IT Governance/Office of the CIO Trends Stki Summit 2009
1. Office of the CIO
2009
Your Text here Your Text here
Galit Fein
VP & Senior Analyst
Office of the CIO Strategies
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2. Agenda
1
IT Trends 2009
2 IT Budget Mngt
3 Officehere the CIO/ ITAM
of
Your Text Your Text here
4 Sourcing/ Cloud Computing
5 Conclusion
Enterprise Risk Mngt
6 Mobile/ Social Networks
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3. STKI Israeli Positioning
• Not a technological positioning, refers only to Israeli market
• Focused on enterprise market (not SMB)
Vendor A
• Not an STKI recommendation
Market Presence (X) Vendor B
Market share - existing and new sales (more emphasis)
Local Support
Mind share (how user organizations rate vendors)
Your Text here Your Text here Worldwide
Local Support (Y) – is influenced by (X)
Leader
Experience & technical knowledge, localization,
support, number and kind of integrators
Worldwide leaders marked, based on global positioning
Vendors to watch: Are only just entering Israeli Market
Vendors to Watch:
so can’t be positioned but should be watched
Vendor C
Market Presence
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4. General
IT in Aggressive Cost-Cutting Times Trends
IT Market
decreasing -12.53% Capex Crisis IT budget mngt
IT Budget cuts
Need for better IT
Your Text here Your Text here
Increased focus
investments Office of the CIO
on ITG
optimization
Shift to IT Asset Mngt
Technology budget
discretionary
is mostly non- Sourcing Models
cost basis when
discretionary Cloud Computing
possible
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5. General
IT in Aggressive Cost-Cutting Times Trends
Financial crisis
forced better Increased spend Enterprise Risk
regulations & risk on IT risk mngt Mngt
mngt
Complex IT
environment
Your Text here Set standards, Your Text here
best practices & ITIL, CobiT, ISO
requires heavy methodologies
support
New business Mobile
Innovation
models Web 2.0
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6. General
Actions taken to cut IT costs Trends
Jan-
Restrict IT travel expenses
Freeze IT hiring
Postpone discretionary IT projects
Your Text here Your Text here
Renegotiate IT vendor contracts
Freeze or cancel IT capital spending
Reduce spending on IT staff training
Reduce IT headcount
Source: CIO IT Budget & Staffing Survey
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7. Top IT’s Priorities for 2009 General
Trends
in Israel
Consolidation of IT infrastructure
Renegotiation of contract
Selection of IT investments based on ROI
Your Text here Your Text here
Business Intelligence
Requirement and Portfolio management
Improvement of IT security and compliance
Automation and outsourcing testing
Source: STKI
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8. Technologies Maturity Model General
2009 Trends
Business Value
Investment Web
Mobile
2.0 for CEM
to make money
Mobile 4
Cut internal
needs PPM OTC IT Project
costs, Increase
Pure
productivity Project Resource Demand
mng
Asset Business
mng mngt Project
Your Text here mngt Your Text here
Commodity IT Help Size of figure =
complexity/
Services Desk cost of project
Investment SOX
for regulations for IT
Using Implementing Looking
Market Maturity
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9. IT Budget
IT in Aggressive Cost-Cutting Times mngt
Your Text here Your Text here
IT Budget Cuts Capex crisis IT budget mngt
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10. IT Budget
IT Budget Reduction mngt
Capex Crisis - cash flow is the KING
Move from Capex/Opex to Zero-based budgeting
Your Text here Your Text here
Trade non-discretionary costs for
discretionary costs
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11. IT Budget
Capex - Capital Expenditure mngt
Allowed company to
increase their profit
in the yearly report by
Your Text here Your Text here
to depreciating
the investment
over several years
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12. IT Budget
What is Capex ? mngt
Company„s physical assets:
Your Text here Your Text here
Capex can include everything
from repairing a roof to building a brand new factory
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13. IT Budget
Zero-Based Budgeting mngt
Bottom Up Budgeting - justification of all
expenses must be done every year
Every function within an organization is
its needs & costs
Your Text here Your Text here
analyzed for
Zero-Based Budgeting is built based on what is needed for
the upcoming period
Instead of Top Down Budgeting
Definition: Investopedia
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14. IT Budget
History Based Budgeting mngt
Establishing budget targets in percentage
increments/reduction: “next year 10% less!”
