CUTTING INFORMATION TECHNOLOGYCOSTS WITH PPM:HOW PROJECT PORTFOLIO MANAGEMENT CANREDUCE IT EXPENSES BY 30%               T...
Introduction         IT organizations worldwide are being hit by a perfect storm. Amidst the economy dragging         down...
In just 3 weeks he was able to create an inventory of his entire IT portfolio. In week 4, he         cancelled 20% of the ...
Cut IT Costs with Better PPM: How Portfolio Management Can Reduce Expenses by 30% or More
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Cut IT Costs with Better PPM: How Portfolio Management Can Reduce Expenses by 30% or More

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Amidst the economic slowdown, IT departments are still expected to perform flawlessly and improve continuously, with fewer resources and less money. Luckily, help is on the way. IT organizations can utilize Project & Portfolio Management (PPM) to ensure that they are investing in the right initiatives, supporting the right applications, and taking the right action when projects go south.

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http://info.powersteeringsoftware.com/Cut-IT-Costs-With-Better-PPM-Whitepaper.html?description=it-costs-wp-slideshare&source=Slideshare

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Cut IT Costs with Better PPM: How Portfolio Management Can Reduce Expenses by 30% or More

  1. 1. CUTTING INFORMATION TECHNOLOGYCOSTS WITH PPM:HOW PROJECT PORTFOLIO MANAGEMENT CANREDUCE IT EXPENSES BY 30% THOUGHT LEADERSHIP WHITE PAPER
  2. 2. Introduction IT organizations worldwide are being hit by a perfect storm. Amidst the economy dragging down demand across industries, IT departments are still expected to perform flawlessly and improve continuously, with fewer resources and less money. Global economic conditions aside, the network must stay up. New capabilities must be deployed, systems maintained, products delivered and divisions supported. Help is on the way. While many organizations have grown to think of their IT budget as a fixed expense, or perhaps even a necessary evil, hidden in every line item are opportunities to reduce costs, increase the strategic value of IT and better align resources with organizational priorities. To seize these benefits, IT organizations need to utilize Project & Portfolio Management (PPM) and consistently incorporate the disciplines of Portfolio Alignment, Demand Optimization and Application Rationalization to ensure that they invest in the right initiatives, support the right applications and take the right action to keep IT work on track. Eliminate Waste Through Better Alignment Every organization faces an inevitable disconnect when resources, activity, and direction fall out of alignment. And with misalignment comes Waste. This is perhaps most apparent within an IT department as the client example below illustrates. The PowerSteering customer was a diversified, global manufacturing conglomerate where a newly appointed Corporate CIO inherited a $500M IT budget, along with 29 international regions and 29 deputy CIO’s who each had their own priorities and budgets. The new CIO had no idea where or how effectively the IT budget was being spent. Step one was to establish visibility across the global portfolio to assess the current status, projected ROI and budget of each active item.PowerSteering Software 25 First Street Cambridge, MA 02141 1.866.390.9088 www.powersteeringsoftware.com 2
  3. 3. In just 3 weeks he was able to create an inventory of his entire IT portfolio. In week 4, he cancelled 20% of the active projects and re-deployed the resources to more important priorities. How? It turned out to be surprisingly easier than he expected. Each of the cancelled projects were either not aligned with the current strategy, targeted at systems to be retired, redundant with other projects already completed or underway, or so far off track that they needed to be completely redefined and re-scoped. Many global organizations struggle with this kind of portfolio rationalization and management. With distributed operations, outsourced processes, complex requirements, and the natural tendency for organizational activity to be uncoordinated, the “20% rule” is almost universally applicable. The challenge is finding the misaligned expenditures and having the tools and determination to do something about it! Conclusion Implementing the governance processes of Portfolio Alignment, Demand Optimization, and Application Rationalization can easily save 30% or more of your departmental budget while improving service and execution against strategic objectives. The dismal trio of economic downturn, increased internal demand, and rising costs doesn’t need to take your IT organization by storm. With the right tools and effective means of strategic alignment, and portfolio visibility, IT teams can weather the downturn and be prepared for the inevitable return of growth and brighter days. Read the full white paper now. PowerSteering Software is the leader in business-driven project & portfolio management (PPM) solutions for managing IT Governance, New Product Development, Performance Improvement, and other Business PMO initiatives. Its easy-to-use software provides executives at BayCare, Johnson Controls, Merck, PolyOne, Shaw Industries, UK National Health Service, US Department of Defense, and over 140 other customers with executive visibility, strategy alignment, and team productivity to drive strategy and accelerate results across the organization. PowerSteering was rated “Strong Positive” in the "MarketScope for Project and Portfolio Management Applications" published by Gartner, Inc.PowerSteering Software 25 First Street Cambridge, MA 02141 1.866.390.9088 www.powersteeringsoftware.com 3

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