Using our proven IDF methodology, CompuCom enabled this industrial automotive leader to significantly reduce IT costs, substantially improve the end-user experience and better align IT services with business priorities.
Challenge: Optimize IT Support Services
The company’s customers look to it for products and services that will help them lower the cost of manufacturing and produce innovative new offerings to drive business success. But operating in a highly competitive market, this industrial leader itself needed to find ways to minimize costs and achieve new innovations.
Like many organizations, the company’s IT department had long faced seemingly contradictory mandates: steadily lower IT costs while delivering IT services that support company objectives. And as end users have come to demand consumer-grade technology in the workplace, it faced a third challenge: continually improve the day-to-day IT service experience.
The company had been partnering with CompuCom for IT support for seven years. It progressively expanded the scope of those services to include Service Desk, Deskside Support, a Global Operations Center, and a Service Management Office. Now it sought to lower the cost of IT support while improving both services to end users and the overall end-user experience. To achieve those goals, we recommended CompuCom’s innovation management strategy — the CompuCom Innovation Delivery FrameworkTM (IDFTM).
Solution: Innovation Delivery Framework
IDF identifies changes organizations need to implement to better align IT services with current business operations and future business goals. The IDF methodology spans discovery, innovation workshops, strategic project planning, and a comprehensive innovation road map. It includes support for project implementation, covering validation to reporting and analysis.
IDF enables CompuCom and its clients to approach change and its potential impacts collaboratively. This allows changes to occur at a pace the business can effectively absorb. In this way, CompuCom helps IT continually evolve services to:
- Adapt to emerging business strategies.
- Prioritize and incorporate innovative new technologies to drive new value.
- Optimize IT processes for greater efficiency and use of resources.
- Lower IT costs.
- Improve the quality of IT services and the overall service experience.
- Increase end-user productivity and effectiveness.
For the industrial automation company, the IDF process began with a review of business objectives and current IT performance, followed by a collaborative innovation workshop. CompuCom worked with the organization to jointly identify initiatives designed to reduce costs, improve services or better align IT with the business.
We next developed a strategic innovation road map. The road map specified the year-over-year cost reductions and service experience enhancements the company could expect. It also described exactly how those savings and improvements would be achieved.
The company began with Service Desk and Global Operations Center services. We identified 68 relevant projects and prioritized 26 for implementation in the first year. We estimated a first-year ROI of more than $400,000. Innovation opportunities included:
- IT reorganization and improved IT governance for better alignment internally and with the business.
- An expanded Voice of the Customer (VOC) program to make sure IT delivers services that support desired business outcomes.
- Improved problem management to proactively avoid incidents.
- Revamped knowledge management tools, processes and resources for higher first-call resolution and reduced handle time.
The results of the initial innovation workshop were incorporated into a new contract, which included:
- A service order with the IDF methodology, including the cadence of annual innovation workshops.
- The purpose, timeframe and output of each IDF milestone.
- A description of all IDF deliverables.
- A Responsible, Accountable, Consulted, Informed (RACI) responsibility matrix for IDF projects.
- Detailed descriptions of the 26 first-year projects and an estimated ROI for each.
- Gainsharing to govern achievements on cost reductions through IDF projects.
- Use cases for how gainsharing would apply under multiple scenarios.
- Use cases for how replacement projects would deliver the same ROI if existing projects were canceled or deferred.
Outcome: Lower IT Cost, Higher User Experience
Using our proven IDF methodology, CompuCom enabled the company to significantly reduce IT costs, substantially improve the end-user experience and better align IT services with business priorities.
After a project investment of $600,000, our client achieved a gross ROI of more than $1.9 million, for a net cost savings of $1.3 million over three years. We further reduced IT costs by an additional 5.5 percent in year two and 3 percent in year three. Because IDF resulted in a noncompetitive contract renewal, the company also avoided the cost of a separate sourcing initiative.
We also positioned IT to improve the service experience for end users. Through innovation projects focused on end-user satisfaction, plus day-to-day enhancements, we helped raise the organization’s user experience index (UEI) from 58 to 62.
The UEI was based on 5,000 survey completions covering how effectively IT delivers technical solutions, collaborates with the business and supports business priorities. The improved score reflected performance across IT. The majority of ratings for end-user services were “higher than average.” In addition, the VOC program provided regular feedback from business units that improved IT’s ability to deliver services to support business goals.
The company was so impressed by the impact of IDF on Service Desk and Global Operations Center services that it has decided to apply the IDF process to Deskside Support, as well. CompuCom benefits organizations by incorporating innovation as a core service component. The IDF methodology delivers competitive advantages in four key areas:
- Identifies IT innovations to drive desired business results.
- Delivers a prioritized innovation road map aligned to business goals.
- Continually evaluates industry trends and best practices, incorporating new technologies and processes.
- Drives savings that can be invested in new initiatives or applied to the bottom line.
- Supports contractually committed ongoing cost reductions.
- Incorporates gainsharing for continual cost improvement.
- Enables IT to respond quickly and effectively to new business priorities.
- Identifies and manages required changes proactively.
- Leverages a governance model to make sure decisions are made quickly, handled at the right level and modified as needed.
- Makes sure IT delivers services the business actually needs.
- Drives value through improved end-user experience and positive ROI.
- Enables IT to become a trusted partner to the business.