ISG Inform™ took the guess work out of how to best maximize efficiencies for merging two IT organizations.
Opportunity
When faced with merging two IT organizations, the IT finance team needed an industry standard model to organize the current IT spend, the acquired organizations' spend and the combined spend. It was a vital criteria of the project to provide the CIO results backed by facts and Industry comparison data so that the CIO could understand the go-forward economies of scale, expected productivity gains and roadmap for integration based on facts and achievements of other similarly sized top-performing organizations.
Imagining IT Differently
With a built-in, market-accepted IT taxonomy, industry and IT tower-level key performance indicators (KPIs) and scenario building capabilities, ISG Inform™ was the ideal solution to deliver the fact-based insights the CIO sought.
The process started by collecting, validating and measuring the current IT environment across all areas of IT, including industry specific KPIs. The same process was used for the acquired IT organization and lastly for the combined entities.
Once all the scenarios were loaded, comparisons were made to the market for companies in the same industry and again by tower for similarly sized IT towers.
Future Made Possible
- The results highlighted areas of over staffing based on the combined entities that drove decision making on how to model the new IT operational teams.
- Additionally, the acquired organization leveraged provider services, while the acquiree did not. By comparing unit costs and service levels for those towers, decisions were made on how to expand provider responsibilities.
- Comparing cost, quality and productivity between organizations was valuable, but having the market best practices and targets helped to set goals and driver further efficiencies that might not have been uncovered otherwise.
