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Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
Defining and Implementing Technology Strategy
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Defining and Implementing Technology Strategy

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  • 1. Defining and Implementing Technology Strategy Discussion Framework March 20, 2001                         
  • 2. Contents <ul><li>Introductions / AG Overview (5) </li></ul><ul><li>Strategic Analysis vs. Technology Strategy (5) </li></ul><ul><li>Technology Due Diligence and other useful Frameworks (15) </li></ul><ul><li>E-Business Strategy Case Study (20) </li></ul><ul><li>Q &amp; A </li></ul>
  • 3. &nbsp;
  • 4. Who We Are <ul><li>“Athens Group is an employee-owned consulting firm, integrating technology strategy and software solutions.” </li></ul>
  • 5. What We Do Assessment Planning Implementation <ul><li>Risk Analysis </li></ul><ul><li>Risk Management Plan </li></ul><ul><li>Competitive Analysis </li></ul><ul><li>Recommendations </li></ul>Due Diligence <ul><li>Technology Plans </li></ul><ul><li>Architecture Roadmaps </li></ul>Strategic Planning <ul><li>Integration Architecture </li></ul><ul><li>Recommendations </li></ul>Package Selection Multi-project Oversight Program Management Dedicated Project Oversight Project Management <ul><li>Turn-key solutions </li></ul><ul><li>“ Glueware” </li></ul>Package Integration Complete software solutions Software Development
  • 6. We Assist Clients in the Application of Information Technology to Increase the Value of Their Business Assessment Planning Implementation Emerging Technologies Change Management (Business Integration) Technology Strategy <ul><li>Internet Evolution (e-Business) </li></ul><ul><li>Technology Due Diligence </li></ul><ul><li>Appropriate Technology Selection </li></ul><ul><li>M&amp;A Due Diligence </li></ul><ul><li>IT Benchmarking </li></ul><ul><li>Business Alignment Evaluation </li></ul><ul><li>Project Assessment </li></ul><ul><li>IT Strategy &amp; Plan </li></ul><ul><li>Architecture Design </li></ul><ul><li>Disaster Recovery Plans </li></ul><ul><li>Requirements Definition </li></ul><ul><li>Package Selection </li></ul><ul><li>S/W Development Process </li></ul><ul><li>Business Alignment &amp; Goal Deployment </li></ul><ul><li>IT Strategy Implementation </li></ul><ul><li>Business Process Improvement </li></ul><ul><li>Program / Project Management </li></ul>
  • 7. What We Do: Knowledge Centers eBusiness Customer Relationship Management Business Performance Management Manufacturing Systems Hardware Integration
  • 8. A Few of Our Clients…
  • 9. A Few of Our Clients…
  • 10. A Few of Our Clients…
  • 11. Strategic Analysis vs. Technology Strategy <ul><li>“Strategic” vs. “tactical” strategy </li></ul><ul><li>Response to specific situations: </li></ul><ul><ul><li>“We need to be an e-business by the end of the year!” --CEO </li></ul></ul><ul><ul><li>“Should we acquire Abc corp?” --CEO </li></ul></ul><ul><ul><li>“Should I invest in Xyz.com corp?” --VC </li></ul></ul><ul><ul><li>“Do we need an ERP system? What is the best one for us? –CIO </li></ul></ul><ul><ul><li>“How do we define and implement the right systems to support our new business strategy?” --CEO </li></ul></ul>
  • 12. Common Tools <ul><li>Technology Due Diligence Process </li></ul><ul><li>Risk Analysis </li></ul><ul><li>Business Case Framework </li></ul><ul><li>Project Prioritization </li></ul><ul><li>Package Selection Process </li></ul><ul><li>IT Roadmap </li></ul>
  • 13. Technology Due Diligence <ul><li>Product vs. M&amp;A </li></ul><ul><li>People </li></ul><ul><li>Process </li></ul><ul><li>Technology </li></ul>
  • 14. Technology Due Diligence - People <ul><li>Develop some usable frameworks and collect metrics. – value is in comparison </li></ul><ul><li>Starting point: Carnegie-Mellon SEI </li></ul><ul><ul><li>http://www.sei.cmu.edu/cmm-p/ </li></ul></ul>
  • 15. Technology Due Diligence - Process <ul><li>Business and Engineering </li></ul><ul><li>Examples: order processing, customer support, software development </li></ul><ul><li>Starting point: </li></ul><ul><ul><li>http://www.sei.cmu.edu/cmm/cmms/transition.html </li></ul></ul>
