ITD Performance

Make sure ITD strategy complies with corporate strategy

What measuring and steering tools does ITD need to comply with corporate strategy? How can ITD formalize these orientations? Which analysis axes should be privileged? What kind of indicators can be useful for a global and accurate evaluation of ITD activities? How can you turn these observations into a tangible improvement plan? Which area of responsibility should each ITD actor be assigned in the definition of the action plan?

Redsen designed a unique methodology framework which summarizes current best practices to use in the definition and follow-up of an organization’s objectives. The approach presented by our firm is based on the Balanced Scorecard principles in order to better describe the ways the ITD can contribute to corporate performance. This approach uses the CobiT® framework as an accelerator for the definition and set up of ITD dashboards. Finally, we think globally. It integrates client-result and process-performance visions as a whole. This approach also includes an organizational aspect and describes the necessary tools for an efficient follow-up of the objectives and management of the action plan.

The IT Scorecard provides an objective assessment of the role played by the ITD in the company and the added value it can create. The management and control processes that are based on the dashboard enable the ITD to redirect its activities, bearing in mind the corporate strategy and the expectations raised by the business.

Optimize ITD costs

Nowadays, IT Departments are eager to better manage IT related expenses in a wish to be perceived not as a center of costs, but as a service provider, and furthermore, as a value provider for business activities and executive management. The ambition is justified, but the practical exercise appears to be complex.

How can you set up a simple and ready-to-use cost reference system? What are the impacts of outsourcing operating costs and internal recharging services? How can you guarantee that streamlining costs will not affect the company’s competitiveness in the future?

Inspired by the principles of ABC (Activity Based Costing), the approach presented by Redsen aims at setting up an IT cost optimization device, providing models and tools to address the following issues:

• Draw up the service catalogue and the related cost model
• Break down the IT budget based on the cost model that was previously drafted
• Evaluate levels of activity and IT expenses
• Analyse the gap between estimated and actual expenses
• Identify costs inducers that require streamlining measures
• Define those streamlining measures and take action

The implementation of the assessment model set up with Redsen enables the ITD to measure progress of IT cost optimization, as well as to improve communication with the operations and the executive management, by providing more readability and transparency of IT costs.