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A deeply experienced advisory and transaction advisor team, backed by Ovum in Africa with strength in IT Finance, IT cost and value analysis and a focus on agile business and IT transformation. As a Board Member, use our independent Board advisory and transaction advisor team for assurance As a CIO you can use Innovation to drive revenue and improve efficiencies. There needs to be a balance between cost optimization, service efficiency and innovation
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Copyright CXO Advisor & SaaS-it Consult 2013
A deeply experienced advisory and transaction advisor team, backed by Ovum in Africa
with strength in IT Finance, IT cost and value analysis
and a focus on agile business and IT transformation.
Copyright CXO Advisor & SaaS-it Consult 2013
The IT landscape is changing – change at the speed of business
Copyright CXO Advisor & SaaS-it Consult 2013
As a Board
Member, use our
independent
Board advisory
and transaction
advisor team for
assurance
As a CIO you can
use Innovation to
drive revenue
and improve
efficiencies.
There needs to be
a balance
between cost
optimization,
service efficiency
and innovation
As a Business
you need agility
and change.
Build a
compelling
business case for
change and gain
competitive
advantage
A D V I S E I N N O V A T E C H A N G E
Copyright CXO Advisor & SaaS-it Consult 2013
We do 3 things : - Advise
Deeply experienced team Backed by Ovum in Africa – IT Finance strength Business – IT Transformation Model
Innovate Return on Business Agility Rapid Innovation with Outsystems Business Model Innovation – Saas-it.net
Change Liberate legacy – Momentum Model Transformation Business Process as a Service – Procurement, IT Finance, Portfolio Governance as a Service – Programme & delivery assurance
Copyright CXO Advisor & SaaS-it Consult 2013
IT spend to business efficiency
5
0%
5%
10%
15%
25%
40% 50% 60% 70% 80%
Cost / Income Ratio
IT /
Op
erat
ing
Co
st
Unexploited business efficiency potentialEfficient IT / Efficient business
Inefficient IT / Inefficient businessEnabling increased business efficiency
(Median 11- 59.1%, 12– 59.3%, 13 – 58.3%)
(Median 11- 8.2%, 12– 12%, 13 – 12.9%)
20%
Company A
Company B
Company C
Company D
Based on Butler Group IT efficiency benchmark model
Copyright CXO Advisor & SaaS-it Consult 2013
SHARED SERVICES MODEL SOURCES
Porters Value Chain – Michael Porter – Harvard Business SchoolWhat Business Really Wants from IT – Terry White
Reinventing the IT department – Terry WhiteSpeed up the mess – Terry White
Copyright CXO Advisor & SaaS-it Consult 2013
How we see the world: The three ‘roles’ in business
Shared and support services
Core businessStrategy
LeadershipInnovation
• Porter’s value chain maps to the three ‘roles’ of business• Core business (not systems)• Shared services / business and customer support• Strategy, leadership, innovation – the ‘glue’ that holds it all together
after Porters value chain
Drive each Role differently
Strategy / Leadership / Innovation
Inbound logistics
Operations
ServiceOutbound logistics
Marketing& sales
Human resourcesFinance & Admin
ITSupply Chain
Firm infrastructure
Copyright CXO Advisor & SaaS-it Consult 2013
Baseline momentum• Baseline - rate of sales / against your cost burn rate
• Sales• Costs• Geography• Staff• Legacy
• All of these have their own cycle times• Decisions which ignore cycle times tend to fail
Shared and support services Core business
StrategyLeadershipInnovation
Business momentum
Current sales rate / cost burn
The business engine
Copyright CXO Advisor & SaaS-it Consult 2013
The business drivers of agility
Shared and support services Core business
StrategyLeadershipInnovation
Business momentum
DeliverCore business engine
Value delivery engine
Support engine
FixRegulation, mandates
New CxO, value propositionsFix support engine
ServiceLooming ThreatService business growth
Training, upgrades
ImproveChange the strategyNew, improved
processesNew, improved
processes
Differentiate
Change the environment
New products, markets, channels
Cloud, outsource, BPaas
Copyright CXO Advisor & SaaS-it Consult 2013
Are we doing the right things?
