IT Operating Model & Cost Reduction – UK Retailer

The Project

We supported a UK retailer to reorganise its IT and transformation functions, agree on a new operating model and produce a 5 years cost profile that included a range of cost reduction opportunities.

The Problem

The client’s transformation programmes were stalled and their transformation capex and IT opex costs were a serious concern.  The root cause of these challenges was:

• The organisation of the transformation program
• An aged IT architecture
• A historic under-investment in IT capability over an extended timeframe

Approach

We used a proprietary template operating model and capability assessment to rapidly diagnose the root cause issues with the ongoing transformation program and the ability of the IT department to deliver projects.  We went on to produce:

• Updated organisation charts and headcount plans
• A new IT and transformation operating model based on a proprietary template covering process, governance and KPIs
• Update a 5-year costing for transformation and IT providing a model for managing the recommended headcount and organization changes

Outcome

The recommendations were accepted in full and an interim manager is progressing the implementation of the new model and an aggressive cost reduction project.