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How an organisation saved over $20M pa on their tech costs using SIAM methodology



The SIAM benefit


Service Integration and Management (SIAM) is a framework that, when implemented and executed expertly, creates an optimised technology service experience for your business and provides a means of managing multiple suppliers in an efficient and cost-effective way.


SIAM may appear to be a simple combination of people, processes and tools, however it is a key tool for controlling service, costs and suppliers.


A common misconception held by many Organisations is “we already do all that”. That may be true to some degree, however using a true SIAM framework will ensure that:

  • SIAM functions become your team’s day-to-day ‘norm’.

  • Functions are aligned to your needs - creating a concise view of what you do and what your suppliers do.

  • Everyone within your business knows their role within an integrated and agreed model - including your team, the wider business and your suppliers.

  • Suppliers will embrace working collaboratively as partners and work proactively to improve their service and drive efficiency.

  • Costs will be identified, managed and controlled.

  • Once implemented, the functions can flex as business grows or demands change, without the need for costly future transformations.


The case study

The Problem

A Mining Giant* needed contractual and sourcing advice. Technology support costs were growing however this was essential to supplement supplier service gaps. The suppliers were perceived to be performing poorly but not willing to provide commercial relief or service improvement guarantees. Contractual negotiations with key suppliers had stalled after an eight-month process. In Summary, “It was the suppliers’ fault”.


An initial review uncovered the following common customer issues:

  • The technology team worked in silos with limited end to end consultation.

  • Formal supplier management practice was immature, and the responsibility was spread across departments.

  • There was a governance imbalance in the sense that decisions were very Australia-centric even though over 60% of business was generated in other global regions.

  • There was a challenge in being strategically aligned with the business and balancing business demands vs cost considerations.

  • The Tech team was too focused on operating – rather than managing and governing the business.


A full review uncovered the real underlying issue – SIAM was ineffective:

  • There was no integrated management of the multi-supplier model which made it impossible to work with suppliers to resolve problems.

  • The technology team was unaligned, overly inflated and, in many places, performing overlapping or duplicated functions.

  • Technology and Telecommunications costs had blown out unnecessarily and were continuing to increase.

  • The organisation’s global needs were not matched by service offerings which resulted in overlapping IT operations across multiple business areas.


The Solution

Following a full review of the organisation, the following activities were executed:

  • A SIAM-aligned Operating Model and comprehensive Sourcing Strategy were developed.

  • A GTM exercise and transition program were developed and delivered, underpinned by a strategy tailored to support the future technology organisation.

  • SIAM processes, touch points, interactions and actors were identified, developed and tested via a ‘Proof of Concept’ process.

  • An ITFM tool was piloted as a ‘Proof of Value’.


Resulting in a fully integrated SIAM Organisation with:

  • End-to-end processes across the business and technology teams, and multiple suppliers.

  • Tools and measures to manage, report and address supplier performance issues.

  • Newly collaborative supplier partnerships working toward aligned goals.

  • Internal business partnerships driven through the strategic alignment of business needs and technology enablement.

  • Fit-for-purpose Governance and Processes classified into “Global”, “Regional” and “Regional under a Global standard”.


Benefits realised by the Customer


The benefits to the Organisation were rapidly realised and comprehensive. The Technology Organisation was now fully aligned with the overall Business Strategy. Technology teams were right-sized, focused and performing functions that added demonstrable value.

The multiple suppliers now operated as aligned partners rather than purely ‘service providers’ continually seeking revenue increases. New Commercial contracts, that aligned with the Customer’s overall business strategy, were in place.

The Organisation also benefited from a significant service uplift as well as, importantly, an agile, flexible technology partner which can adapt quickly to their needs. New processes and tools to manage and maintain the benefits long term, were now in place.


Most importantly, the Organisation realised technology cost savings of over $20M pa off a $110M pa base.

 

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