IT Cost Optimization
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|Sample Questions Addressed
- What areas should the company focus on to reduce its IT costs?
- Which existing initiatives provide the greatest value? Which provide marginal or
- What criteria/rationale should we use to determine priorities?
- What best practices should we focus on to meet our expectations for efficiency,
flexibility and value?
- What are the governance requirements to realize cost reductions and high value IT
- How do we realize savings/benefits? How do we measure success?
- What business decisions and cost drivers have the biggest impact on IT costs?
- How does our IT spending mix compare to industry averages?
- Does disproportionate IT spending result from weaknesses in capability?
- Where, and by how much, can we reduce IT costs without impeding business
Focusing on the Business Value of IT
Reduce and optimize on-going IT costs while still improving service to the
- Move dialogue with the Business from “cost of IT” to “value of IT”.
- Scenarios show where and how deep to cut IT costs based on current and
- Opportunities identified to reduce and/or balance the overall IT spend – covering
both business-focused IT spend and IT-focused spend.
- Opportunities identified to reduce the long-term non-discretionary portion of IT
spending and transferring that to capability building investment, while maintaining
or improving service levels.
- Understanding of the value of the savings and the level of investment required to
achieve the savings.
- Roadmap to harvest the savings and build the capabilities.
The objective is to reduce on-going
non-discretionary spending as well
as identifying shorter term savings
while maintaining or improving