What's Happening?
Leading Resolutions, a technology consultancy founded in 2001, has assisted a major automotive company in identifying significant cost savings within its IT systems. The consultancy conducted a thorough analysis of the client's IT estate, leading to the development
of a strategic roadmap aimed at implementing necessary changes. The automotive firm had previously discovered substantial increases in IT spending on applications, infrastructure, and services, which were acquired outside of central processes. This prompted the company to seek control over its IT expenditures, reduce risks, and rationalize spending. Leading Resolutions facilitated stakeholder interviews to assess the business IT estate, reviewed SaaS tools, third-party apps, and personal device integration, and mapped IT spending using finance-sourced data to validate cost reduction estimates.
Why It's Important?
The initiative by Leading Resolutions is crucial for the automotive firm as it aims to regain control over its IT spending, which had been escalating without proper oversight. By identifying over £400,000 in immediate savings and targeting an additional £700,000 through rationalization, the consultancy has positioned the company to make informed decisions regarding future IT investments and governance. This strategic move not only reduces unnecessary costs but also aligns IT spending with the firm's strategic goals, thereby enhancing operational efficiency and reducing financial risks. The broader impact of such rationalization efforts can lead to improved competitiveness and sustainability in the automotive industry, where technology plays a pivotal role in innovation and efficiency.
What's Next?
Following the successful identification of savings, Leading Resolutions has developed a high-level roadmap for execution, including sequencing and ownership. The consultancy will continue to work closely with the automotive firm's finance, procurement, and architecture teams to implement the rationalization strategy. Executive-level discussions will be facilitated to align on remediation and investment priorities, ensuring that the firm is well-positioned to manage its IT estate effectively. The roadmap includes recommendations around governance, process, and organization to support future management, enabling the firm to make strategic IT investments that align with its long-term goals.
Beyond the Headlines
The rationalization strategy not only addresses immediate cost concerns but also sets a precedent for how large firms can manage indirect spending effectively. By cataloging all elements of business IT components and understanding the rationale behind non-IT-led technology spend, the automotive firm can reduce duplication and risk, leading to a more streamlined and efficient IT operation. This approach highlights the importance of financial oversight in technology investments and the role of strategic consultancy in driving business transformation.