  • 16. Technology Due Diligence - Technology <ul><li>Very situation-specific </li></ul><ul><li>Code reviews </li></ul><ul><li>Performance benchmarking </li></ul><ul><li>Security validation (see http://www.iss.net ) </li></ul><ul><li>Architecture validation </li></ul><ul><ul><li>Scalability, integration, skillset </li></ul></ul><ul><li>Customer interviews </li></ul>
  • 17. Risk Analysis <ul><li>Simple Framework: </li></ul><ul><ul><li>Identify Risks, Probability, Severity </li></ul></ul><ul><ul><li>Multiply Probability X Severity </li></ul></ul><ul><ul><li>Sort by risk </li></ul></ul><ul><ul><li>Develop mitigation strategy and contingency plan for each high risk </li></ul></ul><ul><li>Implement risk management process! </li></ul><ul><li>Example frameworks </li></ul>
  • 18. Product Development Risk Analysis
  • 19. The Business Case Is Built In A Logical Sequence Of Steps Step 5 Step 4 Step 3 Step 2 Step 1 <ul><li>Understanding economic drivers of business </li></ul><ul><li>Understanding financial projections and historical trends </li></ul>Financial Decomposition <ul><li>Studies covering the key levers identified in the financial analysis </li></ul><ul><li>Baseline development </li></ul>Findings based Opportunity Identification and Baselines <ul><li>Opportunity charts </li></ul><ul><li>Financial and operational assumptions </li></ul>Finalizing the Business Case Validating Benefits with process owners Quantifying Opportunities and determining Benefit Logic
  • 20. Prioritization Frameworks <ul><li>Simple (matrix) </li></ul><ul><li>Weighted </li></ul><ul><li>Gated </li></ul>
  • 21. Simple Prioritization – Applications Example Strategic Impact STRATEGIC HIGH POTENTIAL KEY OPERATIONAL LEGACY Applications that are critical to company’s current business strategy Applications that may be important to company’s future business strategy Applications which company needs to run business Applications targeted for replacement / no further investment Critical to Business Strategy
  • 22. Weighted Prioritization Example
  • 23. Gated Prioritization Example
  • 24. Package Selection Process Confidential and Proprietary
  • 25. Foundation Develop Idealized Architecture Task 2 Review Business Process Map Task 1 Define Critical MES Criteria Task 3 <ul><ul><ul><li>Release Project Website • Target Vendor List </li></ul></ul></ul><ul><ul><ul><li>Initialize DB Tools • Kickoff Meeting </li></ul></ul></ul>Initiate Select Top 4 Candidates Evaluation Select Top 2 Candidates Decision Integration Analysis Task 10 Detailed Vendor Review &amp; Demo Task 11 Final Selection Phase 2 Readiness Develop Integration Plan and Systems Architecture Task 12 Evaluation Report Task 13 Develop Implementation Plan Task 14 Define Integration Requirements, Arch. Constraints Task 6 Define Requirements, Categories, Priorities Task 5 Vendor Risk Analysis Task 7 Detailed Vendor Scoring Task 9 <ul><ul><ul><ul><ul><li>Website/Plan Updates • Weekly Status Report / Meeting </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Requirements Management • Client Review </li></ul></ul></ul></ul></ul>Project Management Compare to Vendor Capabilities Task 4 Initial Demos Task 8 <ul><li>Define Project Plan/Process </li></ul>Package Selection Implementation Plan Architecture 4/26 6/7 6/27 8/2
  • 26. Requirements Management / Package Selection Tool Example
  • 27. Process Map (IDEF0) Example
  • 28. Four Components of the Technology Strategy <ul><li>Purpose: </li></ul><ul><li>Defines the organization’s reason for existence </li></ul><ul><li>Identifies customers of the technology organization &amp; the value Technology provides </li></ul><ul><li>Guiding Principles: </li></ul><ul><li>Set the general direction for the technology organization </li></ul><ul><li>Defines how it will operate </li></ul><ul><li>Provide a focal point for employees </li></ul><ul><li>Critical Success Factors: </li></ul><ul><li>Limited in number – the critical few </li></ul><ul><li>Identifies things that must go right to be successful </li></ul>Customers New Customers Share of Wallet Service Revenue Financial ROI Budget % of revenue Employees Satisfaction Retention Productivity Innovation Investments Skills Patents Measurement:
