PRESENTED BY Claudio reyes

Created: 2014-09-01

Value based strategy

Agenda

• Background• Tools and Samples

Agenda

• Background• Tools and Samples

Client trends in the application landscape*

One CompanyAdapt to major business changeAdapt the application to mergers & acquisitions

Application SynergiesApplication consolidation and common ways of working

Budget cutsCost efficiency through application rationalization

*= Gartner 2014 clients trends in the application landscape

Typical symptomatic pain points based on client trends

Categories Typical Pain Points (not exhausting)

Time

Cost

Risk

Multiple applications to access one process flow (e.g. invoices, checks, memos, etc.) – difficult to use (jumping screens).Demands for rapid application change i.e. R&D, information/clams processing, etc. – not being meet.

Multiple, disparate technologies – no overall control.

Applications requires integration with other applications – it is not working.

Uncertain if our regulatory needs are meet - we do not know why?

Operations in a regulated environment - is not working

Value based strategy approach

Assessment

BenefitsBenefits

CostCost

Financial Metrics

& RoadmapSolutions

Improves What for Whom?

How is the environment improved?What technology is used?

What are the benefits?What are the costs?

What is the ROI?What is the way forwards?

Agenda

• Background• Tools and Samples

Guide the client through the value strategy (8 weeks engagement)

Application Impact diagnostic

• The Application Impact Diagnostic (AID tool) is an interdisciplinary, iterative approach to facilitate successful realization of IT enabled solutions

• It focuses on understanding and transforming business targets and needs early in the development

• The impact matrixes serve to link the importance of the relationships between the different levels

X XX

X X

XX

X

XX X

X

etc...

X

X

X

X

X

X

X

etc...

Reduce lead time in product development project

Reduce customer entry cost to higher value segment

Business Targets

Exactly meet customer specification

etc...

1

Drivers

•P

hysi

cal t

o vi

rtua

l pr

otot

ypin

g

•P

rodu

ct c

ost

man

agem

ent

•V

aria

nt

man

agem

ent

•D

eliv

ery

prec

isio

n (t

ime,

con

tent

, qu

ality

)

2

PD

OTD

Business processes

• Product Planning

• Product Development

• Product Launch

• Manufacturing

• Delivery Process

3

Functions

•D

MU

Rev

iew

to

ol

•P

rod.

cos

t ca

lc.

tool

•P

LM W

ork-

flow

en

gine

4

• Engineering Change (Enovia)

• Product View (PTC)

• PCCT (In-house Volvo)

Realization (specifications)5

Fict

ious

exa

mpl

es

Sample ”driving factors v/s Goals”

Analysing the driving factors with the patterns in the gols and strategies

The impact is evaluated by

indicating:1.Level of impact2.Current Level3.Target Level

Tool developing decisions PointsILLUSTRATIVE

Dev

elop

Dev

elop

Drivers/Pains Recommendations• Text • Text

Next Steps• Text

Drivers/Pains Recommendations• Text • Text

Next Steps• Text

Drivers/Pains Recommendations• Business Impact

• Technical Impact

• Functions• Capability 1• Capability 2

Next Steps• Capability 1 = consolidate Valentin with SAP SD• Capability 2 = improve current SAP SD with

module x, y

Sample client example 11

Set-up Account

BusinessServices

ExistingSystems

CardCo.Solutions

(Process Orchestration)

Check Customer Credit

Verify CustomerAddress

Underwrite Product

Conduct Fraud Check

TradingPartners

Marketing Systems

Sales & Acquisition Systems

Risk Systems

Corporate Systems

DataWarehouse

Business Units

Instant Credit Process Mortgage Loan

Apply for a new Credit Card Apply for a Mortgage Loan

One Page Strategy (Tool)

Strategy & Ambition

Operation

People

Innovation

Perf Mgmnt

Finance

Knowledge

Information

Bu

sin

es

s p

roc

es

se

s

Quick Wins

Goals &

Targets

PartnersCPLs GovtWorkf.ce

Transformation initiatives

1. Be clear and explicit about what transformation means

2. Be SMART about the measures by which each of your stakeholder groups will

measure success

5. What key strategic initiatives will the

programme need to deliver?

6. What Quick Wins can be identified to build momentum?

4. Cross check – will the sum of the parts achieve the

strategy?

3. Identify how core processes will need to change if the strategy is to be delivered

One Page Strategy (sample)