CEO Whitepaper Series - Focused On The ValueDocument Transcript
Enterprise Information Management
Capability Drives Value
S E P T E M B E R 2 0 1 3
OpenText President and CEO
O P E N T E X T C E O W H I T E P A P E R S E R I E S
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Focused on the Value
Every Business is an Information Business
Whether you are researching pharmaceuticals, making movies, manufacturing cars, or
running hospitals, information is the foundation of nearly every enterprise activity. Research,
marketing, sales, finance, distribution, customer service, planning, and project management
are all about creating, finding, and using information. As a result, your Enterprise Information
Management (EIM) capabilities have a dramatic impact on your overall ability to manage
and develop your products, your workforce, your customers, and your business as a whole.
EIM dictates how well information can be created, collected, found, understood, leveraged,
acted upon, shared, and published. EIM drives not just the lifecycle of information, but how
people work with and experience information. EIM supports people in their quest for efficiency
and insight. EIM is not just a technology infrastructure; it supports work and relationships,
including management, collaboration, sales, and service.
EIM Capability = Value Strategy Control
Based on information as a common denominator, EIM is a measure of your ability to manage
the following five key value drivers:
2. Customer Relationships
3. Operating Margin
5. Governance and Risk Management
Every CEO is looking to balance and fine tune these drivers, creating a value strategy to maximize
profitability in the ever-changing economy, their market, and their particular constellation of
assets and capabilities. Each of these value drivers involves a complex flow of information.
Executives can realize significant enhancements from strategic information technology. As
they do, the C-Suite stands to gain a greater level of control over their value strategy.
The recent Gartner report “CEO Survey 2012: The Year of Living Hesitantly” states that “by
more than 2:1, CEOs say they will increase IT investment in 2012, rather than cut it” with
growth trumping cost as the primary concerni
. CEOs are recognizing the value that technologies
like EIM have in managing complex systems, processes and, structures. By unlocking the
potential of information, EIM is enabling their enterprises to integrate globally, increase cost
variability, and exploit opportunity.
EIM can increase
costs and risks. A
strong EIM strategy
can be the touchstone
of an enterprise
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Focused on the Value
Interaction Between Value Drivers is the Big Opportunity
It’s important to understand and cultivate the impact that each of the five value drivers
has on the others. Customer relationships impact revenue, efficiency impacts margins, and
governance influences efficiency, and so on. The interaction amongst value drivers provides
great opportunity. Information is the common denominator that each driver shares. When
we create flows that effectively drive information and processes throughout an organization,
each positive investment we make amplifies the benefit of every other.
An EIM strategy is a fundamental part of a value strategy. Strategic investments in information
can have a very significant effect not only on each value driver, but also on how well each
value driver influences the others.
How EIM Enhances Value Drivers
It’s not difficult to create a rough approximation of how EIM can impact your revenue. If we
take a look at each of the five value drivers and how information impacts them, the ability to
enable information flow and process efficiency jumps off the page.
EIM Improves Revenue
First and foremost, profitability depends on generating revenue. Increasing revenue is an
obvious place to look for increased profitability. Your business will generate revenue in its
own way, but generally it is about making products or services, and marketing and selling
those products or services.
The Five Key Value Drivers