When organizations face headwinds, infrastructure and operations (I&O) managers are challenged to optimize current spend and redistribute these savings into growth areas. It may seem almost impossible in today's environment, but there are steps that can be taken to successfully carry out a cost optimization program.
"In this macroeconomic environment, I&O leaders are tasked with juggling the dual need to rein in spending while helping position their companies for future growth"says Cameron Haight, VP Analyst at Gartner. "These directives emanate from the concerns of the entire C-suite, from CEOs to supply chain managers and even HR, as they try to adapt to an increasingly dynamic landscape."
If your organization is under pressure to cut costs, consider this 4R strategy -reduce, replace, rethink and reinvest- to achieve effective cost savings.
This strategy tries to present a balanced approach to cost optimization, and suggests that previous strategies, such as massive headcount reductions, are unlikely to be in the company's long-term interest. In addition, he tries to advise clients not to limit themselves to the cuts themselves, but to seek efficiencies through other means and also consider measures of corporate value beyond financial ones. By reducing, replacing, and rethinking, you can reinvest to become more agile and efficient.
The potential objectives of each piece of the strategy are:
No. 1: Reduce
- Number of facilities, processes, tools and services
- Staffing (studies show this is not always optimal)
- Service levels, both internal and external
- Demand through reimbursement options
No. 2: Substitute
- Existing technology, cloud or other service providers
- Internal personnel with subcontracting (this also has counterparts)
- Supplier conditions to encourage risk and cost management
No. 3: Rethinking
- Complexity through standardization and simplification of technology
- Process and task automation strategy
- self-service opportunities
No. 4: Reinvest
- Analytical technology to identify improvements in delivery capabilities
- Modernization of the infrastructure that allows greater agility
- Platform-based approaches to improve efficiency
- New organizational models (DevOps, etc.) to expand the workforce
As you develop your 4R strategy, consider additional benefits of a non-financial nature. People-related issues such as talent retention, recruiting, and diversity, equity, and inclusion (DE&I) have risen sharply as strategic business professionals. In addition, environmental issues have become one of the main focuses of attention of senior management. The 4R cost savings strategy addresses these areas of increasing importance.
In summary:
- Executive leaders must significantly cut costs and rein in IT spending during this period of high inflation.
- To do this, I&O leaders must consider optimizing current spending and investing in growth areas.
- Consider the 4R strategy to achieve the desired financial results.
 se enfrentan al reto de optimizar el gasto actual y redistribuir estos ahorros en áreas de crecimiento. Puede parecer casi imposible en el entorno actual, pero hay medidas que se pueden tomar para llevar a cabo con éxito un programa de optimización de costes.){kind=link}