IT Service Strategy for Financial Crisis | CGEIT Exam Preparation

Save Money Without Sacrificing Quality | IT Strategy Committee

Question

During a period of financial crisis, an enterprise is evaluating its IT service strategy.

The board of directors recognizes the need to save money without sacrificing the quality of IT services provided.

To achieve this objective, the IT strategy committee should FIRST:

Answers

Explanations

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A. B. C. D.

D.

In a financial crisis, an enterprise must prioritize cost-saving measures without sacrificing the quality of its IT services. The IT strategy committee plays a critical role in this process by identifying opportunities to optimize IT operations and align them with the enterprise's overall business objectives.

To answer the question, we need to identify the FIRST action that the IT strategy committee should take to achieve this objective.

Option A: Re-design IT service management processes. Re-designing IT service management processes can help streamline IT operations and optimize the delivery of IT services. However, it may not necessarily result in immediate cost savings or address the immediate financial crisis.

Option B: Cancel discretionary IT projects. Canceling discretionary IT projects can help reduce costs, but it may not address the root cause of the financial crisis. Additionally, it may result in the delay or cancellation of critical projects that are needed to support the enterprise's business objectives.

Option C: Reduce the total cost of ownership of IT services. Reducing the total cost of ownership of IT services can help the enterprise achieve cost savings while maintaining the quality of IT services. This can be achieved through various measures such as optimizing IT infrastructure, consolidating vendor contracts, and leveraging new technologies.

Option D: Re-prioritize the IT investment portfolio. Re-prioritizing the IT investment portfolio can help ensure that IT investments align with the enterprise's business objectives and priorities. However, it may not necessarily result in immediate cost savings or address the immediate financial crisis.

Therefore, the BEST option for the IT strategy committee to take FIRST to achieve the objective of saving money without sacrificing the quality of IT services provided is Option C: reduce the total cost of ownership of IT services. This option provides a comprehensive approach to optimize IT operations and align them with the enterprise's business objectives while achieving cost savings. Once this objective has been achieved, the IT strategy committee can then move on to explore other options such as re-designing IT service management processes or re-prioritizing the IT investment portfolio.