Shared and support services Core business
StrategyLeadershipInnovation
Business momentum
Deliver
Fix
Service
Improve
DifferentiateSustainability
Risk
Strategic Risk
Tactical RiskUncertainty
Operational Risk
BTL activity drives cost
ATL activity drives revenue
Copyright CXO Advisor & SaaS-it Consult 2013
Can we measure them?
Shared and support services Core business
StrategyLeadershipInnovation
Business momentumServiceRisk
NPV/Time
ROI = Breakeven?Benefits realisation
Baseline
Hit rate >70%Real Options Analysis
Time < 2yrs
ImproveBTL- PBPCVA
ROI > IRRHit rate > 50%
PoAHorizon 1-3 yrs
Differentiate
PBPCVAPoA
ROI = IRR + >40% **
Hit rate > 30%PoA
Horizon – 1-20 yrs
DeliverHistorical CVA
Ongoing BenefitsTCO
Current CVAOngoing Benefits
Current Performance
Planned CVAPlanned Benefits
Planned Performance
FixRiskCostPoA
RiskCost efficiency
Time
Risk Tolerance
Sustainability Risk
Strategic Risk
Tactical RiskUncertainty
Operational Risk
Todays decisions drive subsequent spend profiles
12
Each subsequent period shows the effects of activities from the previous period• High spend in IBR in year 1 results in higher Ops engine costs in year 2• High spend in “Strengthen the engine” in year 2 should result in lower Ops engine costs in year 3
Year 1
Year 3
Year 2
Copyright CXO Advisor & SaaS-it Consult 2013
Benchmark comparisons
13
Portfolio to budget Y0 Year to year Between divisions Between countries Between organisations Between Products
Both spend the same… Which plans better ? Which is more
sustainable? Which is more strategic?
Shared and support services -
81%Core business – 19%
StrategyLeadership
Innovation – 0%
Organisation 1
2 %8 %
67 %
14 %2 %
3 %
67% - Deliver
13% - Fix
17% - Service
3% - Improve0% - Differentiate
Organisation 2
1 %3 %
Shared and support services
StrategyLeadershipInnovation
3% - Differentiate
2 %1 %
Core business
3 %1 %
67 %
12%3 %
1 %
67% - Deliver
2% - Fix
10% - Service
18% - Improve
2 %
1 %2 % 2%
2 %
1 %
Copyright CXO Advisor & SaaS-it Consult 2013
Momentum Model Indices
14
Shared and support services -
81%Core business – 19%
StrategyLeadership
Innovation – 0%
Organisation 1
2 %8 %
67 %
14 %2 %
3 %
67% - Deliver
13% - Fix
17% - Service
3% - Improve0% - Differentiate
1 %3 %
Model 1
Model 2
Bureaucracy Index X/Y 34% 26%Innovation Index ∑SLI:D 0% 12%Inertia Index 1-A/B 91% 73%Growth index C/D 2% 16%Focus index ∑F/100 27% 36%
X Y
Bureaucracy Inertia
A
B
Focus
F
Innovation
∑
Growth
C
D
Copyright CXO Advisor & SaaS-it Consult 201315
The steps to portfolio prioritisation successPrioritisation
pain points
• How do you compare apples with monkeys?
• Noise & politics define priorities?
• What about regulatory compliance projects?
• Everything MUST have a positive ROI
• Are your initiatives aligned with your strategy?
• What about the real value from the initiative?
• How do dependencies play out in prioritisation?
• What about marginal projects, that just must be done?
• What about innovation – how do you put a value to it?
Right of Way TM
benefits
• Fixes the prioritisation problem
• Prioritisation aligned with your strategic objectives
• Rigorous & fair prioritisation
• ROI is not the only criterion – focus on value to your organisation
• Has the right discussion around project right of way
• What should we do, & why?
• What should we delay & why?
• What value will we derive?
• Develops scenarios around different priorities
• What benefits will we focus on?
• Clarifies understanding!
