a new analytics system. \u201cWhen we sat down with the service owners and showed them the current cost of the new systems and the outcome they were having, they decided to change their investment strategy. Rather than put in a new transaction system, they invested in an inexpensive analytics tool to understand their operating performance. They saved money with the analytics tool and with those savings were able to self-fund the new transaction system. Their TCO is noticeably down and their ROI is up.\u201d\nWhen IT investment decisions belong to IT alone, the business rarely gets what it needs. By introducing the concept of investment management to all of Campbell\u2019s business leaders, Spagnoletti and his team have tightened the connection between IT investments and business outcomes at the $8B global company. Business leaders at Campbell are now asking: What are the things I can do to optimize my current portfolio and decide if I want to invest in this new technology?\u00a0 How do I use what I\u2019ve got rather than just get something new? \u201cWe are seeing that across the company the value of IT investments are going up,\u201d says Spagnoletti. \u201cThose investments are having a better impact.\u201d\nAbout Joe Spagnoletti\nJoe Spagnoletti was appointed Campbell's Senior Vice President and Chief Information Officer in August 2008. He leads the company\u2019s global information technology function, providing IT strategy to help Campbell meet its business goals. He joined the company in 1997. Additionally, Joe serves on the Campbell Soup Foundation Trustee Board, the Cooper Health System\u2019s Board of Trustees and Audit and Ethics Committee, the Temple University Fox School of Business Advisory Board, and on the Board of Trustees for AJ\u2019s Ribbons of Gold, which serves children with cancer. Previously, he was an Information Technology Director with Becton Dickinson, and he began his career developing and implementing financial systems for a New York City software development firm. Joe earned his B.S. degree in computer science and mathematics from Albright College in Reading, Pa.\nAbout Campbell Soup Company\nCampbell Soup Company is a growing global food company with annual sales of more than $8 billion and powerful brands in three core categories: Soup & Simple Meals, Snacks and Healthy Beverages. After almost 150 years, the company continues to focus on delighting consumers with great-tasting foods and beverages that meet their evolving preferences, needs and desires. Brands under its umbrella include: Campbell's, Pepperidge Farm, V8, Pace, Prego, Swanson, Arnott's, Bolthouse Farms, Plum, the Kjeldsens, and Royal Dansk. The Campbell Soup Company was founded in 1869 and is headquartered in Camden, New Jersey.