IT Assessments I Best Practices I NuggetHub

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I T A S S E S S M E N T S
Best Practices

Key Follow Up Activities3
Further IT Assessment Approaches2
IT Quick Assessment, Methdology and Reports1
Agenda

An IT Quick Assessment should be beginning phase of every
successful IT transformation
Overview and objectives of the project “IT Quick Assessment”
 Mutual understanding of the IT
require-ments from the point of
view of business areas and
management
 Well-founded status analysis of
IT as basis for decisions of future
development
 Strengths/ weakness analysis
as decision-making aid for IT
developmental focus
 Establishing a basis of
comparison for improvement
projects
 Proposals for sustainable
optimisation
IT Flash objectives Results of IT Flash
Transformation of IT for supporting the “2020 vision”
ImplementationTarget image
IT Quick Assessment
Transparency
& Priorities
 Transparency: A “quick
assessment” (quick recording) of IT
status (costs, applications, projects,
infrastructure, organisation)
 Evaluation of current status
 Proposals for improvement
levers, comparison of best
practices
 Scenarios for future orientation
based on status analysis
 Short-term (e. g. Quick Wins)
 Long-term (high-level roadmap)
Scope
 Group wide
 Company A
 Company B
 Company C
 [...]
Project objective: Establishing IT transparency and a basis to achieving IT synergies as well as better process
support and controllability of the entire group

The costs analysis shows that IT is of low importance within the
Group
IT Costs - analysis field overview
 The entire IT costs deviate
significantly from the market average
(smaller IT investments)
 Proportion of IT employee per
employee is significantly below the
market average
 Application/ infrastructure costs do
not consider “Total Cost of
Ownership” (remnant costs)
 The service depth differs in individual
companies
Benchmark 2012
IT expenses with regards to revenue
0.6%1.43%
2,101€4,292€
0.85%2.1%
74% / 26%
1
Avg. IT expenses per employee
# IT employee / # employee
1 Average values of manufacturing industry from Benchmark 2012, Gartner: “IT Metrics: IT Spending and Staffing Report, 2012” with conversion of amount in US Dollar to Euro
for exchange rate EUR/USD of 1.3921 (annual average 2011)
Distribution of IT activities
IT OPEX/ CAPEX
Plan/Build/Run
Automotive
Group
 Reported and budgeted IT costs of the
automotive Group amount to 8.9Mil €
in 2012 (corresponds to 0.6% of
budgeted total sales)
 The IT costs in 2011 deviate from the
planned IT budget in 2012
insignificantly (GJ 10/11: 8 Mil €)
 The completeness and accuracy of the
reported and recorded IT costs has to
be verified partially with controlling
 The cost structure for Plan/Build/Run
deviates significantly from the market
and sector average
 Investment costs and depreciation
were reported only partially. The
complete and company-wide
integration is linked to additional
expenses
 Reported and activated projects do not
lead to depreciations of old software or
hardware (no accounting risks
reported)
 Budget planning is not consistent as it
differs in structure and output
Assessment results Findings
IT Finance, Governance & Control
IT applications (Process and Technology)
IT Infrastructure
Plan 15%
Build 18%
Run 67%
Recommendation for action
approx. 3%13%
approx. 49%29%
approx.48%58%
63% / 37%2
Development of IT dashboard
Cost savings in
telecommunication
Process coordination of
business and IT costs
Extended cost analysis
IT training budget planning and
reporting
Industry “best
practices”
Development of global IT cost
template
Plan 4%
Build 52%
Run 44%
1A
1B
1C
1D
1E
1F

Different application landscapes complicate collaboration and
discourage common orientation across the group
IT Applications - analysis field overview
 129 business relevant applications were
identified and allocated to the domains
development, production, customer
management and support functions
 49 applications are deployed in the
technical areas (development and
production), 80 support commercial
processes (customer management and
support functions)
 The partially reported and allocated
operation costs amount to approx. 1.0
Mil € in GJ 11/12
 47% of the applications will be used
locally
 The application landscape is defined as
decentralized in the company and
developed further, a comprehensive
coordination takes place only in few
subject fields (e.g. CAD, PDM)
 Critical applications like ERP systems
are out-dated and are maintained
insufficiently
 Approx. 50% of all the applications are
not documented or are documented
insufficiently
 There is no “Business Continuity Plan”
for business-critical applications
Benchmark 2012
rudimentary /
insufficient
sufficient
homogenous,
dominate
comprehensive solutions
high,
Several in-house
developments
low,
standard compliant
Documentation status
heterogenous,
Local, dominate solutions
Application usage
Interface complexity
Reposnibility of applications
centralised, clearly
defined
local, inconsistent
expensiveavailable
Cost transparency
not availabledefined binding
Application standards and guidelines
internally: no SLAs
defined
externally: insufficient
defined via SLAs
Maintenance and Support
Integration of a group wide CAD System
Establishment of “global purchase manager”
Implementation of template-based process
and gap analysis (all ERP relevant systems)
Implementation of Active Directory and
selection of communication solution
Process orientation of PDM system
 Every business has directed their application
landscape development to the local
requirements
 The transparency reached through the
application landscape is still insufficient
 The usage of local applications complicates
cross-group orientation
 Maintenance contracts and protection against
breakdowns are missing for business-critical
applications
2A
2B
2C
2D
2E
1
Automotive
GroupIndustry “best
practices”

The locally oriented and isolated project organisation complicates
group wide project portfolio management
IT Projects - analysis field overview
 The analysis has identified 45 application
and infrastructure projects
 The total volume of the identified projects
in GJ 11/12 amounts to 1.17 Mil €
 Currently there is a deviation between the
allocated project costs and the notified
project budget of approx. 0.7 Mil €
 Additional smaller project initiatives were
identified in the interviews (U-Boot
projects)
 The share of the project of the IT Budget
deviates substantially from “best
practices”
 Projects will be planned and coordinated
locally in the companies
 Project redundancies through equal or
similar objective targets
 There is no standard procedure and no
tool support for project planning,
implementation and controlling
 The project objectives are aiming at local
demands and not at objectives of the
group
 Projects are being initiated without taking
into account uniform guidelines and
standards
Project share from IT budget
51%18%
low/n.v.high
low/n.v.high
defined
(e.g. Stage Gate, CMMI)
low/n.v.high
Application standard conformity
Infrastructure standard conformity
no standard
Project redundancy
Project methodology
Global strategy conformity
Project governance
 There is no project portfolio
management and no defined
application roadmaps
 There is no uniform governance for
initiation, implementation and for
controlling project initiatives
 There is hardly any cross-project
collaboration between the companies
 Conformity to applications and IT
infrastructure standards is missing
 Inadequate transparency and up-tp-
dateness of relevant project
information (planning, status, goal
setting, costs)
centrally and locally locally
highlow
PM tool support
local, Excel basedcentral PPM solution
Benchmark 2012 Assessment results Findings
Definition and introduction of
project portfolio mgmt.
Initiation of temporary IT project
guidelines
1
Automotive
practices”
3A
3B

The decentralized IT infrastructure fulfils current and future
requirements only insufficiently
IT Infrastructure – analysis field overview
RZ strategy
centralised &
redundant
Active Directory-domaine model
 Data centres will be operated
decentralised and are thus partially
redundant
 Non-synchronised “Active Directories” will
be operated in parallel
 Different desktop strategies are currently
being implemented (Thin-Clients vs. Fat
Clients)
 No adequate Service Desk support (local
contact person, insufficiently determined
service times, no uniform ticket system,
no 24/7 service desk)
 Decentralised IT infrastructure of
purchase: Procurement of same parts is
done with several suppliers
 A comprehensive rendering of IT
infrastructure services takes place
partially
 No standardised IT Service Management
processes are defined (ITIL)
 Controlling data centre services through
decentralised, inconsistent monitoring
 Insufficient documentation of
infrastructure systems
 Emergency plans are insufficient
 Currently no disaster recovery measures
are defined for disaster situations
 The IT infrastructure architecture
currently adheres a decentralised
structure for the local requirements
of individual companies
 There is no comprehensive
coordination of IT infrastructure
topics
 Cost leverage: Decentralised
purchase prevents usage of synergy
potentials
 Transfer of service between
companies is standardised
inadequately
 Insufficient safety precautions
defined for IT infrastructure operation
Desktop-strategy
centralised
Service Desk
IT procurement
ITIL processes
Monitoring (Performance Mgmt.)
Business Continuity (ITSCM)
decentralised &
only partially redundant
Tier-Level Definition none
decentralised
standardised inconsistent
centralised decentralised
At least incident, problem
and change management
none
Centralisation of IT Purchase
Definition of IT Service Mgmt.
processes
Professionalization of “Service
Desk”
Professionalization of “Desktop”
Standardization of “IT
Monitoring”
Development of RZ strategy
(Business Continuity, Disaster
Recovery, Centralisation)
1
Automotive
practices”
4A
4B
4C
4D
4E
4F

The establishment of centralised IT governance and controlling
capacities enable sustainable implementation of necessary measures
IT Organisation – analysis field overview
 Organisational form of the automotive group IT follows a
decentralised structure
 Only 36 FTE work in IT functions:
 Emphasis lies in applications and infrastructure area
 IT controlling and governance is observed insufficiently
 Decentralised organisation complicates central issue
coordination and leads to higher costs and decentralised
solutions
 Various process and cultural understanding issues among
employees that have a negative influence on communication
and collaboration
Assessment results
 Decentralised IT responsibilities with different roles and
interdisciplinary issue controlling (no central budget
sovereignty, insufficient IT portfolio and architecture
management)
 Insufficient formal coordination and division of roles between
companies, technical departments and the IT
 Decentralised competency distribution
 No comprehensive IT personnel development
 Measures for organisational centralisation were supported in
the IT workshop (e.g. centralised IT committees)
“Common IT project initiatives that have
gone wrong in the past complicate the
collaboration between the companies – a
rethinking must happen here – also in the
technical areas!”
“Our IT strategies and tactics are not
coordinated with one another – each
person decides for himself/herself – a
common platform for exchange is
essential”
Findings
“The necessary
optimisation
measures once
again lead to no
results - we need
support!”
Building centralised IT Service Mgmt. Organisation
Building Business Partner Organisation
Development and designing of “IT Governance”
Establishment of “IT Prg. Mgr/CIO”
Development and designing of “global IT roadmap”
Development and designing of ”IT Operating Model”
Development of IT strategy
Initiation of “Change Mgmt. Program”
5A
5B
5C
5D
5E
5F
5H
5G

The IT department of the automotive Group can become a reason of
success for the implementation of strategic business objectives in the future
Target image of IT Costs, IT Organisation, IT Applications, IT Projects and IT Infrastructure
IT Costs
 Transparent and efficient IT
cost management
 Defined roles, responsibilities
and processes
 Direct option for cost
comparison and identification
of optimisation potentials
IT Organisation
 Focused, group-wide IT
organisation, that delivers
value
 Intensive collaboration of all IT
functional areas
 Cross- area employee
development
IT Infrastructure
 The centrally oriented IT
infrastructure fulfils future
business requirements
 The harmonisation of
infrastructural architecture
optimises comprehensive
collaboration
IT Applications
 Supporting core processes
through comprehensive IT
applications
 Centralised data retention and
uniform data standards
 Proactive development of
application landscape based
on business and IT strategy
IT Projects
 Cross-project portfolio
management enables primary
focus on business strategy
 Uniform project method
enables efficient project
implementation and saves
costs