Your Text here Your Text here
Allocates resources based on allocations from the
previous period
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15. IT Budget
Non-Discretionary Costs mngt
IT budget with previous commitment & no flexibility
Your Text here Your Text here
Current high non-discretionary costs
prevent business agility
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16. IT Budget
“Hidden” IT costs mngt
Expenses assigned before the budget year:
• People cost (internal staff)
• Professional services based on annually contracts
Your Text here Your Text here
• HW & SW maintenance (annual app maintenance fees)
• Data Storage, Networks, Mandatory & ―must‖ projects
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17. Trade non-discretionary costs IT Budget
mngt
for discretionary costs
Discretionary Non-discretionary
Your Text here Your Text here
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18. Non-Discretionary vs. Discretionary IT Budget
mngt
What % of your total budget is devoted to Non-discretionary items
(infra, support & maintenance) or Discretionary items (new capabilities)?
Unsure 4%
Your Text here Your Text here
Discretionary spends 36%
Non-Discretionary spends 60%
0% 10% 20% 30% 40% 50% 60% 70%
Source: CIO magazine quot;the State of the CIOquot; online survey 2008
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19. How to Increase IT Budget
mngt
Discretionary Budget?
ITG IT asset IT
management procurement
• Office of the
• Software • Sourcing models
CIO Text here
Your Your Text here
• Prof. services
• Agility licenses • Cloud computing
• Portfolio
mngt
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20. Office of
IT in Aggressive Cost-Cutting Times the CIO
IT Your Text here
investments Increased focus Your Text here
Office of the CIO
optimization on ITG
Upcoming STKI Round Table
on Office of the CIO: 10/06/2009
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21. Office of
Taking Advantage of a Downturn the CIO
Reduced IT spending: Maintenance mode:
Financial crisis has IT new project/
increased the attention to technology on hold
IT costs mngt Extracting value from
Your Text here Your Text here
IT can‟t afford bad existing investments
decisions
Increased focus on Office of the CIO
Need for better PPM
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22. Top IT’s Priorities for 2009 Office of
in Israel the CIO
Consolidation of IT infrastructure
Contract renegotiations
Improving the ROI of IT investments
Your Text here Your Text here
Business Intelligence
Requirement and Portfolio management
Improving IT security and compliance
Automating and outsourcing testing
Source: STKI
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23. Office of
IT Organization Today: the CIO
ITO directly affects on every business aspect
Highly embedded for the organization success:
• Increasing complexity of org. products/ services
Your Text here Your Text here
• Multi-channel customer interaction
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24. Office of
IT Organization Today: the CIO
Hundreds of employees, external contractors
Technology abundance & complexity
Hundreds of projects, requirements, contracts
Your Text here Your Text here
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25. Office of
IT Transformation the CIO
Internal External
Internal
Service Service
focused IT
Provider Provider
Your Text here Your Text here
•Available & accurate info •Align IT to business •Align IT to customers
•IT maintenance •Best solution for •Business partner
•IT staff mngt business needs •Business innovator
•HW availability &uptime •IT portfolio mngt of engine
•Technical support LOBs demands •Transformation initiator
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26. Office of
IT Transformation through ITG the CIO
OTC
To Strategic
conference table
From Text here
Your Your Text here
Data Center
room
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27. Office of
Business Partnership Office the CIO
What is it?
Your Text here Your Text here
What is it not?
