Product
and Platform Rationalisation
Complexity
Costs
The
direct cost base of Financial Services Companies is driven to a great degree
by the number of distinct applications & technologies – this affects
IT, Finance, Customer Service and Marketing. Up to 30% of costs are Application
Management (AM) related and centralised in top platforms. Complexity undermines
the ability of companies to react to change and often represents a severe
business risk. KnowledgeBank has found a strong correlation between a simple
portfolio of systems and cost effective IT.
Benefits are significant
The benefits of platform rationalisation reach far beyond obvious direct
cost savings in areas such as hardware, software, maintenance, enhancement
and IT operations. Other advantages include cost avoidance (eg EMU) and
strategic enablement: Platform rationalisation provides a solid basis for
CRM, shared services, eCommerce initiatives and technology roll-outs.
Risks can be managed
KnowledgeBank is experienced in managing the risks of complex rationalisation
programmes and differentiates itself through risk-sharing.
Significant barriers persist
Several factors impede a Company’s desire to embark on rationalisation
– difficulty in quantifying the financial benefits, a shortage in
specific skills, competing project priorities (importance versus urgency)
and sometimes inexperience in defining and managing large and complex programmes.
The time is right
EMU is fast approaching and needs to be considered now, before it is too
late. A large financial services client may require over £100m for
EMU compliance and 2-3 years to implement a programme. EMU cost avoidance
completely changes the business imperative and cost benefit for rationalisation.
Our Value Proposition
KnowledgeBank has helped clients achieve 20-30% cost reduction, through
the consolidation of key applications, products, processes and people through
an integrated delivery approach, at speed. This can be achieved by a variety
of deal-shapes that involve KnowledgeBank significantly managing client
risk.