To modernise and achieve a stronger position in the Group, the IT
should begin with prioritised areas of action
Prioritisation of tasks
05/12 06/12 07/12 08/12 09/12 10/12 11/12 12/12 01/13
4C Standardization of “IT Monitoring”
4B Professionalization of “Desktop”
4A Professionalization of “Service Desk”
4. Infrastructure
3B Definition and introduction of project portfolio mgmt.
3A Initiation of “Temporary IT guidelines”
3. Projects
2E Introduction of Active Directory
and selection of communication solution
2D Implementation of template-based process
and Gap Analyse (all ERP relevant systems)
2C Establishing “global purchase manager”
2B Process orientation PDM system
5G Development of IT strategy
4E Definition of IT Service Mgmt. processes
2A Integration of group wide CAD System
2. Applications
1F Development of IT Dashboard
1E Cost savings telecommunication
5. Organisation
1C Process coordination business and IT cost
1B Development of global IT cost template
1A Advanced cost analysis
1. Costs
5A Establishment of “IT Prg. Mgr/CIO”
5B Initiation of “Change Mgmt. Program”
5C Development and designing of “global IT roadmap”
5D Development and designing of “IT Governance”
5E Building centralised IT Service Mgmt. Orga
5F Building Business Partner Orga
5H Development and designing of “IT Operating Model”
Areas of action
4F Development of RZ strategy (Business Continuity,
Disaster Recovery, Centralization)
4D Centralization of IT Purchase
1D Training IT budget planning and reporting
Assumption: Deploying 3 Consultants
required Kick Off Rough planning (Duration)

An IT Quick Assessment should be beginning phase of every
successful IT transformation
Overview and objectives of the project “IT Quick Assessment”
 Mutual understanding of the IT
require-ments from the point of
view of business areas and
management
 Well-founded status analysis of
IT as basis for decisions of future
development
 Strengths/ weakness analysis
as decision-making aid for IT
developmental focus
 Establishing a basis of
comparison for improvement
projects
 Proposals for sustainable
optimisation
IT Flash objectives Results of IT Flash
Transformation of IT for supporting the “2020 vision”
ImplementationTarget image
IT Quick Assessment
Transparency
& Priorities
 Transparency: A “quick
assessment” (quick recording) of IT
status (costs, applications, projects,
infrastructure, organisation)
 Evaluation of current status
 Proposals for improvement
levers, comparison of best
practices
 Scenarios for future orientation
based on status analysis
 Short-term (e. g. Quick Wins)
 Long-term (high-level roadmap)
Scope
 Group wide
 Company A
 Company B
 Company C
 [...]
Project objective: Establishing IT transparency and a basis to achieving IT synergies as well as better process
support and controllability of the entire group

The scope of every IT Quick Assessment should carefully be
aligned with the client sponsor and responsibles
Scope of study of the project “IT Quick Assessment”
IT Flash
Analysis fields
 Listing of IT costs
 Identification of cost elements
 Comparing to Gartner benchmarks
 Analyse IT costs alongside the IT value
chain
IT Costs
 Decision structures of IT
 IT roles and responsibilities
 Collaboration of IT and Business
 Overview of IT services
IT Governance
 Overview of the biggest IT vendors by
type and service categories
 Quick check vendor management
(responsibility, processes, structures)
 Compare with Gartner “Vendor
Management Maturity Model”
IT Sourcing
 Overview of IT infrastructural features
(e. g. number of PCs, server distribution,
data centres)
 Overview of centralised IT applications
 Analysis of application landscape
IT Infrastructure & Applications
The desired focus and quick processing of issue requires a pragmatic procedure in all areas
Focus area

All locations were visited in the course of focus interviews in only
5 weeks and over 9,000 IT relevant individual information was gathered
Intervews allocation
Creation of transparency of all relevant IT
data of the automotive group to identify
optimisation measures
Automotive Group locations Interview/coordination IT Transparency
1. Costs
 Listing of IT costs
 Identification of cost elements
 Comparing to Gartner benchmarks
 Analysing alongside the IT value chain
2. IT applications and projects
 Overview of IT applications
 Overview of IT application projects
 Types of important IT solutions
3. IT infrastructure and IT Sourcing
 Overview of IT infrastructure
 Overview of vendor management
 Comparison with Gartner “Vendor
Management Maturity Model”
4. IT Governance
 Decision structures of IT
 IT roles and responsibilities
 Collaboration of IT and Business
Managem
ent
IT mgmt. IT repres.
( )
IT work-
shop
(
)
( )A
B
C
D
E
F
G1
G2
H

Feedback for the project objectives “IT Quick Assessment” in the
course of the on site visits
Excerpts

The costs analysis shows that IT is of low importance within the
Group
IT Costs - analysis field overview
 The entire IT costs deviate
significantly from the market average
(smaller IT investments)
 Proportion of IT employee per
employee is significantly below the
market average
 Application/ infrastructure costs do
not consider “Total Cost of
Ownership” (remnant costs)
 The service depth differs in individual
companies
Benchmark 2012
IT expenses with regards to revenue
0.6%1.43%
2,101€4,292€
0.85%2.1%
74% / 26%
1
Avg. IT expenses per employee
# IT employee / # employee
1 Average values of manufacturing industry from Benchmark 2012, Gartner: “IT Metrics: IT Spending and Staffing Report, 2012” with conversion of amount in US Dollar to Euro
for exchange rate EUR/USD of 1.3921 (annual average 2011)
IT OPEX/ CAPEX
Plan/Build/Run
Automotive
Group
 Reported and budgeted IT costs of the
automotive Group amount to 8.9Mil €
in 2012 (corresponds to 0.6% of
budgeted total sales)
 The IT costs in 2011 deviate from the
planned IT budget in 2012
insignificantly (GJ 10/11: 8 Mil €)
 The completeness and accuracy of the
reported and recorded IT costs has to
be verified partially with controlling
 The cost structure for Plan/Build/Run
deviates significantly from the market
and sector average
 Investment costs and depreciation
were reported only partially. The
complete and company-wide
integration is linked to additional
expenses
 Reported and activated projects do not
lead to depreciations of old software or
hardware (no accounting risks
reported)
 Budget planning is not consistent as it
differs in structure and output
IT Finance, Governance & Control
IT applications (Process and Technology)
IT Infrastructure
Plan 15%
Build 18%
Run 67%
approx. 3%13%
approx. 49%29%
approx.48%58%
63% / 37%2
Development of IT dashboard
Cost savings in
telecommunication
Process coordination of
business and IT costs
Extended cost analysis
IT training budget planning and
reporting
Industry “best
practices”
Development of global IT cost
template
Plan 4%
Build 52%
Run 44%
1A
1B
1C
1D
1E
1F

Overview of IT budget distribution 2012 of the Group based on
IT cost categories
IT Costs – analysis field overview
 More than 50% of the entire IT budget is
covered by Company A and Company B
 In comparison, Company D and Company G
which are production companies report
lower IT budgets
Total
8.899
9%
14%
1%
4%
23%
10%
12%
27%
IT
Function
399
876
1.032
Depre.
801
2.008
Dev.
Apps
Telco
2.400
390
Dev.
Infra.
Netwo
rk
107
Operati
on Apps
1.249
Operati
ons
Infra
839
Remarks
 Plan (=IT Function costs: Human resource related costs, e.g. further training)
 Build (=Development costs for infrastructure and application projects)
 Run (= Operation costs of infrastructure and applications, telecommunication cost,
network costs and depreciation)
 Ratio between Plan/Build/Run deviates significantly from market average
Total IT Budget 2012 in k€ 1
1 Base: IT budget template of the questionnaire conducted within the individual companies
Company I
9%
(777.664)
Company H
1%
(81.444)
Company G
12%
(1.044.400)
Company F 1%
(84.250)
Company E
18%
(1.610.200)
Company D
3%
(252.413)
Company A
30%
(2.696.500)
Company C
2%
(148.479)
Company B
25%
(2.203.955)
IT Budget1
per costs category (in
k€)
IT Budget distribution in % (k€) 1
Remarks
CAPEX
CAPEX
100%
45%
51%
3%Plan
Build
Run
 = 8,899,305 Euro

IT investments and depreciations can only be deduced partially –
long-term contractual agreements are only present for renting printers and
services
Investment process (CAPEX) 2011-213 in k€ 1
1 Base: IT budget template of the questionnaire; 2 Version of survey dated 19.4.2012
662
444
B
455517
A
00
254
100
297
H
000
G
000
F
0
I
100
5944
E
508
289
497
D
219
3543
C
0
CAPEX 2013CAPEX 2012CAPEX 2011
36%
D
0
0% 0%
C
952.000
18%
41%
B
74.000
70%
18%
F
79.000
37%
16%
H
77.153
14%
17%
0 0%
0%
I
G
383.664
13%
E
1.642.000
25%
36%
A
0
0% 0%
74%/ 26%
CAPEX
OPEX
• B, C, E, F: No long-term service contracts or
liability with third party. Contracts for renting
printer and services are exceptions
• H: ASP Contract– binding period 2 years /
35.0k€ p.a.
 Output management (printer services) –
binding period 4 years / 56.4k€ p.a.
 Maintenance contract– binding period 1 year /
120k€ p.a.
 Maintenance contract exact – binding period
1 year / 7.2k€ p.a.
• A, D, G, I: Required information can only
partially be gathered
Services and contracts with third parties2
Ratio of OPEX vs. CAPEX 2012 in k€ 1
?
Reported and activated projects, do not lead to
depreciation of old software or hardware
(No accounting risks reported)

Detailed 2012 IT budget overview of the individual companies
shows a high variance between Plan, Build and Run costs
Bench-
mark
IT Budget per
cost category
(in k€)
Company E  = 777.664
Company C  = 1,610.200
Company H  = 84.250
Company F  = 252.794
Company A  = 2,696,500
Company G  = 148.479 Company I  = 81.444
Company B  = 2,203,955
Company D  = 1,044.400
total
2.204
50%
49%
1%
IT
function
662
Dev.
Apps
0
316
Dev.
Infr.
0
451
Depre.
0
Telco
105
Netwr
ok
0
Operati
on Apps
316
Operati
on Infr.
355
Plan in
%
Build in
%
Run in
%
462
462
Total
2.697
67%
32%
1%
423
Dev.
Apps
IT
function
Dev.
Infr.
200
200
Depre.
980
Telco
85
Netwr
ok
3
Operati
on Apps
409
Operati
on Infr.
135 108
Operati
on Infr.
IT
function
Netwr
ok
37
463
110
1.610
205
0
Depre.
663
185
84
20%
44
77%
Dev.
Apps
3%
Operati
on Apps
Telco TotalDev.
Infr.
Depre.
150
Dev.
Infr.
0
1.044
Telco
115
0
11%
15
IT
function
Total
45
46%
Dev.
Apps
0
43%
Operati
on Apps
0
150
Netwr
ok
Operati
on Infr.
479
90
778
0
total
284
Dev.
Infr.
Telco
0
98
Depre.
20
259
64 85%
Netwr
ok
2%
Operati
on Apps
Dev.
Apps
126
213
Operati
on Infr.
IT
function
11
79
Total
252
49%
42%
9%
IT
function
88
Dev.
Apps
15
Telco
3
Operati
on Apps
43
16
Depre.
0
20
23
Operati
on Infr.
Dev.
Infr.
6
74
Netwr
ok
Dev.
Infr.
Depre.
50
0
Operati
on Apps
18
12%
Operati
on Infr.
20
24
Telco
16
Netwr
ok
0
total
148
IT
function
70%
70
Dev.
Apps
5
18%
0
0
8130
Operati
on Infr.
Dev.
Infr.
0
29
Total
0
0
Depre.
63%
0 37%
0
Telco
0%
22
0
Netwr
ok
IT
function
0
Dev.
Apps
Operati
on Apps
1
Dev.
Apps
99%
1%
34
IT
function
total
84
Telco
0
15
Netwr
ok
0%
8
25
Operati
on Apps
0
Dev.
Infr.
Depre.Operati
on Infr.
15
46 0
CAPEX
CAPEX
Plan 15%
Build 18%
Run 67%

