Optimizing IT Service Delivery and Cost Structure for a Research Institution
ScottMadden assessed a nonprofit marine research institution’s IS organization to identify opportunities to optimize structure, improve efficiency, reduce costs, prepare for potential budget constraints, and better align services with stakeholder needs.
At a Glance
Significant Savings Potential
$2.5M in savings and cost-recovery opportunities identified, representing nearly 20% of the $13.1M IS budget.
Direct-Charge Cost Recovery
$1.28M in potential recovery, including approximately $540K in Phase 1 and $740K in Phase 2.
Broad Stakeholder Engagement
67 stakeholders engaged through 26 hours of interviews across IT, research, academic, finance, HR, and administrative groups.
Challenge
A nonprofit marine research institution engaged ScottMadden to evaluate its Information Systems (IS) organization as it faced mounting financial pressures and uncertainty in future federal research funding. Leadership sought an independent assessment of whether the IS organization was appropriately sized and structured to support the institution’s needs, where opportunities existed to improve efficiency and reduce costs, how the organization could respond to potential budget reductions, and how IS services were perceived by researchers, faculty, and administrative stakeholders.
Process
- Collected, reviewed, and assessed client documentation, including financial data, governance materials, and evidence artifacts
- Conducted 26 hours of interviews with 67 stakeholders across IT, research, academic, finance, HR, and administrative groups
- Analyzed interview findings, financial data, and organizational inputs to identify patterns, trends, risks, and opportunities
- Developed recommendations for cost reduction, governance, reporting relationships, and the future operating model for enterprise IT and research computing
Result
- Quantified $2.5 million in savings and cost-recovery opportunities, representing nearly 20% of the institution’s $13.1 million IS budget. Key opportunities included:
- Identified approximately $500,000 in near-term savings across areas such as training, travel, and outside services
- Recommended a phased direct-charge strategy expected to generate approximately $540,000 in Phase 1 and an additional $740,000 in Phase 2 through eligible labor, software, and equipment allocations
- Outlined a pay-for-use, high-performance computing recharge model with $300,000-$700,000 in annual cost recovery
- Clarified the role of distributed IT and designed a federated governance model spanning enterprise technology, research computing, and distributed IT functions
- Developed an ongoing milestone-based framework for assessing IT leadership effectiveness, governance execution, stakeholder engagement, and role alignment
- Developed a two-year implementation road map across cost reduction, reporting relationships, and organizational structure
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