Decide on utility factors from strategic intent
Weight 3RM classes utility, according to investment policy
Fast, profitable, innovative, customer focused
Project 1
Project 2
Project 3
12 3
Classify projects & define utility contribution per project
Prioriitise projects by
strategically aligned
utility scores
Project 1
Project 2
Project 3
955674 P
roje
ct 1
Pro
ject
3
Pro
ject
2
Project …
Project …
Step 5
Step 3
Step 4
Step 1 Step 2
Score projects by
contribution, utility & class
95
Do thes
e Don’t do
these
Copyright CXO Advisor & SaaS-it Consult 2013
What IT really does – Terry WhiteIT without fuss
76%
Improve business results
22%
Information leadership
2%
Technology delivery
IT without fuss
20%
Improve business results
60%
Information leadership
20%
What the CEO wants
Agile Business - IT Transformation
Copyright CXO Advisor & SaaS-it Consult 2013
Maintenance
Innovation
”As a Service” Innovation
Managed internally
Hardware
Middleware
Application
Business Process
Scope of Activities
IT budget/Effort
≈
Hardware
Middleware
Application
Business Process
Scope of Activities
IT budget/Effort
Innovation
Internally Managed
IaaS&
HaaS
Maintenance
Vendor Managemen
t
InnovationInternally Managed
PaaS&
IaaS&
HaaS
Maintenance
Vendor Managemen
t
Innovation
Internally Managed
SaaS&
PaaS&
IaaS&
HaaS
Maintenance
Vendor Managemen
t
≈
Copyright CXO Advisor & SaaS-it Consult 2013
Strategic Sourcing- and the questions you need to ask
What’s our sourcing strategy and what deal principles support this?
Are we getting the best fit solution at the best value?
Can the vendor deliver on their promises and demonstrate their capabilites in good faith?
Can we achieve a win-win contract that is sustainable? Strategic
Intent – ProgramRationale
Requirements
Specification
Request for Solutions
Solution Evaluation
Vendor selection and due diligence
Contracting and
delivery assurance
What are our market and product options?
Copyright CXO Advisor & SaaS-it Consult 2013
How we support you
Transaction and Program
Advisory
Cost, value and
Innovation Benchmarking
Strategic Sourcing and Procurement
IT Value and benefits
Realisation
Shared Services -
BPaaS
Agile Business - IT Transformatio
n
Copyright CXO Advisor & SaaS-it Consult 201320
Contact us to optimise your :
As a service integration Business Process as a Service
Procurement Contract Management
IT Costs and Value Measures and Benchmarks Business Agility through IT transformation IT Value and Benefits Realisation Transaction, Program and Board Advisory
Copyright CXO Advisor & SaaS-it Consult 2013
Our team and panelKim Andersen
Kim is a senior business executive who worked as CIO and CTO with Tieto for the past 10 years. His strength lies in the ability to map business and technology needs from a strategic aspect. Implemented the entire Cloud Services Transformation strategy program for Tieto, a 17.000+ strong IT organization and largest Nordic SI.
Terry White
Terry’s strategic expertise in IT is recognized worldwide: “Terry White is one of the most original thinkers in IT to surface in recent years. He was one of the first IT gurus to identify the need for IT departments to radically transform themselves to accommodate the realities of the twenty-first century”. Professor of IT (UK)
Anders Trolle-Schultz
Anders has a long career in Sales, Marketing & Business Development. He has worked in various industries covering Telecom, IT distribution and sales, and Fast Moving Consumer Goods. Anders has a profound understanding of cross industry partnerships and how to leverage the strength of multiple industry players
Mika Jantunen
Mika is a visionary sales execution coach and business change facilitator. He has been working with IT Industry and business IT user companies for 15 years. His keen interest are to accelerate sales of his customers, to execute actionable market intelligence and to facilitate customer centric product and service development.
Gerhardt van Wyngaard
Gerhardt is a Chartered Accountant with extensive experience in IT Management & Finance. His passion is the development and implementation of financial and operational models in support of organisational strategy and strategy implementa-tion. He has worked in a number of industries including commercial banking, software development & contact centres.
CXO-Advisor, 96 on Fourth, Parkmore, Sandton, Johannesburg, South [email protected]
Tel: +27(0)11-883-4816
SaaS-it Consult, Ringstedgade 24, 2.thDK-4000 Roskilde, [email protected]
+45 2425 0303