IT efficiency is not a cost-cutting program, but a management tool.
A conversation with Frederic Betz, responsible for IT efficiency and cost-effectiveness at noventum consulting.
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IT & Management Consulting, IT Strategy
Efficiency in IT – that sounds like austerity measures, consolidation, and budget cuts. But anyone who thinks that way is missing the point. In a conversation with Frederic Betz, it becomes clear: it’s about much more than just costs. It’s about management, strategy, and how IT creates real value. An interview about complex decisions, knee-jerk reactions and why efficiency remains a perennial topic in the IT world.
nc360° Editorial Team: Mr. Betz, why do so many IT efficiency programs fail, even though the goals are actually clear?
Frederic Betz: Because they often lack a strategic framework. Anyone who cuts purely operational costs without understanding the business context misses the mark. A simple figure like “-20% IT costs” helps just a little if innovation falls by the wayside or new requirements are ignored.
On top of that, sweeping statements like “IT is too expensive” are dangerously imprecise. Such statements say nothing about why IT is expensive. A more meaningful statement would be: “You’re over-licensed” or “Your IT staffing levels are unusually high relative to the scope of services.” Such qualitative statements are based on in-depth analysis—and that is precisely our goal. Efficiency must be embedded in a future-proof IT strategy—that is our approach at noventum.
nc360° Editorial Team: Many people mistake efficiency for saving money. What’s your take on that?
Efficiency doesn’t mean spending less money; it means using it more effectively. It’s about generating maximum value for the business with the existing IT budget. That might mean investing in automation or replacing an outdated system. In short: Efficiency is smart management, not blind cost-cutting. And one thing is key here: Efficiency can only be measured in relation to a goal. So anyone who says, “Our IT is inefficient,” must also be able to explain why. Without defining a goal, there’s no basis for evaluation and that’s a common blind spot in the discussion.
nc360° Editorial Team: How can efficiency be established in IT over the long term?
Frederic Betz: By focusing on sustainable manageability rather than short-term effects. Efficiency is not a project, it is a process. Technologies change, and business requirements grow. This also means that efficiency begins with transparency. Without transparency regarding performance, cost allocation, and target contributions, reliable management is not possible. That is why we work with our clients to build lasting structures for IT financial management – with a clear service catalog, activity-based costing, and KPIs.
nc360° Editorial Team: What role does IT complexity have in the issue of cost-effectiveness?
Frederic Betz: A very large one. Complex, historically evolved IT landscapes create friction in the form of maintenance costs, tool proliferation, or interface problems. We distinguish between technological and organizational complexity. The latter – such as silos, inconsistent responsibilities, or inefficient processes – usually has a more dramatic impact on the cost structure. After all, poor technology can often still be managed. Organizational inefficiency, on the other hand, permeates everything.
nc360° Editorial Team: Is it even possible to actively manage IT costs?
Frederic Betz: Yes, and it’s essential. If you don’t understand your services, you can’t deliver them efficiently. Governance means that services are clearly defined, budgets are transparent, and responsibilities are assigned. There are two perspectives on governance: vertical through IT systems, or horizontal through end-to-end business responsibility. Especially in complex organizations, we recommend a combination of both approaches, e.g., along product lines and IT service landscapes. This breaks down silos and fosters accountability.
nc360° Editorial Team: How is technological progress changing your consulting work in the area of efficiency?
Frederic Betz: Technology is a catalyst, but only if used correctly. The cloud, AI, and automation offer enormous potential. However, not every innovation pays off. We help underpin technology decisions with business case analyses to ensure they deliver real added value.
nc360° Editorial Team: Which performance metrics truly make IT efficient?
Frederic Betz: The ones that align with corporate strategy. It’s no use just knowing the cost per IT workstation. KPIs such as time-to-market, user satisfaction, and contributions to innovation are also relevant. In well-managed IT organizations today, it’s even possible to quantify the expected IT cost contribution per product very precisely for example, when launching a new insurance product. This shows just how detailed management control can be today, provided the structures allow for it.
nc360° Editorial Team: How mature is internal IT in German companies?
Frederic Betz: There is a lot of ground to make up in this area. Many IT departments function well on an operational level, but they often lack the ability to manage and control their operations. We frequently see that IT services are not specifically identified, billed, or prioritized. Basic prerequisites – such as a detailed cost center structure or a robust cost allocation system – are often missing. Without this foundation, assessing the cost-effectiveness of IT remains a mystery. That is precisely why IT financial management is an integral part of the IT strategy at noventum.
nc360° Editorial Team: In your experience, who is the biggest obstacle to efficiency and cost-effectiveness in IT?
Frederic Betz: Comfort and possessiveness. The strongest resistance usually comes not from outside, but from within our own ranks, for example, from managers who view their department as an untouchable fiefdom, or from employees who are reluctant to question established structures. The biggest obstacle, however, remains: a lack of transparency. If costs cannot be allocated according to their source, if responsibilities remain unclear, then there is no leverage. And without transparency, there is no understanding, no control, and no change. That is why our first step is always to foster understanding.
nc360° Editorial Team: Why is efficiency not just a crisis issue, but an ongoing strategic priority?
Frederic Betz: Because IT is an enabler in every business situation, whether during periods of growth or consolidation. Any company that wants to remain future-proof needs an IT system that is manageable, adaptable, and economically viable. Efficiency is the foundation for this not an option, but a necessity.
Conclusion
The interview shows that IT efficiency is not a technical detail, but a management tool. Those who do not actively manage their IT lose not only money, but also time, quality, and future viability. Furthermore, those who view IT solely as a cost driver underestimate its contribution to strategic value creation.
noventum consulting GmbH
Münsterstraße 111
48155 Münster
noventum consulting GmbH
Münsterstraße 111
48155 Münster