Business control over a summer holiday
A global IT organization of a multinational telecom companie had difficulties to measure their business. The number and complexity of products, services, software, systems with all associated infrastructure and hardware was, almost overwhelming. There were also requirements to service the numerous sites worldwide with high precision information to the lowest possible cost. The financial system lacked the dimensions and intersections that were needed for evaluation of the operational dimensions, such as components of a service or a particular application’s division of the cost components on different servers. It all came to an end when it demands for big cuts came.
Our first immediate action was to create a core model in which products and services could be defined in its component parts. Then combineding this model with the other components of the business, (i.e. the internal customers’ structure, their organization and the external outsourcing partners’ structure, and the entire global structure). Finally, the financial structure was integrated into the budget from scratch, and matched with the existing economic cost center structure. The result became a dynamic model for the entire global IT and a basis for ongoing analysis and further development of the IT organization’s offering and cost efficiency.
Results:
- 3 weeks to define and establish the initial business model with management team.
- Defined key areas for deep analysis and thorough processing.
- Delivered a full-scale fact based decision dashboard that covered the essential areas, identified a number of direct savings and allowed the first analysis at management level.
- Began to use the control board to facilitate budgeting.