Who doesn't need more more their CFO? Even the CEO sometimes does. By communicating in simple business-driver terms you can get more from your CFO and even get your board to see the business value.

1. CXO Advisor
Advise – Innovate – Change
Getting more from your CFO

2. We do 3 things : -
Advise
 Deeply experienced advisory and transaction advisor team
 Backed by Ovum in Africa – IT Finance strength, IT cost and value analysis
 Business – IT Transformation Model
Innovate
 Being Agile, business case for change
 Rapid Innovation with OutSystems
 Business Model Innovation – Saas-it.net
Change
 Liberate legacy - Adaptivity
 Business Process as a Service – Procurement, IT Finance, Portfolio
 Governance as a Service

3. CXO Advisor
CXO Advisor is concerned with the effects of technology, not the technology
itself.
We are concerned with the effectiveness of IT in the business.
We helped a customer increase his IT budget by 47% after being told to
reduce it by 20%
IT budgets are being squeezed, and CIOs are being told to do more with less

4. Our offering
For CIOs who need more resources and trust, we use our unique 3 Role
Model to:
 Generate the cash needed to deliver IT without fuss
 Provide real business results
 Take a leadership position in their organisation

5. Our approach
We position your existing budget within the 3 Role Model
We map where your current IT spend is going and the effect of that
We clearly identify shortfalls to CFOs
 Addressing the King III imperative of resourcing your strategy
We develop a high-level roadmap for doing more with less
We help you explain your budget (and shortfalls) in easy to understand terms
 so your executives participate in your budget and its intended consequences

6. Our results
A client gave their CIO a 16% increase, where they had told all department
heads that the maximum increase was 5.5%
A client identified that IT’s current activities were mismatched with their
business strategy because they weren’t funding IT correctly
A client identified that innovation and growth activities in IT were being
extinguished because they were squeezing the IT budget
A client authorised a R500 million network upgrade based entirely on
intangible benefits
In all cases, executives said:
“This is the first time we’ve actually understood
what IT does, and can do for us”

7. Our proposition
We will get you more funding
We will improve your executive’s understanding of your proper role in your
business
We will ensure that you do the right IT for the right reasons
If you find yourself in a hole, it’s a good idea to stop digging
You will have to do something different

8. BusinessPerforamcne
The basic concept
Momentum
line
What you have to spend, to keep the
business running exactly as it is now
No growth, no shrinkage
Terry White – “What business really wants from IT” – Elsevier 2005

9. Shared and
support services
Strategy
Leadership
Innovation
Core business
BusinessPerforamcne
Three roles where IT spend occurs
Momentum
line
Adapted from “What business really wants from IT”, Terry White and incorporating Porters

10. How we see the world
Strategy / Leadership / Innovation
Inbound
logistics
Operations Service
Outbound
logistics
Marketing
& sales
Human resources
Finance & Admin
IT
Supply Chain
Firm infrastructure
Shared and
support
services Core business
Strategy
Leadership
Innovation
 Strategy, leadership, innovation – the ‘glue’ that holds it all together
Adapted from “What business really wants from IT”, Terry White and incorporating Porters
Porters Value Chain

11. The three roles in business – five business drivers
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line

12. What drives the drivers?
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line
Based on investment / risk policies
Based on business / economic conditions
Based on competitive posture
Based on service - quality promises /guarantees
Based on regulations / mandates

13. Another way of looking at it
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line
Can see others building walls
Can see a wall coming
Build a wall for others to cross
Inside the walls
Backs to the wall

14. The three roles in business – five business drivers
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line
ROI / Risk / PoA
NPV vs. risk / baseline performance / urgency
Game changer / PoA / Time to market
Cost / Risk / Service quality equation
Risk and time
You can Innovate everywhere!

15. The three roles in business – five business drivers
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Core
business
engine
Value
delivery
engine
Support
engine
Looming Threat,
service strategy
Change Strategy
Change
Environment
New
products, markets,
channelsNew, improved
processes
Service business
growth
Regulation, mandat
es
New CxO, value
propositionsFix support engine
Training, upgrades
New, improved
processes
Cloud, outsource,
BPaas
Momentum Line

16. An example: Servicing the strategy
Strategy: Profitable, fast moving, innovative, customer focused
10%
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
57%15%
6% 11%
8%2%
17%
73%
? ? ? ?
23% 77%
An IT
Governance
Dashboard

17. Risk mitigation drives cost – Innovation drives revenue!
Shared and
support services Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line

18. Shared and
support services
Core business
Strategy
Leadership
Innovation
Delivery
Fix
Improve
Service
Differentiate
Momentum Line
• Historical CVA
• Ongoing
Benefits
• TCO
• TCO
• CVA
• Quality
• Risk
• Agility
• Innovation
engine
• Strategy
execution
• Sustainability
• Efficiency
• Breakeven
• Benchmark
• Certainty
• Threat
mitigation
• PoA
• Capabilities • ROI > IRR • Strategic risk
• Hit rates
ALAP
Managed
service
PoA
LoB
ROI > 100%
Vision
Game changer
• Legality
• Time
• Risk
• Time Efficiency
• Linkages
• Short term risk
Different measures of success per class of investment

19. The 3 Role Model is used for more
Strategy
Portfolio
Budgeting
Prioritisation
Benefits realisation
Governance and risk
IT transformation
IT performance management
Board assurance and King III
Communication

20. The secret sauce
The 3 Role Model and our processes and tools:
 Gets you more money
 Improves business understanding of what IT does and how IT works
 Changes the dynamic between IT and business – IT are seen as a key
organisational enabler
No-one else does it

21. If we work with you
You will understand your own budget better
You will gain more resources
You will have a better relationship with business (and vice versa)
You will focus on the correct IT activities for your business
If you are not budgeting strategically, you are not resourcing your strategy
Risk mitigation drives cost; Innovation drives revenue – Get the balance right
You need to change, and expect to adopt new thinking

22. Our proposal
Engagement:
 Position your existing budget within the 3 Role Model (historical)
 Align your next budget to 3 Role Model
 Identify best allocation of IT budget
 High level roadmap for your portfolio of activities
 Clear presentation prepared for executive
 Tools and on-going support
Fees:
 Monthly retainer usually applies
 Automating the process / models / tools

23. IF YOU FIND YOURSELF IN A HOLE…
Terry White – 082-573-3887 – terryw@cxo-advisor.co.za
Craig Terblanche – 083-309-9763 – craigt@cxo-advisor.co.za