We certainly are learning a lot from today’s current situation. One thing is that we need to spend very wisely in case the unexpected arises. It is a given that this emphasis on optimizing our expenditures will extend well beyond our present-day lock downs. This will be particularly true for Infrastructure and Operations leaders. So how should I&O leaders approach cost optimization as a discipline?
The good news is that one of my analyst colleagues, Ron Blair, has produced a valuable toolkit for I&O leaders so that they can optimize costs effectively. It is entitled, “Toolkit: 100-Plus I&O Cost Optimization and Reduction Ideas.” This toolkit breaks down the approaches into five helpful vectors. They are “primary beneficiary of optimization idea,” “typical engagement level required,” “supply or demand,” “primary focus area,” and “primary cost element impacted.” The document goes into detail on each of these areas and allows I&O leaders create a graph like this one, based on their input using the toolkit, to determine which cost optimization ideas deserve further vetting.
In the above illustrative example, the output from using the toolkit shows 80 ideas that were categorized as having potential. Utilizing this exercise establishes a strong foundational approach for turning cost-optimization ideas into reality.
Following Covid-19, Gartner believes that cost optimization will become one of the most important priorities for I&O leaders. The high degree of importance that will be placed on cost optimization is one reason why Gartner wants to provide tools like the one mentioned above to help achieve desirable results. Utilizing a focused and logical approach to making the most of all investments will help I&O leaders to be more prepared if and when the unexpected should arise again.
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