Over 70% of digital initiatives fail to deliver positive results, and misalignment between IT, operations, and finance is often a key reason for this. Utilities and energy organizations often find these functions competing for different priorities, leading to budget battles, project delays, and digital projects that fail to meet their promises. Each silo focuses on its own metrics instead of a shared mission, so even ambitious technology investments struggle to translate into business value.

For digital transformation to truly pay off, every major stakeholder must be on the same page from the start. Technology only creates business value when guided by a cross-functional perspective, which means IT leaders should treat operations and finance as co-authors of every initiative rather than mere bystanders. Breaking down silos and aligning around common goals and metrics lets firms avoid wasted spending and duplication of effort. The result is faster buy-in, smoother rollouts, and innovation that consistently delivers measurable returns.

IT, operations, and finance each approach transformation from different angles. CIOs prioritize system stability and data integrity. Operational leaders focus on throughput and reliability above all. Finance scrutinizes spending and expects clear ROI.

When these priorities clash, progress slows to a crawl as teams expend more energy negotiating than delivering value. Misalignment puts the brakes on innovation since no one will move forward unless their conditions are met. Indeed, 54% of companies say working in silos makes collaboration difficult. Establishing common ground through shared goals is the only way to break this stalemate.

When ROI is embedded in a modernization RFP, it sends a clear signal to all stakeholders that the project is grounded in business value. Executives are far more confident investing in a proposal when it spells out “We expect a X% return or $Y benefit by Z date, and here’s how.” Nearly all CIOs today regularly report to the board on ROI for technology initiatives, reflecting how ROI has become a top concern at the highest levels. An RFP with upfront ROI targets gives those leaders the transparency they need to green-light the project with confidence.

Crucially, defining ROI in the RFP stage creates executive alignment and a mandate to execute. The CIO and CFO can agree early on what a successful outcome looks like in dollar terms. This alignment is vital. CFOs increasingly drive IT budget decisions, yet only about 20% of CFOs say they are happy with the results of their tech investments. Why such dissatisfaction? Often, projects proceed without clear value metrics, leading to surprises like higher ongoing costs or unclear benefits. By contrast, when the RFP demands measurable ROI, finance leaders feel assured that the initiative has rigor behind it. They know the team will be tracking to specific returns, reducing the fear of runaway spending.

Putting ROI front and center in the RFP also helps manage expectations. All stakeholders see exactly what the proposed modernization is aiming to deliver (for example, “cut customer churn by 15%” or “enable $5M in new e-commerce sales”). This means everyone enters the project with realistic goals and a shared understanding of value. It minimizes the risk of later frustration by the CEO or board asking, “What did we get for this investment?” because those answers were defined from the start. Moreover, early ROI focus often uncovers whether a project is worth doing at all. If a proposed modernization can’t articulate a convincing return, it may need re-scoping or might not be justified. In this way, the RFP’s ROI requirement acts as a filter, ensuring the organization pursues only those modernization initiatives that promise meaningful business impact.

Including strict ROI requirements in a modernization RFP doesn’t just align internal stakeholders; it also puts potential vendors on notice that business results are the ultimate deliverable. Vendors responding to the RFP must do more than tout their technology; they have to show how their solution will achieve the specific ROI targets the company has set. This shifts the conversation from feature checklists to value milestones. Instead of, “Our platform has features A and B,” the vendor is compelled to explain, “Our solution will increase your efficiency by 25%, saving $X million annually.” By demanding this level of detail, the RFP process holds vendors accountable for real outcomes, not just promises.

Such ROI-driven RFPs help separate substance from hype. If a vendor can’t map their offering to tangible benefits, they likely aren’t the right partner for a results-oriented modernization. On the other hand, vendors who embrace ROI metrics demonstrate a commitment to the client’s success. They are more likely to propose phased implementations with clear value checkpoints. For example, a first phase that automates a process and delivers a quick win, followed by expansions that build on that ROI. This approach aligns with IT leaders’ need to show early wins and incremental improvements. It’s a collaborative mindset: the vendor isn’t just selling software or services; they’re agreeing to solve a problem and prove it.

