Six Pillars of IT Value

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Six Pillars of IT Value

• John Berney
• CIO Plus Limited

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Agenda

• Get the Boards Attention
• Benchmarking
• Finance
• Projects
• Organisation
• Sourcing

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Get the Boards Attention

• Act like a Businessman
• Care about the Bottom Line
• Communicate
• Help Grow Sales
• Green
• Dont Forget the Day Job

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High Level Benchmarking

• Turnover Spent on IT
• No of IT staff per 1000 Users
• IT Cost per User
• of Total spend on Projects
• Project Pay Back
• Contract Staff
• Operational Metrics

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Financial Services Example
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Finance

• Identify all costs
• Low hanging fruit
• BAU vs. discretionary spend
• Monthly accounts management meetings
• Spend vs. budget
• Spend to end of Year
• Spend to project completion
• Appropriate categories of spend
• Safety factor

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Finance MA

• Most fail
• IT synergies
• Shareholder value
• Due diligence
• Integration engine
• Second wave of synergies

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Project Control Benefits Realisation

• Want to Do vs. Have to Do
• Hard vs. Soft Benefits
• Hurdle Rates
• IT Benefits Tracking
• 15 Maintenance Principle
• Technical vs. Business Projects
• Appropriate Sign On
• Other Departments Benefits

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Project Effect on Costs
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Organisation

• Not too Shallow
• BAU vs. Discretionary
• Personal Traits Steady State vs. Change
• Internal Meetings

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Sourcing Strategy

• If you are big enough you should be good enough
• Marginal costing
• Banks
• Airlines
• Contractor vs. permanent
• Competition
• Forward resource plan

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Integrated Operational Planning and Budgeting

• Plan over sufficient timescales
• Aim for a benchmarked position
• Integrate projects with plan and budgets
• Show positive impact on BAU
• Show positive impact on opertional metrics

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Construction Industry Example

• IT organisation
• Inappropriate outsourcing contract
• Site set-ups
• Email
• Network performance
• Virus protection
• Disaster recovery
• Paying too much

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Costruction Industry Example - IOPB
Doubled Profits
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MA - Energy Industry Example - IOPB
Share Price 4.30 - 10.30
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Consistent Energy Watch View

• Best Billing Record
• Best Customer Transfer Process
• Best Selling Process
• Best Customer Service

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Summary Six Pillars of IT Value

• Get the Boards Attention
• Benchmarking
• Finance
• Projects
• Organisation
• Sourcing

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Questions ?