Case Study

Information Technology Cost of Service for a $7.5B Travel & Leisure Company

"Led a cross-functional project including Finance, IT, Procurement, and Operations to implement software and process solutions resulting in transparency into cost of service and return on investment in Information Technology"

Situation

  • The company recently concluded large investment in IT systems overhaul
  • A lack of an IT cost control culture and business case processes created redundant and increasing expenditures
  • Vendor consolidations and software re-sale agreements hampered visibility into the “cost of application” calculation
  • Property ownership groups required more detailed explanation for the IT component of franchisee charges and needed transparency
  • Convoluted and non-standard invoice approval processes furthered cost uncertainty and tracking issues

Bespoke Solutions

  • Defined variable/fixed components of IT spend and allocated spend portfolio of licenses, hardware, and technical support to applications and solutions
  • Reviewed vendor contracts with IT Procurement team, application end users, and IT support teams to identify under-utilized IT assets and develop remediation strategies
  • Implemented e-invoicing across the four largest vendors to enable unit-based invoice tracking (i.e. cost per user software licenses as opposed to total cost of the software)
  • Leveraged unit-based invoice tracking to create “cost of service” metrics to measure and improve upon
  • Provided documentation of IT “cost of service” to relevant stakeholders

Leading With Results

  • Designed and implemented tracking system for entire portfolio of IT software, hardware and technical support spend of >$100m annually
  • Identified ~$1m annually in unused IT software licenses raised for renegotiation with vendors
  • Renegotiated enterprise-level off-shore technical support agreement to improve traceability - and save ~$250k annually in historical overcharges caused by lack of scrutiny
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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