This PPT slide, part of the 24-slide Cost Reduction Opportunities (across Value Chain) PowerPoint presentation, presents a focused analysis of cost reduction opportunities within the Information Technology (IT) sector, emphasizing that organizations can achieve a 10-30% reduction in costs without sacrificing efficiency or agility. Each section of the slide outlines specific areas within IT where these reductions can be realized, accompanied by examples and potential savings percentages.
The first area, IT Governance & Organization, suggests streamlining the IT structure and reducing headcount where feasible. This indicates a strategic approach to optimizing resources while maintaining operational effectiveness. The potential savings here are estimated at 10-20% in personnel and transaction costs.
Next, IT Project Portfolio Management highlights the importance of aligning projects with organizational goals. By focusing on value-adding projects and managing the portfolio effectively, companies can lower their IT budgets. This section indicates a potential savings range of 15-25% in personnel and development costs.
IT Operations & Services discusses evaluating the IT service portfolio and making informed decisions on resource allocation. Downsizing support structures through service harmonization can lead to significant reductions, with potential savings of 15-35% in personnel and operating costs.
Lastly, IT Performance Management emphasizes the need for a thorough assessment of fixed assets and contract negotiations with suppliers. This can result in an additional 10-20% reduction in various costs.
Overall, the slide serves as a compelling guide for organizations looking to enhance their IT efficiency while achieving substantial cost savings. It provides actionable insights that can inform strategic decision-making in IT management.
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.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Value Chain Analysis Cost Reduction Assessment Information Technology Performance Management Cost Reduction Value Chain Portfolio Management IT Governance Governance
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
