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

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.