Service Management solution for cost reduction

Blog
August 5 2014

While the sun began to enter his workspace, he was already at working. John's thoughts was all about the IT department. Increasingly, he's noticing several frustrated support staff who, more often than not, need to perform redundant and repetitious tasks just to get the job done. Inadvertently, his quick-calculating IT director mind performed subconscious operations that his conscience mind tried to quickly dispel, but it was too late. The notion had already snuck up on him and in the single second he had let his guard down: he already came to the conclusion that their IT department was in need of a service management solution in order to respond to C-Level productivity standards.

John knows that his organization faces rapidly increasing costs that are out of her control: competitive pressures, increased facility and human resource costs, expenses related to consulting projects with outdated IT systems, organic growth, further acquisitions and many others. He had no other choice than to follow the consolidation path. He needed to make a strategic change, justify new IT projects and diminishing financial drain being worsened by increasingly non communicating data systems.

    "The key lies in how to rationalize IT costs effectively by being consistent with the needs of the business" he thoughtfully reaffirmed.

John has watched his company's IT assets accumulate into a hodgepodge of equipment, causing "IT sprawl" that contributed to ineffectively work-floor space and energy overuse. As well, the legacy equipment is redundant and overly complex software must be updated, managed and worked-around, causing lost in productivity to the rest of the teams.

The thoughts that John could not brush aside earlier in the day did drive him to answer the question as to how to find solutions to rationalize IT costs. He inherently knew that an efficient IT department could effectively protect his enterprise's money from "falling through the cracks." Potentially, his team could save up to:  

  • 80% on performance issues through proactive correction measures
  • 35% on troubleshooting performance issues
  • 35% increase in staff productivity
  • 22% increased in revenue as a result of system resource free-ups 
  • 22% reduced expenses related to legacy system hardware
  • 16% increased satisfaction resulting of complied Service Level Agreements
  • And much more.

John's IT department could save money it had never calculated it was spending. If he implements the service management solution, he will have the chance to rationalize IT costs more effectively in the future, by benefiting from process automation leverage and service request centralization.

Coming to this stark realisation, John sourced several reputable companies online and picked up the telephone. He began to engage in valuable discussions and dialogue about their specific IT requirements, consulting with several highly qualified professionals who asked him key questions to reduce the gap between the increasing financial requirements of business and the decreasing budget allotted to his IT department. Here are some key questions and planning elements were discussed :

  1. What does your software portfolio currently entail?
  2. Is all software currently being employed?
  3. Does your software run smoothly with all other applications?
  4. If you decide to replace or phase out any software or hardware, do you have a list of priorities?

He got a good picture and began thinking about an appropriate ITSM solution. An easy to use and an adapted one.

Out of these discussions John knew he had to select a provider that he could rely on to correctly interpret his company's specific information challenges; challenges that may include:    

  • Outdated clients lists  
  • Unnecessary redundancy
  • Overlapping functionality  
  • Unnecessary complexity   
  • Unnecessary evaluation and testing integrations  
  • Unused or underused software   
  • Duplicated or non-streamlined software architectures   

John knows that the above list combines to cause the IT system to become increasingly dysfunctional over time. This translates into an increasing pattern of wasted precious resources.   

The service management solution he will choose will respond to his cost reduction need while helping his team with performance optimization, improved collaboration and higher transparency standards. 

A service management solution has also proven to increase agility while improving his company's bottom line through:

  • improvement of daily operation efficiency
  • freeing more staff and resources to work on productive projects
  • professionalism while reducing costs and overhead

Now, he need to build a case in order to present the overall project to the management. Sigh. John return to work with a motivated smile.

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Does John story relate to yours?