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Improve business values and efficiency by IT by Liven Varghese ITSHOWCASE CHINA , 2014
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Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 1
Improve business values and efficiency by IT
Liven VargheseIT Director , SgT Group
www.sgtgroup.net
Your ProductQuality & Safety
Assured.
ITSHOWCASE CHINA – 2013 , SHANGHAI
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 2
Improve business values and efficiency by IT
Cost and investment center
Don’t know business
Biggest bottle neck of company
Speak only technical language
Sacrificing department
Support center
What does IT means to executives?
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 3
Important issue for IT Heads
Improve business values and efficiency by IT
Source : IVI
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 4
How we measure business values?
Revenue
Profit margin
Market share
Return on investment
Shareholder value
Organization efficiency
Quality
Customer satisfaction
Market penetration
Employee retention
Financial Operational
Improve business values and efficiency by IT
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 5
Revenue
Profit margin
Market share
Return on investment
Shareholder value
Organization efficiency
Quality
Customer satisfaction
Market penetration
Employee retention
Financial Operational
Re defining IT Re defining IT
Improve business values and efficiency by IT
How IT can improve business value?
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 6
Re defining IT = Aligning IT with business
IT is the foundation for doing business
Minimize / close the gap between what business expects and
what IT delivers
IT - business value enabler
IT – powerful catalyst for change in business
Service provider with partnership management
“ Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one
without the talking about the other.”- Bill Gates
Business-IT alignment is a dynamic state in which a business organization is able to use
information technology (IT) effectively to achieve business objectives - typically improved
financial performance or marketplace competitiveness.
BusinessBusiness
ITIT
DRIVES
DRIVES
AlignmentAlignment
Improve business values and efficiency by IT
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 7
Re defining IT = Aligning IT with business
Improve business values and efficiency by IT
Alignment process
Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the business Understand the business
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 8
Re defining IT = Aligning IT with business
Alignment process
Business process – formal and informal
Acknowledge the culture
Awareness of your future business
Business managers communication
Business process – formal and informal
Acknowledge the culture
Awareness of your future business
Business managers communication
Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the business Understand the business
Improve business values and efficiency by IT
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 9
Re defining IT = Aligning IT with business
Strategic alignment
Determine IT value imperativesTechnology empowering business strategies“Can do “ versus what it “might do”Matching – Organization capabilities , opportunities , risks, goalsEnhance the awareness of IT valuesOperational –to - Strategic
Strategic alignment
Determine IT value imperativesTechnology empowering business strategies“Can do “ versus what it “might do”Matching – Organization capabilities , opportunities , risks, goalsEnhance the awareness of IT valuesOperational –to - Strategic
Infrastructure alignment
Reliability and securityPerformance – with little cost as possiblePartnership management – best sourcing strategiesPerformance metrics, SLA’sDiscover the value chainsIT Process frameworksIT estate
Infrastructure alignment
Reliability and securityPerformance – with little cost as possiblePartnership management – best sourcing strategiesPerformance metrics, SLA’sDiscover the value chainsIT Process frameworksIT estate
Improve business values and efficiency by IT
Alignment process
Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the business Understand the business
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 10
Re defining IT = Aligning IT with business
Critical factor in alignment Involvement of right peoples Domain knowledge IT
leadership Different set of skills and
competence. Communication Execution of alignment agenda
Critical factor in alignment Involvement of right peoples Domain knowledge IT
leadership Different set of skills and
competence. Communication Execution of alignment agenda
Improve business values and efficiency by IT
Alignment process
Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the business Understand the business
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 11
Revenue
Profit margin
Market share
Return on investment
Shareholder value
Organization efficiency
Quality
Customer satisfaction
Market penetration
Employee retention
Financial Operational
Re defining IT Re defining IT
Business transformation by IT Business transformation by IT
Improve business values and efficiency by IT
How IT can improve business value?
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 12
IT enabled Business transformation = IT Business integration
Business transformation into value level by 3 “I” ‘s.
Improvement Informative Innovative
Improve business values and efficiency by IT
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 13
IT Business integration
Involvement of IT into other business function areas.
IT
Business process improvement and Optimization –
automation , standardization , model of visualization,
Competitive advantage
Employee efficiency & smoother transition
Quantify the returns – reflects cost (ROI)
Case study – Planning algorithms
CostsRisk
Customer ComplaintsManual efforts
RedundancyProcess ConflictEmployee Stress
Improvement
Improve business values and efficiency by IT
“ IT is a value driven center”“ IT is a value driven center”
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 14
Informative Power of Business analytics - technology + information
Key performance indicators , metrics
Big Data – megatrend in transforming business
Power of IT in business analysis , digital marketing
Leads to Smart Organization
Business Intelligence(What’s has happened)
Business Intelligence(What’s has happened)
Forecasting(What will happen)
Forecasting(What will happen)
Prediction(What could happen)
Prediction(What could happen)
Optimization(What’s the best path)
Optimization(What’s the best path)
Increasing Business Value
Types of Business Analytics
Insights to innovation to keep competitive
Leverage data more on supply chain than a warehouse
Data Scientist – comes from IT
Case study – Retailer business , business opportunities
Improve business values and efficiency by IT
IT Business integration
InformationInformation
TechnologyTechnology
Business analyticsBusiness analytics
Performance indicatorsPerformance indicators
Actionable insightsActionable insights
Business planningBusiness planning
OpportunitiesOpportunities
Make the transition from Support partner to Strategic partner Make the transition from Support partner to Strategic partner
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 15
Innovation is not based on technology nor invention
Applying correct technology and adapt mega trends
Globalization & Mobility
Develop and execute end – to –end innovation process
Drive the creation and management of innovation process
Execute the innovation process
Case study – Online services
Ongoingoperations
Results Assessment Strategicchallenge
Ideas Innovation funnel Value
Innovative
Improve business values and efficiency by IT
IT Business integration
“More strategic “ – “ add value” - be an innovative unit in business“More strategic “ – “ add value” - be an innovative unit in business
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 16
Business value enabler – aligning IT with business
Transform IT from support partner to strategic partner
IT be a value driven center
Role of IT heads in driving business strategy.
IT leaders – trusted business leader
Customer – obsessed IT organization
Utilization of trends and technology – be an innovative unit in business
Agility , flexibility , optimization – stay competitive
Turn crisis to opportunity and bring values to business
Improve business values and efficiency by IT
IT - Key partner in Business
IT – “ largest single influence on organizational architecture and design” IT – “ largest single influence on organizational architecture and design”
Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 17
Your Product Quality and Safety. Assured.
www.sgtgroup.netMail : [email protected]