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28. Office of
Location of Business Referents the CIO
LOB LOB LOB
International Trends:
• BRM is not part of the IT
BRM
• BR manager – business skills
with understanding of IT
IT
Your Text here Your Text here
IT
Israeli Trends:
• BRM is part of the IT - OTC:
Office of the CIO
Political issue PMO, QA, KPIs, CSO
• OTC manager – IT manager
with understanding of business Infra Develop. Operation
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29. Office of
Business Relationship Management the CIO
Partnership between business & IT/2way communication
BRM vs. traditional account management
Business innovator engine
Business processes transformation initiator Text here
Your Text here Your
BRM becoming the IT most important office, but
Only with CEOs recognition of IT contribution to
business innovation & competitive advantage
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30. Office of
Business Innovation: Changing the Game the CIO
Leveraging technology to create
new ways of engaging the customer
Your Text here Your Text here
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31. What is your IT organization's role Office of
in business innovation the CIO
Your Text here Your Text here
Source: Cutter
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32. Office of the CIO Office of
the CIO
Israeli Trends
Advanced - ITG
Innovation P
Strategic alignment B
Business value / IT cost optimization B
Demand / prioritization & mngt B You’re
Here
ResourceText here
Your allocation & mngt B
Your Text here
Increasing PMO efficiency B Basic - EPM
We all do it to certain extent, but
“What got you here, won’t get you there.”
Marshall Goldsmith
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33. Office of
Office of the CIO under New Constraints the CIO
Increase IT business value through IT cost optimization
Rebalance the IT portfolio to Increase Revenue, Reduce
Costs, Manage Risk, with minor investments for Growing
Your Text here Your Text here
Revenue & Avoiding Future Costs
Invest where others can‟t to create competitive gaps
Target discretionary funds for maximum ROI
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34. Office of
Not ROI but Payback Period the CIO
Payback period - how quickly investments are repaid?
Shorter payback period :
• Quick free cash for other investments
Your Text here Your Text here
• Lower risk - new future regulations, new
software, new business requirements
Org. will require shorter payback period
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35. Office of
OTC/ PMO Staffing Ratio the CIO
Average size of Israeli OTC/ PMO department: 3-5
• ~2% of IT department (between 0.5% - 4%*)
• Compared to ~5-8% in global orgs Text here
Your Text here Your
* in large enterprises, varies according to the
maturity of IT Governance in the organization
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36. Office of
OTC/ PMO positions the CIO
IT Plan Development
Methodology &
standardization
Demand mngt
Budget mngt
Your Text here Your Text here
Resource allocation
Supportive tools
Post-implementation audits (accompany the
implementation, ensure successful system-use)
Continuous improvement
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37. Office of
Demand Management the CIO
Initialization process
• Alignment to business
LOB strategic goal
Your Text here • Pre-agreed categories set Your Text here OTC
Business • Business Priority
• Risk (new tech, # of LOBs PMO
Referent involvement )
• ROI/ NPV
• IT Evaluation
• Approval
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38. Office of
Automized Demand Management the CIO
Initialization process
•Alignment to
business strategic goal
LOB •Pre-agreed
categories set OTC
Business Your Text here Your Text here
•Risk (new tech, nu PMO
Referent
of LOBs involvement )
•Anything that helps
accurate evaluation
Source: CA PPM
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39. Office of
Prioritization Process the CIO
Small requests IT Plan
Small requests Large Projects
Prioritization done
By OTC/ BRM,
because they know
the strategy
Strategic, tactical, regulatory of the business
Large Projects
Your Text here Your Text here
Categorization of Projects’ Set in Israeli ITOs:
Per Cost (< $50K)
Per Time (more than 10 working days; 1 man - month)
Many to many – cross involvement
CEO’s approval
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40. Project Evaluation Office of
the CIO
Israeli Trends
Projects evaluation is based on previous experience only:
• No methodology or pricing model!
Top Down budgeting allocation:
Your Text here Your Text here
• Price tag remains the same during the projects‟ lifecycle
PMOs don‟t use Service Catalog:
• Requirements variety
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41. Office of
Holistic View - Portfolio Evaluation Matrix the CIO
Projects’ Size, Risk & Value
5 The preferred
project
4
3
ROI/ Your Text here Your Text here
Payback
The size of each
2 bubble is
proportional to
risk/ IT complexity
1
1 2 3 4 5
Business prioritization/ Strategic alignment
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42. Office of
General Welfare the CIO
Best interests – Org. holistic view vs. LOB
Each requirement is examined by its contribution to the
org.
