AXXCON Cost Optimization

Energy sector – Group-wide cost saving program in the IT field

Task:

Group-wide cost saving program in the IT field at a European-wide operating energy company.

 

Why AXXCON?

Proven expertise in project methodology (level oriented idea- and cost management), in technical subjects (IT applications, IT infrastructure, human resources, change, IT controlling) and a corresponding industry expertise in the energy sector. In addition to an excellent price-quality ratio, it was certainly beneficial to know a variety of stakeholders on the customer’s side to leverage the typical AXXCON implementation skills.

 

Concrete task, goal setting:

Against the background of the energy turnaround in Germany and the associated structural changes, the IT costs have to be sustainably lowered across the group within 18 months by more than 20 percent. For this purpose a set of more than 200 sub-projects have been identified, prepared for implementation and started being implemented. As a project manager, AXXCON ensures the success for this efficiency program. There is a permanent monitoring, checking of the admittance and sustainability of cost savings and if necessary the auditing and the readjustment of individual measures.

 

Initial situation:

At the beginning of the program there was a massive uncertainty within the management and the employees, which is normal for cost saving programs of this magnitude. Which organization areas are particularly affected? Are all personal actions socially acceptable? Are additional options coming into operation to frame variable fixed costs (e.g. sourcing?)? These and other questions had to initially be assessed. Due to the strong management experience of AXXCON it was possible to develop procedure models that took the interests of all involved stakeholders into account.

 

Challenge:

In general the main issue is to initialize and mobilize such a program. The existing organization had neither the capacity nor the necessary experience to handle such a program on its own. In addition at the beginning it was not made clear that the transfer of competences to an external project management could also open up a variety of political and tactical options.

 

Approach:

AXXCON was able to present the customer very quickly a tailored staffing solution. A small, powerful team, in addition to the necessary technical competencies, brought other experience like a “change advisor” into the project. A supplementary top strategy-consulting firm was incorporated in the first phase to quickly reach the appropriate conceptual quality and the necessary speed. Within a few months were the key steps from initiation to implementation of the projects achieved.

 

Procedure:

In the first phase all efficiency ideas were collected and filtered. After intensive discussion of all options, the most salient ideas (about 200) were evaluated and further developed towards implementation. After achieving the target range for savings (> 20%), these measures were approved for implementation by board resolution. In the following second phase the efficiency projects were monitored and ensured that planned cost savings were actually realized in the implementation. In case of deviations new ideas and projects had been developed, thus avoiding gaps.

 

Result:

The cost objectives have been achieved in the given time frame. The program is presently considered as one of the reference-efficiency programs for this customer.

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