How Economic Concepts Guide Cost-Saving Strategies in Enterprise Architecture
CIOs, CFOs, and CEOs are always looking for cost-cutting solutions for their companies. Such solutions can easily be derived from economic concepts.
Cutting costs benefits the overall enterprise architecture in several ways. However, cost optimization ideas are only beneficial when the concepts behind them can be applied more widely as part of a company’s overall strategy.
When a cost optimization idea is proposed, enterprise architects use these underlying concepts to further expand the solution.
Only when the concept as a whole is applied to the company’s operational and financial strategies can the company begin to reap benefits of cost optimization.
Here are a few basic actions that enterprise architects and tech innovation leaders should consider before finalizing on a cost-cutting solution:
· Look for other opportunities to apply economic principles and approaches within the IT department or across the entire enterprise.
· Use a combination of approaches to improve success rates and return on investment.
· Use the seven economic concepts as inspiration for the strategic pillars chosen for individual strategies, programs, or charters.
· Structured communication with stakeholders ensures that the concepts that apply most to your situation are included.
· Highlight gaps with current plans and strategies for cost optimization.
· Include economic concept thinking when expanding cost optimization programs outside IT efforts.
Next time a cost-cutting idea is proposed, enterprise architects and technology innovation leaders should examine the economics behind it to achieve goals within the IT department and business operations. If you want to know more about the cost-saving strategies in enterprise architecture, click the link below for more information.