Client
A Banking Firm [Name withheld for privacy]
The Problem
The Banking Firm was facing a significant challenge in managing its IT portfolio. With a complex array of IT projects and initiatives, they needed to improve their efficiency, overspending, and an inability to prioritize and allocate resources effectively. Their IT costs were spiraling, and they urgently needed to rationalize their portfolio to improve efficiency and cost-effectiveness.
Challenges
The primary challenges included the lack of a systematic approach to assess their IT portfolio’s performance and viability. The bank struggled with identifying the underperforming projects and finding ways to reallocate resources efficiently.
The root causes of the problem were a lack of tools and methodologies to evaluate and prioritize IT initiatives, leading to misinformed resource allocation, budget overruns, and an inefficient IT portfolio.
Cost of not solving the problem
The cost of not solving the problem was substantial. The Banking Firm’s IT costs were escalating, leading to multi-million dollars of overspending. The inefficiencies in their IT portfolio hindered their ability to adapt to market changes and innovate. Moreover, the bank risked lagging behind competitors and losing market share.
The industry-wide problem
In the banking industry, inefficiencies in IT portfolio management were a widespread concern. Many financial institutions struggled with misaligned IT initiatives, overspending, and poor resource allocation, resulting in increased operational costs and limited agility in the fast-paced financial sector.
Industry data reveals a staggering dilemma within corporate America, where over $268 billion is squandered on failed IT initiatives. A startling 33% of IT initiatives meet outright failure and are forced to be shut down, while more than 50% fall short of delivering the expected results. Remarkably, a staggering 90% of innovative projects meet with disappointment.
What’s even more concerning is the time required to gauge the outcomes of planned initiatives, with results often not becoming apparent until 2 to 3 years down the road. For successful digital products, success is typically only achieved between the 21st and 25th iterations of the product, and the process of iterations and pivots can be extraordinarily expensive and time-consuming.
The opportunity costs associated with these failures are immense, and the success rate for AI – artificial intelligence products is a mere 13%. This disheartening scenario underscores the pressing need for solutions to identify initiatives destined to fail before investments are made.
How GateZero solved the problem
GateZero’s Tools and Methodologies: The Banking Firm harnessed the power of GateZero’s full suite of tools to address their challenges:
8-Dimensional Problem Definition: This tool provided a rock-solid rationale, eliminated seeds of failure, building consensus, the right foundation, and the right product.
Problem Score Card: It helped identify the underperforming initiatives, compare opportunities, and make the right investments, thus avoiding misallocations.
Revenue Score: Accurate revenue projections were made, and the true potential of initiatives was uncovered, ensuring that they did not undersell or overpay for projects.
Risk Score: Risks from a business perspective were identified, and proactive measures were taken to address them.
Portfolio Rationalization Framework: The Banking Firm used this framework to efficiently allocate resources, prioritize initiatives, and make data-driven decisions.
What Was the Outcome
By applying GateZero’s tools, The Banking Firm successfully identified underperforming initiatives and optimized their IT portfolio. They streamlined their projects, reallocated resources, and reduced unnecessary costs. As a result, they saved $12 million, equivalent to 17% of their IT cost, while also improving efficiency.
GateZero benefits
Cost Savings: The bank achieved significant cost savings, preventing the overspending of $12 million.
Improved Efficiency: The rationalization of the IT portfolio enhanced efficiency by aligning resources with high-impact projects.
Enhanced Agility: The leaner portfolio increased the bank’s agility, enabling it to adapt swiftly to market changes.
Risk Mitigation: GateZero’s tools helped identify and address risks, minimizing the chances of project failures.
The total enterprise value of adopting GateZero
The client corporation significantly improved its enterprise value by using GateZero’s tools and methodologies—the reallocation of resources led to improved financial performance, enhanced market position, and increased shareholder value.
GateZero implementation for your organization
Organizations looking to implement GateZero as their first technology value management platform can contact GateZero’s consulting services for guidance and support. The implementation involves training and integrating GateZero’s tools and concepts into the organization’s decision-making processes, leveraging multiple high-value, game-changing benefits to propel you several years ahead. The implementation typically only takes 2 weeks before you start deriving game-changing benefits.
This white paper highlights how GateZero’s innovative tools and methodologies enabled a client corporation to make informed decisions, optimize resource allocation, and ultimately avoid heavy losses while achieving significant profitability and enterprise value improvements.
Contact information.
Email: hemal�patel@gatezerodigital�com
Website: www�gatezerodigital�com
Phone: 1-469-231-1692
