Simple Strategies for A Complex World
Reducing complexity and cost is important, but delivering quality service is equally critical. Here are five key approaches of world-class organizations:
Standardize and consolidate. World-class companies simplify, and to ensure maximum return on investment, they standardize master data definitions as they reduce the number of enterprise resource planning systems and other applications. Reducing spending through standardization and consolidation increases focused spending in areas that generate greater strategic return.
Focus on high-return opportunities. These companies do careful reward/risk analysis to identify areas in which they can reap the greatest benefits. World-class performance and maximum value can be achieved only by implementing IT in conjunction with smart practices and process redesign.
Don't minimize cost indiscriminately. Rather than focus on across-the-board cost cutting, world-class companies seek to maximize value at the lowest achievable cost, in part by reallocating spending from technology infrastructure to application management.
Maximize value of information assets. They obtain the greatest possible return on technology investments by maximizing the value of information assets to end users through data standardization, rich metadata, online information access, analytical capabilities and alignment of information architecture with business initiatives such as enterprise performance management.
Outsource selectively. They use outsourcing as a tool to improve effectiveness rather than efficiency. Many typical companies lack an effective strategy and sufficient consideration of process and infrastructure optimization to let outsourcing drive reductions in IT process costs.