v/ Torben Høeg Bonde, CIO, Vestas

Onsdag den 30. september 2015

IT i praksis® konferencen 2015

Run IT as a business, generating customer value

Dansk IT – IT I praksis

Run Vestas as a “software” company

Torben H. Bonde 30th of September 2015

Classification: Public

Introduction

Master’s degree in Business & Social Science (M)

Sales & Marketing background

20+ years of experience within Senior IT Leadership

CIO of the Year 2011, Denmark and IT Decision Maker 2010, Management Events

Member of a number of advisory boards in the IT industry and academia

CIO at Vestas since 1999

Torben Høeg Bonde, SVP and CIO at Vestas

3

: Torben Høeg Bonde

Mail: tbo@vestas.com

Short introduction to VestasGlobal market leader in the Wind Turbine Industry

4

We employ around

18,800 people worldwide

and have more than 30

years of experience with

wind energy

18,800+We monitor around

27,000 turbines, or more

than 49 GW, day and

night and the data is

used for efficient service

planning and pre-

emptive maintenance

27,000+We have more than

54,900 turbines or more

than 69 GW cumulative

installed capacity in 74

countries worldwide

spanning six continents

54,900+Vestas revenue for

the full year 2014 was

EUR 6.9 billion

€ 6.9b

The building blocks of the Vestas strategy

Vestas corporate presentation5

A strengthened global leadership position for the long term

What Vestas offers

Vestas corporate presentation6

Our business spans across both turbines and services

WIND

SOLUTIONS

SITE

SOLUTIONS

Expertise built from

30 years of wind

industry experience

Smart data behind every decision at Vestas

7

From product development, to siting, to service: data insight is in the centre

+27,000 turbines

Data every 10th minute

24/7 surveillance

Up to 500 data points

Key takes

10x10m

Vestas has the ability to

predict meteorological

conditions world-wide down to

areas of :

Big data

Vestas corporate presentation

IT Vision – need for transformation (I:IV)

8

Vestas is facing a nexus of drivers that demand change in the way we work with Information Technology

Increasing and complex customer demand for IT based services and offerings – Used cases across the value chain

IT Vision – need for transformation (II:IV)

9

Vestas is facing a nexus of drivers that demand change in the way we work with Information Technology

Processes and offerings critically dependent on integrated and flexible IT solutions

IT Vision – need for transformation (III:IV)

10

Vestas is facing a nexus of drivers that demand change in the way we work with Information Technology

A number of new technologies emerge and getting fast matured

IT Vision – need for transformation (IV:IV)

11

Vestas is facing a nexus of drivers that demand change in the way we work with Information Technology

IT is becoming “consumerised”, requiring integrated, “on demand” solutions

Cloud

IT Vision – need for transformation

12

Vestas needs to change the way we work with IT and become a “software company”, starting by transforming the central IT organisation

Vestas is to become a ”software” company, not only a ”hardware” company

The way IT is developed, supported, and used needs transformation across Vestas

The starting point is a transformation of the IT department’s:

Operating model

Key competencies

Sourcing landscape

Governance

Organisation

Business Model

Rationale of where and how to create value

Designing the business of Global ITIT has been through a comprehensive journey to design the future organisation

Operating Model

What, where and how critical work is done

Organisational Design

Structuring and enablingdecisions and work

OrganisationRolesPeople & talent

Technology

Pro

cess

es

Strategy

Playing field and how to win

Business purpose

Peter Drucker, “The Practice of Management”

13

Confidential material. Not for public use or exposure. May not be shared with third parties

14

Vistion-based Strategy

”Business Model”

Operating Model Landscape Operating Model

Organisational Building Blocks Functional Roles

Functional Organisation Organisation Diagram

Functional Role Descriptions

Capability Descriptions

Key Processes

Job Role Descriptions

P&C Characteristica

1

2

3 4

5 6

7 8 9

10

A

B

C

A number of steps were neededSix months of stepwise detailing of all needed elements in a transparent process

14

Design criteria

Business orientation and proximity

End-to-end responsibility and mandate

Outsourcing of non core activities

Playing each other good - team orientation

Which thoughts were prioritised behind the design

15

IT VisionSo what is happening?

Existing operating model

Future operating model - detailed

Future operating model

16

Ou

tso

urc

ing

Confidential material. Not for public use or exposure. May not be shared with third parties

Global IT Operating ModelReference model

Global IT operating modelMulti-layered robust reference Operating Model for Global IT

18

18

“Contractual”

ControlGovernIntegrate

Handle

IT Supplier & Partner Marketplace

Integrated Services Integrated Offerings

Assist.

Hr WP

aaSEf Ops

Vendor B

Contractual

Hr WP

aaSEf Ops

Vendor A

Contractual ITM

Hr WP

Ef Ops aaS

Lic

(Hr) Hours, (WP) Work Packages, (Ef) Effort, (Ops) Operations,

(aaS) as a Service, (Lic) Licenses, (ITM) IT Management

Orchestrate

Internal Vendor

Vestas Business Landscape

End-Customers Partners & Suppliers

Stakeholders Users Stakeholders Users Stakeholders Users

Vestas Business FunctionsGovernance Bodies

FIN HR

M&

CO

M

SA

L

QA

SC

-PLA

N

G-S

RC

MA

N

TU

RB

CO

N

SE

RV

D-S

RV

IT-P

LA

TF

Investment Value Council (IVC)

ExM

GMCP&C SERV

FIN

SAL

TSS

M&GS

QoS1 QoS2 QoS3 QoS2GSA GSA GSA

Advis.

