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© 2011 ITPMG, LLC. All rights reserved.
IT Cost Reduction Service
The "Expense Reduction" strategies are the first type of actions that most companies take, but they
are often not sustainable. We assist our clients in tackling the more impactful "Cost Restructuring"
strategies such as improved demand management, structural cost transformation, and lean IT to
name a few.
Our experienced consultants have identified and delivered dramatic reductions in costs for large and small IT organizations in a variety of industries. Based on this experience we have developed an effective, comprehensive approach to IT Cost Reduction that will help you quickly identify additional opportunities to reduce IT spending, and then help you define and execute the projects that will be required to actually achieve the target savings.
Our experienced consultants have identified and delivered dramatic reductions in costs for large and small IT organizations in a variety of industries. Based on this experience we have developed an effective, comprehensive approach to IT Cost Reduction that will help you quickly identify additional opportunities to reduce IT spending, and then help you define and execute the projects that will be required to actually achieve the target savings.
Performance Services
Performance Management & Measurement Services
Benchmarking Services
ERP Optimization Services
ITIL Services
Risk Management
Skills and Compentency Management
Planning and Strategy Services
Business Planning and Analysis
Business Process Management
Contract and License Management Review and Analysis
Enterprise Network Infrastructure Strategy and Planning
Enterprise Resource Planning (ERP) Strategy Services
IT Strategy and Plan Review
Storage Strategy and Plan Review
Security and Regulatory Compliance Strategy and Planning
Vendor and Technology Analysis
Performance Management & Measurement Services
Benchmarking Services
ERP Optimization Services
ITIL Services
Risk Management
Skills and Compentency Management
Planning and Strategy Services
Business Planning and Analysis
Business Process Management
Contract and License Management Review and Analysis
Enterprise Network Infrastructure Strategy and Planning
Enterprise Resource Planning (ERP) Strategy Services
IT Strategy and Plan Review
Storage Strategy and Plan Review
Security and Regulatory Compliance Strategy and Planning
Vendor and Technology Analysis
ITPMG Services
Target Audience:
CIO, COO, CFO
IT executives and senior management who are responsible for the IT function and for corporate budgets and spending. Our process will assure them that their IT investments deliver value as efficiently and effectively as possible. It will also improve alignment between the IT function and the business by developing a shared understanding of the drivers of IT costs and the sources and uses of IT spending. Our approach requires that the business partners with IT in identifying and prioritizing the optimal cost reduction opportunities and resulting service levels.
CIO, COO, CFO
IT executives and senior management who are responsible for the IT function and for corporate budgets and spending. Our process will assure them that their IT investments deliver value as efficiently and effectively as possible. It will also improve alignment between the IT function and the business by developing a shared understanding of the drivers of IT costs and the sources and uses of IT spending. Our approach requires that the business partners with IT in identifying and prioritizing the optimal cost reduction opportunities and resulting service levels.
Performance Management and Measurement Service Offerings:
IT Cost Reduction Service
Most IT organizations have already taken steps to reduce their 2009 budgets. As the business
climate continues to become more challenging, it is likely that they will need to identify and deliver
even more reductions. Other companies have cut so deeply that they risk delivering service levels
that are required to adequately support the business. Our IT Cost Reduction offering gives our
clients a proven approach for delivering required IT services as cost effectively as possible. We also
focus on ensuring that planned IT cost reduction opportunities are fully monetized and deliver the
forecasted savings.
In our review of how companies reduce IT costs, we have determined that there are many strategies that organizations can apply, ranging from simple "Expense Reduction" actions (e.g., eliminate travel, training, consultants, etc.) to significant "Cost Restructuring" initiatives. The opportunities that will be viable for each organization will be a function of several factors:
In our review of how companies reduce IT costs, we have determined that there are many strategies that organizations can apply, ranging from simple "Expense Reduction" actions (e.g., eliminate travel, training, consultants, etc.) to significant "Cost Restructuring" initiatives. The opportunities that will be viable for each organization will be a function of several factors:
• Their business and IT strategies
• Current IT architecture and capabilities
• Cost reduction targets and timeframe
• What has already been accomplished
• Their ability to invest money to reap additional savings.
• Current IT architecture and capabilities
• Cost reduction targets and timeframe
• What has already been accomplished
• Their ability to invest money to reap additional savings.
