Many companies are struggling with rising IT costs caused by outdated systems, unused applications and a fragmented IT landscape. A leading automotive manufacturer was facing exactly this challenge. With over 1,000 applications worldwide, inefficiencies and high operating costs were the order of the day. Through targeted optimization of the IT portfolio, the company was able to save 250 million euros within two and a half years, while at the same time modernizing its IT and making it fit for the future.

Instead of lengthy strategy discussions and PowerPoint beauty contests, the consultant opted for a clearly structured, activist approach to Application Portfolio Optimization (APO). But what exactly does that mean?

Application Portfolio Optimization is a strategic approach to simplifying and modernizing the IT application landscape in order to cut costs, reduce complexity and align IT with future business requirements. Particularly in the automotive industry, where technological innovations and efficiency gains are crucial, targeted optimization of the application portfolio can unleash enormous savings potential and accelerate the digital transformation.

The following case study shows exactly how Niklas Scipio implemented this approach at the car manufacturer and what successes he was able to achieve.

	Traditional IT cost reduction initiative	Activist Application Portfolio Optimization Program (APO)
Ideal when	Money is needed in the short term to finance larger initiatives	Ensuring the future viability of the IT landscape – savings as a side effect
Financing	Possible self-financing – early savings can finance subsequent phases	Structured Project financing plan required – higher initial costs and longer amortization periods
Duration	6-12 months	2-3 years
ROI	Fast (4 to 6 months)	12-18 months with first quick wins in the first six months
Complexity reduction	Low – no strategic transformation	Significant – reduction of technical debt and improvement of the system landscape

APO vs. classic IT cost reduction

If you want to transform an IT portfolio with over 1,000 applications, you need more than an Excel model. It’s about clarity, speed – and the courage to make decisions before they have been fully validated. In this case, a pragmatic 4-phase program was implemented that was not focused on methods, but on impact.

The first phase was all about one thing: creating complete transparency – making visible what no one wanted to see before. All applications were recorded centrally, evaluated technically, functionally and economically and classified according to their contribution to value creation. However, the result was sobering, as a large proportion of the systems proved to be superfluous, outdated or redundant.

Successful transformation projects do not start with assumptions, but with a ruthlessly honest stocktaking – often against the resistance of individual departments. The decisive factor here is not to put the facts up for discussion, but to document them consistently in a central EAM system: transparent, comprehensible and accessible to all.

It is often overlooked that workshops alone, without a clear basis for decision-making, do not lead to any savings. For this reason, the first step was to prioritize specific quick wins – applications that could be switched off without risk. The result: a reduction of 5% within six months and an immediate effect of 25 million euros. At the same time, outdated license agreements were identified and renegotiated.

In the second phase, the focus was on simplification. The aim was to establish a global target architecture – not as a theoretical construct in PowerPoint, but as a shared structure with clearly defined design principles. Isolated regional solutions were merged and existing redundancies were systematically eliminated. Instead of endless discussions about the perfect individual solution (“best of breed”), the pragmatic principle of “good enough globally” was applied: 90% standard worldwide is better than 100% individuality in each region.

The architecture was not an end in itself, but served as a strategic filter: Which systems and approaches contribute to scalability, governance and business capability? What is too complicated, too isolated or hinders the transformation?

In order to create trust in the new direction at an early stage, the first pilot projects were deliberately launched – not to test technologies, but to show people in an often politicized organization: Change is feasible – and it works.

The structured approach made it possible to achieve considerable savings. Within two and a half years, 250 million euros were saved, including 25 million euros in the first six months. The number of applications was reduced by 40 percent, making the IT landscape significantly leaner and more efficient. The introduction of a central Governance-The new structure made IT management easier and ensured that future investments were made strategically. In addition, the savings freed up funds amounting to 200 million euros, which could be used for strategic digitalization projects.

Transparency is the first step towards optimization. Without a detailed inventory, many potential savings remain undiscovered. At the same time, early successes are essential in order to create acceptance for major changes. A clear Governance-The right IT structure is crucial to prevent inefficient investments and ensure a sustainable IT strategy. The technology must be aligned with the business strategy, not the other way around. Maecenas sed diam eget risus varius blandit sit amet non magna. Curabitur blandit tempus porttitor. Donec id elit non mi porta gravida at eget metus. Maecenas sed diam eget risus varius blandit sit amet non magna. Donec id elit non mi porta gravida at eget metus. Nulla vitae elit libero, a pharetra augue.

Speed and precision. We know that time is often the decisive factor for the success of a project. That’s why we provide you with tailor-made profiles of independent consultants, freelance experts and interim managers within 36 hours – hand-picked and tailored to your specific requirements.

Expertise and international network on-demand. Thanks to our global network of highly qualified consultants with a deep understanding of the industry and a proven track record, we can find exactly the right experts to understand your challenges and tackle them in a targeted manner. This diversity of international experience enables us to staff even complex projects with the necessary cultural and technical expertise – always available and precisely tailored to your requirements. Niklas Scipio is a perfect example of this: a consultant with experience in optimizing global IT landscapes and a deep understanding of the requirements of both companies and private equity investors.

Project-based staffing with flexible, hybrid team structures. Instead of relying on permanent teams, consultingheads offers the opportunity to deploy experts from a broad network as required. By combining internal and external resources, we create customized solutions that optimally staff each project phase. This flexibility ensures that precisely the expertise required for the success of a program is integrated – without the restrictions of rigid team structures.

Results-oriented instead of overhead-driven. With consultingheads, companies get access to first-class consulting without the high overheads of traditional consulting firms. Our business model is designed to ensure maximum efficiency – so that your budgets flow directly into implementation and not into costly overhead structures.

Value on personal fit. We not only look at the technical aspects, but also attach particular importance to the personality and working methods of our experts. After all, the success of a project depends largely on how well the team works together.

Results that convince. Just as in this case study, sustainable savings of 250 million euros were achieved by optimizing the IT portfolio, we also attach great importance to solutions that deliver immediately measurable results – without detours and with maximum efficiency.