The ratio of IT function costs per IT employees is an indicator of IT
management efficiency
IT function cost per location (in k€)
0.01.02.02.03.32.0
5.56.5
13.5
Ø 4,0
IHGFEDCBA
478,8
A
661,7
I
0,0
H
1,2
G
70,1
F
88,3
E
213,0
D
479,4
C
462,8
B
Ø 73,0
IH
1,2
G
35,1
F
44,2
E
65,5
D
239,7
C
84,1
B
65,1
A
49,0
Remarks
 IT function costs consist of personnel wages and related
costs, travel and further training and other external human
resource related operative expenses
 The IT human resource costs at Company C will not be
taken into account in their IT Budget
 Company I does not have any IT personnel and, therefore,
no IT function costs
 The average determined IT function costs per IT employee
amount to 73,000Euro
 Company D has the highest IT function costs per employee.
Therefore, they have external expenses of 192 k€ that are
not clearly explainable are taken into account.
IT function cost per IT MA (in k€)
Number of IT employees per location (in FTE) It must be checked in the
transformation phase whether the
reported and allocated IT function
costs are correct, as well as if
possible optimisation potentials
being implemented fully and
correctly.
1A

Budgeted telecommunication costs per local FTE demonstrate
optimization potential
Telecommunication costs pro FTE at the location (in EUR)
14,75015,00016,22422,40223,000
44,000
64,216
85,000
105,000
BA IHGFEDC
177.7
40.5
92.2
280.0
97.5
42.5
251.8
106.387.5 Ø 131
 Telecommunication costs per FTE at
Companies C, F and I lie significantly
above the average
 Telecommunication cost can be reduced
potentially through stringent cost
controlling through following measures:
 Provider selection
 Introduction of VoIP
 Implementation and communication
of guidelines for usage of telephone
 Regular telecommunication billing
audits
Telecommunication costs 2012 (in EUR)
83
370
17680
236
1,035
255
800
1,200
Number of employees per location (in FTE)
It should be checked whether cost-
saving options with regards to
budgeted telecommunication costs
are to be introduced
Remark
BA IHGFEDC
BA IHGFEDC
1E

The distribution of the individual companies’ sales in relation to
their IT budget indicates their levels of IT relevance
273643
7795
116
290297
332
273542
758998
271
295319
-92%
IHGFEDCBA
Expenses
Sales
Size of the company 2012 ( in Mil€)
83.0176.080.0
255.0370.0236.0
800.0
1,200.0
1,035.0
1.02.00.03.32.02.06.513.55.5
IT related employee
Employees
 The difference between companies with
highest planned sales to the lowest
amounts to approx. 92%
 The key figure sales/IT budget shows an
average value of 0.6%
 Company C, E and F have the highest IT
sales compared to their IT budged
 Company D and G have the lowest sales
compared to their IT budget
 The IT budget varies starkly with
approximately same sales, especially in
the highest sales cluster
 4.1 FTE will be deployed on an average
in the IT area
0,0840,1480,081
0,7781,044
0,252
2,697
2,204
1,610
0.3110.408
0.189
1.0131.099
0.218
0.930
0.743
0.485 Ø 0,60
Sales/IT Budget 2012 (in %)
IT Budget 2012 (in Mil €)
Number of employees 2012 (in FTE)
It must be checked whether the
distribution of IT budget is distributed
appropriately with regards to the
overall Group IT Strategy
Remark
IHGFEDCBA
IHGFEDCBA
IHGFEDCBA
5G

Defined roles and responsibilities as well as clear operational
processes enable a consequent and sustainable implementation
Target image: company oriented IT Controlling
Current situation Target image of IT Cost management
IT costs Allocation
Different budgeting templates
Structure
 Transparent and efficient IT cost management and controlling
 IT costs will be divided in functional categories (Plan, Build, Run),
consumer and functional responsibilities
 Costs and volumes and SLAs are defined clearly
 IT services will be calculated according to the negotiated Service Level
Agreements
 No uniform processes and standards
 No cost allocation that is cased justifiably. IT services are
not allocated or allocated to internal customers or other
companies only via fixed amounts
 Insufficient data quality
Characteristics
 IT controlling limited to budgeting/ forecasting
 Limited significance on IT and Business sites due to
missing data of actual costs and expenses
 Limited option for cost comparison and analysis of
optimization potentials
 Systematic IT Controlling and IT Performance Management (KPIs)
 Direct cost control on IT and Business area through high transparency
and traceability
 Direct option to compare (Benchmarking) and option for cost
optimization
Implications
 IT Reports
 IT Costs
 IT Key figures
 IT Investment
 SLAs
Fixed service
allocation
 = Amount
X,-
IT Budgeting
Coordination
of technical depart-
ments
IT Reporting
Require
-ments
 IT Budget
templates
 IT Budgeting
process
 Business
requirements
Process coordination Business
and IT costs
Development of global IT
cost template
IT training budget planning
and reporting
1B 1D
1C

Different application landscapes complicate collaboration and
discourage common orientation across the group
IT Applications - analysis field overview
 129 business relevant applications were
identified and allocated to the domains
development, production, customer
management and support functions
 49 applications are deployed in the
technical areas (development and
production), 80 support commercial
processes (customer management and
support functions)
 The partially reported and allocated
operation costs amount to approx. 1.0
Mil € in GJ 11/12
 47% of the applications will be used
locally
 The application landscape is defined as
decentralized in the company and
developed further, a comprehensive
coordination takes place only in few
subject fields (e.g. CAD, PDM)
 Critical applications like ERP systems
are out-dated and are maintained
insufficiently
 Approx. 50% of all the applications are
not documented or are documented
insufficiently
 There is no “Business Continuity Plan”
for business-critical applications
Benchmark 2012
rudimentary /
insufficient
sufficient
homogenous,
dominate
comprehensive solutions
high,
Several in-house
developments
low,
standard compliant
Documentation status
heterogenous,
Local, dominate solutions
Application usage
Interface complexity
Reposnibility of applications
centralised, clearly
defined
local, inconsistent
expensiveavailable
Cost transparency
not availabledefined binding
Application standards and guidelines
internally: no SLAs
defined
externally: insufficient
defined via SLAs
Maintenance and Support
Integration of a group wide CAD
System
Establishment of “global purchase
manager”
Implementation of template-
based process and gap analysis
(all ERP relevant systems)
Implementation of Active
Directory and selection of
communication solution
Process orientation of PDM
system
 Every business has directed their
application landscape development to
the local requirements
 The transparency reached through
the application landscape is still
insufficient
 The usage of local applications
complicates cross-group orientation
 Maintenance contracts and protection
against breakdowns are missing for
business-critical applications
2A
2B
2C
2D
2E
1
Automotive
practices”

The identified applications are allocated based on a defined IT
domain model
IT Applications – allocation of applications based on domain model
• 4 main domains and 15 sub-
domains are defined
• The129 identified applications
were allocated with respective
sub-domains
• A distinction is made between
systems used overall and locally
• ERP systems were allocated to
the sub-domain production
systems
• CRM systems were allocated to
domain marketing
• The cost are allocated based on
IT Flash questionnaires and IT
Budget FY 11/12
Purchase
Logistics management
Production systems
Quality management
Development systems
PDM (CAD / CAM)
Marketing
Sales and Contract
management
Services
(Parts- / leasing services, etc.)
Vendor management
Finance and Controlling
Human Resources
Documents management
Business Intelligence
Communication and
Collaboration
Development Production
Customer
management
Support functions
1 3
3 13
1
12
7
1 1
0 0
1 10
1 4
5 18
6
24
3
6
13
0
0 0
3 6
0 0
3 21
0 0
4 56
1
8
3
2 15
0 0
2 12
0 0
6 17
3
5
7
11 19
1
7
5
0 0
0 0
5 24
4
1
3
5 45
Remark
0
0
Overall used
applications
Locally used
applications
0
000
Number
Number
Costs in k€
Costs in k€

Around 50% of all applications are used and developed locally,
restricting global optimization measures
IT Applications – analysis of application usage
 129 applications were identified
 47% of applications will be used exclusively
locally
 38% of the applications will be deployed in the
technical area (development and production),
62% support commercial processes (customer
management and support functions)
 Comprehensive solutions are already deployed in
the area of development, local solutions
dominate other areas (especially production and
customer management)
 Company F, D and G have comparatively high
shares of locally used applications
 Companies like Am C and E represent the Group
average
 Companies B, H and I which use a external
services to a large extend comparatively use
higher shares of comprehensive applications
24%
62% 67%
42%
76%
38% 33%
58%
Support
65
Customer
management
18
Production
29
Development
17
Application usage (Number)
47
(61%)
53
(68%)
80
(62%)
49
(38%)
Commercial applications
Technical applications
Application usage as per process domains (in %)
Application usage by companies (in %)
I
0
100%
H
30
70
G
63%
38%
F
94%
6%
E
37%
63%
D
64
36
C
44%
56%
B
17%
83%
A
50%
50%
Remark
Local usage
Global usage
Application distribution (Number)
Local usage
Global usage
Ø

ERP and HR systems belong to 6.5% of all applications that are
older than 20 years
IT Applications - analysis of the age of applications
11
3
2
1
3
1
2
1
5
10
12
2
1
2
4
8
15
10
8
4
8
3
1
3
8764
Number
25
10
5
0 Age
15
22
3
1
3
0
2
7
k.A
.
2
0
1
9
1
8
2
4
1
7
1
6
1
2
1
1
1
0
9 1
4
3210
7 960 321 4
Age
10
5
4
3
2
1
0
8 k.A
.
3
1
3
0
2
7
2
4
2
0
1
9
1
8
1
7
1
6
1
4
1
3
1
2
1
1
1
0
A
I
DCB E
 The average age of deployed
applications is 9.2 years
 41 % of the applications are older
than 10 years
 14 % of the applications are older
than 15 years
 6.5 % of the applications are
older than 20 years
 The deployed systems at
Companies I and E have a very
high total age
 Information on the age is not
available for 22 applications
Distribution of applications corresponding to the age of application
Age of applications compared by companies
Number
Remark
F HG

