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