INFORMATION SYSTEMS
Economic performance is at the heart of digital stakes, which deeply transform companies as well as their business models. A cost model, along with an off-the-shelf framework (such as the CIGREF one) are key components for an efficient IT economic management.
Beyond cost management, benchmarking analysis based on an open framework will allow CIOs to efficiently build optimisation action plans, such as IT Design-To-Cost approaches and programs.
Eventually, economic simulation will help CIOs to build an economic IT trajectory over the years in line with the company’s overall strategy.
Cost Engineering
IT COSTING, BUDGETING & BILLING MODELS
YOUR AIMS
Understanding, controlling and forecasting your costs
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Measuring, understanding and analysing your IT costs
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Billing the costs of your IT shop
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Building your budget, relying on "business" hypotheses
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Highlighting and enhancing your budget approach
OUR EXPERTISE
An industrialised approach based on software solutions
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An industrialised method based on an Activity Based Costing approach as well as on the standard CIGREF framework
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Feedback from hundreds of operational implementations over the past 15 years
YOUR DELIVERABLE
Full and rebuilt IT cost model
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Costing and/or billing model, structured and valued
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Optimisation levers
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Formalised IT catalogue
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ABC simulations, based on real "business" hypotheses
COMPETITIVENESS IMPROVEMENT
IT COST OPTIMISATION PROGRAM
YOUR AIMS
Reducing costs but neither quality nor value
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Global analysis of the IT shop cost structure
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Link between costs and value, in line with best practices
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Identifying and qualifying possible gains.
OUR EXPERTISE
An approach at the heart of the company's expertise
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Reviewing the cost structure of the IT department based on at least 25 main analysis items
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Benchmarks and market analysis
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Work with both operational staff and managers to get key stakeholders fully onboard
YOUR DELIVERABLE
A structured optimisation program, ready to be deployed
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Optimisation lever, fully qualified within a deployment plan
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Operational follow-up of the identified levers
IT DESIGN TO COST
YOUR AIMS
Optimising your IT costs
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Deploying new approaches coming from the industry sector
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Understanding the cost structure by carrying out a detailed technical decomposition
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Identifying competitiveness levers that are more useful than levers based on price or margin bargainings
OUR EXPERTISE
An approach between our industrial and IT expertises
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Understanding the suppliers' cost structure: Costing
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Implementing Target Costing
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Going further: Design-to-life cycle cost
YOUR DELIVERABLE
Significant gains
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Gains between 15-30%
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Efficient operational models
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A pragmatic implementation plan, to start as soon as possible
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Strategic simulation
Strategic simulation
« IT BSC » STRATEGIC MANAGEMENT
YOUR AIMS
Supporting your company's strategy
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Supporting your company's strategy
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A full understanding of the company objectives
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An ability to translate this vision at any level of the organisation
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Full visibility to both top management and operational teams
OUR EXPERTISE
A structured approach for a coherent and non-bureaucratic implementation
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Formalising the company's mission and objectives in an explicit manner, interviewing top management
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Determining key actions to achieve the objectives and related KPIs
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Defining objectives, action plans and indicators
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Building and publishing consistent indicator dashboards
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Setting up and implementing the continuous improvement process
YOUR DELIVERABLE
Efficient strategic steering
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A formalised and shared action plan, aligned with the strategic objectives
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Dashboards at the right "level'
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Defined and clear governance
IT DASHBOARD
YOUR AIMS
Relying on an economic simulation tool
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Building budget projection scenarios...
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Getting out of the classic “budget renewal” approach
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Taking into account business assumptions for multi-year economic simulations
OUR EXPERTISE
A pragmatic approach
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Identifying business rules for relevant costs simulation
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Defining, in a simple manner, behavioural rules for the activities and resources of the underlying cost model
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Relying on dedicated tools to implement and analyse the various simulation scenarios
YOUR DELIVERABLE
An operational tool for the IT department
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A dashboard that is easily updated and brought to life.
STRATEGIC SIMULATION
YOUR AIMS
Rely on an economic
simulation tool
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Build budget projection scenarios...
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... Getting out of the classic “budget renewal” approach
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Take into account business assumptions for multi-year economic simulations
OUR EXPERTISE
Build an economic simulation on top of the cost model
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Identify business rules for relevant costs simulation
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Define, simply, behavioral rules for the activities and the resources of the underlying cost model
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Rely on dedicated tools to implement and analyze the various simulation scenarios
YOUR DELIVERABLE
Costs simulation and scenarios
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Costs simulation and scenarios
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Strategic relevant projection through costs simulations
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Relevant dashboard and full understanding of the upcoming cost structure based on clear hypotheses and defined rules
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Benchmarking
Benchmarking
IT BENCHMARKING GROUP
YOUR AIMS
Comparisons with peers
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Quantitative KPI comparisons
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Optimisation levers
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Qualitative discussions based on feedback from peers
OUR EXPERTISE
A benchmark group born in 2010 (with more than €5 billion in annual expenditure each year)
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Sharing costs information between CIOs, based on a standard and common framework
NB: comparisons are performed on indicators defined by the participants in respect of strict confidentiality rules.
YOUR DELIVERABLE
A white paper published every year
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Over a hundred indicators
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Detailed synthesis of workshops and feedback
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Training
SOFTWARE SOLUTIONS
Professional Services Automation
Activity Based Costing
Simulation
CONTACT US
JOACHIM TREYER
Partner
