The current unpredictable economic climate and pandemic impact meant many businesses saw their IT investments being put under scrutiny and review. Many organisations will attempt to identify and abolish waste to cut all unnecessary costs. It can be assumed that they will be holistically considering their IT usage and looking for efficiencies.
In the drive to improve return on IT investments, it is critical to have a clear understanding of the business strategy, priorities, and target end state while putting work to create a consolidated road map for execution.
BEST PRACTICES IN OPTIMISING THE VALUE OF IT INVESTMENTS
Gartner defines cost optimisation as a business-focused, continuous discipline to drive 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
In short, it encapsulates generating the maximum value possible from IT investments, which could mean cost reduction as much as improving efficacy in generating business value. Being sure that the right IT solution has been selected and choosing the right implementation resource – internal or third party supported – will need to go with the right investment in preparation, project management, and execution. A good deployment plan will include provision for clarity on objectives, outcomes, success metrics, and tracking methods.
CREATING INCREMENTAL SUCCESSES
Cost optimisation is not a set-and-forget exercise, but one that requires continuous improvement tailored to the evolving needs of the business. It is critical to strive for productivity, instead of perfection. As business leaders push for accelerated growth, teams need to first evaluate which processes are not working or meeting their needs anymore while reconsider new ways to balance people, process, and technology to improve on performance. While lining up key initiatives, it is worth asking:
- Which areas could be easily implemented to start delivering change?
- What processes could be automated?
- How could transparency be further improved?
These initial steps will provide the answers to approach the end stage in a logical, achievable way.
ENSURING THE PRAGMATIC “STUFF” IS DONE
Preparation is the most important step to set clear objectives and desired outcomes to guide the steering group of which technology, process, or vendor to include in the optimisation exercise. Putting governance into managing the data that forms a part of the assessment will produce better metrics for accuracy and completeness in identifying positive return and improvement areas.
Also, invest carefully in the resources that are implementing any system or process integration. If using an external service provider, check that they come accredited by the vendors on technical delivery capabilities and compliance adherence.
Equally important is to involve all the stakeholders and users in a consistent, clear communication program with ongoing training so that the technology investment is being applied correctly to deliver the intended results.
Whether the requirement is to correct existing IT investments or make new ones, it is critical nowadays to drive business growth through IT initiatives that provide a justified value to the organisation. Getting the fundamentals right in implementation and user training will lay a good groundwork for long-term productivity and success. With the right visibility, teams could confidently identify opportunities to optimise costs and add true value to future growth.
We work with many customers to help them adopt the best ICT practices into everything they do. If your business is ready to discuss tailoring a strategic IT review, please reach out or call 1300 HUON IT (486 648) to schedule a chat today.