This PPT slide, part of the 24-slide Cost Reduction Opportunities (across Value Chain) PowerPoint presentation, outlines various opportunities for cost reduction within the Information Technology (IT) sector, emphasizing that organizations can achieve a 10-30% reduction without sacrificing efficiency, effectiveness, or agility. It categorizes these opportunities into specific functions, each accompanied by examples and potential savings percentages.
The first section, IT Governance & Organization, suggests streamlining the IT structure and reducing headcount where feasible. This indicates a focus on optimizing organizational design to enhance operational efficiency. Next, IT Project Portfolio Management highlights the importance of aligning budget priorities with value-adding projects, which can lead to a lower IT budget through better project selection and management.
IT Operations & Services discusses the evaluation of service portfolios, advocating for strategic decisions on whether to make or buy services. This can lead to a more streamlined support organization. IT Performance Management emphasizes the need to reduce fixed assets and analyze cost drivers, which can help in controlling expenses effectively.
IT Infrastructure and Architecture focuses on standardizing applications and infrastructure to boost overall IT efficiency. Lastly, IT Sourcing & Partner Management suggests improving procurement processes for hardware and software, which can lead to better cost management and operational effectiveness.
The potential savings are clearly outlined, with percentages varying by function. For example, personnel and transaction costs can see reductions of 10-20%, while personnel and operating costs might decrease by 15-35%. This structured approach provides a clear framework for organizations looking to optimize their IT expenditures while maintaining operational integrity.
This slide is part of the Cost Reduction Opportunities (across Value Chain) PowerPoint presentation.
This Cost Reduction framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It identifies over 45+ Cost Reduction initiatives mapped to the Michael Porter Value Chain.
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Value Chain Analysis Cost Reduction Assessment Information Technology Organizational Design Performance Management Cost Management Cost Reduction Value Chain Portfolio Management Make or Buy IT Governance Governance
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