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Case Study
Client:
US Consumer Goods Manufacturer and Distributor with $2B in Annual Revenue and 21,000+ Employees
Scope:
Development of an internal IT Cross-charge Mechanism. Senior management lacked tools for identifying IT costs, measuring IT productivity, or allocating IT costs to disparate business functions with separate P&L's. Therefore, client was unable to predict with accuracy the effect that certain business changes (i.e., growth or contraction) would have on its IT costs.
Objectives:
Client was seeking to improve IT productivity through an in-house solution, but there was no way for the client to understand IT capabilities in terms of "economies of scale" and thus no way to identify specific opportunities for improvement. Senior management desired a solution that was fair and equitable to all stakeholders to include IT employees. A critical factor desired by the client was the solution's ability to facilitate year-over-year comparisons (i.e., one that did not lose integrity due to organizational or other business changes).
Activities:
Alsbridge conducted an extensive due diligence and process mapping effort, and then crafted a solution that was simple to understand, easy to use and maintain, applicable to real situations and allow for real changes in their business.
Results:
Alsbridge developed a customized IT "Resource Unit Cost" Matrix that:
  • Included all core IT Services
  • Translated activity costs into simple resource unit costs
  • Facilitated the allocation of costs to users
  • Spearheaded several cost-reduction / productivity-improvement opportunities
 
 
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