Could Your Biotech Firm Benefit With a 60% Cost Reduction On IT Spending?
We know, a ridicules question; of course, your company would benefit. Any IT Security and System Operation savings is one less expense you have to pay out. You’ve probably been thinking of ways to reduce spending across the board, in every department, over the past fiscal year.
Some of the cost-cutting questions might be:
- Do we let certain entry-level personnel go?
- Do we need a fully staffed marketing department?
- Is it possible some staff can double up on their duties?
- Should we shut down the non-producing departments?
- Do you switch sales staff from salaries to commission only?
- Should we reduce employee hours from full time to part-time?
- Is it time to visit outsourcing and eliminating an entire in-house IT team?
Consolidating in all areas, where you are finding expenses, have become higher than the investment initially put into it; is a harsh reality and a hard pill to swallow. It can be brutal, but financial and budget cuts have to come or else; the business will not survive.
A new Chief Financial Officer, from a medical device company, had to do just that and pretty quick. The way the story goes, she walked into a massive IT department’s financial, infrastructural, and personnel mess dating back years.
There is not a single event or person to blame; but rather a series of growth phases, which created this monolithic appetite of expense; which now has forced drastic, and deliberate monetary craving cuts.
Let’s start at the beginning.
Just like any up and coming business bursting onto the scene. At the beginning stage, there is initially a sizeable investment. As with any business investment, our medical device company’s reach; extended. New markets, new clients, and new supplies, supply chains, and supply lines had to be added and offered to meet the increasing medical device demand. Eventually creating a global reach, possibly the founder’s themselves may not have envisioned.
With each stage of the business’ growth, more investments followed. And growth continued. Soon more personnel had to be added. More sales and marketing staff. New departments were springing up while existing ones continue to grow and burst at the seams.
Of course, a web presence, for e-commerce purchases, is set up and additional coding programmers are needed and added to the employment rolls. And all along the way concerns about compliance issues and security grew with each new phase established and infrastructure additions.
Instead of keeping one in-house IT person on staff and outsourcing the heavy-duty, security and compliance issue part of the IT department to a professional IT Security company like KalioTek™; the company’s growth demanded more internal IT staff onsite.
The infrastructure increased in size and scope; making it even more complicated and a behemoth of attention; which the internal IT team was understaffed and unskilled at maintaining its care and compliance.
Then It Happened
IT users began grumbling. It seemed project commitment after project commitment habitually stalled. Deadlines missed, and productivity started to slow, almost to a crawl, with all the IT users. To be fair, we could easily point the finger at the internal IT staff and lay all the blame on them.
They too had a considerable disadvantage overlooked; the company did not foresee nor considered investing in an asset of great value. At no time was a role model or leadership team member put in place to guide these men and women through their daily IT duties.
For that matter, the team had no specific expertise, beyond the daily IT tasks handed them, and they did the best they could because there were no training opportunities provided, continual or otherwise; where they could hone their skills to protect and secure the company’s IT infrastructure.
With the internal IT team’s lack of training, leadership, and what they must look for such as:
- Critical single points of failure
- PCI compliance questions introducing business risk
- Develop a PCI compliance strategy
- Creating environments using public and private cloud
It’s no wonder the new CFO reached out and called in KalioTek™ to assist her again. Fortunately for her, at a previous company, she had a working partnership with them. With this new undertaking, they were the only ones she could think of and fully trusted with the size and scope of the project.
What Did KalioTek™ Do For The Medical Device Company?
For starters, KalioTek™ took on the mammoth task to bring productivity up, enhance the user’s IT experience, and address and correct compliance issues all within the first six months. During that time IT spending dropped 60%, and the internal IT team went from half a dozen to just one onsite person.
All areas of IT financial, infrastructural, and personnel were no longer, the new Chief Financial Officer’s more significant concerns. What once seemed liked insurmountable odds and an epic assignment to control, has been contained.
Now The Rest Of The Story
We’ve saved the best for last. We have additional details, not shared in this article, in an eBook for you about the medical device company, the new CFO, and KalioTek™ and their journey together. If you wouldn’t mind, we’d like to share that information with you.