In the post-COVID-19 world, companies across industries are feeling intense cash pressures. At the same time, the pandemic has accelerated digital transformation. Consumers are flocking to the digital channel. Employees are working remotely. Organizations are doubling down on scenario planning to respond to events as they occur.
Rotating technology spend to put the right dollars against the right investments is critical today. Uncertainty abounds. Even so, there are no-regrets moves to make—from investing in digital customer interactions and remote workforce tools to strengthening security infrastructures and adopting cloud solutions. But how can you fund these moves?
An alternative to slashing IT costs
Zero-based Technology is a value-based alternative to traditional IT cost reduction. It rotates the IT cost base, freeing funds to invest in technology-enabled business transformation.
Zero-based Technology applies a zero-base to all IT spend. It creates efficiencies and optimizes core IT spend by identifying cost levers and modeling savings and investment scenarios, generating cash for reinvestment in capabilities that drive growth.
Actions for the Now, the Next and the Never Normal
In the early days of pandemic response, many companies made wholesale cuts to IT. Now the priority is looking to the longer term and moving toward a sustainable cost base, especially in light of questions executives are asking themselves about the future, such as:
- Where will the economy be in a year?
- What will markets look like?
- Which competitors will leapfrog ahead?
There are imprecise answers to these questions right now. However, IT will figure heavily into companies’ recovery and rebirth. ZBT’s ability to rotate the cost base now will have lasting impact on the business. These are the fundamentals of success.
Companies will rely on their IT foundation to emerge stronger. Using Zero-based Technology, decision makers can get new visibility and control of IT costs, creating a variable cost structure and focusing spending on the right investment for a technology-powered business transformation.