A couple of years ago Gartner was talking a lot about cost optimised IT, they even shared a “Top 10” list of cost optimisation ideas including:
- Create a shared-service organisation, for some or all IT services.
- Centralise, consolidate, modernise, integrate and standardise technologies.
- Leverage cloud services.
- Optimise software licensing management and IT asset management capabilities.
- Invest in Mode 2 capabilities such as agile and DevOps.
Many are still relevant and its always worth looking back at such reports. But these days it’s not simply about minimising. In the age of the digital business, when the pressure to remain competitive and invest in digital initiatives is increasing, cost optimisation takes on new dimensions.
Today it’s all about:
- Building a platform that can cost effectively support business growth.
- Making medium term technology choices and delivering competitiveness.
- Doing more with what you already have.
- Enabling experimentation and agility.
Optimisation is also about looking beyond IT costs, into the wider business and how IT can support business efficiency. Cost optimisation is now a business-focused, proactive, continuous discipline which drives the relevant level of spending and cost reduction, while maximising business value. It includes:
- Obtaining the best pricing and terms for all business purchases.
- Standardising, simplifying and rationalising platforms, applications, processes and services.
- Automating and digitising IT and business operations.
With an optimised rather than minimised approach, you’re looking at the bigger picture. You’re taking a wider, broader look. IT costs are usually in the region of 3%-6% of a company’s total costs and minimisation can only deliver so much. More and more the focus is moving to how IT can lead the digital business transformation race, building an IT platform that is:
- Secure by design.
- Innovation ready.
- Cost optimised.
To be ready to compete and win in the digital economy.
For more information, feel free to contact us.