Contribution is not necessarily financial:
• Innovation
Your Text here Your Text here
• Branding
Total cost of ownership (TCO) – training, infrastructure
Requirements integration
Integrated
Project Project Project/
X Y New infra
product
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43. Office of
Resource Allocation & Mngt the CIO
One DB for resource mngt
Transparency
Planning based on
Your Text here Your Text here
actual data IT
Planning vs. Execution
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44. Office of
IT Portfolio Review the CIO
Current situation:
• Annual / quarterly steering committee
Your Text here Your Text here
There is no regularly automation review of IT investments
• Transparency, unify platform for open discussion
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45. Office of
Real Time Projects’ Dashboard the CIO
Client On On Scope
Project # Satisfaction Risk Budget On Time Total
Quality Gates
25
140
Your Text here Your Text here
32
2
89
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46. Office of
CIO’s Dashboard the CIO
Your Text here Your Text here
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47. Office of
ITG/ PPM Tools the CIO
Demand
mngt
Portfolio
Reporting
mngt
Your Text here Your Text here
IT process
Project mngt
mngt
Resource Financial
mngt mngt
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48. ITG/ PPM Tools Office of
the CIO
Israeli Trends
PPM tools are not up-to-date, because of limited budget
ITOs choose in-house developments
Many ITOs are looking for PPM tools as a cure-all for their
Your Text here Your Text here
problem of governance
PPM solution implementation brings to same language
between business & IT, & also the actual tool shows to the
CEO the IT‟s contribution
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49. ITG/ PPM Tools Office of
the CIO
Israeli Trends
Most ITOs don‟t implement the complete ITG/ PPM solution
Prefer to acquire only the missing PPM modules:
• Demand mngt
• Portfolio mngt
Manage thehere
Your Text other modules by existing solutions, as:
Your Text here
• Project mngt – MS Project, PS Next, etc
• Financial mngt – ERP, etc
• Resource mngt – SP, MS Project, In-house tools, etc
• IT process mngt
• Reporting
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50. Office of
ITG/ PPM- Positioning of the Israeli Market the CIO
Vendors to Watch:
Compuware IBM
Worldwide
Leader
CA
Enterprise
Local Support
Local Solution
Your Text here HP Your Text here
Mid-Tier
Microsoft
MSP
PS Next
This analysis should be used with its
supporting documents
Market Presence
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51. Project Mngt - Positioning of the Office of
the CIO
Israeli Market
Vendors to Watch:
Compuware IBM Microsoft
Enterprise
Local Support
CA Existing Israeli
experience in
Your Text here Your Text here project mng
PS Next Worldwide
HP Leader
Primavera
This analysis should be used with its
supporting documents
Market Presence
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52. PPM Tools & Integrators in Israel Office of
the CIO
PPM Clients New Clients Integrators
on-Demand 08‟
Clarity (CA) V Ministry of Leumi Card CA, Proceed
Tourism, Clalit,
SanDisk
PPM (HP) V Partner, Mataf HP, Taldor
Motorola(Global),
Your Text here Your Text here
Compuware Jacada (Global), Matrix
Changepoint Retalix (Global)
(Matrix)
BAW,EPM, RA IBM
M, RD
Composer
(IBM)
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53. PPM Tools & Integrators in Israel Office of
the CIO
PPM Clients New Clients 08‟ Integrators
on-Demand
MSP V Menora IAI, Tel-Aviv Municipality MSP