  • 29. Framework for a Technology Roadmap <ul><li>Framework </li></ul><ul><li>Time horizon </li></ul><ul><li>Strategic Elements </li></ul><ul><li>Current Environment </li></ul><ul><li>Surveys </li></ul><ul><li>Staff Interviews </li></ul><ul><li>Management Discussions </li></ul><ul><li>Capability Assessment </li></ul><ul><li>Future Environment </li></ul><ul><li>Purpose </li></ul><ul><li>Guiding Principles </li></ul><ul><li>CSF’s </li></ul><ul><li>Measures </li></ul><ul><li>Build the Roadmap </li></ul><ul><li>Identify the gaps </li></ul><ul><li>Define objectives </li></ul><ul><li>Establish priorities </li></ul><ul><li>Target completion dates </li></ul>People Leadership Processes Structure Applications Computing Technology Networks
  • 30. eBusiness Case Study Integrating Business and Technology Strategies
  • 31. The Assignment <ul><li>You are the CIO ! </li></ul><ul><li>The CEO informs you the BoD has requested a strategy &amp; plan to develop &amp; implement competitive eBusiness capabilities for the company. </li></ul><ul><li>The initial set of these capabilities must be in-place within 12 months. </li></ul>
  • 32. The Situation <ul><li>Global manufacturer of custom engineered, consumable production tools for the semiconductor industry </li></ul><ul><li>12 sites in 7 countries; growth through acquisition </li></ul><ul><li>Critical business drivers changing from technology leadership and quality to also include speed of delivery and common face to global customers </li></ul><ul><li>Your competitors are six months ahead of you in building their eBusiness capabilities </li></ul><ul><li>Six months earlier you were assigned as CIO to form a consolidated, global IS organization reporting to yourself </li></ul><ul><li>Last quarter, you began the implementation of a global ERP project as your top priority for the next 18 to 24 months </li></ul>
  • 33. What Would You Do? <ul><li>What can you hope to accomplish in 12 months? What are some realistic objectives? </li></ul><ul><li>What should be your approach? What “common tools” can be applied? </li></ul><ul><li>What challenges should you expect? Within the IS organization; with other functional managers; with customers; with vendors / consultants? </li></ul><ul><li>Where do you start? </li></ul>
  • 34. Athens Group Approach Global IT Strategy &amp; Roadmap eBusiness Strategy Prioritization Process Web Platform Selection OrderEntry Web Application OrderStatus Web Application Future Web Applications <ul><li>Athens Group provided consulting services every step of the way: </li></ul><ul><ul><li>Strategy - Planning - Implementation </li></ul></ul>Business Goals and Priorities
  • 35. Global IT Strategy &amp; Roadmap
  • 36. Global IT Strategy &amp; Roadmap <ul><li>IT Strategy mapped to specific projects and laid out in a timeline over the next three years </li></ul><ul><li>IT organization can forecast resource requirements and capabilities far in advance </li></ul>
  • 37. Global eBusiness Strategy
  • 38. Global eBusiness Strategy <ul><li>eBusiness strategy integrated with other IT projects to be completed in the three year time horizon </li></ul><ul><li>Investments in eBusiness infrastructure can be made with confidence </li></ul>
  • 39. Prioritization Process
  • 40. P4 Prioritization Process
  • 41. Web Platform Package Selection
  • 42. Web Platform Package Selection <ul><li>Systematic analysis of platform technologies and vendors with consideration of many factors: </li></ul><ul><ul><li>Scalability - Security - Personalization - Internationalization - Fault tolerance - Developer availability - etc … </li></ul></ul><ul><li>Client can make a rational selection based on a documented comparison of the options </li></ul>
  • 43. Online Order Entry System
  • 44. Online Order Entry System <ul><li>Order entry wizard leads the customer through a complex process step-by-step </li></ul><ul><li>System creates custom screens for an order based on answers from earlier screens </li></ul><ul><li>Orders are entered more quickly and with fewer errors </li></ul><ul><li>Client saves time and money; Client’s customers save time and money. </li></ul>
  • 45. Order Status System
  • 46. Order Status System <ul><li>Customers can see the status of all their orders in just the format they want – even set up multiple custom views. </li></ul><ul><li>Customers can get additional details on an order with another click of the mouse. </li></ul><ul><li>Customers can set up a schedule to get status delivered by email or fax just when they need it. </li></ul><ul><li>Customers can even request that order status be delivered to their local system via XML. </li></ul>
