Cost optimization is perpetually one among the highest agenda items for many healthcare CIOs. Why? Because leadership and business believe IT to enable more innovation and organizational strategy while at an equivalent time costing less. And don’t forget—all of this has got to be safer and stable. In other words Faster, Better, Cheaper…and Secure.
But cutting costs alone isn’t always the right solution. to satisfy today’s challenges, IT must deliver financial transparency, the endless discipline of cost optimization focused on business outcomes, and in fact, reduce costs where possible. The overarching principle to remember: don’t reduce costs at the expense of IT service quality. At Children’s Health in Dallas, as we attempt to satisfy the demand for high-quality solutions that are optimized for business profitability, we are taking a three-pronged approach to extend the worth of IT to the business.
Do you want to start optimizing? If so, take a glance at your existing overhead with vendor contracts and maintenance agreements, as these are an excellent place to start out. Begin by tracking the annual spending for all major vendors. Once you do that, you’ll be amazed at how opportunities to leverage volume discounts will quickly present themselves. Armed thereupon knowledge, start reviewing all enterprise contract renewals for opportunities to secure the simplest pricing and terms—but you've got to plan ahead and do the work and negotiations a minimum of six months before expiration in order that there's time to barter or worst case, seek alternative solutions. Your organization can also find that by delivering applications differently, you'll have a positive impact on the application’s total cost of ownership (TCO).
It’s time to develop a cloud strategy if you don’t have one. Cloud providers are touting their ability to save lots of us money, but it’s our job to define what that appears like for our organizations. The journey to the cloud necessarily involves conducting application assessments on your active portfolio to raise understand where the cloud might deliver on the promise of faster, better, cheaper for each of your applications. Certainly, the cloud isn't a one-size-fits-all solution for an organization—rather; it'll be an application by application or maybe application component (archive storage, backups, databases) based decision.