CIO Dashboard: Random
Logic, Ayalon-ins, IDF
PS Next (Xioma) V Bank Discount, Menora, Teva Visa Cal Xioma, Signifer,
Tefen
Non IT clients: BVR, Nova, Non IT: Leadcom
Networks BigBand, Evogene
Your Text here Hazera Genetics Your Text here
PPS (Microsoft) Malan Matan, Orantech
EPM (Microsoft) M-system, Leumit, IAI, IAA, Matan: Alvarion, IAA, Better Matan, Orantech,
Lotem, Bezeq, Mekorot, Tel Place, Tnuva, Random
Aviv Municip, Orbotech, Bank Logic; Orantech: Teva, Neway, PZ
Leumi, Coca-Cola, Nice, Ceragon, Logic, AD Gency Projects,
Strauss-Elite Sol gel Rocar Playtech; Proceed, Tefen
KAKAL, MODU, Kodak, RAD
Proceed: Malam
Primavera Mercava, IDF Aviv
(Being acquired
by Oracle)
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54. ITG/ PPM Israeli Consultants Office of
the CIO
Partial List (alphabetical)
Ben-Arzi Hezi Neway (Microsoft representative)
Bi-pro Orantech (Microsoft
Bit Plus representative)
Parush Zvi
Dagan Avi
Harel Arnon here
Your Text
Proceed Text here
Your
(CA & Microsoft tools
representative)
Matan (Microsoft tools PZ Projects (Microsoft
representative) representative)
Ron Gabi
Mateor
Sibam
Methoda Strauss Avner
MSP (MSP tools representative) Tefen (Microsoft representative)
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55. Another opinion – not all is Bleak! Office of
the CIO
ITG is mostly suitable for large enterprises
There is great sense of control in SMBs
Expensive technology & methodology that require
Your Text here Your Text here
additional resources would bring the desired
transparency which will also lead to interventions & high
evolvement in IT budgets
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56. Office of
Conclusions the CIO
OTC raises IT from a cost center to a business value center
OTC shifts the discussion from bits & bytes to resource
investment vs. business value
Value-focused IT spending
Your Text here Your Text here
PPM tools are second preference – the real change to the org.
will bring governance procedures & right
methodology
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57. IT in Aggressive Cost-Cutting Times ITAM
Shift to IT Asset Mngt
Technology budget
Your Text here Your Text here
discretionary
is mostly non- Sourcing Models
cost basis when
discretionary Cloud Computing
possible
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58. IT Asset Management ITAM
Some IT assets are still being managed like this
Your Text here Your Text here
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59. If you don’t know – then… ITAM
If you don't know what you have, you don't know anything
• Accurate inventory of IT assets (HW & SW)
• Business value
• Operating status
Your Text here Your Text here
If you don't know where it is, you don't have it
• Identification of each asset & its geographical location
If you don't know the cost, you don't know anything
• Licensing agreements management
• Avoiding financial penalties
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60. Application Portfolio Mngt ITAM
Israeli Trends
Contracts & leases management – complex & costly
The search for more sophisticated tools
Multiple purchasing options
Maintenance renewals for SW – automatically renewals
Your Text here Your Text here
Most organizations negotiate vendors with lack of any
processes or tools
Good contract is not about getting a good price –
it’s about assuring value!
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61. Software Licenses Mngt ITAM
Cost savings:
• Re-use your licenses by monitoring actual usage
SW contracts review:
• Licensing terms, total nu of licenses, costs to the org.
