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Build Your IT Cost Optimization Roadmap

Improve cost-to-value in a sustainable manner.

Cost optimization is misunderstood and inadequately tackled. IT departments face:

  • Top-down budget cuts within a narrow time frame
  • Absence of adequate governance: financial, project, data, etc.
  • Long-standing bureaucratic practices slowing down progress
  • Short-term thinking

Our Advice

Critical Insight

Cost optimization is not just about reducing costs. In fact, you should aim to achieve three objectives:

  • Reduce your unwarranted IT spending.
  • Optimize your cost-to-value.
  • Sustain your cost optimization.

Impact and Result

  • Follow Info-Tech’s approach to develop a 12-month cost optimization roadmap.
  • Develop an IT cost optimization strategy based on your specific circumstances and timeline.
  • Info-Tech’s methodology helps you maintain sustainable cost optimization across IT by focusing on four levers: assets, vendors, project portfolio, and workforce.



Build Your IT Cost Optimization Roadmap Research & Tools

1. IT Cost Optimization Roadmap Deck – A step-by-step methodology to achieve sustainable cost optimization and effectively communicate your strategy to stakeholders.

This blueprint will help you understand your IT cost optimization mandate, identify your journey, assess your IT spend across four levers, develop your IT cost optimization roadmap, and craft a related communication strategy.

2. IT Cost Optimization Workbook – A structured tool to help you document your IT cost optimization goals and outline related initiatives to develop an effective 12-month roadmap.

This tool guides an IT department in planning and prioritization activities to build an effective IT cost optimization strategy. The outputs include visual charts and a 12-month roadmap to showcase the implementation timelines and potential cost savings.

3. IT Cost Optimization Roadmap Samples and Templates – A proactive journey template to help you communicate your IT cost optimization strategy to stakeholders in a clear, concise, and compelling manner.

This presentation template uses sample data from "Acme Corp" to demonstrate an IT cost optimization strategy following a proactive journey. Use this template to document your final IT cost optimization strategy outputs, including the adopted journey, IT cost optimization goals, related key initiatives, potential cost savings, timelines, and 12-month roadmap.


Member Testimonials

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.

9.0/10


Overall Impact

$59,611


Average $ Saved

8


Average Days Saved

Client

Experience

Impact

$ Saved

Days Saved

MCS Healthcare Holdings LLC

Workshop

10/10

$129K

18

Australian Institute of Company Directors

Guided Implementation

10/10

$7,739

10

Treasury Board of Canada Secretariat - Information Management and Technology Directorate

Guided Implementation

8/10

N/A

2

It reinforced that we are on the right track.

Royal Canadian Mounted Police

Guided Implementation

8/10

N/A

2

Overall, a very valuable experience with a seasoned resource. I rated days saved only as two as a number of elements I already accounted for in my ... Read More

Natco Home Group

Guided Implementation

10/10

$11,699

2

Monica was a great resource and a wealth of useful information. She had the real-world experience to understand the pain points and how they shoul... Read More

Duquesne Light Company

Workshop

9/10

$64,999

N/A

Strong analysts with understanding of the Utilities industry

World Food Programme

Guided Implementation

10/10

$55,249

10

Environmental Defense Fund, Incorporated

Guided Implementation

10/10

$129K

N/A

We are early on in this journey with the tools, which we also understand are changing. We look forward to working with the new tools, and also of n... Read More

EW Nutrition GmbH

Guided Implementation

8/10

$61,749

5

Good overview and structure of cost optimization opportunities

Eswatini Railway

Guided Implementation

10/10

$48,383

14

The Infotech SME presented the Cost Optimization strategy in a very insightful way with practical examples and exceptional guidance on the impleme... Read More

Vantage Forward

Guided Implementation

10/10

$85,000

20

Very comprehensive approach.

Obton A/S

Guided Implementation

8/10

$1,299

1

Maverick Tube Corporation

Guided Implementation

6/10

N/A

N/A

I appreciate the meeting, the knowledge and the advise of Dave. I can not estimate a punctual impact of the recommendations as we need to have a m... Read More

Eastern Michigan University

Guided Implementation

10/10

N/A

5

John obviously knows the topic and the resources Info-Tech has to assist. He did a great job of walking me through the resources and thinking thro... Read More

Parsons Transportation Group Inc

Guided Implementation

10/10

$68,199

2

I've not used the tools yet so can't really answer this question. However, just from the overview Graham provided, the best part is getting me the... Read More

ACS Ventures Inc.

Guided Implementation

8/10

$27,500

10

Targus International LLC

Guided Implementation

9/10

$247K

10

Graham was great, he took the time to explain and review the key points. Great job!

