20th March Session Two by Manoj Arora

303 views

Published on

Create And Communicate Value Of IT Manoj Arora

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
303
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

20th March Session Two by Manoj Arora

  1. 1. Create and Communicate The Value of IT
  2. 2. Creating / Improving Business Value requires a vision & management of Information , People , Processes and Information Technology <ul><li>Building an organization’s Information Capabilities is as much about people behaviors and information practices as it is about IT. </li></ul><ul><li>The mindset and actions of an organization’s managers are critical to effective information use and to achieving performance results with information, people and IT capabilities – managers drive information strategy & IT (Information Technology) enables it. </li></ul><ul><li>Leveraging Information and Knowledge for Performance Impact is no longer Soft or Intangible : </li></ul><ul><ul><li>These assets can be measured and leveraged by managing the Information Orientation of our organization . </li></ul></ul>
  3. 3. Create and Communicate the Value of IT <ul><li>Envision value creation ahead of below : 20% of the job is done </li></ul><ul><li>Communicate : 20% of the rest is done </li></ul><ul><li>Co-Create value thereafter : 40% </li></ul><ul><li>Communicate: </li></ul><ul><ul><li>What to use, How to Use & Ensure Usage : 20% </li></ul></ul><ul><ul><ul><li>Follows the 80/20 rule. </li></ul></ul></ul><ul><ul><ul><li>Without this return on rest 80% is not there. </li></ul></ul></ul><ul><ul><ul><ul><li>A key factor to ascertain completeness of the envisioned </li></ul></ul></ul></ul>
  4. 4. Envisioning Outcomes in a Program which involves Information , People , Processes and Information Technology <ul><li>Identify and find ways to estimate value creation opportunities in </li></ul><ul><ul><li>Revenue enhancement </li></ul></ul><ul><ul><li>Customer Delight </li></ul></ul><ul><ul><li>Process Improvement </li></ul></ul><ul><li>When planning a program think & communicate in terms of: </li></ul><ul><li>Company P & L : Will it impact </li></ul><ul><ul><li>Top Line ? or </li></ul></ul><ul><ul><li>COGS  Gross Margin or ? </li></ul></ul><ul><ul><li>S G&A  Net Margin ? </li></ul></ul><ul><li>Financial & Operations Modeling eg in Supply Chain components, IT sourcing, Order fulfillment process, CRM process </li></ul><ul><li>- Customer facing impact </li></ul><ul><li>People Connect </li></ul><ul><li>Product or Solution or Customer Service…. </li></ul><ul><li>Enterprise’s Information Orientation </li></ul><ul><li>Making Innovation real for Business </li></ul><ul><li>IP Creation having an impact on valuation </li></ul><ul><li>… .as IT will find its place everywhere </li></ul>Current Economy requires of CIO’s to Envision or Effectively Contribute in Initiatives that fuel Business Growth <ul><li>Things of Past or assumed to be given : </li></ul><ul><li>Process Standardization </li></ul><ul><li>Setup Financials Shared Services </li></ul><ul><li>Cost Savings (I saved an accident !!) </li></ul><ul><li>IT asset Optimization – be it virtualization </li></ul>
  5. 5. <ul><li>Senior Executive : I want to capture secondary sales data from distributors/dealers etc. </li></ul><ul><li>Ask what business issue/program is on the mind : </li></ul><ul><ul><li>Market Penetration </li></ul></ul><ul><ul><li>Promotion Campaigns </li></ul></ul><ul><ul><li>Dealer Relationship Management </li></ul></ul><ul><ul><li>Sales force performance Management </li></ul></ul><ul><li>What will be measured in above ? </li></ul><ul><li>What is the impact on his job role & KPI ? </li></ul><ul><li>Ability to work outside the comfort zone ? </li></ul>Engage & Start dealing with top management mindset as a key input to Envisioning <ul><li>Senior Executive 1 : I want to first implement Financials and Asset management and then slowly implement materials management and go on step-by step. </li></ul><ul><li>Ok slow & steady wins…but what is guiding the thinking process: </li></ul><ul><ul><li>Financial Outlay </li></ul></ul><ul><ul><li>Change Management with staff </li></ul></ul><ul><ul><li>It’s too complex to handle </li></ul></ul><ul><ul><li>Stories of failure/Past experience </li></ul></ul><ul><ul><li>Sense : The mindset </li></ul></ul><ul><li>Senior Executive 2: I want to manage business through my business