Part taken from our book Mr Backup 2.0 — a two-part reflection: at the office, think about the business value and monetization of your data and IT; in personal life, build an abundance of money through financial planning.
"IT is no longer a support, but a differentiating function for organizational transformation — so even IT needs to think business. How do we add new avenues to business?"
At the Office: The Business Value of Your Data & IT
Typical IT persons remain focused around technical aspects and do not go beyond the expenses and advantages that the business people of the organisation think about. But if we look around, we would see that some IT people — like Mr. Rajesh Uppal of Maruti Suzuki — who could go beyond IT and rise to unimaginable levels.
Similarly in personal life, lots of IT persons make money, but very few who invest and manage well actually manage to multiply their money.
The story below is of CIO Ashutosh & his organisation.
CEO to IT head Ashutosh: "Though I like you a lot, I have a complaint to make." Ashutosh was taken aback, "Aab maine kya kar diya?" [What have I done now?]
CEO: "I want you to think about why organizations exist; I am sure you know they exist for profit through touching people's life positively. If you don't contribute to that, you cannot grow beyond a point. IT is no longer a support, but a differentiating function for organizational transformation, so even you need to think business. How to add new avenues to business?"
Ashutosh was inspired by this, and he said, "That is great. Now onwards, I will come up with different ideas about how IT can use data to make more profits."
He took it forward and told his team, "Let us start looking at the business side of IT and data, which the majority of IT persons don't have the time and vision to look at. This will get us all growth and attention within the organization, and wherever else we go."
"We should brainstorm on what your organization could do with data to accomplish what it is up to, and then expand on that further for ideas in profitable and viable new directions. This will bring your creative side out."
"I have studied The VUCA (volatility, uncertainty, complexity, and ambiguity), which was first used by Warren Bennis and Burt Nanus. The past few years were the perfect examples of a VUCA world amid the pandemic and global volatility, and the way technology & swift response has been used as a differentiator by a few of the leaders."
The IT team worked and came out with a study, and as per that they created a USP with a specific customer segment and caused a new revenue stream through a digital platform.
The part of the report as summarized by DGM Mr. Tejinder Singh:
- Slice & dice the data for trends
Analyse demand, production and customer segmentation to show which niche product range, in what time range, is bought by which specific customer segment — to identify which niche segment to focus on for dominating that specific segment. - Analyse the competition
Find the gaps to capitalize on through technology and USPs for us. - Add new revenue streams
Explore how technology could be used to add new streams for generating new revenue, and whether digital can be a game changer to reach specific customer segments. - Technology for innovation
Use technology for innovation and to cause a consistent USP. - Social media for inbound pull
Pass the message to market such that prospects reach us rather than us working to reach them. This makes us control the flow with prospects, such that they buy goods on our terms and conditions.
The Family Scenario: Abundance of Money caused by Financial Planning
The next morning at the office, the SME expert asked CIO Ashutosh, "Boss, yesterday we talked about the financial aspect of IT & data, and it was an eye opener. Now I feel motivated to look at the financial side of my personal life as well."
Ashutosh laughed and jokingly asked, "Are you asking for a raise in the midst of the year?"
The Backup Subject Matter Expert, Mr. P. Venkat, replied, "Is that the only way to increase earnings? You seem to have managed your money well right from the beginning. Could you support the team in learning to manage their money well by investing in avenues of their choice? You could train them informally."
Ashutosh enthusiastically said, "Why not, for sure. Let me call my friends Amit Manral & Munish Kohli, who are experts in wealth creation through multiple sources and allocating earnings into different buckets with discipline."
Ashutosh organised a workshop by Amit Manral & Munish Kohli, a summary of which is given below.
We are all always seeking a good job & salary and putting our best efforts to achieve these in our lifetimes. IT professionals especially are under so much stress to achieve targets — working more than prescribed hours, frequent night shifts, and so on. Sacrificing mental health and family life, this is all we do for MONEY. But do we have time to manage our money and cause financial abundance? Managing money means future planning, making your money work for you, and causing financial abundance — where you don't have to work for money but for passion (as enough money is accumulated and invested by you for the short term and the entire life span, based on current lifestyle expenses).
Financial health is as important as our physical health. Money is not the only important thing, but it makes other important things more convenient and simpler to handle, with more people willing to stand by your side.
Here are some common financial mistakes that professionals working in the corporate or IT industry generally make:
- Lack of Financial Goals for abundance
Whichever phase of life we are in, it is important to have financial goals to guide us, along with the 'why' of it — this keeps us largely disciplined despite circumstances. Causing financial abundance based on a basic-needs budget (calculate these with your family) of our current lifestyle, such that at a defined point of time we don't need to work for money but for our happiness and passion. This could also be called retirement planning — the earlier we start, the better. The power of compounding is greatest when you begin early, but it is never too late. - Overlooking Investments
Avoiding investments out of fear of not knowing what is best for you will only result in missed opportunities. Seek the advice of a financial planner. Invest for the future, rely on the power of compounding, for your children and dependents. - Not making a current Budget
Overspending and financial stress can result from failing to create a budget. Understanding our income, expenses, and savings objectives is critical for financial stability, so we can see where we stand on savings and financial goals of abundance. - Not giving importance to Emergency Funds
Emergency expenses without a plan can lead to debt or financial strain. We should be able to withdraw our deposits right away through an emergency fund on hand. - Unnecessary Loans / Unsecured Debts & high spending on Credit Cards
Taking loans to meet immediate needs attracts high interest rates, and having too much credit card debt can quickly lead to a serious financial downward spiral. It is critical to have an emergency fund, and to use credit cards responsibly or not at all. - Impulsive Spending
Impulse purchases and lifestyle inflation can result in financial insecurity. It is critical to distinguish between needs and wants (necessity and luxury) in order to make sound spending decisions. - Neglecting Life and Health Insurance Plans
This can expose people of any age to unexpected financial setbacks. It will not only wreck your life, but also the lives of those who rely on you.
To summarize, people should prioritize a financial abundance plan (where you don't need to work for money) at the earliest possible age, alongside education, creating and sticking to a budget, establishing good saving habits, and making informed credit and investment decisions. Seeking consistent advice from financial professionals or mentors can be beneficial.
Inspired by this, and in order to guide his team well on managing and growing their money wisely, Ashutosh also began reviewing his own financial resources, needs and decisions.
Ashutosh reviewed things like his family's needs for his children's studies, their old-age money needs, passive income, money required for health, vacations, and financial goals — by which he would not need to work for money any longer than the next 5 years. He would be working purely for the passion of creating an impact.
Then he took to consistently working with his staff, wife, and children on financial planning and management — making them responsible for their own lives rather than dependent on anybody, not even him. That way, they would blossom (rather than survive) at work when they have financial abundance.
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