the it effectiveness practice
TRANSCRIPT
The IT Effectiveness practice
2012
www.pwc.com
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IT Effectiveness PwC
Contents
Ubiquitous IT
Clients questions
Ten fundamentals that always work
Comprehensive offering stack
Fast movers
Who we are and practice in numbers
ITE big bets
Tool Differentiators
ITE as a door opener for Consulting/Advisory
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Ubiquitous IT
• In today’s business world agility and speed of change is more important than ever, changes happen with an increased cadence.
• The IT function today must cope with cost pressures, ensuring they stay tuned to ever-increasing and complex business requirements.
• They must provide flexible business applications, underpinned by a basic architecture and platform able to manage the speed of change.
IT Effectiveness bridges the gap between what the business demands and what technology would eventually provide.
IT Effectiveness: Managing IT as a Business
Strategy
Technology
IT Strategy Development
Tactical IT Planning
IT Systems/Infrastructure Implementation
Business Strategy Development
IT Cost & Performance
IT complexity
IT Risk & Compliance
Sourcing competency
IT Governance & Leadership
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Client Questions
How can we grow and differentiate the business?
How do I optimize my cost while growing demographically and/or in size?
How can I get clarity on IT spend across the company to determine the right level of investment?
Post a deal, how can we efficiently merge businesses and obtain higher valuation?
Will IT be able to support my business in meeting our business objectives?
How can I solve the chronic disconnect among IT organizations, systems and technology
How can we optimize our application portfolio to ensure cost effectiveness and better service delivery?
Do we have sufficient guards in place to maintain business continuity incase of an eventuality?
How can I improve the performance of IT service delivery and management?
How and when should we migrate to new systems and how should the change be managed?
Do my people have the required IT skills and capabilities to support changing business needs?
CEO, CFO, COO, CMO CIO/CTO
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Ten fundamentals that always work
1. Commitment from the ‘C-Suite’ Many IT Projects fail due to lack of commitment and involvement from the Senior Management.
2. Prioritization of Business Roadmap Almost all IT requirements are urgent. This leads to chaos during implementation and difficulty in managing change.
3. Standardization Insulating IT from ‘Start-Stop business investment cycle will help leverage the benefits from standardized processes which can then be easily automated.
4. Management of Change A large scale IT project is a powerful tool to induce the much needed change in Your organization. Communicating the objectives and managing change are critical.
5. The Role of CIO/CTO The CIO is a part of the Business Leadership Team. Revenue Assurance, Strategic Alignment and Customer Satisfaction can be a few areas the CIO should spend more time.
6. IT Relation with Business Business is responsible for the technology automation and IT should own the implementation. A healthy flow of information helps benefit realization.
7. Real Spend on IT IT cost should always be calculated from a TCO base and not a ‘point-in-time’. Usually shadow components consume a higher cost than the planned budgets
8. Measure IT Alignment of IT to Business, Business Perspective of IT, Time to Market and Customer Satisfaction (internal/external) can be a few measures.
9. IT Portfolio The IT landscape should be managed as a portfolio where the benefits, risks, investments, and future road map are seen from a holistic view point rather than a project based approach.
10. Sustain Benefits Up gradation of Skills, Trainings, Continuous Performance Improvement and regular review with business users help ensure a stronger scope of benefit realization.
It’s never just about IT!
