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Central de Serviço e Governança de IT | Encontro de Cios CTIS e Sucesu Minas 08/04/2014
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Transcript of Central de Serviço e Governança de IT | Encontro de Cios CTIS e Sucesu Minas 08/04/2014
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Increasing business value of your IT : Value Optimization, Enabling Innovation & Business Restructuring
Aurelio Bastos
Executive Programs Director [email protected]
Jamir Lopes
Executive Programs Director [email protected]
Gartner Executive Programs Latin America
April 2014
1
Gartner helps CIOs to Change Focus from Cost Cutting to Generating Value
A cost-focused IT culture is reflected in the obsessive focus on the cost of
IT operations (as opposed to the cost of enterprise operations), a budget-
driven project proposal process, absence of IT in the front office and
deferred maintenance on IT (thus increasing IT debt).
Loss of revenue, market share or reduction in customer satisfaction scores
is common among organizations that focus only on cost.
As front-office operations increasingly depend on technology support,
enterprise culture must shift to recognize IT as a value-generating
function. The alternative is diminishing effectiveness in the front office.
The IT organization must not see itself as a victim that's powerless to
change an externally imposed IT cost focus. The change can, and should,
start from within.
Barriers —There are Many
2
Politics (silos) Poor IT cost transparency
Lack of accountability
Inability to divest Low tolerance
for risk
IT lacks involvement in
“business” strategy
Enable Innovation & Business Restructuring
Joint Business & IT Cost Savings
Implement process improvement, business restructuring and
innovation
Implement cost-savings technologies in conjunction with
the business
IT Procurement
Cost Savings Within IT
Identify opportunities to reduce IT costs
Get the best pricing and terms for your IT purchases
Sig
nific
ant IT
Sa
vin
gs P
ote
ntia
l (I
T &
Bu
sin
ess R
ed
uctio
ns)
Mo
de
st S
avin
gs P
ote
ntia
l
(IT
Cost R
ed
uctio
n)
Size of Potential value of IT Directly Relates to Effort Invested
• Deliver Units Differently - Evaluate changes to service delivery domains
consolidation, streamlining or selective outsourcing
• Reduce Unit Cost -
• Deliver Different Units - Reimagine business service delivery with
technology
• Reduce Number of Units
Reduce application footprint ,
• Evaluate projects
Inc
rea
sin
g B
us
ine
ss
Va
lue
Inc
rea
sin
g L
eve
l o
f E
ffo
rt
1
2
3
4
Four paths that can be taken individually or together for compounding effect
4
Questions to Ask About Lever 1 (Procurement)
• Does your organization have consistent processes for IT procurement and contract renegotiation?
• Where is your organization is on Gartner’s IT Score Model for Sourcing and Procurement?
• How confident are you that you are getting the best pricing and terms, and how to you validate your assumptions?
Cost Optimization Opportunities Remain in Every Area of IT
- Best performers are decreasing costs 20% faster than average performers
- The resulting I&O performance gap alone has now increased to 41% over the past three years, even larger within applications.
• There is a pressing need to ensure IT spend drives business value and financial performance, yet cost optimization efforts are frequently poorly framed and implemented
• Maximizing the opportunity requires challenging the conventional wisdom regarding cost optimization among both IT and Business executives.
US$M
Relative spend to deliver same workload
Best Performers vs. Average Infrastructure Costs,
Average Performers Best Performers
41%
Differences Between Average and Best Performers
Overall IT Spend 38% difference in cost
Application Development 53% difference in cost per function point
Application Support: 55% difference in cost per function point
Mainframe 35% difference in cost per installed MIPS
Unix server 62% difference in cost per server
Wintel server 32% difference in cost per server
Storage 44% difference in cost per TB
Desktop 22% difference in cost per device
Help Desk 33% difference in cost per handled
contact
Wide-Area Data Network 43% difference in cost per device
Local-Area Network 51% difference in cost per active port
Wide-Area Voice Network 27% difference in cost per minute
Voice Premise
Technologies
34% difference in cost per active
extension
Enable Innovation & Business Restructuring
Joint Business & IT Cost Savings
Implement process improvement, business restructuring and
innovation
Implement cost-savings technologies in conjunction with
the business
IT Procurement
Cost Savings Within IT
Identify opportunities to reduce IT costs
Get the best pricing and terms for your IT purchases
Sig
nific
ant IT
Sa
vin
gs P
ote
ntia
l (I
T &
Bu
sin
ess R
ed
uctio
ns)
Mo
de
st S
avin
gs P
ote
ntia
l
(IT
Cost R
ed
uctio
n)
Size of Potential value of IT Directly Relates to Effort Invested
• Deliver Units Differently - Evaluate changes to service delivery domains
consolidation, streamlining or selective outsourcing
• Reduce Unit Cost -
• Deliver Different Units - Reimagine business service delivery with
technology
• Reduce Number of Units
Reduce application footprint ,
• Evaluate projects
Inc
rea
sin
g B
us
ine
ss
Va
lue
Inc
rea
sin
g L
eve
l o
f E
ffo
rt
1
2
3
4
Four paths that can be taken individually or together for compounding effect
7
Questions to Ask About Lever 2 (Cost Savings Within IT)
• Have you compared your IT costs against Gartner’s IT Key Metrics Data?