There is no transparency about the functional scope and technical
requirements for approximately 50% of all applications
IT Applications - user documentation status of applications
k.A.
13%
rudimentary17%
Does not exist
18%
sufficient 52%
Status of user documentation of the applications (% / amount)
 48 % of applications do not have any
sufficient user documentation
 42 applications of them are affected
that have high and serious business
implications
 53% of the applications do not have
sufficient technical documentation
 50 applications of them have high or
serious business implications
0
13
serious
high
moderate
insignificant
No business implications
n.c.
62
22
20
5
2
Status of technical documation of the applications (% / amount)
k.A.
16%
rudimentary24%
Does not exist
14%
sufficient 47%
Remark
No. of App.
No. of App.
29
21
6
0
0
13
69
insignificant
high
No business implications
moderate
n.c.
serious

The applications critical for operation are presently not secured in
case of a breakdown or a malfunction
IT Applications - analysis of application age and business criticality
Stasam
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
Catalogue Creator
29
MS Office 2007
Microsoft BI + Evidenza-Tools
28
27
30
26
25
24
23
22
Visualis. Produktionmoderate grave
Business criticality
critical
highlow
Ageofappplication
 Out of 7 applications that are older than 20 years, 4 are ERP systems, 1 is an
inventory management system and 2 are HR systems
 ERP systems cover several business critical processes – high risk in case of
breakdown or malfunction
 Out-dated applications probably do not fulfil future business requirements
 Business critical applications are documented insufficiently
 There are no SLAs and no Business Continuity Plan for business-critical
applications
Application Age
(Years)
Process
coverage
SLAs Docu-
mentation
Risk
estimation
X 31 60% n.a. sufficient/ k.A. high
X 30 53% k.A. Does not exist /
sufficient
high
X 24 40% n.a. Does not exist /
rudimentary
high
X 24 40% n.a. sufficient high
X 20 7% n.a. sufficient medium
X 27 7% Mainte
nance
sufficient medium
X 27 7% n.a. rudimentary /
sufficient
medium
Securing business-critical applications as part of a Business
Continuity Concept (as part of data center strategy)
Recommendations of action
Focus:applications>20years
4F

Areas of action with respect to strategy, functionality and costs were
identified in all the defined sub-domains
IT Applications – identified fields of action
Fields of action
Development systems
PDM (CAD / CAM)
Purchase
Communication and Collaboration
Overall
Purchase
Logistics management
Production systems
Quality management
Development systems
PDM (CAD / CAM)
Marketing
Sales and expense
management
Services
(Parts-/ Renting services, etc.)
Vendor management
Finance and Controlling
Human Resources
Documents management
Communication and
Collaboration
Development Production
Customer
Management
Support functions
1 3
3 13
1
12
7
1 1
0 0
1 10
1 4
5 18
6
24
3
6
13
0
0 0
3 6
0 0
3 21
0 0
4 56
1
8
3
2 15
0 0
2 12
0 0
6 17
3
5
7
11 19
1
7
5
0 0
0 0
5 24
4
1
3
5 45
Integration XXXX CAD System
Establishment of “global purchase
manager”
Implementation of template-based
process and Gap Analysis (all ERP
relevant systems)
Introduction of Active Directory and
selection of communication solution
Process orientation PDM system
0
0
Overall used
applications
Locally used
applications
0
000
Number
Number
Cost in k€
Cost in k€
2A
2B
2C
2E
2
D

The global application landscape shows the necessity for
implementation of identified areas of action
IT Applications - application landscape of the automotive group with identified areas of action
Company I
Company H
Company G
Company B
Company C
CompanyD
Company E
Company F
Company A
Development Production Customer Management Support functions
Develop
ment
systems
PDM
(CAD /
CAM)
Purchase Logistics
manage-
ment
Produc-
tion
systems
Quality
manage-
ment
Marketin
g
Sales
and
contract
manage-
ment
Services
(Spare
parts and
accessori
es)
Vendor
manage-
ment
Finance
and
conrollin
g
Human
Resource
s
Docu-
ment
manage-
ment
Business
Intelligen
ce
Commu-
nication
and
Collabora
-tion

The strategic project objectives of the automotive group are the
drivers for further development of the global application landscape
IT Applications – possible development options
Application landscape
Possible development
options
Standardisation
&
Modularisation
Productions
network
Achievement of
Innovation
leadership
Extension of
business model
Transparency in
key processes
Information
systems
Drivers for further development are the strategic automotive group projects 2012+1
5 6 8 9 13 14
1 Source: Strategy automotive group 2020, excerpts from Quick Wins and projects from 2012, Dezember 2011
Option 1
Option 2
 A globally used ERP system in
production related areas
(proAlpha oder Abas)
 A global Active Directory (AD)
 A global ERP system “NEW” for
Finance & Controlling, and
 A local system for Company X
 A global Active Directory (AD)
VISION
A global
 CAD system
 EDM system
 CRM system
 ERP system
 AD system

The implementation of the Automotive Group strategy cannot be
supported optimally by deploying an existing ERP -system
Option 1
 Global deployment of an already used ERP-system (e.g.
Abas, ProAlpha) in the production-related areas
 Deployment of a global “Active Directory (AD)” system is
recommended
 No changes in the short term in the area CAD-systems,
PDM, Marketing, Services (spare parts), Dealer
Management, Human Resources and Business Intelligence
 Medium-term development of separate and global EDM-,
CRM-, HR- and BI-systems
 Possibilities for using an existing ERP-system has been
discussed with relevant IT-representatives
Remarks
The deployment of one of the
existing systems as global
ERP-System is not recommended
in view of the strategic company
orientation and due to different
process orientations and cultural
understanding
Advantages
 Investments already made from 0.6 – 1
million € for Abas and ProAlpha
 Rollout takes place on current maturity
level
 User satisfaction
 Internal know-how (Programmer for
Abas)
Disadvantages
 Investments costs approx. 1.5 million €
 No standardisation of functions, high
adaptation effort, insufficient scalability
 Decentralised and different process
orientations
 High “Change Management” expense

The implementation of a new ERP-system facilitates local
optimisation in location A and serves as pilot for a global system in the FI/CO
area
Option 2
 Replacement of the old system “Ardis”
 Deployment and local implementation of the new
ERP-system at location A
 Deployment of a new global ERP-system in the
Finance and Controlling (FI/CO) areas for
supporting the company strategy
 Deployment of a global “Active Directory (AD)”
system is recommended
 Medium-term development of separate and global
EDM-, CRM-, HR- and BI-systems
 The Option 2 has been discussed with relevant IT-
representatives and supported unanimously as
suitable option
Remarks
The implementation of a new
ERP-system at location A and
simultaneous use of the system as
a global solution for finance
and controlling is
recommended
Advantages
 Risk minimisation by replacing old
system “Ardis” at company A
 Implementation of a global global FI/CO
system
 Template-based integration (process
focus and business transactions)
 Low “Change Management” cost
Disadvantages
 Investment costs for new ERP-system
 Enhancements on existing and used
ERP-systems only in comparison with
the new ERP-system

The IT roadmap is the theoretical “Enterprise Architecture” plan,
which defines the individual transformations in line with the target landscape
(Vision)
IT Applications - IT roadmap 2015+
Time
Current-
Application-
landscape
Maturitylevel Vision: Target application
landscape
Initiatives
Phase 1 – Option 2
Application landscape
 Deployment and local
implementation of the new
ERP-system at location A
 Deployment of a new global
ERP-system in the Finance and
Controlling (FI/CO) areas for
supporting the company
strategy

The implementation of the areas of activity initiates the
transformation to a target landscape which supports the business
interests better and more flexible
IT Applications - target image Application landscape
CURRENT-Application landscape
 Mapping of local business requirements
 Many local IT solutions dominate, many
process variants
 Local data retention, few data standards,
inconsistent interfaces
 Reactive application development
 Focus on business requirements across the
group (like collaboration, usage of synergies,
relocation of production)
 Standardized core processes are supported by
few comprehensively used IT applications
 Central data retention, standardized data
standards and interfaces
 Proactive development of the application
landscape based on the business and IT
strategy
TARGET-Application landscape

The locally oriented and isolated project organisation complicates
group wide project portfolio management
IT Projects - analysis field overview
 The analysis has identified 45 application
and infrastructure projects
 The total volume of the identified projects
in GJ 11/12 amounts to 1.17 Mil €
 Currently there is a deviation between the
allocated project costs and the notified
project budget of approx. 0.7 Mil €
 Additional smaller project initiatives were
identified in the interviews (U-Boot
projects)
 The share of the project of the IT Budget
deviates substantially from “best
practices”
 Projects will be planned and coordinated
locally in the companies
 Project redundancies through equal or
similar objective targets
 There is no standard procedure and no
tool support for project planning,
implementation and controlling
 The project objectives are aiming at local
demands and not at objectives of the
group
 Projects are being initiated without taking
into account uniform guidelines and
standards
Project share from IT budget
51%18%
low/n.v.high
low/n.v.high
defined
(e.g. Stage Gate, CMMI)
low/n.v.high
Application standard conformity
Infrastructure standard conformity
no standard
Project redundancy
Project methodology
Global strategy conformity
Project governance
 There is no project portfolio
management and no defined
application roadmaps
 There is no uniform governance for
initiation, implementation and for
controlling project initiatives
 There is hardly any cross-project
collaboration between the companies
 Conformity to applications and IT
infrastructure standards is missing
 Inadequate transparency and up-tp-
dateness of relevant project
information (planning, status, goal
setting, costs)
centrally and locally locally
highlow
PM tool support
local, Excel basedcentral PPM solution
Definition and introduction of
project portfolio mgmt.
Initiation of temporary IT project
guidelines
1
Automotive
practices”
3A
3B

71% of the project costs are budgeted for applications – about 50%
of which lead to functional enhancements of existing applications
IT Projects – analysis of the 2012 project portfolio
 45 projects have been identified: 31
application projects and 14 infrastructure
projects
 1.16 million € project costs are budgeted for
the financial year 2011/12, 61% are allotted
to application projects, 29% are provided for
infrastructure projects
 The information (particularly for
infrastructure) about projects is not yet
complete
 Company D operates 2 applications- and 7
infrastructure projects (90k€ / 206k€), the
project scope at Company G contains 2
projects for implementing Abas (265k€) and
migration of the MS Office Infrastructure
(7k€ in GJ 11/12, 130k€ from GJ 12/13)
 Most of the projects run in the area support
functions, the projects in the production area
have the highest total budget
 No projects are initiated in the development
area due to usage of comprehensive
applications
 About 50% of all projects are used for
functional enhancement of existing
applications
Infrastructure projects14
Application projects
31
Project overview for each company1
Totalbudget/
Numberofprojects
Support
functions
15
223,000
Customer
management
6
105,000
Production
12
410,000
Development
0
0
New development/
new implementation
8
(24)
Enhancement
16
(48)
Exchange
8
(24)
Update
1
(3)
Totalbudget/
Numberofprojects
I
0
0
H
0
0
G
2
25,000
F
4
25,000
E
5
D
9
241,500
C
10
255,000
B
4
272,000
A
9
295,900
1,166,900
Infrastructure
projects
457,900
(39%)
Application
projects
709,000
(61%)
Total
budget
Remark
1 Cost information partly incomplete
Project type (number) Budget distribution GJ 2011/12 (in €)
Application projects for each domain (in €) Driver Application projects (no.)
∑ = 45