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Comprehensive offering stack
The business of IT
• Aligning IT to Business • Building a better IT Function • IT Benchmarking and Portfolio Management • Program and Project Management • Alliance and Vendor Management
IT cost and value management
• IT Cost Management • IT Value Management
IT due diligence and post deal services
• Pre Deal IT Due Diligence • Post Deal
- IT Integration - IT Project Management Office
IT network & infrastructure management
• Data Centre and Computing technologies • Green IT • IT Service Management • IT Asset and Capacity Management
Business continuity management
• Business Impact Analysis - Disaster Recovery Planning - Business Continuity Plan Development - BCP Strategy selection - BCP Evaluation
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Fast movers
• The Benefits Management Office: It’s a benefits office which is driven on outcomes and not on activity! This office is setup and managed by PwC and brings in all the required skills on the table to execute an operation/initiative
• The CIO Advisory Office: it’s the new pre paid model of effectiveness consulting! Targeted at all kinds of CIO (small, large and mid size corporate) – who are dabbling with the problem of managing strategy and implementation pressures, PwC offers a helping hand to maintain the strategic direction and acts the trusted aid/mentor to the CIO
• IT Infrastructure consulting: IT infrastructure seems to be the biggest spending area for the mid-market CIO. What to buy, where to buy, whom to buy from and how to go about installing and commissioning is what we help our customers with.
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Who we are
• We are team of 35+ professional spread across – Mumbai, Delhi, Bangalore and Kolkata solving client problems around:
- How do I Manage Growth – as I grow – my expectation on enabling functions increase and IT is critical to manage this growth
- What is the Right solution for me – as I implement - I need the right product, vendor and someone to manage the implementation
- I am keen to Invest – as a decision – I need a partner who can do a due-diligence and manage the integration if I decide to go ahead with my investment
- I have a Complicated IT landscape – managing it – is a night mare. I need someone to manage my application and IT infrastructure
- I have a Major Implementation – need help – to project and program manage the change
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ITE big bets
• Infrastructure and Government
- Focus on road, PPP and EPC players
• CIPS and Logistics
- Focus on manufacturing facilities, 3 PL, logistics and supply chain solution players
• Healthcare and Agro
- Focus on Healthcare service providers, agro product players
• TICE
- Focus on Infocomm and technology led companies in the entertainment and hospitality space
• FS and Private Equity
- Focus insurance, banks and private equity players with a special mention of investee companies
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Tool Differentator
• Assessment capability of the IT Maturity of an organization using iTeam
• Approx time frame : 4-6 weeks
• Result – An objective view of the health status of the client IT landscape
PwC – IT performance framework
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Tool differentiators (continued)
• We provide a view on the IT Cost viv a vis the Value delivered
Dimension A
• Level 1 – Total IT spend for each period for specified unit
• Level 2 – Total IT spend sub totalled by Type
Dimension B
• Level 3 and below – Dimension A spend subtotalled by IT Business Function
Category Each financial year
Site: ________________ Technology Personnel Outside (eg. Outsourced)
Other Total
Usage Rent/lease/ license
Dep Maint FTE Cost Cost Cost
Hard Soft Hard Soft Hard Soft Hard Soft Staff Cont
Service Management eg.
• Strategy & Architecture
• Technology research
• Demand Management
• Supplier Management
• Relationship Management
• Governance
• Performance management
• HR management
• Training
• Marketing and Comms
• Security
• Business continuity
Service delivery
• Business As Usual
• Transformation projects
Total
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IT Effectiveness opportunities
Triggers
• With the appointment of a new IT Director who quickly needs to understand the current IT service management effectiveness in the firm and business priorities and make an impact
• After a merger, acquisition, restructuring or other corporate activity has taken place
• During a period of change when the role of IT is unclear
• If the IT is under pressure to reduce costs and demonstrate added value
• When anecdotal feedback suggest poor service quality and inefficient IT processes, but there is a lack of hard evidence
• When outsourcing of all or some IT processes is being considered
• When considering transforming the role of IT in the firm
Latent triggers
• When IT priorities are unclear and do not tie into business strategy
• If the firm is willing to undergo a benchmarking activity to check their position in the market
• Pre-deal analysis of a firm’s preparedness
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ITE as a door opener for Consulting/Advisory You can reach us @
North [email protected]
South [email protected]
West [email protected]
East [email protected]
Rachna Nath
Executive Director
Partha Kundu
Executive Director
Thank you
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