Functional Strategy Business Model Innovation Organizational Architecture IT Strategy and Governance
IT Cost Optimization
Organizational Reinvigoration
IT Cost Optimization
IT organizations are struggling with increased pressure to “hold the line” or even reduce budgets while simultaneously being asked to “innovate” and more rapidly deliver new products and better service. All the while, volume loads on current systems are increasing. Add to that the resource challenges imposed by integrating mergers and/or acquisitions – and the result is escalating complexity and cost.
One key to controlling cost and complexity is understanding the IT demand and supply-side drivers, constraints and influences. These vary by company; however, common themes exist and knowledgeable diagnosis of a company’s IT cost structure combined with focused execution on optimizing it can result in reduced costs, improved service levels and controlled complexity. The result is an improved IT operating model.
Our IT cost optimization practice helps our clients:
Identify the value chain within the business that IT supports – including cataloging all systems, databases and interfaces, internal and external, upstream and downstream – and identifying suppliers and users (demand generators) that comprise the value chain.
Designate the origins of demand for IT products and services in the value chain. To the extent that demand can be shaped, cost can be optimized. Identify levers to shape the demand.
Identify and separate internal influences from external influences in the cost structure and identify controlling levers. Realigning internal and external costs can achieve substantial savings in IT cost centers.
Deconstruct operating practices and eliminate complexity. Identify a few key levers for IT operations procedures and practices.
Consolidate and prioritize these levers for quick-hits and feedback to tune the optimization program. Execute initial phases in a 90-day horizon to produce short-term impacts.
