Gartner Information Technology Research

Tool: Cost-Saving Ideas to Optimize Your Spend Reduction Program

Published: 15 July 2020

ID: G00728146

Analyst(s): CIO Research Team

Summary

Executive leaders should use this database to identify and prioritize high-potential cost-saving areas by using the degree of implementation difficulty and potential savings as criteria.

Overview

This article is adapted from which helps finance leaders identify and prioritize high-potential cost-saving areas by the degree of implementation difficulty and potential savings.

The ability to identify and prioritize cost-saving ideas is a critical component of the cost optimization process. As organizations expand and become more complex, executive leaders must facilitate their direct reports to cut costs, secure additional funding for innovation and ensure the organization meets its target margins.

Executive leaders should use this database of more than 1,000 cost-saving ideas to determine which cost-saving initiatives are right for their organizations and prioritize them according to the degree of implementation difficulty and potential savings.

The database can be used as a starting point for any organizationwide cost optimization initiatives. It can be particularly useful for teams and functions struggling to find their next target area.

Directions for Use

Use this database of more than 1,000 ideas across 12 areas to identify high-potential cost-saving areas. Sort ideas based on their degree of implementation difficulty and the potential savings they can provide, and then share them with your peers across the business.

Recommended by the Authors

Executive leaders must leverage Gartner’s decision framework to improve the outcome of cost optimization initiatives by expanding their analysis of proposed ideas. They must evaluate cost optimization initiatives on elements such as impact on the business, risk and the level of investment required.

Executive leaders may wish to take up several cost optimization initiatives, but not all yield the same benefits. This Tool helps executive leaders prioritize cost optimization initiatives by providing an objective, visual representation of initiatives to commence now versus those to delay.

Enterprises are under continuing pressure to cut costs and/or deliver more with fewer resources. Executive leaders should communicate a cost optimization roadmap to gain buy-in from their peers for evolving the enterprise’s cost management strategy and investments to drive improved business value.

Disclaimer: Unless otherwise marked for external use, the items in this Gartner Tool are for internal noncommercial use by the licensed Gartner client. The materials contained in this Tool may not be repackaged or resold. Gartner makes no representations or warranties as to the suitability of this Tool for any particular purpose, and disclaims all liabilities for any damages, whether direct, consequential, incidental or special, arising out of the use of or inability to use this material or the information provided herein.

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