Description:
The IT Cost Reduction offering provides a "Play Book" process that leverages its three phases to help clients develop and execute strategies for effective, sustainable IT cost reduction. The "Play Book" process and key deliverables are outlined below:
IT Cost Reduction Calibration Phase:
During the IT Cost Reduction Calibration phase, we work with our clients to analyze their current and projected IT spending, understand the cost reduction actions that have already been taken and are underway and assess the approach you are taking to manage the actions to deliver committed cost reductions. We will then identify and size additional potential IT cost reduction opportunities and work with you to set revised overall cost reduction targets.
Key Deliverables:
The IT Cost Reduction offering provides a "Play Book" process that leverages its three phases to help clients develop and execute strategies for effective, sustainable IT cost reduction. The "Play Book" process and key deliverables are outlined below:
IT Cost Reduction Calibration Phase:
During the IT Cost Reduction Calibration phase, we work with our clients to analyze their current and projected IT spending, understand the cost reduction actions that have already been taken and are underway and assess the approach you are taking to manage the actions to deliver committed cost reductions. We will then identify and size additional potential IT cost reduction opportunities and work with you to set revised overall cost reduction targets.
Key Deliverables:
• IT Spending and Staffing baselines
• IT Project Portfolio review
• Assessment of current cost reduction plans and projects, including recommendations
• Opportunities for additional IT cost reduction
• Preliminary IT Spending Targets
• Charter, Work Plan and Staffing Plan for the Opportunity Analysis and Planning phase
• Executive education on the Financial Dynamics of IT and the results of the IT Cost
•.Reduction Calibration Phase
• IT Project Portfolio review
• Assessment of current cost reduction plans and projects, including recommendations
• Opportunities for additional IT cost reduction
• Preliminary IT Spending Targets
• Charter, Work Plan and Staffing Plan for the Opportunity Analysis and Planning phase
• Executive education on the Financial Dynamics of IT and the results of the IT Cost
•.Reduction Calibration Phase
Opportunity Analysis and Planning Phase:
During the Opportunity Analysis and Planning phase we work with our clients to complete the detailed analysis of your current IT spending and to evaluate and verify the cost reduction opportunities identified in the Calibration phase. We help you establish the necessary program governance structures, processes, and team structure required to achieve true savings. We partner with our clients to facilitate the process for achieving the targeted results in the desired timeframes. The key outcome of this phase is an agreed to, detailed, resource-loaded plan for achieving the target cost reductions.
Key Deliverables:
During the Opportunity Analysis and Planning phase we work with our clients to complete the detailed analysis of your current IT spending and to evaluate and verify the cost reduction opportunities identified in the Calibration phase. We help you establish the necessary program governance structures, processes, and team structure required to achieve true savings. We partner with our clients to facilitate the process for achieving the targeted results in the desired timeframes. The key outcome of this phase is an agreed to, detailed, resource-loaded plan for achieving the target cost reductions.
Key Deliverables:
• Detailed IT Financial Analysis
• Evaluation and verification of IT Cost Reduction opportunities, including time phased
•.benefits as well as resources and investments required to achieve the benefits
• Pro-forma IT budgets for the next two to three years
• Cost reduction project charters, work plans, resource estimates and schedules
•.Integrated IT cost reduction program plan
• Evaluation and verification of IT Cost Reduction opportunities, including time phased
•.benefits as well as resources and investments required to achieve the benefits
• Pro-forma IT budgets for the next two to three years
• Cost reduction project charters, work plans, resource estimates and schedules
•.Integrated IT cost reduction program plan
Cost Reduction Program Execution:
It is one thing to identify cost reduction opportunities and set targets. It is more difficult to actually deliver and measure the savings. We work with our clients to manage and guide their teams in executing the IT cost reduction programs.
Key Deliverables:
It is one thing to identify cost reduction opportunities and set targets. It is more difficult to actually deliver and measure the savings. We work with our clients to manage and guide their teams in executing the IT cost reduction programs.
Key Deliverables:
• Cost Reduction results!
• Project Management Reports (Budget, Schedule, Issues, Risks, etc.)
• Key Metric Tracking
• Benefits Reporting
•...- Benefits Delivered
•...- Risk Adjusted Benefit Projection
• Project Management Reports (Budget, Schedule, Issues, Risks, etc.)
• Key Metric Tracking
• Benefits Reporting
•...- Benefits Delivered
•...- Risk Adjusted Benefit Projection