Current application project landscape of the Automotive Group
IT Projects – overview of current application projects
Target domainsStatusProject detailsProject objective
GJ 2010/11 GJ 2011/12 GJ 2012/13 +
Relevant
application
Project costs
Purchase
Production
Customer
nmanagement
Supportfunctions
Marketing and Sales
Services (Spare parts
and accessories)
HR
Document-
management
Communication and
Collaboration
ERP
(overall)
k.A. k.A. k.A.proAlpha (ERP)Update ERP planned
70,000 70,000 70,000proAlpha (ERP)Update ERP
In progress
k.A. k.A. k.A.proAlpha (ERP)Enhancement ERP planned
k.A. k.A. k.A.proAlpha (ERP)Enhancement ERP
In progress
52,500 52,500 52,500Gepram (ERP)New launch ERP stopped
30,000 150,000 100,000Dakoda (ERP)New launch ERP
In progress
- 5.000 100.000Improving spare part docu planned
k.A. k.A. k.A.Improving spare part docu planned
75,000 25,000 k.A.Sugar CRMImproving Marketing/Sales progress
75.000 25.000 k.A.Improving Marketing/Sales planned
- 5.000 20,000Improving collaboration planned
k.A. k.A. k.A.Improving communication planned
- - 40,000Improving project mgmt. planned
60,000 120,000 -MS BI + Evid.Impr.Controlling
In progress
k.A. k.A. k.A.Impr.Controlling planned
- - 5,000LoboImpr.Doc.mgmt. planned
k.A. k.A. k.A.LoboImpr.Doc.mgmt.
In progress
- - 5,000LoboImpr.Doc.mgmt.
In progress
k.A. 20,000 20,000TisowareImpr.HRM planned
- 10,000 20,000ARDIS (ERP)Production opt. In progress
- - 150,000Abas (ERP)Further development ERP planned
- 15,000 15,000ARDIS (ERP)Production opt.
In progress
- 50,000 87,000Improving spare part doc.
In progress
- 100,000ARDIS (ERP)New launch ERP stopped k.A.
k.A. k.A. k.A.LiakanetImproving Marketing/Sales planned
k.A. k.A. k.A.Portale FornitoriImproving purchase planned
- 12500 -Abas (ERP)Update ERP planned
- 30000 -LoboImpr.Doc.mgmt. planned
- 4,000 -ExactImpr.HRM planned
- 10,000 -TisowareImpr.HRM planned
- 5,000 -PersisImpr.HRM planned

The consolidation of projects currently operated locally enables
saving up to 0,8 million €
IT Projects – overview of current application projects
1 Basis: recorded project budget GJ 11/12 and besides that, estimated savings through consolidation and launch of PPM approx. 25 – 40%
Target domains
Purchase
StatusProject detailsProject
objective
GJ
2010/11
GJ
2011/12
GJ
2012/13 +
Relevant
application
Production
Customer
management
Supportfunctions
Marketing
and Sales
Services
(Spare parts
and
accessories)
HR
Document-
management
Business
Intelligence
Communicati
on and
Collaboration
ERP
(overall)
Project costs
k.A. k.A. k.A.
proAlpha
(ERP)
Update ERP planned
70,000 70,000 70,000
proAlpha
(ERP)
Update ERP
in
progres
s
k.A. k.A. k.A.
proAlpha
(ERP)
Enhancement ERP planned
k.A. k.A. k.A.
proAlpha
(ERP)
Enhancement ERP
in
progres
s
52,500 52,500 52,500Gepram (ERP)New launch ERP stopped
30,000 150,000 100,000Dakoda (ERP)New launch ERP
in
progres
s
- 5,000 100,000
Improving spare part
docu
planned
k.A. k.A. k.A.
docu
planned
75,000 25.000 k.A.Sugar CRM
Improving
Marketing/Sales
in
progres
s
75,000 25.000 k.A.
Improving
Marketing/Sales
planned
- 5.000 20,000
Improving
collaboration
planned
k.A. k.A. k.A.Improving communication planned
- - 40,000
Improving project
mgmt.
planned
60,000 120,000 -MS BI + Evid.Impr.Controlling
in
progres
s
k.A. k.A. k.A.Impr.Controlling planned
- - 5,000LoboImpr.Doc.mgmt. planned
k.A. k.A. k.A.LoboImpr.Doc.mgmt.
in
progres
s
- - 5,000LoboImpr.Doc.mgmt.
in
progres
s
k.A. 20,000 20,000TisowareImpr.HRM planned
- 10,000 20,000ARDIS (ERP)Productionsopt.
in
progres
s
- - 150,000Abas (ERP)
Further development
ERP
planned
- 15,000 15,000ARDIS (ERP)Productionsopt.
in
progres
s
- 50,000 87,000
docu
in
progres
s
- 100,000ARDIS (ERP)New launch ERP stopped k.A.
k.A. k.A. k.A.Liakanet
Improving
Marketing/Sales
planned
k.A. k.A. k.A.
Portale
Fornitori
Improving purchase planned
- 12500 -Abas (ERP)Update ERP planned
- 30000 -LoboImpr.Doc.mgmt. planned
- 4.000 -ExactImpr.HRM planned
- 10,000 -TisowareImpr.HRM planned
- 5,000 -PersisImpr.HRM planned
Increasing
complexity of the
application-
landscape
 Local further
development of
existing
applications or local
launch of new IT
solutions
 No orientation
towards standard
application
standards
Unused
Synergy-
potential
 Redundant
project
implementation
leads to
additional costs
Redundant
objectives
 A
comprehensive
collaboration
takes place
partially
 Local focus of
the projects
Local
focus
 Projects are
implemented
locally and
respond to
local
business and
IT
requirements
No process-
oriented
project-focus
 Future
starting point
of projects
must be
according to
the domains
in order to
avoid
redundancies
and to achieve
an optimum
focus on the
business
processes

An individual assessment is essential in order to focus the ongoing
projects on the future business and IT strategy
IT Projects – recommendations of action for all application projects
Immediate measures
Target domain Curren
t
Status
Project detailsProject
objective
planned
in
progres
s
planned
in
progres
s
stopped
in
progres
s
planned
planned
in
progres
s
planned
planned
planned
planned
in
progres
s
planned
planned
in
progres
sin
progres
s
planned
in
progres
s
planned
in
progres
s
in
progres
s
stopped
planned
planned
planned
planned
planned
planned
planned
Einkauf
Production
Customer-
management
Supportfunctions
Marketing
and Sales
Services
(Spare parts
and
accessories)
)
HR
Document-
management
Business
Intelligence
Communicati
on and
Collaboration
ERP
(overall)
STOP
STOP
STOP
STOP
STOP
Creating basis
for decision
and approval
by the
management
board
For each case:
 check
business
criticality
 check costs/
benefits
 compare with
future ERP/
CRM/ EDM
strategy
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP
STOP

The decentralized IT infrastructure fulfils current and future
requirements only insufficiently
IT Infrastructure – analysis field overview
RZ strategy
centralised &
redundant
Active Directory-domaine model
 Data centres will be operated
decentralised and are thus partially
redundant
 Non-synchronised “Active Directories” will
be operated in parallel
 Different desktop strategies are currently
being implemented (Thin-Clients vs. Fat
Clients)
 No adequate Service Desk support (local
contact person, insufficiently determined
service times, no uniform ticket system,
no 24/7 service desk)
 Decentralised IT infrastructure of
purchase: Procurement of same parts is
done with several suppliers
 A comprehensive rendering of IT
infrastructure services takes place
partially
 No standardised IT Service Management
processes are defined (ITIL)
 Controlling data centre services through
decentralised, inconsistent monitoring
 Insufficient documentation of
infrastructure systems
 Emergency plans are insufficient
 Currently no disaster recovery measures
are defined for disaster situations
 The IT infrastructure architecture
currently adheres a decentralised
structure for the local requirements
of individual companies
 There is no comprehensive
coordination of IT infrastructure
topics
 Cost leverage: Decentralised
purchase prevents usage of synergy
potentials
 Transfer of service between
companies is standardised
inadequately
 Insufficient safety precautions
defined for IT infrastructure operation
Desktop-strategy
centralised
Service Desk
IT procurement
ITIL processes
Monitoring (Performance Mgmt.)
Business Continuity (ITSCM)
decentralised &
only partially redundant
Tier-Level Definition none
decentralised
standardised inconsistent
At least incident, problem
and change management
none
Centralisation of IT Purchase
Definition of IT Service Mgmt.
processes
Professionalization of “Service
Desk”
Professionalization of “Desktop”
Standardization of “IT
Monitoring”
Development of RZ strategy
(Business Continuity, Disaster
Recovery, Centralisation)
1
Automotive
practices”
4A
4B
4C
4D
4E
4F

Consolidation and standardisation of the infrastructure projects
lead to cost savings
IT Infrastructure – Infrastructure projects
StatusProject details Target domainProject
objective
GJ
2010/11
GJ
2011/12
GJ
2012/13 +
Relevant
components
Company
Desktop
Project costs
XXXX - 9.,00 -Software dist.
in
progres
s
NetworkXXXX - 50,000 -WLANplanned
RZ-Software
Desktop
Company D - 80,000 80,000Diverseplanned
Company C k.A. k.A. k.A.Diverseplanned
XXXX - 15,000 -Diverseplanned
E-Mail
Company C k.A. k.A. k.A.Mailserverplanned
RZ-Hardware
Company A - 75.,00 -Serverplanned
RZ-SoftwareCompany A - 10,000 10,000VMplanned
TelephonyCompany A - 35,000 -Telephonyplanned
Company B - 115,000 -Dakoda (ERP)
in
progres
s
XXXX - 7,000 24,000Diverseplanned
XXXX - - 130,000Diverseplanned
Company A - 54,000 40,000Diverseplanned
Company A - 7,000 -Mailserverplanned
An approval should be sought
here and should be pivoted
only (in case of emergency (
End of life cycle) on a new
hardware
This project
should also be
stopped in case
the ERP launch
is stopped A joint purchase is
recommended for
the MS Software-
upgrades