Pinellas County Clerk of Court

Guided Implementation

10/10

$2,479

5

Great experience. I really enjoyed the hands on approach taken by the analyst to show me how to use the workbook to communicate my cost optimizati... Read More

Crystal Flash Inc

Guided Implementation

9/10

N/A

N/A

CRITICAL Software

Guided Implementation

9/10

$2,216

4


Cost Optimization

When IT cuts costs, everyone feels it. This course makes up part of the Financial Management Certificate.

  • Course Modules: 7
  • Estimated Completion Time: 1.5 hours
  • Featured Analysts:
  • Jennifer Perrier, Principal Research Director

Now Playing:
Academy: Cost Optimization | Introduction

An active membership is required to access Info-Tech Academy

Workshop: Build Your IT Cost Optimization Roadmap

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Understand Your Mandate & Objectives

The Purpose

  • Determine your organization’s current context and its cost optimization objectives, IT’s corresponding cost optimization journey, and goals.

Key Benefits Achieved

  • A business-aligned set of specific IT cost optimization goals.

Activities

Outputs

1.1

Understand your organization’s cost optimization objectives and how this impacts IT.

  • IT cost optimization journey and guiding principles for making corresponding decisions
1.2

Review potential cost optimization target areas based on your ITFM Benchmarking Report.

1.3

Identify factors constraining cost optimization options.

1.4

Set concrete IT cost optimization goals.

1.5

Identify inputs required for decision making.

Module 2: Outline Initiatives for Vendors & Assets

The Purpose

  • Create a longlist of potential cost optimization initiatives focused on two cost optimization levers: assets and vendors.

Key Benefits Achieved

  • A comprehensive list of potential asset- and vendor-focused initiatives including cost savings estimates.

Activities

Outputs

2.1

Identify a longlist of possible initiatives around asset lifecycle management, investment deferral, repurposing, etc., and vendor contract renegotiation, cancelation, etc.

2.2

Estimate the cost savings of cost optimization initiatives.

  • Longlist of potential vendor management and asset optimization IT cost optimization initiatives

Module 3: Outline Initiatives for Projects & Workforce

The Purpose

  • Create a longlist of potential cost optimization initiatives focused on two cost optimization levers: project portfolio and workforce.

Key Benefits Achieved

  • A comprehensive list of potential initiatives focused on project portfolio and workforce including cost savings estimates.

Activities

Outputs

3.1

Identify a longlist of possible initiatives around project priorities, project backlog reduction, project intake restructuring, etc., and workforce productivity, skills, redeployment, etc.

3.2

Estimate the cost savings of cost optimization initiatives.

  • Longlist of possible cost optimization initiatives and their potential cost savings for project portfolio and workforce levers.

Module 4: Build an IT Cost Optimization Roadmap

The Purpose

  • Develop a visual IT cost optimization roadmap.

Key Benefits Achieved

  • A prioritized, business-aligned IT cost optimization roadmap

Activities

Outputs

4.1

Assess feasibility of each initiative (effort and risk profile) given cost optimization goals.

  • Prioritized list of key cost optimization initiatives, descriptions, estimated impact, and roadmap.
4.2

Prioritize cost optimization initiatives to create a final shortlist.

4.3

Fine-tune key information about your final cost optimization initiatives and develop a cost optimization roadmap for proposal.

Module 5: Communicate & Execute

The Purpose

  • Develop a communication plan and executive presentation.

Key Benefits Achieved

  • A boardroom-ready set of communication materials for gaining buy-in and support for your IT cost optimization roadmap.

Activities

Outputs

5.1

Outline components of a communication plan, including approvers, stakeholders, and governance and management mechanisms to be used.

  • IT cost optimization communication plan and presentation strategy.
5.2

Create an executive presentation.

  • IT Cost Optimization Executive Presentation
5.3

Set up review time for workshop deliverables and post-workshop activities.


Build Your IT Cost Optimization Roadmap

Improve cost-to-value in a sustainable manner.

Analyst Perspective

Optimize your cost sustainably.

Whether the industry is in an economic downturn, or your business is facing headwinds in the market, pressure to reduce spending across organizations is inevitable. When it comes to the IT organization, it is often handled as a onetime event. Cost optimization is an industry standard term, but it usually translates into cost cutting. How do you manage this challenge given the day-to-day demands placed on IT? Do you apply cost reduction equally across the IT landscape, or do you apply reductions using a targeted approach? How do you balance the business demands regarding innovation with keeping the lights on? What is the best path forward?

While the situation isn't unique, all too often the IT organization response is too shortsighted.

By using the Info-Tech methodology and tools, you will be able to develop an IT cost optimization roadmap based on your specific circumstances and timeline.

