Information Technology Systems Cost Reduction - Technology Opportunities

Watch video presentation by Accenture 2009
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http://www.accenture.com/us-en/Pages/insight-technology-consulting-cutting-it-costs-video.aspx
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Accenture 2009 report
http://www.accenture.com/SiteCollectionDocuments/PDF/SignificantandSustainedITCostReduction2.pdf

Accenture in a report 2012 identified number of IT cost reduction opportunities.

Immediate cost-reduction opportunities and minimizing ongoing IT expenditures.

Prioritizing project spending

    http://www.enterprisecioforum.com/en/blogs/pearl/five-steps-prioritizing-it-projects
    http://blog.nodeable.com/2012/05/24/cios-need-help-with-priorities-and-paying-for-them/
    http://reports.informationweek.com/abstract/83/8816/it-business-strategy/research-2012-it-spending-priorities-survey.html
 

Reviewing license and procurement spending

     Software Licensing Advisers
     http://msftadvisors.com/engagments.html
     http://news.techworld.com/applications/3334511/most-companies-over-spending-on-software-licences/
     http://www.civica.co.uk/library-and-learning/articles/79-Software-Spending-Review-savings-from-some-surprising-areas
     http://www.itassetmanagement.net/2010/08/03/license-management-steps-maximise-software-roi/

     Most companies overspending on licenses

     http://news.techworld.com/applications/3334511/most-companies-over-spending-on-software-licences/
     http://blogs.flexerasoftware.com/elo/software-costs-and-negotiations/
     http://www.civica.co.uk/financials/articles/105-Software-Spending-Review-savings-from-some-surprising-areas

Reducing supplier costs through strategies including leveraging higher levels of offshoring
     http://www.techrepublic.com/article/offshore-development-reduces-cost-decreases-production-cycle/1045994  - 2002

     Understanding Offshoring returns and risks
     http://www.compaid.com/caiinternet/ezine/offshorerisks.pdf

Renegotiating service level agreements

      http://www.expensemanagement.com/article.cfm?id=454
      http://www.deloitte.com/view/en_US/us/Services/consulting/technology-consulting/4eb37662c0d23210VgnVCM100000ba42f00aRCRD.htm
      http://www.tbicentral.com/success-stories/renegotiating-outsourcing-vendor-contract/
   

Streamlining IT operations, headcount and staffing
       http://www.idgconnect.com/view_abstract/10630/streamlining-it-operations-business-service-management-software
       http://esj.com/articles/2011/03/08/social-technologies-streamline-it-operations.aspx
       Streamlining client IT operations
       http://www.g-and-z.com/images/client_mgmt_solution_brief.pdf
       http://content.dell.com/us/en/gen/d/business~solutions~whitepapers~en/Documents~idc-streamline-operations-automated-system-management.pdf.aspx

Increasing utilization of assets to control cost drivers  such as data storage growth.
       Gartner - 10 Key actions to reduce Infrastructure and operation costs
        http://www.gartner.com/it/page.jsp?id=1807615   Sep 2011

New cost opportunities keep appearing and managers have to keep looking for them.



Optimization opportunity in  IT for efficiency

Achieve greater control and alignment of IT with the business through service catalogs

         http://reports.informationweek.com/abstract/83/8810/it-business-strategy/best-practices-10-steps-to-an-it-service-catalog.html
         http://campustechnology.com/articles/2011/09/01/secrets-of-the-service-catalog.aspx
         http://www.axiossystems.com/en/solutions/service-catalog/business-case.html
         http://www.pmg.net/company/news/pr/PMG-Service-Catalog-Automates-Operations
         http://www.numarasoftware.com/pdf/white-papers/EMA_Numara_Service_Catalog_Whitepaper.pdf                 http://www.owlpoint.com/Brochures/OwlPoint%20IT%20Service%20Catalog%20Service%20Sheet.pdf

Managing supply and demand through better IT asset management, IT process management and
automation

          Organizing IT Asset management today - 2011 - CA paper
           http://www.ca.com/~/media/Files/whitepapers/Organizing_ITAM-wp_221626.pdf
           http://itlever.com/2012/04/30/it-asset-management-tracking-technology-assets/
           http://www.ventanaresearch.com/itpm/

Rebuilding the IT operating model on a lower cost base


Initiatives to enable IT to do more with less

Virtualizing, consolidating, centralizing and standardizing servers, storage, databases and applications

            http://www.servicemesh.com/resources/transform-it-blog/blog/%E2%80%9Ci%E2%80%99m-using-virtualization-so-why-adopt-cloud%E2%80%9D-qa-from-the-trenches-series-1/
            http://briefingsdirectblog.blogspot.in/2012_08_12_archive.html
            http://www.bltrading.com/pdf/services/idc_server_consol.pdf
            http://www.directionsonmicrosoft.com/sample/DOMIS/research/2004/07jul/0704i_sb.htm
            http://www.oracle.com/technetwork/server-storage/solaris/documentation/how-to-consolidate-163579.pdf
             http://content.dell.com/us/en/enterprise/by-need-efficient-infrastructure-data-center-energy-efficiency-server-con-virt
             http://199.200.17.56/us-en/Pages/service-technology-server-rationalization-virtualization-solutions.aspx   - accenture Page on virtualization