An individual assessment is essential in order to attain an optimum
focus of the ongoing projects on the future business and IT strategy
IT Infrastructure – Recommendations for action for infrastructure projects
Immediate measures
Target
Domain
Curren
t.
Status
Project detailsProject
objective
STOP
STOP
Cont.
STOP
STOP
STOP
Cont.
STOP
STOP
STOP
• Comparison with future ERP-Strategy
• Comparison with future RZ-Strategy
• Using joint purchasing potential
• Office-Migration only in case of use of the
joint purchasing potential
• Check necessity
New WLAN
Replacing old WLAN-
components
planned
HP Server upgrades
Purchase of new P-Server
hardw.
planned
New launch ERP Purchase of ABAS ERP-Hardware
in
progres
s
Migration of
Groupware Migration Lotus auf Exchange planned
Update VMWare Update VMWare to new version planned
MS License upgrades Office, Windows planned
MS License upgrades Exchange, Office, Windows planned
MS License upgrades Exchange, Office, Windows planned
MS License upgrades Exchange, Office planned
Launch Empirum Providing software distribution
in
progres
s
New telephone system Purchase of a new TK-system planned STOP
• Migration favourable with regard to
standardisation as well as medium-term
consolidation on common Exchange
(Professionalising “Desktop”)
• Comparison with Professionalising
“Desktop”
STOPMS License upgrades Office planned
STOPExchange-Domain Migration of Exchange-Domain planned
Office-Migration
Migration Office 2003 > Office
2007
planned STOP
• Continuation is beneficial for supporting the
professionalization of “Desktop”
• “Migration of Exchange-Domain” should be
stopped under the aspect of
Professionalising “Desktop” as well as the
launch of a common Active Directory is being
considered
Creating basis
for decision
and approval
by the
management
board
If necessary, stop if
CTI-solution / Unified
Communications / VoIP
is planned  only in
agreement with
professionalization
“Desktop”
RZ-Hardware
RZ-Software
E-Mail
Network
Desktop
RZ-Software
Desktop
Telephony

High heterogeneity due to different vendors and technologies
leads to increased complexity in administration
IT Infrastructure – Current state of the infrastructure landscape
DC-
Hardware
DC-Software Network E-Mail
Server
SAN
WLAN
WAN
Mailserver
Antispam
LAN
Windows/
Andere
VM
Tel.
System
Desktop
Office
CAD
AS 400
HP
x86 /
x64
HP
P2000
G3
Lotus
Domino 6
Firewall
-based
SDSL
HP
HP HPEricsson
Exchange
2003
(Ex2010
in
2012/201
3)
HP HP HP
Siemens
(HiPath
4000)
HP
x86 /
x64
Dataco
re
Exchange
2003
(Ex2010
in April
2012) Antispa
m
Europe
MPLS
HP HP HP
Enterasys
Alcatel
Win2003
VMWare
Exchange
2003
(Ex2010
in April
2012)
MPLS
HPAlcatel
HPSiemens
HP EVA
4000
MPLS
HP
(neu)
HP Symbol
Siemens
(HiPath
3800)
VMWar
e
LWLHP
Dataco
re
Exchange
2003
(Ex2010
in
2012/201
3)
ASP
Mail
Protect
HP
Enterasy
s(in
impl.)
FSC FSC 3ComAlcatel
Monitoring
Nagios
+ IT
Cockpit
Nagios
+ IT
Cockpit
Citrix
Linux/Unix
Win2008
ALPHAAXP
HPUX
Solaris
SUSE
Software-
distribution
Empiru
m
Empiru
m
Astaro
IPCop
HP
x86 /
x64
HP
Antispa
m
Europe
RedHat
SUSE
Siemens
(HiPath
4000)
FSC FSC
Alcatel
Enterasys
HP HP
HP
Other
VMWare
Citrix
Empiru
m
HP
x86 /
x64
AS 400 Terra
HP
(neu)
Terra
Empiru
m
Antispa
m
Europe
Win200
3
Win200
8
RedHat
SUSE
Other
HPx86/x64
FSC
Win2003
Win2008
WindowsXP
SUSE
HP
x86 /
x64
Dataco
re
Win2003
Win2008
ALPHAAXP
HPUX
Solaris
SUSE
VMWare
Citrix
Nagios
+ IT
Cockpit
Empiru
m
Active
Directory
AD-
Domain 3
AD-
Domain 2
AD-
Domain 1
AD-
Domain 1
AD-
Domain 4
Win2003
Win2008
Andere
SUSE
RedHat
Andere
Diverse
VMWar
e

Other optimisation potentials are achievable through a detailed
analysis in the area of desktop and data centre strategy
IT Infrastructure – Hardware landscape overview
 Many different Linux-derivates and
versions are used
 Company D still uses Windows NT
Server as there is no maintenance
 Deploying Windows XP in the DC-area
is problematic
 Win 2000 is in productive use at
Company E
 Different desktop strategies are used
(Thin Clients vs. Fat Clients, Citrix vs.
Empirum)
 Homogeneous XP-landscape and
overall tendency towards Windows 7-
Migration is favourable
 Planned deployment of Empirum for
distributing packaged standard
software is beneficial
 No concrete numbers notified in the
area Desktop Infrastructure for
Companies G, H and I, however high
similarity with F is plausible
F
15
E
5
2
3
12
33
D
9
1 1
3
13
5
46
8
B
8
5
8
10
51
2
A
48*
1 2 1
48
2
C
12
Not classified
Other
Unix
SLES
RHEL
Win Server 2008
Win Server 2003
Windows XP
68 74 67 45 69
F
31
E
55
D
33
C
26
B
32
A
89*
11
I
100
H
60
G
150
F
63
8
37
18
E
189
34
155
D
137
18
119
C
400
4080
280
B
530
82
448
A
850
80150
620
Not classified
Laptops
Thin Clients
Fat Clients
virtual
physical
* incomplete
RZ-Operating systems (number)
Desktop Infrastructure (number)
Bemerkungen
Vitalisation Server (number)

Harmonisation of the Infrastructure architecture is the basis for
optimising collaboration between Companies
IT Infrastructure - Target Infrastructure landscape of the Automotive Group
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
DC-Hardware DC-Software Network E-Mail
Server
SAN
WLAN
WAN
Mailserver
Antispam
XXXX
LAN
Windows/
Andere
VM
Telephony
System
Desktop
Office
CAD
AS
400
SDSL
Dataco
re
Exchange
2010
Antispa
m
Europe
MPLS
HP HP HP
Enterasys
Siemens
or
Alcatel
VMWare
MPLS
MPLS
LWL
Monitoring
Nagios
+ IT
Cockpit
Citrix
Linux/Unix
Win2008
Software-
distribution
Empiru
m
AS
400
HPx86/x64
RedHat
Solaris
SUSE
Active
Directory
AD-
Domain

The current IT organisations of the individual companies work p
rimarly work independently and in isolation
Market &
Customers
Company
B
Advantages Disadvantages
 Functional
operation
 End-to-end
responsibility
 Low internal
organisational
changes
 High reaction-
speed
 Local
optimization
focus and quick
decision-making
 Limited possibility of
centralised
management
 No overarching
objectives, guidelines
and management
activities
 Competencies and
dedicated knowledge
is spread in the
organisation in
fragments
 Task redundancies
create head
monopolies and
inefficiency due to
lack of overall
coordination and
processes
 Size and importance
of the IT functions is
not concrete
 Inefficient dealer
processes
 Diverse and
redundant customer
services
Company
A
Company
F
Company
G
Company
H
Company
E
Company
D
Company
C
Central
IT Organisation
IT Processes
IT Applications
IT
Infrastructure
Dealers

Overall coordination is more difficult due to different structures,
roles and reporting lines
Company ICompany HCompany GCompany BCompany A Company C Company E Company FCompany D
IT
Applcations
Infrastructure
Office
Controlling
Sales
Management
Administration
IT / Finance
Management
Desktop/HW
ERP/BI/Supply
LAN/CRM/Int.
IT
Production
Management
Applcations
Infrastructure
IT
Technology
Management
ERP
Infrastructure
ET-Document.
IT
Technology
Management
Technology
Applcations
IT
Technology
Management
Applcations
Infrastructure
Purchasing
IT
Management
 Different definitions of roles and performance of tasks
 IT Organisation does not follow any Demand / Supply Split
 IT Organisation is focussed on the interests of local IT strategy
 The function IT Management, Finance and Governance are used inadequately
Remark
0.01.0
2.02.02.0
3.3
5.5
6.5
13.5
Technology
Management
49%
49%
3%
Automotive Group IT
13%
Gartner
58%
29%
1 Average values across all industries from the Benchmark 2012, Gartner: “IT Metrics January 2012”
1
 = 35.75 FTE

The IT service relationship in the individual companies varies
between internal and external IT partners
Current process world of the automotive Group regarding Management
and Service relationships
CompanyC
CompanyE
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
CompanyG
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development CompanyH
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
CompanyF
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
CompanyB
AutomotiveGroup
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
CompanyA
AutomotiveGroup
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
CompanyI
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
Solution
Data services
Management
Application-
operation
Development
Company H
Company F
Company I
Company CCompany A Company B
Company G
Specification
AdvanceTransactions
Company E
CompanyD
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
CompanyI
CompanyG
Solution
Data services
Management
Application-
operation
Development
CompanyE
Serviceprovider
Infrastructure-
operation
Infrastructure-
services
Application-
services
Technicaldep.
CompanyC
Solution
Data services
Management
Application-
operation
Development
Company D
external
internal
Service

The newly created positions function as business partners for the
companies and their technical departments and manage the value
contributions of IT
Dealers
Group headquarters
Automotive
GROUP
IT Organisation
IT Processes
IT Applications
IT Infrastructure
Highlights
 A focussed group-wide IT,
which focuses more
strongly than before on the
 Intensifying collaboration in
all functional areas
 New cross-functions
should strengthen
development of IT solutions
across areas and become
drivers of innovations
 Reorientation promotes
personnel development and
increases efficiency of IT
IT Organisation
IT Processes
IT Applications
IT Infrastructure
€ IT Costs Market &
Customers
IT Program
Mgr./CIO
IT Application Roadmap
ITIT IT IT IT IT ITIT
IT Panels, IT Governance, IT Portfolio Management
IT Infrastructure Roadmap
IT Service Management
Com
p. A
Com
p. B
Com
p. C
Com
p. D
Com
p. E
Com
p. F
Com
p. G
Com
p. H

The IT program manager/CIO transfers the group strategy in the
IT strategy and thus facilitates valuable IT services
IT Organisation – Role IT Program Manager/CIO
 Automotive companies
 All technical departments
(Development, Production,
Customer management and
Support functions
Group strategy
Internal
 IT Service Management
 IT Business Partner
External
 IT Service provider
IT Strategy
IT Program
Mgr./CIO
 Translation of the business strategy in the IT
strategy
 Overall management of internal and external
IT-service providers
 Preparation for decision-making (e.g.
strategic sourcing decision)
 Monitoring IT-standards and IT-architecture
across the organisation
 Predictive IT roadmap (Apps, Infra.)
 Proactive discussion of new IT-trends with
technical departments of the individual
companies
 Consultation and demand pooling
“Objective Hubs and Bridge builders”
 “Efficient IT-service”
 IT-Conception (technical
specification)
 IT-Project management
 Provision of solutions
 Operation of solutions
 “Qualified requests”
 Functional conception (functional
specification)
 Defining IT-requirements
 Assistance in implementation projects
 Technical tests
 Active realization of the specifications
defined by the subject
Automotive Group
IT Business Partner &
Rendering IT value
contributions
Management
IT value creation