A well-thought-out strategy should help you achieve three objectives:

  1. Reduce your unwarranted IT spending.
  2. Optimize your cost-to-value.
  3. Sustain your cost optimization.

This blueprint will guide you to understand your mandate, identify your cost optimization journey (reactive, proactive, or strategic), and assess your IT spend across four levers (assets, vendors, project portfolio, and workforce).

Finally, keep in mind that cost optimization is not a project to be completed, but an ongoing process to be exercised.

Bilal Alberto Saab, Research Director, IT Financial Management

Bilal Alberto Saab
Research Director, IT Financial Management
Info-Tech Research Group

Executive Summary

Cost optimization is misunderstood and inadequately tackled Common obstacles Follow Info-Tech's approach to develop a 12-month cost optimization roadmap
  • Top-down budget cut within a narrow time frame.
  • Absence of adequate governance: financial, project, data, etc.
  • Long-standing bureaucratic practices slowing down progress.
  • Short-term thinking.
  • Lack of alignment and collaboration among stakeholders: communication and relationships.
  • Absence of a clear plan and adequate process.
  • Lack of knowledge, expertise, and skill set.
  • Inadequate funding and no financial transparency.
  • Poor change management practices.

Develop an IT cost optimization strategy based on your specific circumstances and timeline.

Info-Tech's methodology helps you maintain sustainable cost optimization across IT by focusing on four levers:

  1. Assets
  2. Vendors
  3. Project Portfolio
  4. Workforce

Info-Tech Insight
Cost optimization is not just about reducing costs. In fact, you should aim to achieve three objectives: (1) reduce your unwarranted IT spending, (2) optimize your cost-to-value, and (3) sustain your cost optimization.

Your challenge

IT leaders are often asked to cut costs.

  • Cost management is a long-term challenge. Businesses and IT departments look to have a flexible cost structure focused on maximizing business value while maintaining the ability to adapt to market pressure. However, businesses must also be able to respond to unexpected events.
  • In times of economic downturn, many CEOs and CFOs shift their thinking from growth to value protection. This can force a round of cost cutting across all departments focused on short-term, immediate, and measurable objectives.
  • Many IT departments are then faced with the challenge of meeting cost cutting targets. No one knows exactly how markets will behave, but the effects of rising inflation and increasing interest rates, for example, can manifest very quickly.

When crisis hits, does IT's hard-won gains around being seen as a partner to the business suddenly disappear and IT becomes just a cost center all over again?

In times of economic slowdown or downturn, the key challenge of IT leaders is to optimize costs without jeopardizing their strategic and innovative contribution.

Common obstacles

The 90% of the budget you keep is more important than the 10% of the budget you cut.

  • While the business responds to fluctuating economic conditions, IT must ensure that its budget remains fully aligned with business strategy and expected business value.
  • However, in the face of sudden pressures, a common tendency is to make quick decisions without fully considering their long-term implications.
  • Avoid costly mistakes with a proactive and strategic mindset. Put in place a well-communicated cost optimization strategy rather than hastily cutting back the biggest line items in your budget.

How can IT optimize costs to achieve a corporate impact, but not cut so deep that the organization can't take advantage of opportunities to recover and thrive?

Know how you will strategically optimize IT costs before you are forced to cut cost aggressively in a reactive fashion.

Improve cost-to-value in a sustainable manner.

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

MEMBER RATING

9.0/10
Overall Impact

$59,611
Average $ Saved

8
Average Days Saved

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.

Read what our members are saying

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Speak With An Analyst

Get the help you need in this 4-phase advisory process. You'll receive 7 touchpoints with our researchers, all included in your membership.

Guided Implementation 1: Understand Your Mandate and Objectives
  • Call 1: Identify cost optimization scope requirements, objectives, and your specific challenges. Review and assess cost optimization goals and objectives.

Guided Implementation 2: Outline Your Cost Optimization Initiatives
  • Call 1: Review potential cost optimization initiatives for assets and vendors levers.
  • Call 2: Assess cost optimization initiatives’ cost and feasibility for assets and vendors levers.
  • Call 3: Review potential cost optimization initiatives for project portfolio and workforce levers.
  • Call 4: Assess cost optimization initiatives’ cost and feasibility for project portfolio and workforce levers.

Guided Implementation 3: Develop Your IT Cost Optimization Roadmap
  • Call 1: Identify final decision criteria for cost optimization prioritization. Review prioritized cost optimization initiatives and roadmap outputs.

Guided Implementation 4: Communicate and Execute
  • Call 1: Review the Cost Optimization Communication Plan and IT Cost Optimization Executive Presentation. Discuss next steps.

Author

Bilal Alberto Saab

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