An enterprise's board of directors is concerned about the ongoing costs of a large inventory of Internet of Things (IoT) devices. Which of the following should the CIO do FIRST?

Implementing performance measures for each device is an operational task that evaluates efficiency, but it doesn't directly address the board's concern about *costs* versus *value* from a strategic perspective.

Suggesting replacement without understanding the current benefits is a premature step; the CIO needs data to justify such a recommendation.

Before considering cost reduction or replacement, the CIO must first understand and articulate the value and benefits that the IoT capabilities provide to the enterprise. This assessment allows the CIO to either justify the ongoing costs by demonstrating the strategic value and return on investment or identify areas where the costs outweigh the benefits, providing a basis for informed decisions regarding the IoT inventory.

Arbitrarily reducing the budget without understanding the benefits or potential impact on operations could be detrimental to the business and does not provide a strategic response to the board's concern.