Case Study: Arming Defence IT to Save Tens-of-Millions

Posted by: Tom Pickard
Category: Case Studies
Aircraft cockpit displaying flight controls, navigation systems and operational data, representing strategic management and optimisation of complex defence IT environments.

Barkers helps Defence IT leaders with significantly complex application porfolio to organise their data, cut total cost of ownership and drive greater supplier benefits.

A large aerospace and defence organisation with a highly complex software application portfolio faced high support costs and poor spend visibility. Barkers created a full record of applications and analysed cost inputs to establish a centralised view of all applications. This enabled clear recommendations on which applications to retain, renew or retire. As a result, the client was positioned to generate tens-of-millions of pounds in commercial savings.

Over the last few decades, the client had amalgamated many different businesses, many of which had their own software. The result was a fragmented technology landscape. It comprised many applications, and they were expensive to support, with many costing millions of pounds. They needed to reduce the total cost of ownership.

Prioritising an enterprise’s applications, however, is a complex process. It requires navigating change management with employees and data quality issues. For instance, employees tend to resist changing their software applications, and when transitions do happen, they require retraining programmes. Additionally, fully understanding the benefits of each application and its associated components took getting into the weeds with data. But the quality of this data was poor. It came from numerous sources, due to the client operating a siloed organisation with multiple duplicate application agreements and disparate data sources across their estate.

Considering its lack of a single, top-down view of application data and its need for internal change management, the organisation took steps to ready itself for success.

Barkers was contracted, and we kicked off the project by assessing all the client’s software renewals. First, we created a comprehensive list of every application in use, to understand the client’s overall spend, software categories and licence types.

Next, we needed to secure a centralised view of their data and budgets, to identify baseline savings. But, due to its many acquisitions, there were multiple accounting functions, budgets and reporting methods across the organisation. This made it difficult to find clear line items and the budget associated with each application.

To move forward, we shifted our focus away from each application’s budget and instead examined its total cost of ownership – such as maintenance services, server hosting, hardware and software renewals data. We also worked closely with the client’s technology procurement team to understand each application, its components and associated cost inputs.

By linking this information together, we were able to identify the cost of each application. We then compiled everything into a large, structured database, finally creating a top-down view of the landscape. This enabled us to develop a detailed plan outlining all applications, which contracts required changes and when, and where meaningful savings could be achieved. As a result, we could make informed recommendations about which applications would be most beneficial and inform on opportunities regarding the removal of obsolescence in the estate.

By the end of the contract, we delivered a comprehensive report guiding the client to make tens-of millions-of pounds in commercial savings.

The report outlined which applications should be decommissioned, which ones should be renewed, and where additional savings opportunities existed, such as by reducing maintenance support, renegotiating license terms, and decommissioning or reusing the excess hardware infrastructure. Each recommendation was accompanied by timelines – and the client is currently working through and implementing our advice across the organisation.

As added value, we advised on the structure for a Technology Business Management programme. This will empower the client to continue managing their data and measuring the total cost of their IT portfolio, internally.

Ultimately, we empowered the client to generate significant savings by retaining, renewing or retiring thousands of applications, through a detailed plan – and to successfully manage their supplier data and spend independently, moving forward.

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Arming Defence IT to Save Tens-of-Millions – Case Study

Author: Tom Pickard