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

20th March Session Two by Manoj Arora

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