for Strategy Consultants
Bottom-up automated cost analysis of IT estates at speed to build momentum, confidence, and profitability
Build strategic client relationships to avoid multiple points of failure
According to the reputed Consultants, Bain Research, the success record of Technology Cost Programs is poor
90%
of companies have run Technology Cost Programs recently
75%
of companies didn't achieve their cost targets
50%
missed targets by more than 50%. Exited costs creeped
In an era of high interest rates, talent constraints, and complex emerging Tech (eg AI) – Consultants need to do more to convince clients in adopting Digital Transformation initiatives
Traditional top-down, excel based techniques aren’t adept at handling the complexity of modern enterprises - especially within the typical 8-12weeks project cycle.
The current process to Technology Cost Analysis is manual and error-prone
"Excel-magic" has its limitations.
Lack of clear understanding of Technology spend
There are significant operational limitations with bottom-up, granular cost data and cost levers - all of which impacts the granularity, transparency and level of benchmark insights that can be generated
Difficulty in painting the financial picture of your proposed Target & Interim states
Ease of scenario modelling ensures you are able to easily and quickly model various scenarios, compare any two of them to demonstrate
Nervous of adopting emerging Technology such as AI
Typical capital investments are made using manual computations on a case-by-case basis using spreadsheets. The complexity of emerging technology with its complex architectures necessiates a standards-based Cost Model that can convince skeptical clients of the associated benefits
Strategy Consultants handle diverse projects with a common theme: “Advanced Current State Cost Analysis & Scenario Modelling for potential Target States”
With Technology becoming ever more complex, Cost analysis and associated modelling requires a lot more sophistication than what Excel proffers
CostLens automates bottum-up cost analysis, at scale
much like a microscope CostLens generates multiple perspectives of your costbase
CostLens provides Consultants with automated cost analysis capability to identify cost problems at speed
CostLens is Technology Cost Management software for hybrid, multi-cloud teams that enables granular cost control, demonstrates value and improves confidence in investment decisions.
CostLens generates advanced metrics for market-leading cost analysis approaches
It enables Consultants to take a triangulation basis to Cost Analysis by delivering automated cost analysis in multiple perspectives
Target-setting approach
aka Benchmark-driven approach that matches competitor or aim for best-in-class
Strategy-backed approach
aka fit-for-growth approach that reduces the 'bad' and protects the 'good'
Cost of Functional Capabilities with associated breakdown breakdown
TCO of Service Capabilities with associated breakdown
Fully loaded cost of servicing Corporate Functions & Products
Benchmarks
Unit Costs
Breakdown by Cost Pools aka Assets
Breakdown by Cost Categories
TCO of Services
CostLens surfaces 'WHY' particular cost areas are high by analysing multiple perspectives to determine root-cause
Macro-level
Macro-level
Macro-level benchmarks
Compares your organisation vs others in the sector in terms of high-level metrics such ads IT Opex as % of overall Opex, IT Spend per employee, Opex vs Capex split, etc
Operating Model
Operating Model
Operating Model benchmarks
Compares your current Operating Model vs others in relation to key cateogries such as Personnel, Outsourcing, Hardware, Software, etc
Tower-level
Tower-level
Tower-level Benchmarks
Compares your current Functional Towers vs others in relation to key categories such as Infrastructure, End User Computing, IT Security, Service Desk, etc
Infrastructure
Infrastructure
Infrastructure Benchmarks
Facilitates a deeper level of drill-down of your infrastructure into the key sub-categories such as Compute, Database, Datacentre, Middleware, Storage, etc
Unit Cost economics
Unit cost economics
Unit Cost Benchmarks
Compares key spend areas to identify cost efficiency metrics such as cost per ticket, cost per Windows instance, cost per TB of storage, etc
Productivity metrics
Productivity metrics
Productivity Benchmarks
Focuses on productivity metrics such as workload supported per Service Desk FTE, no. of Windows servers supported by FTE, etc
Corporate Support Functions
Corporate Support Functions
Corporate Functions TCOs
Focuses on the cost of supporting the Corporate Functions vs peers. Examples include TCO of supporting Finance, HR, applications etc
Business Unit demand
Business Unit demand
Business Unit Benchmarks
This benchmark splits the cost in line with front-office BUs such as Asset Management and Wealth; and considers the cost of supporting the size of the business in line with Business metrics such as AUM, No. of Policies, IT Cost-Income ratio, etc
CostLens brings your Strategy to life
Automation of cost insights that drives cost accountability across the organisation
The TCO (Total Cost of Ownership) of Services drives accountability with Service Owners.
Similarly, the fully loaded costs of Functional Groups drives accountability with Heads of shared Infrastructure Leads such as database lead, Server lead, etc
Ease of Scenario Modelling to model your Interim & Target States
Not only can you compare any two periods; but you can also express this variance in terms of familiar financial ledger dimensions such as cost-centre, legal entities, etc. Additionally, you can express this variance in terms familiar to your audience.
A pre-built Cost modelling engine aligned to industry-standards
An out-of-the-box engine with pre-defined cost algorithms that understands the cost domain - so simply uploaded your data and the system will do the rest.
If you are interested in expressing your costs in terms of Supply and Demand economics, talk to us
choose a convenient time-slot between multiple meeting formats
CostLens brings the power of big-data analytics to deliver huge benefits
Generates advanced metrics of complex cost structures
such as Total Cost of Ownership (TCO), Unit Costs of Infrastructure
Consumption-based billing
drives changes to behaviour
~ 80%
typical reductions in manual effort when compared to Excel
Articulate business-led demand
Consumption-driven cost increases drives accountability
Offers transparency of opaque costs
Technology costs expressed in terms the business understands
Manage Technical Debt
Create granular transparency tied to financial value
Surface true BU/ Product profitability
improved product investment decisions
indirect benefits
Transparency offers a sense of control
Often shared, indirect costs such as Technology can drive a sense of frustration that can be resolved through transparency
Improve confidence in investment decisions
Generate accurate metrics for robust, reliable decisions such as TCO (Total Cost of Ownership), Fully loaded costs, Unit Costs
Improves agility
Speed of decision-making is critical in the current age of hyper-turbulence driven by macroeconomic and geopolitical headwinds
Enables Cost Optimisation
Availability of advanced metrics and benchmarks offers multiple perspectives to understand what cost components are driving costs
Demonstrates the value of shared costs
Shift the conversation from cost to value delivered by demonstrating the value of Services delivered
Lower structural costs by 15% - 20%
Structural costs are harder to exit due to how deeply engrained they are
Our views on trending Consultant-related topics
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