Strategy &

Governance

Office

Processes –

Ways of Working

Enterprise

Architecture

Project &

Program

Management

Change

Management

Architecture

Management

IT Offerings

Management

Prioritisations

and

Road mapping

Portfolio

Management,

Coordination &

Execution

VMO

IT Sourcing,

Vendor &

Contract

Management

Business IT Offerings Standard IT Offerings

Platform Towers Foundation Towers

IT Business Partnering

“Do the right things”

IT Business Partnering

“Do the right things”

SAL MAN D-SRV

Sites (Adm., Manuf., WPP Service)

CaaSIaaSPaaS User ITPrt, Voice, Vid.

FIN SaaS

Con-sult

Train, Empower

& Inform

Users

Operational

Issue

Coordination

CISO

• IT Security

• Compliance

• Risk Mgmt

• BCMSite setup

User

Support

Delivery

Support

Financial and

Performance

ManagementClient HWIAM

Print, Voice, Video etc.

Middleware NetworkClient SW

InternalIT Tools

DC ServicesSAP

Microsoft InterimPlatform

Other Platform

Price & Funding

Business Agreements

“Do things right”

= cost out

SourcedApplications

Development & Maintenance

“Do things right”

= value up

ExternallySourced

Support &Operations

InternallySourced

Support &Operations

Vendor Service Parts

Global IT Operating Model Usage: OrganisingBusiness oriented IT organisation with deep vertical accountability

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19

“Contractual”

ControlGovernIntegrate

Handle

IT Supplier & Partner Marketplace

Integrated Services Integrated Offerings

Assist.

Hr WP

aaSEf Ops

Vendor B

Contractual

Hr WP

aaSEf Ops

Vendor A

Contractual ITM

Hr WP

Ef Ops aaS

Lic

(Hr) Hours, (WP) Work Packages, (Ef) Effort, (Ops) Operations,

(aaS) as a Service, (Lic) Licenses, (ITM) IT Management

Orchestrate

Internal Vendor

Vestas Business Landscape

End-Customers Partners & Suppliers

Stakeholders Users Stakeholders Users Stakeholders Users

Vestas Business FunctionsGovernance Bodies

FIN HR

M&

CO

M

SA

L

QA

SC

-PLA

N

G-S

RC

MA

N

TU

RB

CO

N

SE

RV

D-S

RV

IT-P

LA

TF

Investment Value Council (IVC)

ExM

GMCP&C SERV

FIN

SAL

TSS

M&GS

QoS1 QoS2 QoS3 QoS2GSA GSA GSA

Advis.

Strategy &

Governance

Office

Processes –

Ways of Working

Enterprise

Architecture

Project &

Program

Management

Change

Management

Architecture

Management

IT Offerings

Management

Prioritisations

and

Road mapping

Portfolio

Management,

Coordination &

Execution

VMO

IT Sourcing,

Vendor &

Contract

Management

Business IT Offerings Standard IT Offerings

Platform Towers Foundation Towers

IT Business Partnering

“Do the right things”

IT Business Partnering

“Do the right things”

SAL MAN D-SRV

Sites (Adm., Manuf., WPP Service)

CaaSIaaSPaaS User ITPrt, Voice, Vid.

FIN SaaS

Con-sult

Train, Empower

& Inform

Users

Operational

Issue

Coordination

CISO

• IT Security

• Compliance

• Risk Mgmt

• BCMSite setup

User

Support

Delivery

Support

Financial and

Performance

ManagementClient HWIAM

Print, Voice, Video etc.

Middleware NetworkClient SW

InternalIT Tools

DC ServicesSAP

Microsoft InterimPlatform

Other Platform

Price & Funding

Business Agreements

“Do things right”

= cost out

SourcedApplications

Development & Maintenance

“Do things right”

= value up

ExternallySourced

Support &Operations

InternallySourced

Support &Operations

Vendor Service Parts

IT Offerings Owners

Global IT CIO

Head ofGovernance

Officeof the CIO

Head ofIT Security

Head of VMO

Business ITConsultants

PlatformTowers Owners

DomainArchitects

SolutionArchitects

Platform / Infra. Architects

Operational Coor-dinaton OwnerContract, Ven-

dor, Cat. Mgr’s

LegalConsultants

ITProcurers

Strategy &Gov. Officer

Head of EA

Head of Polici-es & Processes

BusinessIT-Partners

IT ContactOfficers

IT SecurityOfficers

IT Audit & Com-pliance Officers

Risk Officers

Business Con-tinuity Officers

Head of PortfolioManagement

Head of ProjectManagement

Secretariat

IT Offerings Owners

FoundationTowers Owners

Global IT Operating Model Usage: OrganisingOrganisational structure shown as a classic organisation chart

Design principles:1. Business oriented

2. End-to-end ownership

3. Play each other good

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Engagement with Vestas

Joint planningwith business partners to ensure that business plans are fully supported by IT Services & Solutions

Enterprise &

Solution,Architecture and

Technology Roadmaps

Master DataManagement

Business ProcessManagement &

BusinessAnalytics

Integration of sourced services

Proactive and professional

management of theservices delivered to Vestas and customers

New skills neededGlobal IT core activities in the future

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Four months detailed transformation plan

Execution plan is key

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Co

ntin

uo

us o

pera

tion

al a

nd

pro

ject d

eliv

ery

Reflections and good advice

Leadership in driver’s seat

100% planning – 100% execution – take your time!

Business is running – keep it running

Communication, communication, communication is not a cliché

Implementation ongoing

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Thank you