InventoryText here desktops & what is installed on each
Your
of all Your Text here
Monitor the actual demand for SW licenses:
• Overpayment for licenses that aren't being used (result of volume
discount)
• Apps have been abandoned, but the vendor is still receiving licensing
revenue / Zombie SW programs
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62. SW Licensing Models & Pricing Metrics ITAM
Perpetual license:
• Perpetuity product usage (within the boundaries
defined in the agreement)
Subscription license:
Your Text here Your Text here
• Limited period of time for which usage rights are
granted (typically 1 to 5 years)
Suppliers moving toward the subscription license model
due to economic downturn
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63. Strengths & Weaknesses ITAM
The Customer's Perspective
Delivery Strengths Weaknesses When to Choose
Model
Perpetual •Lowest 5 year license fees •Premature •No requirement to
•Lowest cost of negotiation retirement results achieve lowest initial
•Greatest control of license in high sunk costs cash outlay
agreement
•Longer & more •Commitment to the
•Financing that can reduce amount of
initial cash outlay complex product for a minimum
•Possibility of continued use of negotiation of 5 years
Your Text here Your Text here
product without maintenance if
product has significantly matured
Subscrip. •Lowest initial cost - faster approval •Higher license fee & •Requirement for lowest
Based •Predictability of annual license & negotiation costs over initial cash outlay
maintenance costs a 5-year cost of •Benefits beyond initial
•Avoids the extensive requirements ownership cash outlay are important
for capital expenditure approvals •SW must be to the organization
•Better link between performance & deinstalled if license •Product purchased to
negotiation process is not renewed meet a short-term need
Source: Reiner Associates, Inc.; Sales Strategies, Inc
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64. Strengths & Weaknesses ITAM
The Supplier's Perspective
Delivery Strengths Weaknesses
Model
Perpetual •Most up-front revenue •Competitive losses to
•Lower cost of sales during the suppliers offering
lifecycle of product subscriptions
•More predictable maintenance •Length of sales cycle
Your Text here Your Text here
revenue
Subscription •Predictability of the annuity •Lower up-front
-Based revenue stream revenue
•Possibility of delivering greater •Easier for customer
revenue over time to terminate use
Source: Reiner Associates, Inc.; Sales Strategies, Inc
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65. IT Application Portfolio Mngt ITAM
Israeli Trends
High variety between the ITOs
• from having no idea where IT assets are – to ITAM with full SW usage
metering with integration to ERP & HD
Major challenges:
Your Text here Your Text here
• SW Usage metering
• Type of usage (change performance/ read only)
The tougher the formal procedures are - the easier ITAM
Lack of ITAM tools maturity
ITAM tools often viewed as an extension of ERP & PPM tools
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66. IT Application Portfolio Mngt Tools ITAM
Selected Installations in Israel
Clients New Clients 08’ Integrators
CA Bank Discount, Bank Leumi, IAI, Air Force 888, Ministry of CA, Ness, MSP,
Justice, Min. of Malam, Cabao
Defense, Petah –
Tikva Municip.
BMC Partner – eng, Social Security, NDS, ZIM Motorola Matrix , Xor
HP HP, Xor
IBM - Tivoli Bank Mizrachi IBM
Symantech Your Text here Your Text here Malam-Team
HP
Altiris Bynet Artnet E&M
Virgonet Aman
SAP – Coca-cola, IEC, Ness, Malam-Team
Solution mng Government
Microsoft Bank Leumi, Mataf, Amdocs, DSW, IDF(Mamram), Rafael, IAA, Ramot Hospital, Matrix, Malam-
SMS Ministry of Foreign Affairs, Teva, Bank Mizrahi, Intelligence Blue Square, Team, Bynet,
corps, Comverse, IAI, Clalit, Netvision, IEC, Postil Superpharm, Audiocodes Taldor, DB@net
Tel-Aviv mun, Eged, Pelephone
Novell – Strauss-
ZENworks Elite, Tnuva, Teva, Mirs, Menora, Orbotech, IAI, Nur, Netafim, Pe
lephone, Rafael, Bezeq Online, Jerusalem
Mun, CaesarStone, Ministry of Transport, Social
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67. Service
Service Desk Desk
HD is amongst the primary targets for cost cutting
Your Text here Your Text here
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68. Service