The establishment of IT Service Management and IT Business Partner
functions enable pooling of IT-competencies
Future process world Automotive Group with Management- and Service relationships
Target image process world Automotive Group
Process-
architecture
Serviceprovider
Subject
Corporate management
Strategy &
Corp. development
Infrastructure services
Application services
Process consulting
Infrastructure-
services
Solution
Innovation
Developme
nt/
Customizing
Application-
operation
Infrastructure-
operation
Strategy/
Objectives
Strategy
Management
Process objectives
Data
services
AdvanceSpecification Service
Transactions
Impulse
Impulse
Definition and launch of centralised IT Service
Management Organisations (possibly across
multiple companies)
Definition and launch of an IT Business Partner
Organisation for each company (depending on
company size and geographical location)
The development of an IT strategy based on the
defined strategic business objectives is essential
and yet to be developed
Development and definition of an “IT Operating
Model” (processes, organisation, employee-
competencies)
Recommendations for action
IT-Service
Management
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
Bus. Partner
5E
5F
5H
5G

Target image of IT organisation – Interim scenario
Automotive
Group
Automotive Group
IT Program Manager
Central budget
and
responsibility Head
 All IT employees report solid
line to the program manger
 All IT costs (Salaries, material
costs) are taken over centrally
and invoiced to the companies
as per SLA
 All IT employees remain at the
current location
Services /
SLAs
Company IT
Applications (old)
(central)
Infrastructure
Services /
SLAs
Company IT
Applications
(particularly
proAlpha)
(local) Infrastructure
Services /
SLAs
Company IT
Applications
(particularly Abas)
Services /
SLAs
Company IT
Applications (old)
Company IT
Applications (old)
Services /
SLAs
Management
Roadmap
IT Controlling
Project portfolio

The establishment of a centrally managed IT organisation enables
orchestrated and optimal implementation of the defined IT initiatives
Target image, IT organisational and process model
Target organisational and process model
 A focussed group-wide IT, which focuses more
strongly than before on the business
requirements
 Intensifying collaboration in all functional areas
 New cross-functions should strengthen
development of IT solutions across areas and
become drivers of innovations
 Reorientation promotes personnel development
and increases efficiency of IT
Current organisational and process model
 IT organisations of the subsidiaries work
primarily independently
 Restricted central steering possibilities
 No centralized goals, guidelines and steering
activities
 Fragmented knowledge and competencies
 Task-redundancies create head monopolies and
inefficiencies due to the redundancy

A strongly positioned IT can substantially contribute to achieving
business strategies
Strategic objectives 2015
Automotive Group
Clear positioning of the brands and their
services
Consequent use of the synergies in all
functional areas
Group and business areas have
personnel development plans
Production service and quality service-
level: 95%; quality costs < 1.5%
Establishment and expansion of common
additional business models
Share of service business >15%,
margin>50%
Market share of Europe: Caravan 16%,
motorhomes 26%
EBIT margin >8% in 2020, break-even
at -35% budget deviation
1
2
3
4
5
6
7
8
Launch of group-wide IT
governance
Launch of an HR tool across the
group
Transparency of data, up-to-
dateness and real time retrieval
of information
Support by means of innovative
IT solutions
Increasing the IT agility and
modularity (flexible and
transparent processes)
Increasing the IT agility and
modularity (flexible and
transparent processes)
Cost-saving and increase in
productivity through efficient IT
IT SupportBusiness objectives 2015
Standardizing the systems and
customer interfaces
Automotive
Group

IT positions itself as business partner and innovator in order to
support the strategic objectives of the automotive group in the best possible
way
Positioning of the IT – schematic illustration
Business partner
Overall IT organisation
and value-adding strategic
provision of services
Business and Innovation
partner
 IT as key factor
 provision of services and innovation
Technology provider
 IT as pure provider
 IT as pure cost centre
Pro-active IT Innovation partner
 Identification and implementation of new
and innovative technologies
 Idea provider for new business models or
business solutions
IT
value
creation
IT Team and
responsibility
IT as pure cost factor with low
significance
IT as service factor for the XXXX group (“One IT, and
one team!”)
IT as innovation driver and
proactive solution provider
Target image 2013
IT value creation competency
ITvaluecontribution
Pro-active IT Organisation
 Value creating and strategically
important provision of service
 “IT Roadmap and IT Portfolio
Management”
Re-active service definition
 IT provides on request
 Low standardisation
 No IT Roadmap/Strategy
Pure IT provision
 IT provides
instruments
 Low service
orientation
Automotive
Group

The results of the “IT Quick Assessment” are basis for the focus of
IT on the strategic requirements of the automotive group
Recommendations for IT Quick Assessment – summary
 Transparency: A “Quick Assessment”
(quick recording) of the IT status
 Evaluation of the current-status
 Proposals for improvement levers,
comparisons to best-practices
 Scenarios for the future focus based
on the analysis of status
Prioritization of topics for
2012+
Needs for decision 2012+
Contents and scope of the “IT Quick Assessment” Results of the IT Flash
ORGANISATION
FTE
Responsibilities
Steering committees
Activities
Application PORTFOLIO
Local applications
Interfaces
Application operation
Infrastructure operation
Services
Supplier
Services
Supplier
Regional
applications
Projects
COSTS
Per Application
Per Service
Per Supplier
Per Project
ZIA 1
USERS
Customers
Project objectives: creation of IT transparency as basis to achieve IT
synergies, better process support and management of the automotive group
Auto-
motive
Group

IT Agenda Topics 2012
IT Costs IT Infrastructure
IT Applications
IT Projects
Identified areas of actionMain topics
Integration of a group wide CAD System
Process orientation PDM –System
Setting up central IT Service Mgmt. Org
Setting up Business Partner Orga
Developing and Designing “IT Governance”
Establishing “IT Prg. Mgr/CIO”
Establishment of “global purchase manager”
Centralisation of IT purchase
Development IT dashboard
Cost savings telecommunication Defining IT Service Mgmt. processes
Developing and Designing “global IT
Roadmap”
Developing and Designing “IT Operating
Model”
Professionalising “Service Desk”
Professionalising “Desktop”
Standardising “IT Monitoring”Process agreement Business and IT costs
Development of global IT cost template
Definition and Launch of project portfolio mgmt.
Training IT budget-planning and reporting
Development of RZ-Strategy (Business
Continuity, Disaster Recovery,
Centralisation)
Development of IT-Strategy
Initiation of temporary IT project guidelines
Initiation of “Change Mgmt. Program”
Implementation of template-based
process- and gap analysis (of all ERP-
relevant systems)
Launch of Active Directory and selection of
communication solution
IT Organisation
Identified areas of actionMain topics
Extensive IT cost analysis
1A
1B
1C
1D
1E
1F
2A
2B
2C
2D
2E
3A
3B
4A
4B
4C
4D
4E
4F
5A
5B
5C
5D
5E
5F
5H
5G

Automotive Group IT Agenda 2012 – Prioritization
Low Medium High
mediumhighstrategic
Impact
Urgency
IT Prioritization matrix
Integration
group wide
CAD System
Process
alignment PDM
-System
Developing
IT
Dashboard
Cost savings
Telecommunication
Setting up central IT
Service Mgmt. Orga
Setting up Business
Partner Organization
Develop and
Design “IT
Governance“
Establishing„IT Prg.
Mgr/CIO“
Definition IT Service
Mgmt. Processes Develop and design
“global IT Roadmap“
Develop and Design
“IT Operating Model“
Professionalizing
“Service Desk“
Professionalizing
“Desktop“
• Standardizing “IT
Monitoring”
Process reconciliation
Business and IT costs
Developing global IT
cost template
Defining and initiating
project-portfolio mgmt.
Training IT Budget planning
and reporting
Developing RZ-
strategy(Business
Continuity, Disaster
Recovery,
Centralization)
Establishing “global
purchase manager“
Developing IT-Strategy
Initiating preliminary IT
project guidelines
Initiating “Change Mgmt.
Programme“
Centralizing IT Purchase
Executing template-
based Process and Gap
Analysis (of all ERP
relevant systems)
Initiating Active Directory
and selecting
communication s solution
4A
4B
4C
4D
4E
4F
5A
5B
5C
5D
5E
5F
5H
5G
1A
1B
1C
1D
1E
2A
2B
2C
2D
2E
3A
3B

Agenda

Our Digital IT Assessment Approach provides a comprehensive and
fact-based assessment of the current IT situation along six key dimension
Digital IT Assessment Dimensions
IT Task split
Roles
Process Coverage
FTE Analysis
Cloud models
IT Efficiency – Provide room for digital innovation
Digital IT alignment – IT as enabler for digital
transformation
Governance
IT Operating
Model
Organization
Sourcing
Applications /
Infrastructure IT Costs
IT value creation focusCore / Non-core
IT Service Coverage
Central / de-central IT
Responsibilities
DevOps Readiness
Cloud operating
model
Responsibility Split
Committee Structures
Business partnering models
Process maturity
IT Application Landscape
Applications Costs
Cloud Applications /
Infrastructure
IT Infrastructure
Landscape
Data center
Multi Speed IT
Organization
Analytics Service Units
IT Organization Structure
Span of Control
Digital Service Unit
IT supplier models
IT supplier consolidation
IT innovation sourcing
Sourcing of commodity services
IT supplier quality
IT costs benchmarking
IT Innovation / IT Project
Costs
Workplace Costs
IT Operating Costs
IT Costs / Employee

Business focus interviews provide a comprehensive understanding of
the current and future business requirements for IT across business functions
Business focus interviews
Interview
guide
 Management
board
representatives
 CXOs
 Department
heads and
business units
representatives
Strategic
requirements
Understand strategic
and project expectations
Strategic requirements and priorities
per business unit / department
Strengths/
weaknesses of
IT
Understand strength and
future potentials of IT
Understand current IT business
positioning
Current and
future IT
support
Understand business
requirements per business
functions (mapping on
business processes)
Understand business requirements
per business functions (mapping on
business processes)
IT delivery
and operation
Understand strength and
potentials of IT delivery
and operation
Understand focus areas for IT
strategy, identify first action items
Contents Analysis (examples)

A proven IT analysis tool set helps to quickly identify optimization
and improvement levers within the prioritized focus fields
IT Analysis Tool Set
IT Analysis Tool Set (Selection) Approach
Business
process
coverage
IT delivery
evaluation
Risks /
criticality
assessment
IT cost
distribution
analysis
IT cost KPI
bench-
marking
IT
budgeting
analysis
IT orga-
nization
analysis
IT process
maturity
assessment
IT steering
structures
assessment
IT project
portfolio
analysis
IT (digital)
innovation
focus
IT project
spent
analysis
IT value
creation
focus
IT supplier
analysis
IT sourcing
analysis
IT applic.
landscape
assessment
IT infra-
structure
assessment
Data
Centre /
Network
assessment
 Selective use of readily available IT
analysis tool set
 Application within predefined IT focus
fields
 Benefit: Swift identification of root
causes, fact-based identification of
improvement measures
 Example use cases
 Identify legacy infrastructure risks
 FTE split and business IT FTE
distribution
 Evaluation of current IT role profile
focus
 Current IT value creation focus in
comparison strategy requirements
 IT supplier requirements / quality
mismatch
 IT supplier consolidation potentials
 IT sourcing depth

