Copyright (C) 2000 - The Technology Group E-volutionize Your Business Processes John S. Farhat,...

Copyright (C) 2000 - The Technology Group

E-volutionize Your Business Processes

John S. Farhat, President

The Technology Group

(614) 853-1618

www.thetechgroup.com

[email protected] roup


TheTechnologyG roup

Outline

The Way It Used To Be Trends In Computing How to Evaluate - TCO Options, Options, and More Options Recap Questions


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The Way It Used To BeRaw Materials

Manufacturing

Customer Orders

Order Management

Purchasing

Production Planning

A/R

Supplier

Customer

A/P

Marketing

Marketing Materials

Payroll

Cash Management

Accounting

Other Functions

Profit to Share Holders


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Example Of Functions

Order Received

•Verify in stock ATS To Whse •Pick list Inventory Relief •Transport Rqst •Bill of Lading •Initial Invoicing

•Customer Verification •Credit Validation •Order Acknowledgement •Deals, Discounts, Pricing •Billing, Accounts Rec.•Production Scheduling

•Raw Materials on Hand / Re-supply•Labor Scheduling and Availability•Planning and Forecasting


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Trends In Computing

Your Company


Outsource Functions

CRM

Outsource Functions

On Site Support

Outsource Functions

Financial Systems

Outsource Functions

Desktop Services

Outsource Functions

On Site Management Customer

Supplier

Functional Outsourcing Internet Utilization

Internet

Outsource Functions...


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Examples Of Outsourced Functions Typical - Expected

Travel and Airline Reservations Auctions and Business Exchanges HR and Payroll Services

Done That! ERP Management On Site / Off Site Support

Hot Off The Presses ASP Type Services

Customer Relationship Management Financial Systems and Services Supply Chain Systems Time / Billing Systems Expense Reporting Systems

Hosted Desktop Services


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Reasons For Outsourcing Rapid Service Delivery “To Market”. Rapid Deployment of Infrastructure. Tight Job Market and Available Skill

Sets for Internal Deployment Specialization of Services Complexity Reduction

1960 1970 1980 1990 2000 2010 2020

Com

ple

xity

Traditional Apps. CFSs• Functional• Cost-Effective• Timely/Secure

Punch-CardComputing•Batch-Only•Punch Card•Tape and Sorters•Heavy Print Mainframe/Midrange

Computing•Centralized, Monolithic, Menu-Driven•2GL/Assembler/COBOL•DASD & Flat-File DBMSs•VDU/CRT Terminals

Client/ServerComputing•Decentralized, Multi-tiered, Partitioned •GUI Clients & Event-Driven•C/S 4 GLs•RDBMSs Internet/Network

Computing•Distributed…Dynamic….•Collaborative•Write-Once, Run-Anywhere•Java… Browsers/Thin Clients•Network Context Storage

UbiquitousComputing•Anytime-Anywhere Access•Location Transparency•Natural User Interfaces•Personalized Workspaces•Embedded Processors

Reduced Reduced Complexity???Complexity???

Additional Apps. CFSs• Flexible (Time/Space)• Integrable• Maintainable

Era I: Automation, Cost Control and Efficiency•Departmental/ Back-Office Systems•Batch to Online Transition

Era II: Productivity and End-User Empowerment•Intra Enterprise Applications (e.g., finance, marketing, sales)•Personal Productivity Technology

Era III: Value Creation &Business Effectiveness•Extra-Enterprise Applications (e.g., trading/ supplier/financial networks and channels)•Collaboration, Data Warehousing, Knowledge Management

Information drawn from GartnerGroup 1998 TCO Conference


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Why Complexity

14

12

10

8

6

4

2

LegendSupport

LAN

Software

Hardware

Low Medium High Site Complexity

Information drawn from GartnerGroup 1998 TCO Conference


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Contributors To Complexity

ManagementComplexity75% Cost

InfrastructureComplexity25% Cost


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InfrastructureComplexity25% Cost

Automated Asset management and inventory system Automatic virus detection on desktop and servers Centralized network management Centralized Help desk and utilize a knowledge database Scaleable and flexible architecture Fault tolerant systems to help prevent outages


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ManagementComplexity75% Cost

Restrict user access to applications, Internet sites, data and hardware changes

Standardized desktop platforms Protect mission critical data and implement a disaster

recovery plan Investment in IS research and planning, increase capacity

plan/balancing Centralized purchasing of computer assets with refined

processes/policies System to monitor and track desktop changes to HW/SW Up front investment in the right systems, avoiding

reconfiguring later Managing technology refresh to coincide with useful life Monitor software usage and utilize usage based billing

(Software metering, electronic software distribution)


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Options, Options, Options…Examples, Examples,...

Hosted Desktop Services Financial Systems - Different

Forms


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Example 1: Hosted Desktop Services Take your office with you wherever you choose. Experience no loss of functionality while on the road. Forego the purchase of software licenses for office

productivity software. Forego the purchase of expensive servers or communication

links between offices. Get comprehensive, best-of-class data center services:

consistent server monitoring off-site backup on a daily basis ongoing virus protection live support for any issues

Arm your traveling staff with the best out-of-office solution. Allow your staff to telecommute without productivity loss.


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email

ExpensiveConnection

LimitedFunctionality

Traditional Model


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HDS Basic Model

Full InternetFunctionalityOutSourcer

Or

In-House Data Center


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What Will This Solve... In the 75% Management Category

Restrict user access to applications, Internet sites, data. Restrict user access to hardware changes. Standardized desktop platforms. Managing technology refresh to coincide with useful life. Monitor software usage and utilize usage based billing

(Software metering, electronic software distribution). Software licensing and all associated issues.

In the 25% Infrastructure Category Automatic virus detection on desktop and servers. Centralized network management.


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Example 2: Financial Services

Completely hosted AP /Purchasing / AR / GL Systems

Internet Based Human Resource and Payroll Systems

Internet Based Employee Expenses Management Systems


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Example of How It Fits

Manufacturing

Customer Orders

Order Management

Production Planning

Suppliers

Customer

Marketing

Supplier of Payroll and Human Resources Systems

Other Functions


Internet

Customer Relations Management

Financial Systems Supplier

Purchasing

A/R

A/P

Cash Management

Accounting

Employees

Supplier of Hosted Desktop Services

Supplier Of Expense Management


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What Will This Solve….

Access to very expensive software at a reasonable fee.

Rapid implementation times. Talent is concentrated in one

location and services multiple organizations.

Best-of-class practices to manage data and information systems.


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Recap….

Internet is bringing new ways to integrate an organization

Outsourcing gives even a small and medium sized organization to tap into the capabilities which used to be in the realm of the big conglomerates


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Recap: Evaluate Costs

Be Careful in evaluating the costs of the endeavor.

Fluidity of IT resources in the current climate is key (avg. IT employee / position life estimated at 9 to 18 months).

Ensure that complexity is not expanded by the outsourcing. This will tend to increase the overall support requirements.


John S. Farhat, President

The Technology Group

(614) 853-1618

www.thetechgroup.com

[email protected] roup

Questions?

Copyright (C) 2000 - The Technology Group E-volutionize Your Business Processes John S. Farhat,...

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