Functional Strategy Business Model Innovation Organizational Architecture IT Strategy and Governance IT Cost Optimization
Organizational Reinvigoration
IT Cost Optimization: CLIENT EXAMPLES
Optimizing IT to achieve a 20% run-rate reduction
SITUATION:
This Fortune 100 financial services company, having suffered its first loss in the company’s history, launched an aggressive corporate-wide IT optimization effort to reduce its operating budget by 20% while undergoing a business transformation.
SOLUTION:
We assembled an Executive Committee-level program office to revamp the cost structure of the company while enhancing its operating model to improve profitability, then proceeded to:
- Establish a cost baseline to set reduction targets for all divisions (including IT)
- Analyze IT external and internal costs to optimize the “addressable spend”
- Created cross- functional teams between Finance, HR and IT to address both the supply and demand sides of IT Optimization
- Formed supply side teams focused on sourcing, vendor contracts, and automation strategies and demand side teams focused on demand management, project & portfolio rationalization and Discretionary spend control strategies
RESULTS:
A collaborative effort between IT and the company’s executive team exceeded its cost reduction goals by integrating standalone IT groups imbedded in the affiliate companies, centralizing IT architectural planning and control and rationalizing the IT project portfolio. The annual IT run rate was reduced by 20%, while the company’s risk profile was enhanced.
Optimizing IT to achieve a 20% run-rate reduction
SITUATION:
This Fortune 100 financial services company, having suffered its first loss in the company’s history, launched an aggressive corporate-wide IT optimization effort to reduce its operating budget by 20% while undergoing a business transformation.
SOLUTION:
We assembled an Executive Committee-level program office to revamp the cost structure of the company while enhancing its operating model to improve profitability, then proceeded to:
- Establish a cost baseline to set reduction targets for all divisions (including IT)
- Analyze IT external and internal costs to optimize the “addressable spend”
- Created cross- functional teams between Finance, HR and IT to address both the supply and demand sides of IT Optimization
- Formed supply side teams focused on sourcing, vendor contracts, and automation strategies and demand side teams focused on demand management, project & portfolio rationalization and Discretionary spend control strategies
RESULTS:
A collaborative effort between IT and the company’s executive team exceeded its cost reduction goals by integrating standalone IT groups imbedded in the affiliate companies, centralizing IT architectural planning and control and rationalizing the IT project portfolio. The annual IT run rate was reduced by 20%, while the company’s risk profile was enhanced.