Israeli Trends of Service Desk Desk
Although a lot have been done to improve HD staff
productivity:
• Best practices (ITIL) widespread acceptance among large
& more complex ITOs
Your Text here Your Text here
• Desktop configurations standardization
• Sophisticated HD tools - web-based user self-service,
automated email response SW, incident tracking systems
• Remote access
Upcoming STKI RT
• Outsourcing
on SD: 31/05/2009
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69. Different solutions for lack of HD staff Service
Desk
Customer recommendations
Self service through web access tools & knowledge mngt
Integration of 1st & 2nd levels support with distribution for
expertise
Production system care only after working hours
Your Text here Your Text here
SD is SPOC for every type of question (IT, HR, ect) –
headcounter job integration
Best practices - ITIL
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70. Service
HD Staffing Ratio Desk
Average ratio of Israeli Help Desk department:
• ~360 users per HD FTE (between 120 – 1,400)
• Compared to ~300 in global orgs
Your Text here Your Text here
Average nu of incidents per month: 12,000
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71. HD Israeli Benchmarks Service
Desk
Your Text here Your Text here
missed calls % incidents opened % incidents closed %
by self service st level support by
Source: STKI
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72. Service
Trends of Service Desk Tools Desk
Over the past several years, there have been significant
improvements in the tools available to Help Desks
These tools can help in the automation of support & in
Your Text here Your Text here
the remedy of problems
Progressed HD tools can optimize the size & the
responsibilities of HD personnel
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73. Vendors Trends of Service
Desk
Service Desk Tools
Vendors have followed with tools that assist in the
implementation of ITIL processes
Major vendors have expanded their offerings:
Your Text here Your Text here
• Asset mngt portfolio
• SaaS model
• CMDB
Service desk mngt tool is a mature market
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74. IT Service Desk – Service
Desk
Positioning of the Israeli Market
Vendors to Watch: Microsoft
IBM
CA
SAP Worldwide
Local Support
Leader
HP BMC
Enterprise
Siebel
Your Text here Your Text here
MID-Tier
Pivotal SysAid IT HD
PeopleSoft
Modules
This analysis should be used with its
supporting documents
Market Presence
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75. IT Service Desk Tools Service
Desk
Selected Installations in Israel
Clients New Clients 08’ Integrators
Comverse, IAI, Discount, Elta, ECI, HOT, Motorola, Teva, Bank Hapoalim, Bank CA, Ness, Malam,
CA Elbit, Mekorot, Osem, Phoenix, DSW, Bezeq Int, Beit Berl, Yahav, Mifal Hapais, MSP, Cabao
Israel Police, Tnuva, Central Bureau of Statistics, EL-AL, Ministry of Justice,
Tamas, TASE, Ministry of Health, Tel-Aviv Municipality, Ministry of Defense,
Herzelia Munic. Clalbit, Shabas, Rafael, Isracard, Yediot, Petah-Tikva Munic
Shupersal, 888, 9900, Bank Israel
Zim, Malan, IGS, MED Nautilus, Malam, Kneset, NDS, Sandisk Matrix ,Aman,
BMC Social Insurance, Uniliver, Creo, Intel, Motorola, Summit Taldor, Xor
Design, Polycom, Cellcom- eng. HOT-eng. Partner – eng
Your Text here Your Text here
HPOV:IDF, Netafim, Shaam, Open University, Orbotech, Service Manager Aman, HP, Xor
HP Tower Semiconductors, Haaretz
Tefensoft: Clalit Health, Menora, Migdal, Prime Minister,
Strauss-Elite, Hadasa, Machteshim, Maman, AudioCodes
Rav-Bariach, Marvell, Dan, Jonson & Jonson, Highway 6, Coca Cola, Prisma, Beit Consist
SysAid Omrix, Wintegra, Sami Shimon College, Minicom, Litcom, Barel College, Ashdod
Ilient Africa Israel, Mei-Eden, AIG, Electra, McCann Erickson, Port
Diesenhaus unitours, Flash Opal Networsks, Liveperson,
Hertz, Psagot Ofek
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76. Service
IT Help Desk Modules from CRM packages Desk
Clients New Clients 08’ Integrators
Microsoft Ministry of Finance, Malan, Israeli EL AD: Judicial Authority 20 Partners, including:
Navy, Intel, Prime Minister, Visa, Malam-Team: TAU Matrix-
CRM* Cellcom, Ministry of Education Matrix-Effect: Igud, Effect, SIT, Advantech
(*ITIL complaint) Superpharm , Malam-
Netwise: Amal Team, Netwise, Bynet
SW, El-AD….