  • 47. Questions/Discussion                         
  • 48. Athens Group Overview
  • 49. Mission Statement <ul><li>Be a trusted partner of our clients. </li></ul><ul><li>Provide solutions to business problems through a marriage of systems thinking and appropriate technology. </li></ul><ul><li>Maximize the potential of knowledge workers through a work environment based on mutual support, cooperation, and professional excellence. </li></ul><ul><li>Provide the foundation for high quality of life for our employees. </li></ul><ul><li>Demonstrate that humanizing the workplace is not only compatible with business success, but is a competitive advantage. </li></ul><ul><li>Be an asset to our communities. </li></ul>
  • 50. How We Do It: Our Strengths <ul><li>The best people </li></ul><ul><li>The right process </li></ul><ul><li>The appropriate technology </li></ul>
  • 51. How We Do It: People <ul><li>Our employee-owned model attracts the very best talent </li></ul><ul><li>Industry-leading retention rate </li></ul><ul><li>Employee-owned = Personal responsibility </li></ul><ul><li>Respect for the project and project team </li></ul>The best people = the best results for our clients
  • 52. How We Do It: Technology <ul><li>Technology breadth and expertise </li></ul><ul><li>Industry-leading domain experience </li></ul><ul><li>Commitment to up-to-date technical training </li></ul><ul><li>No ties to any particular vendor, environment or tool-set </li></ul>
  • 53. How We Do it: the Right Process Needs Assessment Plan Project Plans Specifications Databases ROI Analysis Risk Analysis Adapt Improve Observe Analyze Management Plan Risk Reduction Planning Estimating Training Configuration Management Quality Research
  • 54. Value to Clients <ul><li>Three levels of value: </li></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Domain </li></ul></ul><ul><li>High-value consulting </li></ul><ul><li>Experienced (&gt;15 years on average) </li></ul>
  • 55. Additional Value to Clients <ul><li>Experienced consultants that combine business strategy with technical knowledge </li></ul><ul><li>Proven, effective process </li></ul><ul><li>Automated tools </li></ul><ul><li>No allegiance to a specific vendor </li></ul><ul><li>Extensive domain and industry knowledge </li></ul><ul><li>Full Lifecycle Capability </li></ul>
  • 56. What We Do: Knowledge Centers <ul><li>Knowledge Center : a specific solution area in which Athens Group has deep experience and proven expertise. </li></ul><ul><li>Knowledge Centers are supported by our knowledgebase of successful client engagements and internal investments. </li></ul>
  • 57. Employee Value Proposition <ul><li>Organizational: Employee Control </li></ul><ul><ul><li>Employee ownership </li></ul></ul><ul><ul><li>Democratic decision-making </li></ul></ul><ul><li>Professional: Challenge and Growth </li></ul><ul><ul><li>Technology, process and domain skills </li></ul></ul><ul><ul><li>A commitment to training </li></ul></ul><ul><li>Personal: Quality of Life </li></ul><ul><ul><li>Excellent compensation and benefits </li></ul></ul><ul><ul><li>Overtime discouraged, not congratulated </li></ul></ul>
  • 58. Value to Community <ul><li>Five Leadership Austin alumni ++ </li></ul><ul><li>Two Profiles in Power award winners </li></ul><ul><li>One assistant faculty member at Southwest Texas State University </li></ul>
  • 59. Value to Community (2) <ul><li>Community leadership : Greater Austin Chamber of Commerce, Austin YouthWorks, Open Door School, Austin Music Commission, Women’s Legislative Days Steering Committee, Big Brothers Big Sisters, United Way, Leadership Austin, Leadership Texas and GACC Blue Ribbon Task Force on Light Rail, ACC Center for Non-Profits </li></ul><ul><li>Professional leadership : Software Quality Institute, Her Domain of Austin, Delphi Users Group, Oracle Users Group, Austin Software Council, Austin Software Process Improvement Network (ASPIN), Technology Business Network, Computer Science 2000 </li></ul>

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