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Poor economic conditions will impact every organization, be it directly or indirectly, strategically or operationally. During such times, a mandate to reduce both capital and operating costs organization-wide comes to the fore. For IT, this could mean further trimming a department that is already lean and mean. The Cost-to-Serve approach is one cost reduction method that not only helps find new ways to cut costs on a service-by-service basis, but also strives to protect the organization's strategic imperatives in the process.
The PowerPoint-based “Methodology: Reducing IT Cost-to-Serve” describes how to apply this cost-cutting approach in a systematic way. This methodology will:
- Describe the current environment in which most IT departments are operating and the pressures they will face.
- The importance of taking a proactive stance during tough economic times.
- The benefits of the Cost-to-Serve approach to cost reduction.
- Key business tools and information that will provide advantage when making cost-cutting decisions.
- A six-step guide for applying Cost-to-Serve principles to specific IT service areas.
Making cuts without careful consideration of the impact those cuts will have on the overall organization's strategy could result in serious gaps and shortfalls in strategic areas. By applying the Cost-to-Serve method, IT leaders will be able to understand and demonstrate to other decision makers how reductions in staff, technology, and service levels will bolster or impede the achievement of key organizational goals.