bridging the c suite gap
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Bridging The C‐Suite Gap
How To Build The Business Case For
Data Center Transformation
Defining Data Center Transformation
Delivering the data center needed for your future successDATA CENTER TRANSFORMATION
The DCT opportunity» Reduce overall IT costs.
» Shift spending to business priorities.
» Improve business continuity.
» Support new initiatives and promote growth.
» Allow for modular data centers.
» Increase environmental sustainability.
Dedicated infrastructure and applications
Shared infrastructure and services
Simplify, standardize, and reduce the number of data
centers, applications, servers, storage, and
network resources.
Automate the entire data center operations
lifecycle.
Protect business with resilient operations.
Optimize the use of energy, floor space, and
cooling infrastructure.
DATA CENTER TRANSFORMATIONFour Integrated Initiatives
Bridging the C‐Suite Gap
Does it feel like you and your CIO are from separate planets?VULCAN VS. KLINGON
vs.
Acceleratebusiness growth
• Maintain customer relationships
• Target new opportunities and markets
• Improve business decision making
Lower costs
• Reduce IT cost and drive down business cost
• Enhance operational efficiency
• Improve return on IT investments
• Improve workforce productivity
Mitigate risks
• Improve compliance• Protect critical assets• Ensure continuity of
business operations
How is he/she being measured? – By business outcomesUNDERSTANDING YOUR CIO
8
Priorities
Business
Management
Technology
Metrics
Business
IT Strategic & Operational
Desired Business Outcomes
Costs
Growth
Risks
DESIRED BUSINESS OUTCOMES DRIVE THE CIO AGENDA
HP CIO Agenda framework
Business: How CIOs help meet key business objectives and measure their business contributionManagement: How CIOs manage the IT organization and resourcesTechnology: Which technologies meet these needs
CIO AGENDA PRIORITIES (2009)
1. Business Intelligence applications
2. Enterprise applications (ERP, SCM, CRM, etc)
3. Real time infrastructure; servers and storage technologies
4. Legacy application modernization, upgrade or replacement
5. Collaboration technologies
6. Networking, voice, data and mobile technologies
7. Technical infrastructure management and automation
8. Security technologies 9. Service oriented
applications and architecture
10. Document and workflow management
Technology Priorities1. Improve business
operations and processes2. Control enterprise wide
business costs3. Improve the effectiveness
of the enterprise workforce4. Attract, retain & develop
customer relationships5. Expand the use of
information / analytics in the business
6. Create new products & services (innovation)
7. Support change initiatives, mergers/acquisitions
8. Expand into new markets, geographies and capabilities
9. Support regulation and compliance requirements
10. Manage environmental impacts (Green IT, Carbon Footprint)
Business Priorities1. Link business and IT
strategies and plans2. Reduce the cost of IT
operations3. Deliver projects that
enable business growth4. Improve IT governance5. Improve IT processes
and service delivery quality
6. Improve the business & IT relationship
7. Attract, retain and develop IT personnel
8. Consolidate IT (shared services)
9. Enable the use of information in operations, products or services
10. Manage IT risk
Mgmt Priorities
So How do you build a Business Case?
BUSINESS CASE IN 3 SIMPLE STEPS
Tie it to the 3 objectives. Does this project help:» Reduce overall IT costs?
» Shift spending to business priorities?
» Mitigate risk and improve business continuity?
1. Current State 2. Future State3. What does it take to get there
Represent everything in financial terms
• Revenues generated
• Solution cost
• Internal costs– including customercare and marketing expenses
• Return on Investment
• Cash flow and Payback
• Net Present Value
• Internal Rate of Return
MORE ADVANCED TERMS
Business Case in Action –Breaking it down for DCT
Example: Data Center Consolidation
» Escalating costs» Inefficient and manually intensive
processes
» Inconsistent or poor quality of service» Slow to respond to business needs
» Isolated applications and data» Aging facilities and infrastructure» Too many data centers» Inefficient use of technology assets
Current data center facilities and infrastructure is a barrier to business growth, and expensive to maintain and manage
1. CURRENT STATEComplexity continues to grow.
» Fewer applications» HP’s own transformation: 8000 -> 1500
applications
» Fewer data centers» HP’s own transformation: 85 -> 3 pairs
» Fewer infrastructure components» Virtualize and converge servers,
networking, storage etc
2. FUTURE STATEReduced complexity = reduced cost, improved service levels, less downtime
3. GETTING THERELower complexity.
Increase use of shared infrastructure.
Lower application life cycle costs.
Lower costs through reduced space,
energy, and cooling requirements;
simplified management; and improved
asset utilization.
Significantly reduce costs.
Mitigate energy and space costs and issues.
Improved asset utilization.
Improve quality of service.
Lower costs.»Lower energy and maintenance costs.»Enhance productivity, utilization.»Achieve 20–50% costs improvements.
Manage risks.»Reduce complexity.»Build in continuity and security.
Improve elasticity and enable innovation.»Shift resources to innovation.»Rapidly deliver new business services.»Deploy new resources in minutes/hours instead of days/months.
TYING CONSOLIDATION TO THE 3 GOALS
GETTING THE BALL ROLLINGTwo helpful tools
Experience DCT Workshop
Workshop Focus» Determine benefits, scope, scale,
and critical success factors.
» Identify quick wins.
» Gain stakeholder buy‐in and project traction.
» Build a next‐steps roadmap.
CIO Agenda Workshop
Workshop Focus» Best practice model based on
annual Gartner CIO survey
» Clarify and align business, IT management and technological priorities
» Half day session