Innovative Cost Improvements in IT
Catalyst has developed an innovative approach to cost cutting that both identifies previously hidden areas of inefficiency, and equips IT departments to meet increasing business expectation. We call this Root Cost Analysis.
Our approach has proven itself in the most demanding investment banking contexts. Not only does it reveal immediate savings – it seeds the ground for the technology transformation needed to meet future market evolution.
From the client’s perspective, poor quality information generally lies at the heart of the problem. As a CIO, we ask you to ask yourself:
- Do you know where inefficiencies exist in your technology infrastructure?
- Do you know how to identify further cost savings not surfaced during previous cost-cutting exercises?
- Are your technologists as good at reducing cost as they are delivering new business functionality?
- Will a 10% reduction in technology spend be matched by a 10% reduction in business demand?
- What percentage of overall IT spend results in genuine competitive advantage for your organisation?
These are significant questions. Catalyst’s analysis suggests that inadequate financial reporting of the true cost of technology services leads not only to the persistence of latent inefficiencies, but also to materially flawed investment decisions.
Catalyst has worked with a number of financial institutions to identify significant cost savings using Root Cost Analysis. These have delivered meaningful, quantifiable and sustainable business benefits: from savings in supporting servers and providing data storage, to major operational improvements that engineer out embedded inefficiencies.
Catalyst in action
Catalyst worked with the capital markets division of a major European bank. Deploying Root Cost Analysis, we discovered that the true cost of supporting the two applications we sampled was around twice the cost as established by conventional methodologies – immediately recouping the cost of the initial consultancy exercise. to read the full case study click here
To discover how Root Cost Analysis can help you reduce your technology overhead, contact us now:
contact@catalyst.co.uk
+44 (0)870 901 4155