heads. Increase in Market share is what matters…sales growth will come by. </li></ul><ul><li>Senior Executive 3: I want all my managers and staff in the plant to access BIW and take decisions there & then. </li></ul><ul><li>Senior Executive 4: We are losing a lot in wastages and by-product re-utilization. </li></ul><ul><li>Senior Executive 5 : DSO’s are worst of all times in past. </li></ul><ul><li>Senior Executive 6 : Customer’s feel comfortable when we have business practices supported by mature IT solutions & practices. BI/Data on portals will stand testimony to our delivery. </li></ul><ul><li>Senior Executive : I want that in a sales discussion with customer the sales rep should get real-time expected delivery date based on plant capacities and orders at hand on that plant ? </li></ul><ul><li>Cool… </li></ul><ul><ul><li>but will it lead to more deal closures and faster ? </li></ul></ul><ul><ul><li>If its TAT then analyze which leg constitutes the most ? </li></ul></ul>Getting Business focus Driving the Strategy and gearing for a sizeable & meaningful impact Handling Untimely value creation or waste creation Focus on “What” part…do not let the “How” constrain the “Envisioning”
  6. 6. Create and Communicate the Value of IT <ul><li>Envision value creation ahead of below : 20% of the job is done </li></ul><ul><li>Communicate : 20% of the rest is done </li></ul><ul><li>Co-Create value thereafter : 40% </li></ul><ul><li>Communicate: </li></ul><ul><ul><li>What to use, How to Use & Ensure Usage : 20% </li></ul></ul><ul><ul><ul><li>Follows the 80/20 rule. </li></ul></ul></ul><ul><ul><ul><li>Without this return on rest 80% is not there. </li></ul></ul></ul><ul><ul><ul><ul><li>A key factor to ascertain completeness of the envisioned </li></ul></ul></ul></ul>
  7. 7. Co-Create <ul><li>Partnerships </li></ul><ul><ul><li>Each & every body involved/impacted in the initiative in the company </li></ul></ul><ul><ul><li>External Vendors </li></ul></ul><ul><ul><ul><li>Hardware, System Software, Networking, Application Software </li></ul></ul></ul><ul><ul><ul><li>Implementation </li></ul></ul></ul><ul><ul><ul><ul><li>Try Distributed Co-Creation if opportunity exists </li></ul></ul></ul></ul><ul><ul><ul><li>Business Value Consulting </li></ul></ul></ul><ul><ul><ul><li>Financial Engineers </li></ul></ul></ul><ul><ul><ul><li>Business Outsourcing & ITES Companies </li></ul></ul></ul><ul><ul><ul><li>Media/PR </li></ul></ul></ul><ul><ul><ul><li>Outbound Program Organizers </li></ul></ul></ul>
  8. 8. Create and Communicate the Value of IT <ul><li>Envision value creation ahead of below : 20% of the job is done </li></ul><ul><li>Communicate : 20% of the rest is done </li></ul><ul><li>Co-Create value thereafter : 40% </li></ul><ul><li>Communicate: </li></ul><ul><ul><li>What to use, How to Use & Ensure Usage : 20% </li></ul></ul><ul><ul><ul><li>Follows the 80/20 rule. </li></ul></ul></ul><ul><ul><ul><li>Without this return on rest 80% is not there. </li></ul></ul></ul><ul><ul><ul><ul><li>A key factor to ascertain completeness of the envisioned </li></ul></ul></ul></ul>
  9. 9. Communicate Again <ul><li>What to use ? </li></ul><ul><li>Why to use ? </li></ul><ul><li>How to Use ? </li></ul><ul><li>Find ways to ensure adoption </li></ul><ul><li>Coach to fill Business Process Gaps before attempting to think of a software solution. </li></ul><ul><li>Give rewards/incentives for usage </li></ul><ul><li>Don’t explain </li></ul><ul><ul><li>The complex system landscape of applications, virtual servers, IT Infrastr. </li></ul></ul>
  10. 10. Outcomes – Extracting Organizational Value from IT Deployment x Usage = Business Value Deployment x of I/T Effective = Usage of I/T by people Impact on - Business Value Cost Savings for Efficiency Creating Value for Effectiveness Competitive Necessity Competitive Advantage Technology Orientation Information Orientation Technology Strategy Information Strategy
  11. 11. Key Takeaways <ul><li>End-to-End Delivery </li></ul><ul><ul><li>Envisioning-to-Usage-to-Measurement </li></ul></ul><ul><li>Partnerships for Creation </li></ul><ul><ul><li>Financial Depth, Detailing & Engineering </li></ul></ul><ul><ul><li>Internal Partnerships : on a RACI chart </li></ul></ul><ul><li>Speak business language </li></ul><ul><ul><li>problem, requirement and solution steps </li></ul></ul><ul><ul><li>Exclude application development intricacies </li></ul></ul>

×