No transformation Programme ever occurs in a vacuum. With the demands on technology ever increasing, there are constant increases to the BAU technology costbase in the midst of a Transformation Programme. Inorganic growth such as acquisitions can result in further uplifts.
What complicates the matter further is that the current practice in most organisations is to take a piecemeal approach to technology investment decisions that relies on partial or incomplete data and inaccurate cost methodologies, resulting in decisions that unintentionally increase the costbase rather than lower it.
How do Transformation Programmes demonstrate impact on the bottomline if there are constant cost add-backs driven by BAU and other initiatives?
The answer is that Transformation Directors on behalf of the CFO/CIO need to develop a deeper understanding of costbase beyond the traditional financial view.