Reducing Costs and Increasing Productivity Through Tool Consolidation

Organizations are balancing more technology and tools than ever before. On top of that, employees trying to solve challenges introduced by remote and hybrid work may test and use unapproved tools. At the same time, CIOs are trying to maximize their IT investments by creating awareness of existing technologies and encouraging adoption by providing ways to use them across more business units. How can CIOs avoid spending more, mitigate risk, and keep their competitive advantage?

Tool sprawl and how to manage it was the topic of a recent town hall discussion in the New York CIO Community. CIO Robbie Strickland of Miro moderated the discussion, and Evanta Governing Body members Atefeh Riazi, SVP and CIO at Hearst; Priscilla Amalraj, CIO at IEEE; John Decker, CTO at Trian Fund Management, L.P.; Jonathan Ritter, Vice President, Information Technology at IAC/InterActiveCorp; and Steven Wolk, Chief Technology Officer at P.C. Richard & Son, led the discussion groups.

Strickland set up the discussion by noting that the pandemic helped contribute to tool sprawl, when organizations may have had loose limits on tools and teams needed to solve problems quickly. Now, in order to reduce costs, eliminate information silos and create efficiencies, CIOs need to identify and potentially consolidate their technology tools. 

CIOs joined small breakout groups to share strategies on how to understand the technology needs across the business, create awareness and adoption of existing tools, and assess technologies they need to remain competitive.

Key Takeaways from the Discussion

1. Create an inventory of tools and a process for adding and condensing them.

CIOs discussed how it’s necessary to catalog existing tools and implement a process for bringing in new tools. One executive shared that their organization catalogs tools by their capabilities and ease of use and even assigns them a rating. Another IT leader said that their organization established a centralized inventory and keeps it up-to-date – reviewing it monthly or quarterly.

One CIO also noted that it’s important to share the inventory information to create wider visibility into what tools are available. In general, CIOs agree that they need to work with stakeholders to understand what tools work well, what problems they solve and where they can be consolidated to reduce costs or create operational efficiencies.

When it comes to introducing new tools, IT leaders need to manage the risk and stakeholders should have a clear business case for them. As one CIO pointed out, they should ask, “Is the new tool necessary? Don’t just think ‘adapt or die’ - but does our business need it?” Another executive said that you have to consider the price and what value a new tool is adding.
 

1. Involve other parts of the business in the process.

CIOs also shared how it was important to engage with functional leaders and others around the business who know what the tools are for and can assist in decision making. One CIO suggested that it’s also important to have representation from cross-functional business leaders in the governance of tools to prevent duplication or purchasing multiple tools that serve the same function.

In addition to helping IT leaders understand how and why different tools are used, business leaders can raise awareness and promote training on the tools to help with adoption. One CIO shared that they intentionally try to “get influencers in our organization” to use certain technologies. Another CIO agreed and added that they have a “champion program” for that purpose. Another executive mentioned that they offer micro learning, or training in short snippets, to teach people to use various tools. Several agreed that you have to promote tools using various change management techniques beyond just the initial rollout to enable different teams to adopt them.

1. Get all the ROI that you can out of existing technology.

Technology leaders agreed they must aim for the highest return on investment as possible to get the most from technology tools. One CIO noted that they should consider the total cost of owning the tool, including maintenance and management, because “the cheapest part is what you paid for it.” 

Another executive agreed, saying that there is a cost not only in managing the tool, but also in ensuring teams have the skills required for it. One CIO shared that their organization uses only 20% of their existing tools and noted that the business case for new tools should consider the cost of adoption and training.

Overall, CIOs agreed about the need to optimize the technology they have and find efficiencies where possible. One executive pointed out that some tech spaces will consolidate and condense over the next few years on their own. Another CIO shared that tools go through a kind of evolution, and “the ones you don’t use kind of die a slow death.” 

CIOs can continue the discussion on IT strategies, emerging technologies and more at the upcoming New York CIO Executive Summit on November 28. Or, you can find an Evanta CIO Community near you, and apply to join a community of your CIO peers.

by CIOs, for CIOs
 

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