Public enterprise – Identification of potential cost savings


Task:

The city of Coburg has identified potential cost reductions in information processing (IT) in context of their saving efforts. In order to make a decision to implement these far-reaching measures on a secure number basis, the determination of all IT costs is a necessary prerequisite.


Why AXXCON:

Expertise through years of experience in IT and the field of organization and finance as well as in the decision making process “make or buy” (outsourcing). Also for the determination of the IT-baseline offers AXXCON relevant references. Successful projects for the city of Lindau or the municipal IT cooperation of public services are of course the most suitable examples.


Initial situation:

A previous study in Coburg highlighted among other things, the IT efficiency of the city. Possible six-figure savings were detected, but without qualifying this and proving the appropriate measures for savings. The city was looking for experts who could check this statement independently and make a recommendation (including an action plan).


Challenge:

It was necessary to take and analyze large amounts of data in the shortest possible time. The impact to the (IT-) employees of the city should be kept as little as possible, because operational tasks had priority. In addition some special legal conditions had to be observed in the public sector.


Obstacles:

The resource consumption had to be kept as low as possible.


Approach:

Determination of the IT-baseline after the AXXCON-model (standardized procedure), assessment of the baseline and illustration of possible saving potentials with a list of measures to be taken.


Achievement of objectives:

AXXCON was able to provide the finalized documents on schedule and within the budget and presented them to the members of the City Council.


Result:

With a small investment significant improvements (and savings) could be achieved. The city-owned IT is well positioned despite tight budgets, statements of the aforementioned preliminary investigation about the not sufficiently qualified “potential” could be revised.


Sustainability:

The city of Coburg has approved the recommendations and will implement them within the limit of the household options.





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