Transparency & Cost Optimization… Bank on it!!
In my last blog I spoke about the four principles that lead to better Cost Optimization. They were Transparency, Flexibility, Simplification and Discipline. I would like to take this opportunity to discuss Transparency in more detail.
How many times has IT management staff felt that their business partners don’t appreciate or understand the effort, time and money required to satisfy a business demand? On the other hand, how many times do you think business partners wonder if IT is focusing on the correct enterprise initiatives, or why their requests are not satisfied to their expectation level? The answer? Too many times to count on both hands. Without transparency, the worst fears of both sides and all stakeholders become a reality.
Webster defines Transparency as “the quality that makes something obvious or easy to understand.” At TransAccel, we view Transparency as a prerequisite for making better supply and demand decisions that are based on cutting the right costs in the right way, while maintaining what is most valuable to the organization. With transparency, the IT organization can participate in valuable discussions that balance costs with IT benefits.
Transparency should exist across all sectors of IT – but especially crucial are:
The first step toward Transparency is to divide IT services into two camps: those that support core (vital, no one else can do them) activities and operations, and those that could be outsourced if need be (non-core). Obviously, step one goes a long way in determining where resources and assets should be allocated (or not). For transparency and cost optimization to occur, defining and validating IT business services must be carried out, even if this is done through a series of incremental steps rather than a complete transformation.
Poor Transparency …
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