Moreover, an RFP with ROI criteria can lead to contract structures that protect the buyer’s interests. Organizations might tie payments or bonus fees to hitting certain performance benchmarks, effectively sharing risk with the vendor. The mere presence of ROI goals in the RFP encourages vendors to price and plan more realistically, as they know overpromising will backfire once outcomes are measured. It also fosters transparency: vendors may outline how they will track and report ROI during the project, which gives the CIO a framework to monitor progress. This is crucial given that 29% of companies say data to prove ROI is hard to come by in digital initiatives. Building ROI measurement into the vendor selection and project plan helps IT leaders ensure they won’t end up guessing whether the modernization paid off; they’ll have the numbers to show it. In short, ROI requirements turn vendors into true partners who are accountable for delivering results, not just delivering technology.

Focusing on ROI from the very start of a modernization initiative isn’t just a planning exercise. It fundamentally drives the project toward measurable business impact. When every decision is weighed against expected return, the project naturally emphasizes changes that increase revenue, reduce costs, or otherwise improve the bottom line. CIOs who lead with ROI are effectively guaranteeing that “success” will be defined in business terms. This approach addresses a common reality: 85% of CIOs face growing pressure to demonstrate tangible business impact from tech investments, yet 64% admit their recent tech projects have not delivered the expected returns. Making ROI the guiding principle helps CIOs close that gap. They steer modernization efforts to produce results that boards and investors can see and appreciate.

An ROI-first mindset also delivers faster time-to-value. Teams identify quick wins early. For instance, a process automation that saves $500,000 within six months, and prioritizes those in the project roadmap. Achieving early ROI not only boosts the project’s credibility but also builds momentum for further modernization. Stakeholders see evidence that the strategy is working, which increases their support for subsequent phases. Additionally, leading with ROI helps in controlling costs and avoiding waste. With clear ROI targets, if a certain workstream isn’t yielding the anticipated benefit, it can be reassessed or dropped. Resources are then reallocated to higher-value activities. This agile adjustment ensures that the overall program stays focused on high-impact outcomes rather than sinking time and money into low-ROI tasks.

Crucially, when ROI is the compass, the definition of “done” becomes delivering business value, not just completing an IT rollout. The modernization isn’t truly complete until the projected value (whether that’s higher sales, improved profit margins, greater efficiency, or better customer retention) is realized and verified. This instills a culture of continuous measurement and accountability. Teams track key performance indicators  linked to ROI throughout deployment and afterwards, comparing actual results to the targets set in the RFP. It creates a feedback loop for learning: if certain goals aren’t met, analysis can reveal whether assumptions were wrong or execution fell short, informing better planning next time. Conversely, if goals are exceeded, that success becomes a business case to replicate in other areas. 

Building on the importance of ROI as a guiding metric, Lumenalta partners with CIOs and CTOs to keep every modernization initiative accountable to clear business outcomes from day one. We work closely with technology leaders to define ROI targets at the outset – whether it’s improving operating margins, accelerating time to market, or unlocking new revenue streams. By co-creating these goals, we ensure that modernization projects are not just technically sound but financially justified. This upfront alignment gives CIOs a powerful mandate: a modernization roadmap that the entire C-suite supports because it promises measurable returns that everyone understands.

Our approach treats ROI as a continuous compass throughout execution, not a box to check. Lumenalta’s teams integrate value tracking into each phase of the project, delivering early wins and verifying results against targets in real time. If a solution isn’t hitting the mark, we adapt quickly because protecting the client’s investment is paramount. This pragmatic, outcome-focused ethos means CIOs see faster time-to-value and less risk. They can go back to their stakeholders with hard numbers, cost savings achieved, revenue uplift realized, often within the first few months of deployment. In the end, modernization with Lumenalta isn’t complete until it delivers the promised business impact.