Cost Optimization

LEXTA is well acquainted with diverse cost structures and supports you in your individual challenges. However, when implementing saving potential we don’t want to function as a “lawnmower”, but use a variety of tools (methodical and heuristic approaches) that serve to develop concrete levers to optimize your IT service costs. These include all measures that save money and at the same time do not negatively influence IT support of your core business, but ideally positively. This enables us to can identify minimally invasive expenses that offer no added benefit.

Procedure

Cost optimization projects can roughly be divided into four blocks: The assessment of the situation and the analysis thereof, the identification of optimization potential and a first re-design, the resulting derivation of levers as well as their implementation.

Assessment

During the first workshops on cost optimization with our consultants, we will jointly identify and define your requirements, the scope of services provided by or for your company as well as further relevant data. In conversations we will define framework conditions and requirements specific to your company – if necessary in cooperation with the responsible contact persons. We then compare the identified costs to the imposed services and identify areas with high savings potential using a cost benchmark. Based on the analyses of these areas we can then identify cost drivers and initial savings potential. For example, the user help desk cost and quantity structure alone provides insight on possible savings potential through automation or faster lead times. At this point it is usually not even necessary to reduce staff costs.

Cost optimization

Comparing the collected data to the LEXTA database, we can identify concrete cost levers as shown in the example. At the same time, we compare the provided services to best practice approaches. We subsequently develop concrete measures to lower costs and discuss with our client which areas show possible savings potential.

Measures

Based on the client’s requirements, we now filter the measures we identified in the previous step, prioritize them and finally combine them into packages of measures. Criteria for these steps are, for example, the relation of costs and benefits or of costs and implementation expenses. We also define possible interdependencies between individual actions and take these into account during the subsequent classification. Profiles give detailed qualitative and quantitative information on each measure.

Implementation

From these measures, we now derive an IT roadmap, containing actions, investment needs, responsibilities, deadlines and milestones. Based on these we create a time and resource plan for implementation. Creating a draft resolution for management is our last step towards implementing the actions, which we also accompany.

Approaches

In cost optimization projects we combine a variety of our products and experience:

cost optimization overview