The Economics of IT
June 11, 2015
Whether you are in Oil & Gas or not, we have all felt the current drop in oil. We have a number of customers in Oil & Gas, and with the current price of oil, many of them are looking to us to help answer: “How can I reduce my costs?”
While this is a very important conversation, we realize this is just one lens in which to look at the “economics of IT”, and if you are only looking at reducing costs, you may not have all the information you need to make the best decisions for your business.
As a means of having a broader conversation, we assembled a senior panel of experts across all areas and functions of Long View, and interviewed them across four economic lenses with the goal of understanding how they talk to their customers. The advice and counsel that we give to those who might be facing a tough economic climate like our friends in Oil & Gas, interestingly enough applies to those in “times of plenty” as well.
To share these ideas with you we have compiled our interviews into 5 themes that will be shared with you in a blog series and ultimately an eBook.
“A few years ago I came across a little linguistic gem that has stuck with me, and considering the business climate of the oil and gas sector, it feels quite relevant. The Chinese word for crisis is a combination of two characters, danger and opportunity. Within Alberta and those in or closely tied to the oil and gas sector, we’ve seen wage freezes, lay-offs, and people delaying their retirements as companies react to the falling prices of a barrel of oil…but what we also need to see, and help our customers and partners see, are the opportunities.” –Andrew Bentley, GM of Sales North America
Using technology as an enabler of business success, we reached out to experts across our organization and asked them to help us understand: what are these opportunities? For our customers across North America not affected directly by the price of oil, how can we help them be prepared should they face tough times in the future, or to best take advantage when times are good? How do we help highlight the game changers for all customers regardless of industry, and how can we help our customers make changes now?
The four lenses which we asked our panel to provide us real world ideas and advice across were:
Decrease spend: What strategies can we offer to our customers to immediately realize savings in their capex or opex budgets, or to drive operational efficiencies?
Grow revenue: If spend is under control, how can customers look for ways to use technology to increase overall revenue and margin (even if it means spending more up front to realize growth).
Increase value: How do we make sure that our customers are able to recognize the value through ROI or other measurement activities for every dollar spent?
Avoid costs: How can our customers avoid unforeseen costs that could put allocated funds for strategic projects at risk?
Regardless of your current forecast, we are encouraging all of our customers, just as we have done internally at Long View, to use this as a moment in time to become sharper, smarter and stronger as an organization. If we can learn to adapt and thrive regardless of market conditions, imagine what’s possible.
Let me take a moment to introduce you to our panel:
Robin Bell, CTO
Robin was one of the first 3 employees at Long View and has been instrumental in its growth since 1999. He defines technology strategy and oversees our corporate R&D team. He sits on Gartner’s executive program, Gartner Symposium and IT Expo advisory board.
Kevin Crowe, VP of Procurement Services
Kevin joined Long View in 2000. He led the Managed Services division from startup phase to #1 MSP in the World by MSP Mentor. In 2010 Kevin started Long View’s Cloud division and defined the go to market strategy.
Michael Thomaschewski, Director of Infrastructure
Michael has over 20 years of IT industry experience analyzing, designing, implementing, and supporting technology solutions that enhance business value. He has worked within the Long View CTO Office, led the Storage and Data Management practice and has taught various IT courses through SAIT Polytechnic.
James Bell, Director of Shared Services
James has been in the IT industry for 18 years’ working internationally in delivery, operations, applications, contracts, procurement, outsourcing, sales, and governance. He currently manages over 120 employees in 8 business units, which provide world class service to Long View customers and internal users.
Start a conversation. Do you have a question for our panel?
Continue reading this series! Part I: Adapting Your Business Strategy in the Absence of Change