• Where is your organization on Gartner’s IT Score Model for Infrastructure and Operations?
• In which areas are you currently working to save costs within IT?
• What are the biggest drivers of unanticipated IT costs in your enterprise?
• Have you implemented Gartner’s “10 Key Actions to Reduce Infrastructure and Operations Costs,” found in G00170304?
Lever 2: Cost Savings Within IT: Identify Opportunities to Reduce Costs
1. Defer non-critical key initiatives
2. Re-examine networking costs
3. Consolidate I&O
4. Virtualize I&O
5. Reduce power and cooling needs
6. Contain storage growth
7. Push down IT support
8. Streamline IT operations
9. Enhance IT asset management
10. Optimize multi-sourcing
Gartner’s Ten Actions to Reduce IT Infrastructure and Operations Costs
These actions reduce
annual I&O costs by
10% within 12 months,
and by 25% or more
over three years.
Enable Innovation & Business Restructuring
Joint Business & IT Cost Savings
Implement process improvement, business restructuring and
innovation
Implement cost-savings technologies in conjunction with
the business
IT Procurement
Cost Savings Within IT
Identify opportunities to reduce IT costs
Get the best pricing and terms for your IT purchases
Sig
nific
ant IT
Sa
vin
gs P
ote
ntia
l (I
T &
Bu
sin
ess R
ed
uctio
ns)
Mo
de
st S
avin
gs P
ote
ntia
l
(IT
Cost R
ed
uctio
n)
Size of Potential value of IT Directly Relates to Effort Invested
• Deliver Units Differently - Evaluate changes to service delivery domains
consolidation, streamlining or selective outsourcing
• Reduce Unit Cost -
• Deliver Different Units - Reimagine business service delivery with
technology
• Reduce Number of Units
Reduce application footprint ,
• Evaluate projects
Inc
rea
sin
g B
us
ine
ss
Va
lue
Inc
rea
sin
g L
eve
l o
f E
ffo
rt
1
2
3
4
Four paths that can be taken individually or together for compounding effect
10
Questions to Ask About Lever 3 (Joint Business and IT Cost Savings)
• Are you familiar with Gartner’s research on application Total Cost of Ownership, as described in, “A Framework for the Lifetime Total Cost of Ownership of an Application”?
• Where is your organization on Gartner’s IT Score Model for Applications?
• How do you currently manage your application portfolio?
• How do you work with business’ stakeholder to identify opportunities for IT and the business to work on and leverage IT?
Treat Applications as Assets
• The "E" in TIME (*) is logical, but requires intestinal fortitude.
• Most of the time, things stay around until they pose an obviously huge risk, or break and cannot be fixed.
• Unless there is a life-threatening moment… (*) TIME = Tolerate, Invest, Migrate or Eliminate Methodology
Value
Cost
Value/Business Benefit
Time Project
Expense
Project Capital Depreciation Upgrade
Expense Ops Cost App Maint.
… …
Capital Planning and Portfolio Management
• Whenever someone wants something new, the CFO (or CEO, COO) asks, "What will go away?"
• Business cases include financials for full life cycles — from creation through retirement (including decommissioning).
• Retirement and reuse lists exist, and execution is tracked.
Base Base
Project
A
Project
B New
Project
New
Project
Current
Year
Next
Year …
Base
Several
Years
Bu
dg
et
…
13
Take away for Lever 3 (Joint Business and IT Cost Savings)
• Application Rationalization; Identifying and retiring business applications
• Business Process Optimization.
• Demand Governance: How do you ensure business projects support business objectives
• Shared Services: How can business support be rationalized ?
• Sourcing strategy: Can processes be delivered in a different way?
