Coeus Consulting

A radical business realignment and reorganisation was being undertaken by the management board of our global manufacturing client, with a challenge to IT to streamline operations.

An impending end-of-support for the existing ERP platform (SAP) created an imperative to upgrade /  change. The temptation was simply to move through the process of implementing HANA and S/4 as a logical progression, however, there was pressure to look at new ways of working, using Lean ERP principles and leveraging emerging Cloud and SaaS technologies. 

The client recognised it needed help assessing its existing ERP landscape in order to develop an upgrade-&-replace approach that took advantage of best of breed solutions. 

By leading the client through the whole process, Coeus was able to bring an unbiased opinion to the negotiating table. Read the case study to read the extensive benefits delivered.

Read how Coeus Consulting delivered 26% savings and next-generation solutions through network and communications services sourcing. 

The IT Leadership Team (ITLT) at Electricity North West recognised that delivering the next generation technology agenda needed a fresh look at the operating & sourcing models to ensure the right capabilities were grown or acquired to deliver the future services.

Coeus Approach

Coeus worked closely with ITLT to define & implement a new IT operating model, identifying the right skills & processes needed to design, build & operate the future IT landscape. With the Target Operating Model agreed, Coeus went on to develop ENWL’s sourcing strategy to deliver the capabilities & additional flexibility required at lower cost whilst leveraging supplier value-add. 

By overlaying both top-down & bottom-up views of the organisation we were able to identify & address areas where change was needed, e.g. gaps in current delivery model as well as areas of unclear responsibility or authority including resourcing & capability issues. This was rounded off with the creation of a RACI model of the future organisation for IT & its ways of working with other functions / stakeholders.

The resulting TOM highlights included:

• Investment in proactive planning & business engagement to improve understanding of business needs & reduce development lifecycles

• Consolidated architecture function to enforce enterprise standards & reduce waste

• Investment in Vendor Management to drive better supplier performance & leverage

• Extension of ENWL’s SIAM capability to manage an increasingly multi-supplier future

• Investment in digital apps, analytics & continuous development capabilities required to deliver new functionality & business outcome

• Consolidation of multiple governance, communications, finance & reporting roles into a lean “Business of IT” function to improve understanding of IT outcomes for the business

Outcome

"The quality of delivery has been exceptional throughout and has really accelerated our

journey towards our goal." Karen Johnson, Head of IT & Telecoms

Whilst the paradox has always existed in IT, within an ever increasingly Digital economy IT is required to perform an ever-growing role in the business but as it does so, its costs come under greater pressure – it can’t turn off demand, but it can’t exponentially grow costs either. 

Too often, cost optimisation is a reaction to a challenge, not an embedded mindset. The cost challenge therefore moves from being an annual budget challenge to a continual ‘must’ for IT leaders, and a perennial challenge for CIOs – just as it is for any business leader.

This usually results in the deployment of only basic cost reduction techniques that can provide some quick wins but are often not sustainable, at best defer, and at worst, exacerbate issues such as cancelling upgrades or technology currency work, stopping contract or consultancy resources or dialling down services levels.

However, for many organisations they can be an invaluable short-term fix or the start of a longer journey to effective cost management whilst cost transparency is perfected.

A sustainable approach to IT cost optimisation requires three main elements. Firstly, cost transparency, secondly, a practical and implementable approach to cost reduction and thirdly, the ability to manage IT as a value-driving entity.

Richard Graham, Associate Director, Coeus Consulting explains why there is still work to be done regarding data monetisation in many large organisations. He outlines Coeus Consulting's approach and highlights the biggest challenges.

A global consumer products company wanted to explore the feasibility of building a nearhore IoT development centre. It wished to test the market potential for future IoT offerings and to reshape the company's cross-selling product.

The company was highly reliant on external suppliers and contractor staffing, which had resulted in the loss of key knowledge and an increased risk to the ongoing maintenance of the current arrangements. The existing operating model was inflexible and unable to scale to meet future business demands.

The client recognised the need to update its operating model, cascade changes to its organisational structure and transform its ways of working in order to scale to meet future IoT service demands.

Coeus was asked to help the client in undertaking a review and refresh of its existing operating model, and to make recommendations in line with the business' strategic aspirations.

DELIVERABLES

1. SCALING IOT COMPETITIVELY

Coeus developed an IoT service delivery operating model and organisational structure, including process, governance and implementation plan to realise the benefits.

2. AGILE METHODOLOGY

The new IoT operating model and organisational structure facilitated the development and operationalisation of an agile methodology.

3. OPTIMISING DEVOPS CAPABILITIES WITH NEARSHORE DEVELOPMENT CENTRE

The new IoT nearshore development centre led to improved value for money for R&D activities within the IoT development, with reasonably priced internal capability and resources, and the retention of intellectual capital in-house.

BENEFITS

The client now has a clear operating odel design which addresses concerns with the previous model and balances these with the ambitions of the business.

Coeus transferred its knowledge to the client in-house team, to ensure that the organisation would be self-sufficient and could be fully responsible for the live operation.

View more at www.coeus.consulting.