Agenda

A comprehensive target picture details the strategic ambition and
align all measures required for its realization
Target picture - Target IT architecture and implementation measures
Support
functions
Human resources and organisation
Procurement
Communication and collaboration
Information management
Commercial
handling/ client
management
Client- and offer management
Order management
Accounting/ Finance and Controlling
Customer
interaction
Master data
management
Standardised data access
Products/
conditions
Customers
Addresses/
geo data
Phys.
resources
Suppliers
Service
provision System 1 System 2 System 3 System …
Production systems
Planning and
steering
Reporting & analysis platform
Planning
Short term
planning
Disp. steering
Report 1 Report 2 Report 3 Report …
Target architecture landscape Actions for implementation
Service 1 Service 2 Service 3 Service …
Customer portal
Online shop
A3 Comprehensive customer portal
A2 Optimization shop solution
A1 Standardisation CRM
A4 Comprehensive order management
A1
0
Comprehensive Business
Intelligence
A1
1
Comprehensive access layer
A1
2
Optimisation master data management
A1
3
Optimisation receiver management
A1
8
Prof. communication/
collaboration
A6
Optimization connection delivery
hubs
A2
2
Usage handheld synergies
A8 Modularization
Optimisation access
management
A2
1
A1
5
Optimisation personnel placement planning
Optimisation carrier management
A1
7
Architecture focus: Agility / flexibility Standardisation/ comprehensive usage
App.type
A2
0
Standardisation ticketing
Prioritised action field application landscape

Individual target picture measures detail realization requirements
to ensure implementation readiness and feasibility
Target picture - Detailing of implementation measures
Project planning
Cash flow investment action Specifications
 For the implementation,
investment costs of 750
kEUR result in XXX
 After implementation, yearly
operating costs of around
150 kEUR incur
 Through consolidation of old
systems, savings on
operating and development
costs of around 150kEUR p.a.
can be generated
Investment KPIs
View of incoming and outgoing payments of investment action (in kEUR, horizon: 5 years)
View of Investment KPIs (in kEUR, horizon: 5 years)
Financial planning
Investment volume (CAPEX) 750
Internal efforts for project management and –
steering
75
Operatinal costs p.a. (OPEX) 150
OPEX-Effect p.a. 0
ROI 5 years (in %) -100
ROI 5 years (absolute) -750
Amortisation time frame (in years) -
Logisti
cs
Bench-
mark
ZNBS
Access
error
IMIS
Hand
KBF …As-is-
state
Chara
c-
teristi
cs
Static
structure
s
High
adaption
effort
Fragmen
ted data
base
Time
consumi
ng user
support
Data
Mgmt.
Supply
of infor-
mation
Analysis
and
Integrati
on
As-is architecture
Data transfer / data harmonisation
Real time
reporting (Real
Time Data
Aquisition)
Analytics Portal
Analysis
component
Web
component
Design
component
Data Warehouse
Data
integratio
n and
data
Mgmt.
Supply of
informatio
n
Analysis
and
design
Data
sources
Target architecture

Actions are broken down in work packages, which are planned on a
roadmap over a predefined planning horizon
Roadmap - Architecture scenario / application roadmap
BU
BU
BU
BU
BU
BU
BU
BU
Current
situation
2017 (eoy) 2018 (eoy) 2019 (eoy) 2020 (eoy)
System
System
System
System
System
System
System
System
System
System
System
System
System
Target
System
System
System
Target
System
Target
System
System
System
Target
System
Target
System
System
System
System
System
System
System
System
System
System
System
System
System
System
Target System
Target
System
System
System
System
System
Target System Target System
Target
System
Target
pictureTarget
System
System
System
Target
System
Target
System
Target System
Target
System
System
System
System
System
System
System
System
System
System
System System System System
System
System
System
System
2016 2017 2018 2019
BU
BU
BU
BU
BU
[Cross]
[Cross]
[Cross]
Existing system New system Shut down Go-liveProject
Architecture scenarios / evolution
Migration roadmap

Investment and benefit evaluation shows how IT efficiency gains
over time can be reinvested to IT innovation and transformation
Roadmap – Investment Planning
2016 2017 2018 2019 2020
Inves
t.1
-600 -950 -1.400 -1.400 -1.400
Savin
gs2 - 450 1.150 1.800 2.380
∆ -600 -500 -250 400 980Investments
(total)
5.750
Savings (total) 5.780
ROI 30 / 1 %
Innov. potential 2.380 (16%)
Amortisation (in
years)
5
2016 2017 2018 2019 2020
Inves
t.1 -600 -950 -1.400 -1.400 -1.400
Savin
gs2 0 220 600 950 1.250
∆ -600 -730 -800 -450 -150Investments
(total)
5.750
ROI -2.370 / -47%
Amortisation (in
years)
8
2016 2017 2018 2019 2020
Inves
t.1
-600 -950 -1.400 -1.400 -1.400
Savin
gs2
0 780 1.880 2.910 3.870
∆ -600 -170 480 1.510 2.470Investments
(total)
5.750
ROI 3.690 / 64%
Amortisation (in
years)
4
Financial
indicators
Comments
 Conservative scenario considering
implementation obstacles (e.g.,
insufficient standardisation)
 No return on invest until xxx
 Long amortisation period (8 years)
 Low reinvestment potential
 Opportunistic scenario considering
ideal implementation situation
(conditionally applicable in company
context)
 Return on invest until xxx
 Amortisation within 4 years
 Significant reinvestment potential
 Moderate scenario considering
adjusted effects to company context
 Return on invest until xxx
 Amortisation within 5 years
 Moderate reinvestment potential
today 2020
Conservative Moderate Opportunistic
Cost
evolution
Scenario
today 2020 today 2020
IT
innovation
potential
IT invest1
for project
IT cost base
ApproachIllustrative client example
Benefits / costs
estimation per
roadmap items
Overall
investment /
benefits
evaluation
Value for the client:
 Transparency on
IT efficiency
gains for
reinvestment
in digital IT
innovation /
transformation
 Transparency on
annual
investment
needs,
operational
expenses and
returns

Our experience shows that IT efficiencies can be achieved in all IT
areas
Gather and Analyse: Areas for IT Efficiency Improvements
Application
Rationalisation
2
Governance & Demand1 -10%-20% dev costs
Operating
Model
Up to 30% cost decrease
3
Cost transparency6 -10 % overall costs
Lean & Industrial Processes7 Up to -10% people costs
Sourcing & Competencies8 Up to -15 %
-10% -20% IS portfolio
TCO1
Datacenter
TCO1
Workplace
4 5
Up to 40% cost decrease Up to 30% cost decrease
A well structured efficiency programme will recognise the complex dependencies within the different focus
areas to maximise savings in each focus area
efficiency potentials

Typical levers are identified and categorized for each improvement area
Identify Initiatives: Typical Levers
Operating
Model
Quickwins Optimization Transformation
Governance &
Demand
Cost
Transparency
Lean & Industrial
Processes
Sourcing &
Competencies
Applications
Rationalisation
Prioritise project portfolio
Limit releases to strategic apps
Establish spends review
Eliminate unused licences
Adjust SLAs to the minimum
Renegotiate supplier and vendors contracts
Consolidate procurement
Understand and manage costs (dashboard +
benchmark)
Simplify applications portfolio
Consolidate / replatform Apps.
Refactorise codes
End-to-end Lean IT processes
ITIL V3 framework
Agile methodologies
Reinforced expenses monitoring
Invoice internal clients
Control user fair usage
SLA-based controlling
Restructure application portfolio
Leverage SaaS solutions
Enterprise Architecture strategies
TCO Workplace
Reduce telecom expenses
Reduce printer/fax expenses
DC consolidation
Virtualisation
Green IT
Use of Open Source
IaaS / PaaS (full, hybrid)
Datacenter strategy (tiering)
Relocation of non productive systems to the
(public) cloud
Virtualisation & Thin client
Unified communications
Bring Your Own Device
Optimisation of software distribution
Workplace in the Cloud
Strategic sourcing (alliances)
Multi-vendor strategy
Optimize sourcing level
Service Desk and on-site support
Flatten organisation
Headcount reductions where reasonable
Delivery model (shared service centers vs.
outsourcing)
Consolidation and integration of field services
and IT services
Service catalogue
TCO Datacenter
Reduce number of contractors
Centralisation and industrialisation of provider
management
Centralisation of service desk
IT project portfolio management to prioritise,
align and control projects
Increase grade of automated self-service
Sell and lease back options

We employ a proven methodology which helps to identify deviations
in cost level and sourcing depth compared to market best practices
IT Service Benchmarking Approach
 Gain transparency on IT Services
(requirements, costs, outputs, delivery
models)
 Understand where service delivery
(costs, sourcing) deviates from
benchmark companies
 Identify measures for improvement of
internal service delivery
 Improvement of service delivery
efficiency (e.g., discharge of IT
process experts, consolidation of
tasks)
 Resolve service delivery
bottlenecks
 Identify measures for beneficial use
of external partner support
 Purchase of standard IT
services to support focus shift of
IT
 Use strategic partners to source
innovation know how
Service allocation Service analysis Benchmark comparison
Procedure Potential Results
 Identify relevant IT
services
Allocate costs
Allocate service output
 Understand cost
distribution per service
(e.g., staff costs,
hardware costs)
 Understand sourcing
model per service (e.g.,
internal, contractors,
external)
 Understand service
delivery model (e.g.,
centralized, distributed)
 Understand service
output (cost volume,
provided hours / solved
tickets, cost per output
quantity)
 Conduct service
comparison based on
analysts benchmarks /
Capgemini reference
value
 Compare sourcing level,
services costs with
internal / external
benchmark indicators
 Identify and evaluation
deviations from
benchmarks
 Derive recommendations
for IT vendor strategy /
selection process

All identified initiatives will be detailed and prioritized measures
will be financially analyzed and laid out on a transformation roadmap
Develop Roadmap: Transformation Planning
 Detailing of each
initiative (description,
requirements, costs,
benefits) in factsheet
 Detailing of prioritized
measures into detailed
fact documents (incl.
architecture,
implementation plan)
Detailing
 Prioritization of IT
transformation initiatives
based on business
value and
implementation effort
 Input for transformation
plan
Prioritization
 Alignment of all IT
in overall
transformation plan
 Consideration of
interdependencies
Transformation
Planning
 Clear - stakeholder
aligned -
understanding of IT
as reference for
implementation
 Understanding of IT
initiatives with short and
long-term impact
 Input for feasible IT
transformation plan
 Ringier Axel Springer
digital IT
transformation plan (3
- 5 year) perspective
Phase
Activi-
ties
Results
 Evaluation of solution
benefits (e.g., cost
savings, revenue
potentials)
 Evaluation of solution
costs (one time,
operation costs)
 Evolution of annual
savings / costs and
overall ROI and
amortization time of
solution
Cost / benefits
estimation
 Financial evaluation of
each initiative (on a 3-5
year basis)
 Basis for identifying most
beneficial initiatives

The analysis of the client’s IT efficiency and ERP strategy and the
identification of actionable improvement measures will be conducted in six
phases within nine weeks
Project approach – phases
IT efficiency
ERP strategy
Focus interviews Target picture workshop Roadmap workshopKick-off Implementation decision by
board
Analysis and
benchmarking
1 3 weeks 4 weeks
Target picture
development
2 weeks
Transformation
roadmap
2 3
ERP reference check
4 2 weeks
5 weeks
Hana value assessment
5
6 weeks
Cloud assessment
6

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