The document discusses how IT departments can respond to the "twin balance sheet issue" caused by the Covid-19 pandemic through three key levers: cost cutting, cost optimization, and value optimization. Cost cutting focuses on reactive, quick measures like eliminating costs to achieve modest savings. Cost optimization involves structured programs to improve productivity and shift spending for significant savings. Value optimization is business outcome-driven and stakeholder-focused, executing value plans to innovate and iterate solutions.

1. 15
Covid 19 Impact on IT
Twin Balance Sheet
Source: Forrester, Gartner, BCG, Forbes
Covid 19 Impact – How IT will respond to manage Twin Balance Sheet issue
Key levers to be applied:
• Cost Cutting
• Reactive, Quick Win
• Ex – Eliminate, Renegotiate
• Modest Savings – IT Reduction and Contract Arrangement
• Cost Optimisation
• Structured Improvements, Program Driven
• Ex - Shift Spend, Improve productivity
• Significant Savings - Digital First, Optimise Business with IT
• Value Optimisation
• Business Outcome Driven Stakeholder and Relationship Driven
• Ex - Value Plan, Execute & Measure, Iterate & Innovate