Business applications:
- Look at cost reduction holistically, considering the overall impact to the business.
- Make sure the technology supports your strategy and has a valid business purpose.
- Have an eye on the future and consider long-term structural and strategic changes that will result in lower overall total cost of ownership.
- Divide large programs into smaller and more manageable projects.
Technical infrastructure:
- Change the game by using new technologies to reduce costs.
- Know the impact of business changes and understand the IT impact.
- Delay costs if you can, providing you do not cause adverse strategic ramifications.
- Increase risk levels to match the company risk profile.
- Consider IT investments to improve the efficiency and effectiveness in IT itself.
- Simplify and standardize to minimize the diversity of technologies supported.
- Pay only for what you use.
- Consider green initiatives for cost reduction.
IT processes:
- Focus on what is important to the business through governance and prioritization.
- Increase the minimum ROI requirements to ensure projects are worthwhile. Audit proposed savings to verify that you have achieved the projected benefits and cost savings.
- Look at the total cost of ownership to consider up-front costs as well as on-going ones.
- Cut the appropriate costs by focusing on nondiscretionary and hidden IT costs.
- Identify what you are able to eliminate.
- Leverage IT financing, procurement, and contractual aspects to maximize assets and negotiate better deals.
- Ensure that definitions are clear and policies and procedures are supportive of the cost reduction efforts.
- Plan ahead and have a contingency plan.
IT organization:
- Manage and control IT to ensure cost effectiveness.
- Consider alternative delivery models and strategies.
- Reduce service levels to match rather than exceed business needs.
- Implement a culture of cost awareness that starts at the top.
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