EA and Cost Optimization, Part 2: Cutting Costs Beyond IT

ID Number: G00166534

7 April 2009

Bruce Robertson

Enterprise architecture can take a significant role in business cost optimization, while improving synergy and alignment of IT efforts. EA must address the 94% of business spending that is not IT.

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Pages: 10

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Table of Contents

Analysis

1.0

Section 1: Improving Business Cost Optimization Planning

1.1

Get Involved With Business Strategic Planning

1.2

Define an Approach That Links EA to Business Strategic Planning

1.3

Identify Business Spending and Revenue

1.3.1		Spending Example No. 1: Commodity Cost Trends
1.3.2		Spending Example No. 2: Travel Costs
1.3.3		Revenue Example: Product Alignment

1.4

Perform a Cost-Optimization-Centric Iteration of Business Strategic Planning

1.4.1		Example: Utilities Business Cost Savings
1.4.2		Example: Innovation and Business Cost Optimization

1.5

If Not Early, Get Involved Later

2.0

Section 2: Synergizing Separate IT and Business Cost Optimization Efforts

2.1

Align to Business Cost Optimization — Cut IT Where Business Makes Its Cuts

2.1.1

Example: Closed Plants but Phone Lines Still Open

2.2

Develop "Bronze" Answers With Lower Service Levels

2.3

Develop "Run, Grow, Transform" Portfolio-Balancing Approaches to Align IT and Business Cost Optimizations

2.4

Identify Business Cost Cuts That Need IT Cost Increases

2.4.1

Example: Increase IT Spending to Reduce Business Spending

2.5

Going Beyond Cost Optimization

3.0

Further Analysis — Cost-Optimization-Centered CRV

Business and IT Alignment
Enterprise Architecture
Reducing or Controlling Costs

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Resource Id: 931820