Case Study

Cost Optimization

Topics

Global Manufacturer

A diversified global manufacturer that delivers innovative equipment and components, consumable supplies, software and digital solutions and support services.
 

Background

Our client was faced with the challenge of assessing how much it was spending overall on IT and needed help identifying and qualifying a cost savings pipeline to achieve operational cost savings for the next financial year. The client also needed to consolidate the IT processes of several medium sized businesses they had recently acquired. Separately, the client needed to identify and develop a catalog for device offerings that included outsourced vendors and support vendors to meet the needs of the organization.
 

Cost Optimization Assessment

The client engaged Notch Above Consulting to help them develop a cost synergy pipeline across the 20 plus IT organizations and develop a high level strategy and roadmap for a long term cost and technology transformation.

Through several data analyses of data sources and multifaceted IT director interviews, Notch Above was able to establish a baseline enterprise IT spend. After brainstorming to establish an initial pipeline of cost synergy opportunities, Notch Above identified key categories to target:

  1. Cost Structure-The Notch Above team analyzed current spend data to establish a recommended strategy for IT cost reduction
  2. Contract Renegotiations
  3. Policy Adjustments around End User Computing
  4. Strategy and consolidation-The Notch Above Team provided a long-term roadmap for cost and technology transformation while continually advising key stakeholders

Outcomes

  1. Notch Above established the first ever comprehensive cost structure for the organization that identified key cost drivers, sources and owners.
  2. Notch Above supplied a data analysis for contract renegotiations that would result in $30M savings.
  3. Notch Above identified a $20M Pipeline for run rate reduction rated with likelihood for success.
  4. Finally, Notch Above developed a high level strategy and roadmap for long term cost and technology transformation.

End User Device and Service Desk Operations Strategy

Notch Above was asked to develop a catalog for device offerings to meet the needs of the organization. This included identifying outsourced vendors and assistance with the vendor selection process.

Approach

Notch Above’s approach encompassed the following:

  1. Review of current provisioning processes, current device types, and end user device standards
  2. Document requirements for the Service Desk
  3. Leverage current spend data to develop possible cost chargeback for standard offerings
  4. Develop an RFI and RFP to outside support providers for roll out and management of Device Strategy and Service Desk Operations

Outcome

  1. Developed a current state view of device types and supported the development of a persona-based device standard
  2. Identified short term improvements
  3. Identified potential vendors that would meet the client needs
  4. Developed the RFP for Outsourced vendors with a $2M annual operation cost transformation goal while driving support improvements including features like genius bar and improved the service management processes

Conclusion

Notch Above Consulting was able to identify problems and redundancies in the client’s multiple IT systems. By consolidating IT infrastructure, such as data centers, and IT application redundancies, Notch Above was able to provide a strategy and roadmap to help the client reduce costs and implement new technologies that would help with IT consolidation and efficiencies. In doing so the client was better able to plan, strategize, and be better positioned for their continued digital transformation.

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