Accelerating Cost Reduction Overview

Reducing Costs is the number goal of most CIO's today. New London gives you the tools and capability to reduce costs strategically through our patent-pending cost reduction process

Background

Everyone wants to reduce costs and run an efficient operation, but in a large complex environment that is easier said than done. Understanding where inefficiecies lie is often too difficult and time consuming for exsisting resources.

New London principals are responsible for over $100,000,000 in savings at two of the largest financial institutions in the U.S. and have developed custom tools for the purpose of accelerating the identification of cost reductions, mapping those reductions to stakeholders and tracking those reductions on an annulalized basis.

By leveraging our experience in large complex environments and using our tools to efficiently implement our process, New London gives any organization, division, line of business or business group the ability to reduce operating costs in a consistent manner that is repeatable in an ongoing basis.

Approach

In order to satify the demand for strategic, time sensitive cost reductions, New London has created a closed-loop system for defining cost reduction goals, identifying cost reduction opportunities, implementing reductions and maintaining those reductions.

An example of the approach under unmanaged services include reducing infrastructure cost through:

• Vendor Management: Ensuring companies' are maximizing their use of their IT contracts, and ensuring legacy contracts are not still being funded.
• Disconnecting unused or retired technology services: Companies' continue to pay for unused, redundant, or services not longer required.
• Inventory and Asset management: Companies can save expenses and cost avoid future expenses by effectively understanding their IT inventory.
• Capacity Planning:  This area ensures existing technology is correctly subscribed to and that companies are not being charged for services, mainframe cycles disk storage, network services, etc, where the volume does not warrant it.

Our process of Cost Reduction

Our process has been developed to ensure we can maximize savings with minimal risk:

Cost reductions are implemented in phases
with each phase building on the last.

The strategy is based on a 4-tier efficiency model that can derive cost savings (depending on the maturity of the IT organization) of between 0-50% of the baseline infrastructure expenses.

New London can engage with an organization at any level of the efficiency model, with "Consolidation" and "Optimization" being the most complex to execute. However, the rewards for an organization for example, of reducing the number of the servers installed, eliminating redundant data center operations, and being a more have a more variable cost IT service and efficient organization is worth the investment.

The "Unmanaged" and "Standardization" tiers are the least complex and impactful to an organization, in addition they can be implemented with results to an organization in the shortest period of time.

The "unmanaged" tier will have the option of being a contingency service offered by New London Associates with the firm taking 20% of the savings achieved through the initial engagement (after a 2-3 month assessment engagement). As companies move up through the tiers, the cost reductions become project based and require more effort to achieve the goals.