It Alighnment10 V3.1

transcript

CIO Roundtable

- Alignment with the CEO & Business -

Robert Bobojco

January, 14 2010

Agenda

Strategic Alignment

From Strategy to Execution

The Current State of IT

Open Forum

Introduction

Alignment

Today’s economic climate, perhaps more than ever, prompts us

to re-evaluate IT’s alignment with the Business. The current

business challenges present an OPPORTUNITY to pro-

actively evaluate IT’s role and contribution to top-level

business objectives and engage in proper adjustments (i.e.

alignment).

The CIO’s alignment with the CEO is largely a “battle” at two

fronts:

• Actionable/measurable Initiatives (direct control)

• Perception (in-direct influence)

Alignment

How to become aligned?

How to develop a strategy in alignment?

How to get agreement between CEO and CIO?

What is the best way to get a statement of direction?

How to document/record alignment?

… the current economic context makes IT alignment with

CEO/Business very challenging, but very necessary!

Alignment – What is “alignment”?

Alignment is the continuous process of implementing and adjusting Technology-based solutions and processes in DIRECT support of ever

evolving and changing prioritized business requirements.

Process

• Established, repeatable process

• Methodology & Tools

Perception• Top-down

• Bottom-up

Measure

• How to assess alignment/progress

• Benchmarking

Repercussions of “poor” Alignment

IT is viewed a “Cost Center” or infrastructure only, not a business enabler

Executive-level discussions of IT focus mostly on cost reduction

IT is designated “Scapegoat” for business performance issues

IT has an inward focus (i.e. operations), is not externally focused on customers

Business & IT – Strategic Alignment

Business Strategy

IT Strategy

• Growth & Customers• Market & Competition• Operational Efficiency• Performance Analysis & Decision Support

• Platforms• Budget & TCO• Vendors• Initiatives & Projects• Resources & Skills

Alignment – “Translation” .. making Strategy

tangible

Strategy

Objectives

Initiatives

Projects / Solutions

Capabilities

IT Strategy - Drivers

IT Strategy is primarily driven and impacted by:

Business Strategy, imperatives, goals, targets

and business initiatives

Market & Customer requirements

Technology enhancements & capabilities

Software/Hardware vendor release strategy

Alignment – Business Strategy

Strategy

• Growth

• Acquisitions

• Products

• Service

• Markets / Channels

• Etc.

Customers

• Acquisition

• Service

• Proc. Integration

• Self-Service

• Pricing

• Retention

• Etc.

Operations

• Process

• Flexibility

• Cost

• Visibility

• Performance

• Etc.

Alignment – Shift to “outward” focus

Customers (Sales & Product)

What are our real business drivers?

? Change in customer behavior/expectations -> shift to WEB

? Improved self-service / customer service

? Process Automation / Lower transaction costs

? Pressure by competitors

? Growth opportunity (channel sales)

? Customer experience & loyalty

? Account Management capabilities

? Direct tie-in with Marketing and Advertising

Alignment - Process

Strategy

• Growth

• Acquisitions

• Products

• Service

• Markets / Channels

Customers

• Service

• Integration

• Self-Service

• Pricing

Operations

• Process

• Flexibility

• Cost

• Visibility

• Performance

Alignment

• Break-down & Translation

• Prioritization

Vision

• Solution Picture

• Technology Integration

Execution

• Initiatives / Projects

• Execution & Monitoring

Alignment – Process Step 1

Alignment

• Prioritization

Vision

Execution

Alignment

• Prioritization

Vision

Execution

Business

Objectives

IT Solutions

Alignment

• Prioritization

Vision

Execution

Alignment

Review

Refine

Solution

Execute

Alignment – From Strategy to Execution

1-on-1: Top strategic

objectives

Understand objectives & requirements

Understand priorities & timeframes

Breakdown of objectives & Initiatives/Project Definition

Partnering & Collaboration (Ownership/Stake)

Joint Execution (Responsibility & Resources)

