2. Background Thispresentationprovidesyouwithbackgroundinformation on howtheplanningITsavingeffects will bereached. Itgivesyou an understanding on howplanningIThelpsyouwithreducingyour CAPEX, optimizingyour CAPEX andhowtheproductivityeffect will beconsidered in moredetail. NEEDS TO BE CUSTOMIZED FOR EACH CUSTOMER AND BE IN SYNC WITH THE EMAIL YOU ARE SENDING OUT
4. The opex / capexchallenge Year 1 Year 2 Year 3 Year 4...... Traditional IT Opex Traditional IT Opex Traditional IT Opex Traditional IT Opex 20% of capexbecomingopexnextyear Traditional IT Capex Traditional IT Capex Traditional IT Capex Traditional IT Capex 140.000.000 60.000.000 140.000.000 60.000.000 140.000.000 60.000.000 140.000.000 60.000.000 10% Stabilizing on a 70%/30% ratiorequires an annual Opexreductioncapability One time opex initiatives Continuousopexreductionapproaches Technology standardization Applicationrationalization Consolidationprograms Vendorsqueezing Ad hoc outsourcing Investment freezes (all having potential bounce back effects)
5. The plannigIT advantage a 10% opexreductioncapabilityisrequired to ensure a stableopex-capexratiobased on thedefinedscenario In year 1: € 4,50 M Over 10 years: € 90,83 M planningITenables a min. 13% continuousanualopexreduction !
6. Operational expenditures Exhaustion of the reduction potential Reduction measures process driven manually Technology standardization Standards management Technology lifecycle management Technology change management 48% traditional 78% planningIT continuous ad hoc Application rationalization Consolidation Decommission Lifecycle costing 31% traditional 83% planningIT comprehensive partial Road mapping Strategic road mapping Migration planning Scenario planning 17% traditional 91% planningIT business-oriented retrospective Service level alignment Demand management SLA readjustment 45% traditional 86% planningIT
7. The planningITadvantage – Improved Capexeffectivity 30% of all investments in IT don‘tdeliverthedesiredvalue In year 1: € 8,60 M Over 10 years: € 101,24 M planningIT savesannually min. 1/3 of all lost investments in IT projects !
8. ImprovedCapexEffectivity 30% of all investments in projects don’t deliver value ! Reasons: Project stops Bad projectmanagement Changedbusinessrequirements Redundancy in projects Architecturalprojectconflicts No adequatearchitecuralplanning Traditional capexoptimizationincl. PPM tools Contentfocussedarchitectural planning Use of planningITmakes 1/3 of lost investments in projectseffective
9. Capital expenditures exhaustion of the optimization potential optimization measures fragmented integrated Capability management Strategy alignment Demand management 27% traditional 85% planningIT process driven ad hoc Portfolio management Project definition governance Prioritization Project impact/redundancy analysis 64% traditional 91% planningIT reactive proactive Change management Project rework governance Project conflict governance Total quality management 17% traditional 72% planningIT
10. planningIT productivity effect PlanningITdelivers a productivityincreaseof 5,45 mendays per year telephoneinquiries Discussiongroups Application complianceinquiries Repositoryudates Data search & validation 800 applications x 2hours x 12 month = 10,91 man years x 50% = 5,45
