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Food & Beverage Organization Assesses Merger & Acquisition Activity Implications on IT Spend

26 May, 2016

In order for a food and beverage organization to accurately assess their IT spend due to recent company changes, Gartner Consulting conducted the following for a successful result:

Client Context

A food and beverage organization recently involved in merger and acquisition activities recognizes the implications this will have on IT service demands. To help communicate these implications, the organization needs to understand how current IT spending and staffing levels compare to peer organizations.

Client Challenges

■ Ensure IT competitiveness in the industry.

■ Communicate effects on IT spend and staffing levels.

■ Create a foundation for a continual change improvement program.

Gartner’s Consulting Approach

■ Baseline IT performance against peer industry organizations using Gartner benchmarking methodology.

■ Identify gaps, efficiency opportunities and areas for improvement.

Benefits Achieved

■ Provided a graphical comparison of total IT spending and staffing level efficiencies compared to peer industry organizations.

■ Results provided client with a list of observations to address areas of opportunity, such as:

- Older hardware and lack of automation tools may be driving higher personnel spend. Factors to consider include age of hardware, investment level in support tools and impact of merger and acquisition activity on the support environment.

- Further insight into the applications environment costs and staffing levels. Consider implementing a time-tracking system.

- Recommend further evaluation of the organizational structure to ensure that the mix between centralized and decentralized functions are appropriate to deliver business value and optimize costs.


Distribution of IT Spend

                                Peer       Client

§  Other             2%        2%

§  Outsourcing  15%       9%

§  Personnel     48%      63%

§  Software       17%      14%

§  Hardware      18%     11%



For detailed information on Gartner, Inc., the global research and consulting company, visit www.gartner.com  


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