Create and Communicate

The

Value of IT

• Building an organization’s Information Capabilities is as much about people behaviors and information practices as it is about IT.

• The mindset and actions of an organization’s managers are critical to effective information use and to achieving performance results with information, people and IT capabilities – managers drive information strategy & IT (Information Technology) enables it.

• Leveraging Information and Knowledge for Performance Impact is no longer Soft or Intangible :

• These assets can be measured and leveraged by managing the Information Orientation of our organization.

Creating / Improving Business Valuerequires a vision & management of Information, People, Processes and Information Technology

Create and Communicate the Value of IT

• Envision value creation ahead of below : 20% of the job is done

• Communicate : 20% of the rest is done• Co-Create value thereafter : 40%• Communicate:

– What to use, How to Use & Ensure Usage : 20% • Follows the 80/20 rule. • Without this return on rest 80% is not there.

– A key factor to ascertain completeness of the envisioned

Envisioning Outcomes in a Program which involves Information, People, Processes and Information Technology

Identify and find ways to estimate value creation opportunities in

1. Revenue enhancement

2. Customer Delight

3. Process Improvement

When planning a program think & communicate in terms of:

- Company P & L : Will it impact

- Top Line ? or

- COGS Gross Margin or ?

- S G&A Net Margin ?

- Financial & Operations Modeling eg in Supply Chain components, IT sourcing, Order fulfillment process, CRM process

- Customer facing impact

- People Connect

- Product or Solution or Customer Service….

- Enterprise’s Information Orientation

- Making Innovation real for Business

- IP Creation having an impact on valuation

….as IT will find its place everywhere

Current Economy requires of CIO’s to Envision or Effectively Contribute in Initiatives that fuel Business Growth

Things of Past or assumed to be given :- Process Standardization - Setup Financials Shared Services- Cost Savings (I saved an accident !!)- IT asset Optimization – be it virtualization

• Senior Executive : I want to capture secondary sales data from distributors/dealers etc.

• Ask what business issue/program is on the mind :– Market Penetration– Promotion Campaigns– Dealer Relationship Management– Sales force performance Management

• What will be measured in above ?• What is the impact on his job role & KPI ?• Ability to work outside the comfort zone ?

Engage & Start dealing with top management mindset as a key input to Envisioning

• Senior Executive 1 : I want to first implement Financials and Asset management and then slowly implement materials management and go on step-by step.

• Ok slow & steady wins…but what is guiding the thinking process:

– Financial Outlay– Change Management with staff– It’s too complex to handle – Stories of failure/Past experience– Sense : The mindset

• Senior Executive 2: I want to manage business through my business heads. Increase in Market share is what matters…sales growth will come by.

• Senior Executive 3: I want all my managers and staff in the plant to access BIW and take decisions there & then.

• Senior Executive 4: We are losing a lot in wastages and by-product re-utilization.

• Senior Executive 5: DSO’s are worst of all times in past.

• Senior Executive 6: Customer’s feel comfortable when we have business practices supported by mature IT solutions & practices. BI/Data on portals will stand testimony to our delivery.

• Senior Executive : I want that in a sales discussion with customer the sales rep should get real-time expected delivery date based on plant capacities and orders at hand on that plant ?

• Cool…– but will it lead to more deal closures and faster ?– If its TAT then analyze which leg constitutes the

most ?

Getting Business focus

Driving the Strategy and gearing for a sizeable & meaningful impact

Handling Untimely value creation or waste creation

Focus on “What” part…do not let the “How”

constrain the “Envisioning”

Create and Communicate the Value of IT

• Envision value creation ahead of below : 20% of the job is done

• Communicate : 20% of the rest is done• Co-Create value thereafter : 40%• Communicate:

– What to use, How to Use & Ensure Usage : 20% • Follows the 80/20 rule. • Without this return on rest 80% is not there.

– A key factor to ascertain completeness of the envisioned

Co-Create• Partnerships

– Each & every body involved/impacted in the initiative in the company

– External Vendors• Hardware, System Software, Networking, Application

Software• Implementation

– Try Distributed Co-Creation if opportunity exists• Business Value Consulting• Financial Engineers• Business Outsourcing & ITES Companies• Media/PR• Outbound Program Organizers

Create and Communicate the Value of IT

• Envision value creation ahead of below : 20% of the job is done

• Communicate : 20% of the rest is done• Co-Create value thereafter : 40%• Communicate:

– What to use, How to Use & Ensure Usage : 20% • Follows the 80/20 rule. • Without this return on rest 80% is not there.

– A key factor to ascertain completeness of the envisioned

Communicate Again

• What to use ?• Why to use ?• How to Use ?• Find ways to ensure adoption• Coach to fill Business Process Gaps before

attempting to think of a software solution.• Give rewards/incentives for usage• Don’t explain

– The complex system landscape of applications, virtual servers, IT Infrastr.

Outcomes – Extracting Organizational Value from IT

Deployment x Usage =Business Value

Deployment x of I/T

Effective =Usage of I/Tby people

Impact on- Business Value

Cost Savings for Efficiency

Creating Value for Effectiveness

Competitive Necessity

Competitive Advantage

Technology Orientation

Information Orientation

Technology Strategy

Information Strategy

Key Takeaways

• End-to-End Delivery– Envisioning-to-Usage-to-Measurement

• Partnerships for Creation– Financial Depth, Detailing & Engineering– Internal Partnerships : on a RACI chart

• Speak business language – problem, requirement and solution steps– Exclude application development intricacies