Deloitte BE - IT Strategy Considerations CIO Roundtable – Advancing Sourcing Strategies 12th December 2013

© 2013 Deloitte Belgium

IT Strategy – Deloitte Belgium

2

Why This Update

•  Competition in most industry sectors increases; against the background of economical uncertainty, business performance becomes a major boardroom topic

•  As a direct consequence, IT often gets pushed into the ‘cost corner’.

•  Yet, IT can be a major lever to business transformation and performance improvement.

•  This session will highlight some considerations on IT Strategy.

© 2013 Deloitte Belgium

Business Context

3

Economical climate •  Western Europe is reconnecting with mild growth : 0.1% in EU zone •  The economy does remain very fragile

•  Unemployment staying at high levels •  Labour productivity decreasing in some countries •  Southern Europe still a concern

•  Ageing demographics will keep pressure on public finance high

Deloitte Belgium •  Revenue FY13 : 462M$ •  8% up vs FY12 •  Consistent growth and profitability over the past years

So – what’s up?

•  Top-line pressure : outlook for future growth / competitive pressure •  Bottom-line pressure : efficiency & productivity

© 2013 Deloitte Belgium

Key Strategic Drivers

4

Need protection against margin erosion •  Productivity & operational efficiency

Competitive Strength •  Upping the game in Relationship Management •  Information is an asset

Recruitment / Evolution of the labour market

•  Being / Remaining the preferred employer

⇒  Some IT Focus Areas :

•  Gateway •  Business Process Re-Engineering •  Infrastructure & Operations

Sourcing Considerations !

© 2013 Deloitte Belgium 5

IT Portfolio – Creating More Freedom for Strategic Initiatives

From 97/3 to 83/17

97.26%  

2.74%  

FY13  

Opera2ons   Projects  

82.88%  

17.12%  

FY14  

Opera2ons   Projects  

Sourcing Considerations !

© 2013 Deloitte Belgium

IT Value Drivers : a Provocative Checklist …?

6

Market Leader / Risk Taker / High Growth

Technology =

Strategic

Technology =

Utility

Market Follower / Risk Averse/

Mature

The Butler

The Grinder

The Entrepreneur

The Team Player

Sourcing Considerations !

© 2013 Deloitte Belgium

IT Value Drivers : the Journey for Belgium

7

Year 1 : Fix the Foundation •  Infrastructure Resilience •  Team Structure

Year 2 : Trustworthy Services •  Excellence in Project Delivery •  Advanced Security Management •  Re-Engineering •  Advanced Development Practice

Year 3 : Biz - Savvy Partnering

•  Business Process Management •  Business Transformation •  Leading Technology Expertise

Direction : the Beacon

•  Technology Leadership •  Information / Insight Management •  Relationship Management •  The Orchestrator

Sourcing Considerations !

© 2013 Deloitte Belgium 8

Strategy Component : Infrastructure Re-Design

Sourcing Considerations !

© 2013 Deloitte Belgium 9

Deloitte’s Cloud Computing Strategy Cloud Assessment and Governance Enable Cloud Architecture

Establish Cloud Partnerships Transform IT Organization

•  Leverage Deloitte’s Cloud Framework for workload assessment and strategic decision making

•  Transparently measure, track and justify Cloud Investments & ROI

•  Establish Governance process to evaluate opportunities, standardize cloud adoption and monitor progress

•  Create a hybrid environment with the majority of capabilities available in a public cloud environment while critical core capabilities and integration remain on-premise at Deloitte.

•  Establish Enterprise guiding principles and architecture

•  Revise and adjust architecture to take advantage of new technologies

•  Develop strategic cloud computing partnerships with select vendors to leverage scale, create efficiencies and reduce contract management time

•  Achieve cost efficiencies through strategic relationships

•  Move IT up the value chain by shifting capacity from administering technology to managing vendors

•  IT’s role will evolve to become a Cloud Service Broker by provisioning best in class cloud services for business

•  Cloud-specific capabilities will be developed through intensive re-skilling/up-skilling and training

Deloitte Cloud Strategy

© 2013 Deloitte Belgium 10

Detailed Assessment of IT workloads for Cloud Suitability Analysis of the Deloitte application scoring matrix to measure the viability of Cloud technologies and services at a functional

level

Analysis of Deloitte’s application architectural characteristics such as integration points, scaling

requirements, ubiquity and data characteristics to assess suitability of workload migration to the Cloud

© 2013 Deloitte Belgium

Cloud Implementation Considerations

11

Workstreams / Themes •  Legal, Risk & Independence •  Data Privacy •  Business Risk •  Procurement & Contractual •  Security •  Technical •  Pilot

Deployment Types •  Full Private Cloud •  Full Public Cloud •  Hybrid Deployment

© 2013 Deloitte Belgium

Fundamental Change : IT Organization moving up the value chain

Business

IT

Traditional in/out-outsourced delivery

Legacy

Tactical migration of IT services to the Cloud and streamlined IT organisation

Cloud

Business

IT

Short-Term

Cloud services competitively sourced from suppliers, and a combination of IaaS, external or internal private clouds. IT organisation manages delivery of Cloud services

Long-Term

Business

IT

IaaS PaaS SaaS

Service Brokering

Cloud Ecosystem

Many IT functions will seek to release capacity from administering technology and apply to managing vendors. IT will move up the value chain; no longer viewed as a

cost center but now a strategic business partner

Sourcing Considerations !

© 2013 Deloitte Belgium