Operational benefits are the easiest to achieve, and simple to measure. However, IT system consolidations often require reimplementing enterprise resource planning software, resulting in investments from tens of millions up to a billion U. To become an industry leader — with greater size comes greater purchasing power and sales opportunities. Consolidation may also be a great time to get rid of people who don't carry their share of the weight and to offer early retirement packages. Please provide a Corporate E-mail Address. Trading as one large company also provides greater credit security to our suppliers, as well as on the flipside creating a market presence that will allow us access to wider funding, should we ever need it. As one of the largest and most complex NHS-based mental health trusts in the UK, it needed to find a better way of easily staying in contact with staff when they are away from their desk. Tactical benefits are key because initiating a mammoth project and driving it down from the top management level would require justifications beyond cost savings in daily operations. Ajay Murali is a senior associate on the Oracle Insight team. And it can also work wonders for a company's culture. The firm may even need less equipment overall, as devices such as wireless routers and high-volume photocopiers may be capable of serving more users. What Are the Benefits of Organizational Consolidation? You forgot to provide an Email Address. Businesses choose to consolidate for many reasons: Amitava Ghosh is a principal business analyst at Oracle Insight.
There are further plans to deliver over more data terminals according to role-specific responsibilities in the near future. Look at the cost of constructing a new building to the company's specifications compared with moving into an existing building. A team examines all resources belonging to an organization, including assets, locations, equipment, personnel and organizational structures. Simon Parkinson, general manager of the Comet customer information centre, says, "We had a bunch of in-house systems to support the customer contact process that were time-consuming and did not allow us to react to the consumer as we can now. Open-concept spaces generally promote better communication between departments, he says. Be ready to take on tough decisions. Story continues below advertisement Story continues below advertisement "Cost savings represented only one of the many factors that went into our decision," says George Della Rocca, vice-president of corporate real estate. Leicestershire Constabulary VDI keeps bobbies on the beat Like most frontline public services, Leicestershire Constabulary has turned to technology to reduce bureaucracy, while also keeping costs down. An organization embarking on technology consolidation can expect benefits at three levels: To reduce operational and capital costs and improve the bottom line. So implementing Citrix XenDesktop seemed a good fit, as we did not have to reposition the apps," says Pearce. For example, if one company merges with another, the new company has the capital and assets of both companies. Application performance and systems resilience and capacity have improved. As in all public sector organisations, the platform investment had to enhance patient service levels while also lowering costs. He says server virtualisation offered a potential solution to the disaster recovery challenges posed by its growth and power issues, that would also support the core environmental remit of the popular Cornwall botanical visitor attraction. For an organization that is looking to significantly expand its product portfolio, a new information system should be able to absorb unstructured information and allow quick prototyping and concept testing. Be it the sales pipeline, products under incubation, financial books, capacity planning for call-center and field support, or inventory and production systems, the improved visibility into the state of business can result in better decision making in the medium term and adds extra agility to the organization. Information technology is a good example - many organizations first started acquiring computers on a department-by-department basis, with "experts" in each department responsible for installation and maintenance. Parkinson says that because it is fully hosted it is easier to manage the SaaS model in terms of long-term costs, and the process of upgrading the CRM software - which the retailer is about to do again - was easier compared with traditional, on-premise systems. For instance, different departments in a company may each have accounts for office supplies with a local supplier, and assign someone to be responsible for storing and monitoring the inventory and replenishing supplies when necessary. By September , Leicestershire Constabulary had worked with Citrix reseller Point-to-Point to deploy mobile handheld and laptop devices to frontline staff. These same economies of scale apply to staff as well - receptionists and other support staff can often serve a consolidated office with little or no loss of efficiency. A cost savings of 25 percent can be achieved, which can get the overall strategic project initiated smoothly. For now, however, the company is focusing much of its energies on its upcoming move to the suburbs. Quinn says he does not anticipate losing any employees over the move to Mississauga. Longer-term closure of selected software development and maintenance centers can reduce rental expenses, power and cooling costs and other overheads by up to 20 percent. Many firms consider reducing their rentable square feet per full-time employee to further justify a relocation, but if the tighter space results in even a 1-per-cent attrition rate and 1-per-cent decline in productivity, it's generally considered too costly.
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