To remain competitive in today’s changing market conditions and technology landscape, organisations need to make sure that their operations are lean. Controlling costs and gaining efficiencies is a key part of keeping prices competitive and quality high.
IT is a major cost, but it also plays a key role in enabling organisations to improve effectiveness and realise efficiencies across their businesses. Alongside all other cost centres, IT teams need continuously to evaluate whether their services are delivering the best value for money to their businesses.
Organisations need to focus on key challenges to balance costs and benefits from IT delivery.
- Realising outcomes To represent good value, IT needs to make sure that projects are achieving the desired outcomes, and are doing so on time and within budget. IT teams also need to use service reviews to understand what’s being delivered and whether those services are meeting the business’s expectations.
- Competitive contracts Gauging whether or not IT costs are in line with market rates can be difficult. It’s not easy to unpick the details of contracts, and comparisons with other organisations can be superficial. But it is important to understand whether the business is spending more than necessary to develop products and provide services to users and customers. Benchmarking services and associated costs with peers in the wider industry, checking spending patterns, and comparing the total cost of ownership can provide the information IT leaders need to get the best value from service providers.
- Transforming services Businesses need to make sure that they’ve got the most efficient operating model for their needs. Services can be transformed by introducing Agile and Lean approaches to help better align service delivery with expected budgets and timeframes, and make sure that IT teams are addressing their target audiences rather than satisfying a privileged subset of users. Lean techniques can also put IT teams in a position to plan for and take advantage of new and emerging solutions that could enable the business to achieve more for less.
- Measuring performance Assigning realistic, stretchable goals and key performance indicators (KPIs) means the business can monitor transformation and ensure they achieve maximum impact. Ensuring that these measures are addressed through appropriate service levels and robust contracts with suppliers is vital.
Mason Advisory can support your IT organisation in delivering measurable results in your next value-for-money exercise.