Unlocking Profit Potential: Turning Your IT Department into a Revenue Stream

Updated 09/12/2024

IT and Business Operations

Unlocking Profit Potential: Turning Your IT Department into a Revenue Stream

Many companies consider IT as a cost center, an unavoidable necessity that does not contribute much to generating revenue. The IT sector actually plays a pivotal role in enhancing corporate profits while potentially decreasing capital expenditures and employee payroll. In fact, with the right tools and mindset, IT can be transitioned from a cost center to a profit center. It is natural for managers to be dissatisfied with the high cost of IT teams…until something breaks, and it needs repair.

Just like the marketing team, it can be hard to figure out exactly how to calculate the profits that IT is contributing to the company. Indeed, marketing teams advertise businesses and create leads. However, since marketing does not directly generate revenue like the sales teams, it is difficult to justify their value.

Similarly, it may be difficult to recognize the true value of IT. Although it does not bring direct sales, it remains valuable to the company and if effectively managed, it can revolutionize business operations and contribute to profit margins.

What does IT do?

Speaking of IT, many of us believe that when a computer crashes, we can solve the problem by pressing a few buttons. But what if everything is working? What does IT actually do every day?

Governance

In general, the main functions of the IT department can be divided into three categories. The first is governance, which is an IT decision-making framework. Ensure that IT is being used effectively and efficiently to bring together members within the organization and support business goals.

Infrastructure

This includes networks, hardware, and equipment managed by IT teams. Typically, IT infrastructure consists of:

Hardware: server, computer, switch, etc. Software Enterprise Resource Planning (ERP), Customer Relationship Management (CRP), and other applications

Functionality

Finally, functionality is the daily work performed by technicians. This includes creating and maintaining applications, protecting data, and supporting software and data management. In addition, the IT department provides technical support to people within the company.

IT & Security

The IT team helps reduce costs by protecting the network and its data. Security components such as network access controls also save time by filtering people who have access to specific data.

Antivirus and Firewall

Antivirus software protects your computer from constant virus floods on the Internet. In addition, antivirus can display the current health of your computer and perform updates to detect malware and other malicious software. In general, IT teams help set up antiviruses and ensure updates are made regularly.

Similarly, firewalls protect you from malicious threats. However, the firewall does not scan the computer to detect the virus but blocks dangerous traffic before it enters the network. IT professionals can install one of the various firewalls and configure certain forms of traffic to be blacklisted.

Installing antivirus and firewalls does not just protect your computer from dangerous software. The IT department will also help you understand how different actions affect your computer and be more active in security.

Access Control

In addition to installing devices to prevent harmful traffic from entering the network, IT is also taking measures to ensure data safety. Access controls restrict people who can view or change certain information. This prevents the theft and leakage of valuable data by outsiders. Also, when employees leave the organization, they will not be able to access safe information.

Access control may not seem to directly affect finance but imagine what happens if important sensitive information is encrypted, stolen, or damaged. Your company will likely be financially affected by physical damage, litigation costs, and business losses due to a poor reputation.

By introducing access control, IT can protect your data and protect your company from various financial risks.

Endpoint Security

The relationship between IT professionals and hardware is not over with the installation of computers and switches. Even after installation, system endpoints are exposed to various risks. 41% of companies report frequent malware detection (Solutions Review). If you fail to pay attention, you may infiltrate malware from the endpoint itself.

IT secures endpoints through software and various other security measures. An IT provider may also develop security policies to minimize user risk.

Employee Education

The most important thing that IT can do is to educate employees about the importance of security and ensure that employees follow company policies.

Sometimes, employees risk the network due to user mistakes. According to recent data from the Anti-Phishing Working Group (APWG), there were over 1.2 million phishing attacks reported globally in 2023.

Phishing scams are becoming more problematic each year. According to the Verizon Data Breach Investigations Report, half of the recipients opened the email and clicked on the phishing link within an hour after sending it (Phishing Box).

By educating employees on phishing and other security threats, IT can help companies avoid adverse impacts from security breaches.

Some companies believe that the value of IT departments begins at the security level and ends at the security level. IT doesn’t just enhance business security, but strengthens all aspects of the business.

Recognize the value of IT.

The IT department has its own value that can contribute to the success of the company. IT professionals have cross-sectorial expertise and can recognize how to run a business more innovatively and efficiently. By recognizing the value of IT, one can contribute to business success.

View IT as a strategic partner and innovative visionary

It is easy to regard IT as a group that simply responds to problems and solves given problems. If you give a list of things to do, that list is completed.

But what if IT is more than just a solution provider? Matrix.com proposes that the IT sector will grow as a strategic partner for the business and play an active role in the decision-making process. So, how can we promote such thinking in an organization? As a business owner, let's start by letting the IT department prove its value. They use their unique expertise to predict solutions for decisions and future needs.

Make IT a vital part of your business

It is not just a team of technology experts. Leverage the unique skill set of each member of the IT team to increase business success and competitiveness against rivals.

Consilien IT Company prides itself on providing enterprise-level IT services at prices that are also available to small and medium-sized enterprises. The Consilien team of experts will be your IT support department and respond quickly to problems as well as think strategically to keep you ahead of the curve. From server and network infrastructure to computers, workstations, and cybersecurity, we deliver end-to-end solutions for all your technology needs. With years of experience, we’ve developed best practices and workflow procedures so that you can focus on your business rather than technology.