Global IT Planning & Analysis

February 6, 2009

2 Reproduced from Gartner

The IT Governance Creditability Curve

Tools

• Budgets

• Project Mgmt

• Procurement

• Cost Tracking

Perception Points

• Accuracy

• Reliability

Level 1Uncertainty Tools

• Financial Analysis

• Business Cases

• Contract Mgmt

• Spend Analysis

• Asset Tracking

Perception Points

• Efficiency

• Predictability

Level 2Skepticism

Tools

• IT CFO

• Prioritization

• Vendor Mgmt

• ITAM

• IT COA

• Benchmarking

Perception Points

• IT Cost Visibility

• Improved Alignment

Level 3Acceptance

Tools

• Strategy-Driven Funding

• ITFM System of Record

• Cost Recovery

• Strategic Sourcing

• Managed IT Costs Structure

• Return on Assets Analysis

• Financial Modeling

Perception Points

• Accountability

• Insightfulness

Level 4Trust

Tools

• Governance-Supported Funding

• Portfolio Management

• Service Pricing

• IT Value Measurement

• Post-project Audits

• What-if Analysis

• Price/ Performance Comparison to External Service Providers

Perception Points

• Value

• Strategic Alignment

Level 5Respect

FY09

FY10

Potential Economic Value

3

• Create financial reporting & awareness of major issues affecting financial performance• Drive for consistency & accountability in the budgeting, forecasting, and chargeback processes• Facilitate portfolio management to enable EA to make the right investments• Enforce IT Governance and data integrity with better process and the rollout of a PPM tool• Implement mechanisms that allows IT to track it's external contractual obligations and integrate

into financial planning process • Effective management of the full lifecycle of the IT vendor portfolio • Assist in managing staffing and spending levels by providing visibility including external and

internal benchmarks such as costs by service and by customer• Manage reporting process associated performance metrics

GITPA Vision, Mission, Objectives

3

Become a team of trusted advisors to IT leadership by helping maximize IT investments and to run IT like a business and ultimately as part of the business.

Vision

Deliver the processes, tools, and analysis that lead to reasoned decision-making in IT.

Mission

Strategic Goals / Objectives

4

POR Governance

Project Financial Management

Project Analysis & Reporting

GL Management

Global IT Financial Support

Online/OCORLabel Financial Support

IT FinancialAllocations

Annual Planning

IT Spending & Staffing

IT Benchmarking

Global IT Scorecard

IT Operational Metrics

IT Spend Metrics

Vendor LifecycleManagement

Contract Management

IT Procurement

S/W Asset Management

GITPA Service Portfolio

IT ProjectGovernance

IT FinancialManagement

IT VendorManagement

IT Performance Management

Global IT Planning & Analysis

5 Reproduced from Gartner

The Strategic IT Financial Management Maturity Model

Evolution Through Five Stages Stage 1: IT spending is a “black box.” The budget is a single number. Business does not know how the budget is spent.

Black Box

Glass Box

Simple Portfolio

ComprehensivePortfolio

Enterprise Portfolio

Increasing need for flexibility

1 2 3 4 5

Increasing need for sophistication

Increasing need for transparency Stage 2: IT spending is a

“glass box.” The budget is still a lump sum allocated as the CIO sees fit, but business has some input.

Stage 5: IT spending is an enterprise portfolio; IT expenditures are business expenditures.

Stage 4: IT spending is a comprehensive portfolio; IT is viewed as an investment portfolio.

Stage 3: IT spending is a simple portfolio. The budget has two goals: Keep the lights on and invest in the business.

6

Project Portfolio Management Council

Manage and shape demands

Support/guide delivery

Ensure project aligns with business strategy and add value to EA

Promote business ownership/adoption of IT solutions

Business IT

Project Management methodologies

SOX D&I Governance

Change management

Testing methodologies

Resource Management

Service Operation readiness

GPMO Community

Initiate Project

Execute Project

Manage project to scope, budget/resource and schedule

Operationalize solution

Service Lines

Approval Policies and Procedures for new Project Demands and Project budget Change Requests

Project Financial Management - tracking and reconciliations

Project “New Run” management

Project portfolios review

Aggregate IT Project scorecard

PA IT Project Governance

7

Responsibilities

8

Online IT/Shared

IMSGTS

ESO

SRM BizIT

BIDS

Project Financial Management

Purchasing/PR/PO/Invoicing

Project Governance Framework

Vendor Management Framework

P&A Analyst

• Monthly Financial Reporting• Project Tracking• PR/PO Process• Contractor Spend• OCOR Allocations

• Monthly Financial Reporting• Project Tracking• PR/PO Process• Contractor Spend• Label IT Spend

• Monthly Financial Reporting• Project Tracking• PR/PO Process• Contractor Spend• Capex

CIO

FP

&A

G.L Financial Management

P&A Centralized Services

Delivery Model

P&A Analyst

P&A Analyst

Performance Management Framework