It Alighnment10 V3.1

Agenda Introduction The Current State of IT Strategic Alignment From Strategy to Execution Open Forum 2

Alignment Today’s economic climate, perhaps more than ever, prompts us to re-evaluate IT’s alignment with the Business. The current business challenges present an OPPORTUNITY to pro- actively evaluate IT’s role and contribution to top-level business objectives and engage in proper adjustments (i.e. alignment). The CIO’s alignment with the CEO is largely a “battle” at two fronts: • Actionable/measurable Initiatives (direct control) • Perception (in-direct influence)

Alignment  How to become aligned?  How to develop a strategy in alignment?  How to get agreement between CEO and CIO?  What is the best way to get a statement of direction?  How to document/record alignment? … the current economic context makes IT alignment with CEO/Business very challenging, but very necessary!

Alignment – What is “alignment”? • Established, repeatable process Process • Methodology & Tools • Top-down Perception • Bottom-up • How to assess Measure alignment/progress • Benchmarking Alignment is the continuous process of implementing and adjusting Technology-based solutions and processes in DIRECT support of ever evolving and changing prioritized business requirements.

Repercussions of “poor” Alignment IT is viewed a “Cost Center” or infrastructure only, not a business enabler Executive-level discussions of IT focus mostly on cost reduction IT is designated “Scapegoat” for business performance issues IT has an inward focus (i.e. operations), is not externally focused on customers

Business & IT – Strategic Alignment Business Strategy • Growth & Customers • Market & Competition • Operational Efficiency • Performance Analysis & Decision Support IT Strategy • Platforms • Budget & TCO • Vendors • Initiatives & Projects • Resources & Skills 7

Alignment – “Translation” .. making Strategy tangible Strategy Objectives Initiatives Projects / Solutions Capabilities

IT Strategy - Drivers IT Strategy is primarily driven and impacted by:  Business Strategy, imperatives, goals, targets and business initiatives  Market & Customer requirements  Technology enhancements & capabilities  Software/Hardware vendor release strategy 9

Alignment – Business Strategy Strategy Customers Operations • Growth • Acquisition • Process • Acquisitions • Service • Flexibility • Products • Proc. Integration • Cost • Service • Self-Service • Visibility • Markets / • Pricing • Performance Channels • Retention • Etc. • Etc. • Etc. 10

Alignment – Shift to “outward” focus Customers (Sales & Product)  What are our real business drivers? ? Change in customer behavior/expectations -> shift to WEB ? Improved self-service / customer service ? Process Automation / Lower transaction costs ? Pressure by competitors ? Growth opportunity (channel sales) ? Customer experience & loyalty ? Account Management capabilities ? Direct tie-in with Marketing and Advertising 11

Alignment - Process Strategy Customers Operations • Growth • Service • Process • Acquisitions • Integration • Flexibility • Products • Self-Service • Cost • Service • Pricing • Visibility • Markets / • 5 • Performance Channels • 6 • 6 • 6 • 7 • 7 • 7 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring 12

Alignment – Process Step 1 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring CEO VPs IT 13

Alignment – Process Step 2 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring Business Objectives IT Solutions 14

Alignment – Process Step 3 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring Alignment Execute Review Refine Solution 15

Alignment – From Strategy to Execution CEO VPs IT 1-on-1: Top strategic objectives Understand objectives & requirements Understand priorities & timeframes 16

Alignment – From Strategy to Execution CEO VPs IT Breakdown of objectives & Initiatives/Project Definition Partnering & Collaboration (Ownership/Stake) Joint Execution (Responsibility & Resources) 17

Alignment – From Strategy to Execution CEO VPs IT Develop a thorough understanding of the business objectives Develop & evaluate solution options that support the business objectives Develop detail plans & designs and execute projects 18

Alignment – Outcome (CEO) CEO VPs IT Input, feedback and validation sessions: 2x per Year Company updates: 4x per year Company newsletter: frequent updates & articles 19

Alignment – Outcome (Executives - VP) CEO VPs IT Input, feedback and validation sessions: 2x per Year Company updates: 4x per year IT Vision updates: 2x per year 20

Alignment – Outcome (IT Organization) CEO VPs IT IT Vision updates: 2x per Year Business/IT Translation: project prep, kickoffs & reviews Staffing & Education: 2x per year 21

Alignment - Outcome Re-active Pro-active organization organization Perception- Tangible based (Activities) Inward focus Outward focus Business Cost Center Enabler Business “Scapegoat” Partner 22

Alignment – Documentation IT Strategy Presentation The Master Plan Project Estimates Project Plans 23

Alignment – Breakdown & Translation (EXAMPLE) No. Strategic Business Goals IT Initiative / Solution Objective 1 Profitable Growth Increased Market Share CRM – Pre-Sales, Marketing & Sales Analytics * Awareness * Coverage Increased Profitability CRM – Gross Profit Confirmation for incentives Reduce Errors via CRM product configurator rules Business Performance Enhanced analysis & reporting capabilities Transparency (BI / Pro-forma reporting prior to quote approval) 2 Cost Reduction Business Transaction SAP Dealer Portal: Efficiency * Order & Vehicle Mgmt. life-cycle CRM: Streamlined quoting and transition to order management * DBMS Integration * Offline Productivity * TMQS * CRMToday Shared Services IT Shared Services Utilize Global Licensing Balanced IT Resource Model (in-house vs. consulting) Standard IT Application Consolidation of customer and partner websites onto Platform single Enterprise Portal platform 3 Mergers & Acquisitions Standardized Processes & Expandable and open (integration) technology 24 Flexible IT Platform platform

Alignment – The “Master Plan” (EXAMPLE) 25

Pre-requisites of Alignment – Are you ready? IT Operational Organization Excellence Information is an asset 26

Alignment – Current State & Evolution Kaizen – Optimization and support of External changing Integration: business Customer, Vendor, environments and Sales Channel  Rapid Business Integration (i.e. Response Intelligence: external process integration) Performance transparency The “connected” enterprise Management by exception Operational Excellence: Decision support Internally Information worker focused Process efficiency 27

Alignment – Key Takeaways  You must take the initiative in the alignment process  You must meet crucial pre-requisites for successful alignment  The most challenging step of alignment is the translation of high-level business strategy/objectives into actionable initiatives & solutions  Document all agreements and outcome of the alignment process (Visibility of Alignment)  Successful alignment involves all levels of the organization  Alignment is a continuous, repeatable process 28

Introduction Robert Bobojco A dedicated, results-oriented executive management consultant with over 19 years of IT & SAP experience. Predominantly focused on IT transformation initiatives, systems improvement and process integration projects – ranging from middle-market to global, large-scale clients – using ERP/SAP software portfolios including the ECC, mySAP.com and SAP Business Suite solution platforms. Background includes senior management positions with a major “Big 6” professional services company, a German Management Consulting Company and international ERP implementations/ solution roll-outs. Major roles and areas of expertise include: * Trusted advisor to senior executives (CEO, CFO, CIO) * Effective, hands-on solution-oriented IT & Team Mgmt. * Alignment of business & IT strategy * SAP Implementation Methodologies & Tools * Program-, Project & Integration Management * Business case, Program-/Project budgeting & controlling * Process Improvements & Optimization * SAP application portfolio consulting in ECC, CRM, BI, * IT operations management Portals & XI/PI integration technology 30 © 2010 Robert Bobojco. All rights reserved.

It Alighnment10 V3.1

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