Case Study: Web Operations Optimization for a NZ Ministry
A leading New Zealand government Ministry faced significant cost challenges in managing its web operations. The lack of financial transparency hampered its ability to optimize costs effectively.
Key Challenge
The primary challenge was to provide a full Total Cost of Ownership (TCO) of the web application portfolio and provide showback to product owners regarding the cost to serve.
This lack of clarity prevented the identification of cost-saving opportunities and hindered the strategic allocation of resources across underutilized applications.
The YäRKEN Solution
YäRKEN was implemented in just five days, integrating seamlessly with existing data sources:
- General Ledgers
- Labour Timesheets
- AWS Cost Reports
- Google Analytics
By utilizing the TBM & FinOps Focus frameworks, the platform achieved precise cost allocation, allowing the Ministry to recalibrate its financial strategy immediately.
FinOps Principles Applied
1. Transparency and Granularity
Enhanced visibility of all Costs (Labour/Infrastructure) related to Cloud data, allowing stakeholders to understand web operation specifics for better decision-making.
2. Cost Allocation and Chargeback
Identification and decommissioning of unused applications, supporting precise departmental cost allocation and optimization of variable costs.
3. Responsive Financial Management
The platform’s real-time analysis meant that value-based decisions could be adjusted instantly based on the most current data.
4. Strategic Resource Reallocation
Detailed identification of underperforming assets enabled the Ministry to decommission redundant sites and reallocate resources efficiently.
Achievements in Cost Savings
Two redundant SaaS platforms eliminated, saving $7,200 annually.
Decommissioning of a low-traffic site saved $30,000 annually.
Optimization of database services yielded $110,000 in annual savings.
Complete cost recovery and implementation of chargeback systems achieved.
Conclusion
The ROI achieved provided payback in just 5 days of implementation, with over a year of platform fees covered by the immediate savings.
YäRKEN transformed the Ministry's financial management, setting a new benchmark for efficiency and accountability in the digital era.