Develop a thorough understanding of the business objectives

Develop & evaluate solution options that support the business objectives

Develop detail plans & designs and execute projects

Alignment – Outcome (CEO)

Input, feedback and validation sessions:

2x per Year

Company updates: 4x per year

Company newsletter: frequent updates & articles

Alignment – Outcome (Executives - VP)

Input, feedback and validation sessions:

2x per Year

Company updates: 4x per year

IT Vision updates: 2x per year

Alignment – Outcome (IT Organization)

IT Vision updates:

2x per Year

Business/IT Translation: project prep, kickoffs & reviews

Staffing & Education:

2x per year

Alignment - Outcome

Re-active organization

Pro-active

organization

Perception-based

Tangible (Activities)

Inward focus Outward focus

Cost CenterBusiness Enabler

“Scapegoat”Business Partner

Alignment – Documentation

IT Strategy Presentation

The Master Plan

Project Estimates

Project Plans

No. Strategic Business

Objective

Goals IT Initiative / Solution

1 Profitable Growth Increased Market Share

* Awareness

* Coverage

CRM – Pre-Sales, Marketing & Sales Analytics

Increased Profitability CRM – Gross Profit Confirmation for incentives

Reduce Errors via CRM product configurator rules

Business Performance

Transparency

Enhanced analysis & reporting capabilities

(BI / Pro-forma reporting prior to quote approval)

2 Cost Reduction Business Transaction

Efficiency

SAP Dealer Portal:

* Order & Vehicle Mgmt. life-cycle

CRM: Streamlined quoting and transition to order

management

* DBMS Integration

* Offline Productivity

* TMQS

* CRMToday

Shared Services IT Shared Services

Utilize Global Licensing

Balanced IT Resource Model (in-house vs.

consulting)

Standard IT Application

Platform

Consolidation of customer and partner websites onto

single Enterprise Portal platform

3 Mergers & Acquisitions Standardized Processes &

Flexible IT Platform

Expandable and open (integration) technology

platform

Alignment – Breakdown & Translation (EXAMPLE)

Alignment – The “Master Plan” (EXAMPLE)

Pre-requisites of Alignment – Are you ready?

Operational Excellence

Information is an asset

IT Organization

Alignment – Current State & Evolution

Operational Excellence:

Internally focused

Process efficiency

Business Intelligence:

Performance transparency

Management by exception

Decision support

Information worker

External Integration:

Customer, Vendor, and Sales Channel Integration (i.e. external process integration)

The “connected” enterprise

Kaizen –Optimization and support of changing business environments

Rapid Response

Alignment – Key Takeaways

You must take the initiative in the alignment process

You must meet crucial pre-requisites for successful alignment

The most challenging step of alignment is the translation of high-level business strategy/objectives into actionable initiatives & solutions

Document all agreements and outcome of the alignment process (Visibility of Alignment)

Successful alignment involves all levels of the organization

Alignment is a continuous, repeatable process

Questions?

Contact:Robert Bobojcorbobojco@rjtcompuquest.com949-466-6388 (c)

Introduction

Robert Bobojco

A dedicated, results-oriented executive management consultant with over 19 years of IT & SAP experience. Predominantly focused on IT transformation initiatives, systems improvement and process integration projects – ranging from middle-market to global, large-scale clients – using ERP/SAP software portfolios including the ECC, mySAP.com and SAP Business Suite solution platforms.

Background includes senior management positions with a major “Big 6” professional services company, a German Management Consulting Company and international ERP implementations/ solution roll-outs.

Major roles and areas of expertise include:

* Trusted advisor to senior executives (CEO, CFO, CIO) * Effective, hands-on solution-oriented IT & Team Mgmt.* Alignment of business & IT strategy * SAP Implementation Methodologies & Tools* Program-, Project & Integration Management * Business case, Program-/Project budgeting & controlling * Process Improvements & Optimization * SAP application portfolio consulting in ECC, CRM, BI, * IT operations management Portals & XI/PI integration technology