Minimizing IT Costs in the Covid-19 Recession
The initial situation - a paradigm shift
The effects of the Corona crisis are global in scale. Around the world, countless rules are suspended: supply chains are interrupted, business activity is severely restricted in some cases, and consumers are changing their behavior. Politicians and other leaders are making far-reaching decisions on a daily basis. Companies have to reposition themselves even before the end of the crisis is in sight. For many companies, it is a matter of sheer survival and managers must act.
The CIO under cost pressure
IT in companies is also under considerable pressure to act, and CIOs must demonstrate concepts with which they can implement effective cost reductions as quickly as possible: Because these range up to 40% of the IT budget.
At the same time, companies will not function in the future without IT that smartly permeates and supports business processes. Today, the CIO's task is to make IT future-proof and crisis-proof while still reducing current costs.
The greatest art here is to manage the "balancing act" in every decision and to find the right balance even in the case of painful cuts:
- Not overdoing cost-cutting measures and preserving the substance of your own IT
- Support business areas that are not affected by the crisis without interruption.
- Remain innovative and master the challenges of digitization
New rules for IT cost reductions in the crisis
When cost reduction at all levels is crucial for the survival of the company, the situation is different from what was possible and necessary in earlier crises. Cost management in Covid 19 times requires a rethink or a special approach from the CIO:
- More than ever before, IT cost reduction measures must be thought of from the business perspective - the business department is not only affected, but also a partner in design and implementation
- Increasing IT efficiency and IT effectiveness are two sides of the same "cost-cutting coin" - effectiveness ensures sustainability and strengthened IT competitiveness.
- Speed is the be-all and end-all for the CIO - this applies equally to quick wins and a realistic assessment of potential savings
- "Side shows" are taboo for the CIO - neither time nor resources are available for mere process or quality improvements
In Covid 19 times, cost reduction is therefore an ambitious task with a high level of complexity in terms of content, time, change and management. Even for experienced CIOs, it is partly new in this form.
The noventum approach for successful IT cost reductions
noventum consulting has a wide range of experience in the identification of potential, conception and implementation support of IT cost reductions and also supports its clients in successfully mastering the challenges of the crisis.
The noventum approach is characterized by the following core features:
- Top-down focus: Areas of potential are tapped for relevance and contribution at an early stage, in a resource-efficient and effective manner - only the attractive potentials are pursued further
- Priority-driven approach: Quick wins first! Further potentials are systematically evaluated according to cost-benefit risks and put into detailed planning and implementation as quickly as possible.
- Workshop-driven approach: The direct exchange between noventum experts and the customer's CIO/IT-FK ensures high agility and result orientation. Extensive interviews and bottom-up surveys are not necessary.
- End-to-end orientation: noventum uses tried-and-tested methods and tools that ensure the consistency of results from analysis to implementation.
- Rapid, measurable progress: actionable results are achieved in as little as 1-2 weeks.
Master the crisis together with noventum!
In countless customer projects, noventum has worked on and systematized the topic of IT cost reduction. The noventum methodology thus developed helps to significantly reduce current costs and to create a budget that corresponds to the respective concrete business situation.
Our support offer is of course customizable and scalable. We tailor it to the respective setup (from central IT to divisional business IT) as well as the respective IT size and internationality.
noventum offers an "as-a-Service" offering i in IT cost reduction at a fixed price, which is particularly suitable for small to medium-sized companies or IT organizations.
Under time pressure, managers may make hasty decisions. Short-term and reactive decisions often lead to long-term mistakes and losses.
With a strong methodology, a good plan and experienced experts, such mistakes can be avoided.