Gartner Research

Focus on Facts for Manufacturing Cost Optimization

Published: 21 June 2019

ID: G00388841

Analyst(s): Ellen Eichhorn, Ivar Berntz

Summary

Manufacturing CIOs must direct IT cost optimization efforts that are often muddied with conflicting priorities and internal politics. Common cost optimization pitfalls can be avoided using a proactive approach derived from data and best-in-class practices.

Table Of Contents

Analysis

  • IT Cost Optimization Definition
  • Leverage Global Initiatives for Enterprise Results
  • Distinguish Between Optimization and Reduction
  • Base Initiatives on Four Core Steps
  • Develop a Cost Optimization Roadmap
    • Manufacturing Industry Considerations
  • Bring the Facts, and Question (Not Threaten) Everything
    • Remove the Stigma of “No One Understands the IT Budget”
    • Strive to Cut More Spend Than Is Required to Meet the Reduced Budget Goal
  • Make Cost Optimization a Continuous, Enterprisewide Discipline
  • Recognize the Reality of BU IT, and Engage Stakeholders to Create Value
  • Balance Discussions About Cost Optimization With Equal Emphasis on IT Value

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