Client
Travel division of global financial services company.
Challenge
Determine whether benefits justify expensive new information system.
Background
The travel division used internally-developed IT systems to run its global business. A large systems vendor proposed a complete
replacement of the IT system to reduce costs and improve service. The massive IT project was scheduled to begin with the
European region, but the managers of the European region were unconvinced that the new system would generate enough savings
to justify the cost.
The consulting team analyzed the European operations center by modeling it as a complex processing flow for many kinds of
travel products. The main cost drivers were the number of travel products processed, and the percentage of transactions
that required special handling. The team then approached the champions of the new system and asked them to identify where
the major cost savings would be realized.
Solution
Develop an activity-based operations process flow model of the European operations center, using the old IT systems. Overlay
the projected cost savings from the new IT system at a sufficient level of detail to support credible debate and decision-making.
Client Impact
Global project by major computer vendor was terminated until a better vendor proposal was ready for consideration.
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