Consolidation and Centralization
             http://www.cio.com/article/152850/Reduce_Information_Technology_Complexity_Costs_with_Consolidation

Standardization

Implementing “managed services”

              http://www.denaliai.com/resources/article.aspx?id=5-reasons-to-implement-a-managed-it-services-solution&category=continuity-disaster-recovery
              http://www.etomicmail.com/files/pdf/Why_A_Managed_Service.pdf
              http://www.varay.com/files/whitepaper/varay_mgt_it_services_2.pdf

Outsourcing of infrastructure and applications to eliminate fragmentation, complexity and waste
                  http://www.cio.com/article/497220/How_to_Use_Infrastructure_Outsourcing_To_Drive_Business_Transformation
              http://www.accenture.com/cn-en/outsourcing/infrastructure-outsourcing/Pages/index.aspx
              http://www.dell.com/us/corp/p/d/secure/gartner-mq-datacenter-infrastructure           
Increasing the use of cloud and SaaS
              http://www.cisco.com/web/strategy/docs/c11-687784_cloud_omputing_wp.pdf
              http://arxiv.org/ftp/arxiv/papers/1002/1002.3492.pdf
              http://www.computing.co.uk/ctg/feature/2044420/economic-benefits-cloud-computing

Introducing  more thin-client computing, workplace collaboration and self-service.
             http://www.devonit.com/thin-client-education/benefits-of-thin-client-computing
             http://www.nec.com/en/global/solutions/vpcc/casestudy/index.html


Re-architecting IT for efficiency


Prepare the business for opportunities that become popular and cost effective tomorrow.

Presently, the areas range from mobile application support to cloud computing services to support for personal devices,
IT organizations have to rethink their operations strategy to position themselves for
a future that is significantly more complex.


To prepare for this complexity, IT must adopt a cost-effective approach to managing PCs, mobile devices, software, the third-party supply chain, and the associated IT applications and infrastructure.
 IT must conduct a strategic analysis of the entire systems to assess applications’ readiness for transition to the cloud.
          http://sandhill.com/article/conducting-a-fit-and-readiness-assessment-for-public-cloud-it/
          http://www.oracle.com/us/products/consulting/resource-library/app-readiness-for-cloud-ds-1403367.pdf

Rewrite legacy applications to facilitate greater workforce mobility, integration of employee-owned devices, unified communications (voice, data and mobile),
           http://news.thomasnet.com/fullstory/IP-Telephony-Package-facilitates-workforce-mobility-470865
           http://blogs.softchoice.com/advisor/2012/05/moving-fast-on-workforce-mobility/
           http://www.codestone.net/news/story/workforce-mobility-a-key-trend-in-2010/19587286/
         
Employee personal devices Integration             http://www.cisco.com/en/US/docs/solutions/Enterprise/Borderless_Networks/Unified_Access/byoddg.html
            http://www.intel.com/content/www/us/en/enterprise-security/intel-it-enterprise-security-maintaining-information-security-while-allowing-personal-handheld-devices-paper.html
            http://www.htc.com/ro/about/newsroom/2012/2012-05-15-press-release

Use advanced sourcing strategies.

These above steps are iterative, ongoing processes through which organizations can continue to harness new levers and drive further cost reductions and efficiencies in IT.



Keep building IT-enabled business value

IT departments have to keep developing new IT applications and help the organization to provide better services to customers. Design of cost effective services has to be the objective and involving information technology industrial engineering in the IT systems design activity is the right way to ensure cost effective IT systems.


The levers are increased automation of business processes and user interactions;
user self-service;
transparent management information and key performance indicators;
and e-collaboration to boost workforce efficiency.

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-IT-Cost-Reduction-Using-New-Technology.pdf

Lean Software Development

http://msdn.microsoft.com/en-us/library/vstudio/hh533841.aspx

http://www.infoq.com/articles/poppendieck-implementing-lean

Infoq.com search results for lean software - Large number of references

Dissertation of Kai Petersen - 2010 - Implementing Lean and Agile Software Development

http://blog.james-carr.org/2006/10/03/implementing-lean-software-development-chapter-1/

http://www.architech.ca/wp-content/uploads/2010/07/Lean-Software-Development-Cutting-Fat-Out-of-Your-Diet.pdf

WIPro case study http://www.outsourcing-center.com/2010-02-how-wipro-translated-toyotas-lean-principles-to-it-outsourcing-article-37268.html

WIPRO http://hbswk.hbs.edu/item/5741.html

Economic Times article on Wipro
http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMTEvMDQvMTQjQXIwMDQwMA==

Publication: The Economic Times Mumbai; Date: Apr 14, 2011; Section: Technology; Page: 4
Toyota’s Lean Lessons for Wipro

Case Studies of IT Cost Reduction

http://www.alixpartners.com/en/WhatWeveDone/ITInfrastructureandInvestmentOptimization/ITCostReductionGlobalManufacturing.aspx

http://cio.uiowa.edu/itplanning/GEF/Report%20submitted%20to%20the%20Provost.pdf


Journal of Applied IT and Investment Management
http://issuu.com/simcorp.com/docs/journal_of_applied_it_and_investment_vol4no1