Enable Innovation & Business Restructuring
Joint Business & IT Cost Savings
Implement process improvement, business restructuring and
innovation
Implement cost-savings technologies in conjunction with
the business
IT Procurement
Cost Savings Within IT
Identify opportunities to reduce IT costs
Get the best pricing and terms for your IT purchases
Sig
nific
ant IT
Sa
vin
gs P
ote
ntia
l (I
T &
Bu
sin
ess R
ed
uctio
ns)
Mo
de
st S
avin
gs P
ote
ntia
l
(IT
Cost R
ed
uctio
n)
Size of Potential value of IT Directly Relates to Effort Invested
• Deliver Units Differently - Evaluate changes to service delivery domains
consolidation, streamlining or selective outsourcing
• Reduce Unit Cost -
• Deliver Different Units - Reimagine business service delivery with
technology
• Reduce Number of Units
Reduce application footprint ,
• Evaluate projects
Inc
rea
sin
g B
us
ine
ss
Va
lue
Inc
rea
sin
g L
eve
l o
f E
ffo
rt
1
2
3
4
Four paths that can be taken individually or together for compounding effect
15
Questions to Ask About Lever 4 (Innovation and Business Transformation)
• Is the enterprise using information technology to support new business models and/or new sources of revenue as described in Gartner’s research on “In Emerging Markets, CIOs Must Partner With the Business to Leverage Innovation ?”
• Is the enterprise using information technology to create a competitive advantage?
• How confident are you that the business is investing in the right things?
• Where are your best opportunities to drive business process improvement with information technology?
16
Measure as a Business Partner Use business performance to determine IT success
Contribution of IT
Dramatically
reduce
inventories
Identify redundant
assets
Reduce
process
inefficiencies
Dynamic pricing
Increase reach
Improve service/
cost value
proposition
(Illustrative)
Technology (Illustrative)
Asset tracking
systems
Inventory
management systems
Process automation
Real time market
analysis and price files
Virtual channels,
Web and so on
Customer self-
service/ delivery
tracking
Note: (1) Return on capital employed
(2) Profit before interest and tax
(3) Cost of goods sold
Business Objectives
Increase ROCE (1)
Increase Market Share
Increase Market Size
Increase Sales
Decrease Costs
Increase PBIT (2)
Reduce Current Assets
Reduce Fixed Assets
Decrease Capital Employed
Reduce Other Costs
Reduce COGS (3)
Increase Volume
Increase Price
Source: Adapted from www.investopedia.com
Lever 4: Business Innovation and Transformation
• "Seizing Competitive Advantage" special report highlights how enterprises
use IT to win.
• Hype Cycles and Emerging Technologies research helps
identify game- changing technologies.
• The Internet of Everything research explores how IT is
often becoming the business.
• Research around mobile, hybrid thinking, social
computing, idea management, R&D
approaches and innovation labs.
• Toolkits add rigor and discipline to innovation
processes.
• Webinars, best practices and case studies on business and IT innovation in key
industries.
• Vertical industry research and analysts
• The Gartner IT Market Clock™ and Gartner ITScore help identify modernization targets, and build actionable
road maps.
• Deep expertise in business process and risk management
to drive operational excellence.
• "Business value of IT" Key Initiative translates IT benefits
into business value.
Shift the focus from the cost of IT to
value of IT
Innovate
Seize Competitive Advantage Transform the Business
Today, a competitive advantage from IT is
rarely about implementing a
single “killer app”
C-Level Executives view information
technology as the engine of growth
STREET: Process for Innovation
Transfer Evaluate Track
Scope Evangelize Innovation
Candidates
Rank
Give yourself a star:
We don't do this, or we don't do this well
We have activities but could do it better
We don't have too many problems here
19
Next Steps: Developing the Go-Forward Plan
• Build into your team meetings in the next 30 days to
address insights from this workshop.
• Identify accounts to proactively take our Cost
Optimization capabilities.
• Build into service kick offs and ongoing value Reviews.
• Think about establishing an innovation process, such
as STREET.
Recommended Reading
20
In Emerging Markets, CIOs Must Partner With the Business to Leverage Innovation
Published: 18 April 2013 ID:G00250677
Analyst(s): Cassio Dreyfuss
10 Key Actions to Reduce IT Infrastructure and Operations Cost Structure
Published: 6 October 2009 ID:G00170304
Analyst(s): Jay E. Pultz
A Framework for the Lifetime Total Cost of Ownership of an Application
Published: 30 March 2010 ID:G00174275
Analyst(s): Andy Kyte
Use the Pace-Layered Application Strategy to Understand Your Applications Portfolio
Published: 16 August 2012 ID:G00232225
Analyst(s): Darryl Carlton | Jim Duggan | Luis Claudio Mangi
Driving the STREET Process for Emerging Technology and Innovation Adoption
Published: 30 March 2010 ID:G00174060
Analyst(s): Jackie Fenn
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Increasing business value of your IT : Value Optimization, Enabling Innovation & Business Restructuring
Aurelio Bastos
Executive Programs Director [email protected]
Jamir Lopes
Executive Programs Director [email protected]
Executive Programs Latin America
April 2014