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Balancing Optimizing Technology Costs with Business Resilience in Uncertain Times

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As organizations continue to face the emergent impacts of COVID-19, leaders are required to make rapid and informed cost-cutting decisions that effectively balance near-term cashflow demands with long-term business success.

This presentation helps technology executives balance the need to continue enabling continuity of business operations with reducing operational costs through a lens of people, process, and technology.

Published in: Business
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Balancing Optimizing Technology Costs with Business Resilience in Uncertain Times

  1. 1. BALANCING OPTIMIZING TECHNOLOGY COSTS WITH BUSINESS RESILIENCE IN UNCERTAIN TIMES April 2020
  2. 2. 3 Pariveda Solutions, Inc. The impacts of COVID-19 have forced organizations to make deep financial cuts as they attempt to manage near-term cashflow Decreases in consumer confidence due to office closures and layoffs directly leads to decreased discretionary spending habits This decrease results in lower revenue for organizations who are simultaneously burdened with growing COVID-19-related costs (ex: facility cleaning expenses, employee healthcare benefits, call-center volume, etc.) Cost reductions and cash flow preservation are needed to sustain the Enterprise and enable leaders to focus on the next wave of impact Source: ABC News[ 2] Source: Forbes [1]
  3. 3. 4 Pariveda Solutions, Inc. As a result, leaders are required to make rapid and material cost savings decisions while preserving essential business services REDUCE OPERATIONAL COSTS Adapt to changes in system behavior resulting from emergent consumer behaviors Early forecasting, observation, and monitoring of user behavior enables more informed cost decisions • Feature Costs • Platform Costs • Licensing Costs ENABLE CONTINUITY OF BUSINESS OPERATIONS Be flexible and adapt to the changing landscape Adequately support the baseline capabilities of the organization and take measures to quickly respond to new opportunities • Operational Resilience • Data Driven Decisions • Facilitating Collaboration
  4. 4. 5 Pariveda Solutions, Inc. A holistic cost management approach will accommodate people, process, and technology considerations within the Enterprise Are business processes available and formalized to review, analyze, and adapt development and operational costs on a regular basis? PROCESS Are the right tools, configurations, and automation in place to increase visibility and simplify the decision- making process around cost savings? TECHNOLOGYPEOPLE Are the right people working on the right jobs, and do they have the access and information needed to effectively manage the platforms and tools? COST SAVINGS OPERATIONAL CONTINUITY
  5. 5. 6 Pariveda Solutions, Inc. We recommend leveraging a prioritization framework to help organizations manage competing demands ⏱ Days | ⏳ Weeks | # Months
  6. 6. 7 Pariveda Solutions, Inc. Cost decisions must be rationalized against quantitative measures that enable leaders to Make informed decisions in uncertain times Payback Timeframe / Risk Reduction / Cost Avoidance StrategicValue For Discussion + Adapt to Current Situation Continue / Accelerate Funding Defer / Decrease Funding or Fundamentally Rethink Weeks Months Years Size = Composite Factor (e.g. degree of internal and external change, resource needs, investment) Quantitative Scoring Decision Making Exercise (Illustrative) Potential Examples Instance Rightsizing Deployment / Testing / Process Automation Legal & Compliance Data & Analytics New Feature / Application Reserved Instance Purchasing TCO Analysis Potential Examples Disaster Recovery Architecture (e.g. Active-Active) Technology Refresh Cloud Migration New Feature / Application
  7. 7. Address short-term cost savings Identify opportunities for improvement 🗓 Drive adjustments to enhance future optimization TAKE ACTION SEIZE THE OPPORTUNITY What has worked well? What are the pain points? What can be further improved? What can we cut/reduce/rethink TODAY. Involve everyone in cost takeout ideation. Move the problem closer to the people doing the work Leverage the illustrated framework and other tools to identify areas that can be further improved What opportunities exist in the near term? Medium term? Long term? KEEP THE BIG PICTURE IN MIND! Seek to get ahead of the curve by formulating plans for the future now. Use data-driven insights to inform your plan. What will the ”new normal” look like post COVID-19? Which processes will revert to the prior norm? What is here to stay? WHERE DO I GO FROM HERE?

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