Pivotal Super-Pharm, Bat-Yam Tadiran, Negev Ceramics, ONE1
Municipality, Exlibris, Systematics, Orad
Your Panorama, Telmap, Ericom FGG
Text here Your Text here
Radvision, Gilat, Maccabi, Shahal,
Ritalix, Globs
Paz, Isr. Government Ness, IBM, EDS,
SAP Bazan
Advantech
PeopleSoft Ministry of Foreign Affairs, Matrix
Mamram, Bezeq -
Siebel* Tnuva, Golden Pages, Bank Leumi Taldor, IBM
-
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77. Sourcing
IT in Aggressive Cost-Cutting Times Models
Shift to
Your Text here
Technology is not a discretionary Your Text here
Sourcing Models
discretionary asset cost basis when
possible
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78. Sourcing
Cost Cutting Outsourcing Models
Your Text here Your Text here
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79. What are the most important management Sourcing
initiatives taken to reduce IT costs? Models
Your Text here Your Text here
Source: Cutter
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80. Sourcing
Typical Benefits from Outsourcing Models
Focus on ―core‖ competence of the company
Cost-savings (reduced overheads, economies of scale)
Service quality improvement due to specialization of service provider
Reduction of capital expenditure - Discretionary costs Text here
Your Text here Your structure
Standardized IT infrastructure & processes - access to best practices
Improvement in processes & their documentation
Offshoring – labor arbitrage
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81. Sourcing
Typical Costs & Risks Models
Loss of day-to-day mngt control of outsourced services
Dependence on service provider for strategic info on
internal technology, operational & business options
Your Text here Your Text here
Risks of losing valuable knowledge & experience
Additional costs associated with managing the
outsourcing service provider
Bad PR if deal is off
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82. What kinds of work are you currently Sourcing
Models
outsourcing or planning to outsource?
Your Text here Your Text here
Source: Cutter
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83. For what reasons have you considered Sourcing
Models
backsourcing?
Your Text here Your Text here
Source: Cutter
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84. Sourcing
Global Trends of Outsourcing Models
Outsourcing/ Offshoring will continue to expand during
economic meltdown
Outsourcing landscape changing due to:
Your Text here Your Text here
• Globalization
• Cloud Computing
• Providers will turn to SaaS during
the financial crisis
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85. Sourcing
Global Trends of Outsourcing Models
ITOs will turn to outsourcing for cost cutting
• Non-discretionary expenditure reduction
• Avoidance of capital investment
Your Text here Your Text here
Growing outsourcing segments:
• QA
• BPO - greater variety of offerings
Crowdsourcing
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86. Sourcing
Crowdsourcing Models
“Taking a job traditionally performed
by a designated employee &
outsourcing here to an undefined,
Your Text it Your Text here
generally large group in the form
of an open call.“ Howe
Best & least expensive sources of innovation
lie outside the corporate walls
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87. Sourcing
Advantages of Crowdsourcing Models
Several, alternative designs & solutions
24x7 workforce (project gets done faster)
Applies to other aspects of innovation:
• Netflix recommender service
• Dell's IdeaStorm
• Amazon.com's Mechanical Turk (http://www.mturk.com/mturk/welcome)
Your Text here Your Text here
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88. Sourcing
Disadvantages of Crowdsourcing Models
Requires great coordination
Exposure of intellectual property (both the contractor &
the sponsor)
Corporate Social Responsibility issues
Your Text here Your Text here
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89. Sourcing
Israeli Trends of Outsourcing Models
Steady & mature market
Outsourcing market grew this year due to increasing
scope of existing client & a few new deals
Decline in number of deals
Your Text here Your Text here
Both largest deals of this year were comprehensive IT
outsourcing in Public sector
Rest of deals – small selective outsourcing
NO backsourcing deals
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90. Sourcing
Israeli Trends of Outsourcing Models
Increased focus on detailed feasibility study
Clients prefer a trial period of 1-3 years in long term
(8-10 years) contracts
Your Text here Your Text here
Outsourcing service provider evaluation by the client
• Meeting SLA terms of contract
• Periodic review using a consulting company
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