The Unique Alternative to the Big Four®
Getting IT Right:
How to Plan, Manage, and Deliver on IT’s Promise
Audit | Tax | Advisory | Risk | Performance
Despite the integral role that information
technology plays in today’s businesses, many
companies approach major IT initiatives in a
way that is far from businesslike. Frequently,
six- or seven-figure investments are made
without tying these decisions to clearly
defined business results.
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
Table of Contents
Current Concerns Over
IT Effectiveness............................... 5
Rising Expenditures,
Diminished Expectations................ 5
Why Businesses Struggle
With IT Issues.................................. 6
Warning Signs of
IT Management Problems .............. 6
The Critical Need for
Improved IT Management............... 7
Common Executive
Concerns Over IT Spend ............... 7
Critical Business Triggers Bring
Urgency and Importance.............. 10
Core Concepts of the
Crowe®
IT Advisory Solution......... 12
The Major Stages of
IT Investment................................. 12
Crowe’s Suite of IT
Advisory Solutions........................ 14
Conclusion: An Objective and
Results-driven Approach.............. 19
About Crowe Horwath LLP........... 20
Contact Information...................... 20
Moreover, businesses often fail to tie IT spending
directly to the business’s daily operational performance
or, even more critically, to its long-term strategic goals.
Small wonder, then, that surveys of C-suite executives
consistently reflect significant levels of discomfort with
the way IT investments are selected and managed.
What is needed is an objective, performance-based
methodology for developing an appropriate IT strategy,
making sound IT investment decisions, and then
executing and managing the chosen initiatives in a
way that relates these steps directly to organizational
performance measures including both financial and
nonfinancial metrics.
Fortunately, resources are now available to help
businesses of all types and sizes to quickly develop
a business-focused approach to critical IT issues.
4
Crowe Horwath LLP
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
Current Concerns
Over IT Effectiveness
The way IT investments are prioritized,
implemented, and managed can
have a tremendous impact – both
positive or negative – on organizational
performance and, ultimately, the
overall value of an enterprise.
Despite IT’s critical impact on the
business, however, the prioritization
and management of IT initiatives are
often misaligned and inconsistent.
A survey by the Financial Executives
Research Foundation revealed
significant dissatisfaction with
the way their organizations use
information technology to improve
business performance.
■■ Only 7 percent of the survey
respondents said they had made
substantial progress with their top
information need in the past year.1
■■ About 70 percent of the financial
officers surveyed said they believe
their current level of information
integrity is negatively affecting their
organization’s ability to achieve its
business objectives.2
■■ About 40 percent of the responding
financial officers reported unknown,
low, or even negative returns on
their IT investments.3
Rising Expenditures,
Diminished
Expectations
Despite the overwhelming misgivings
uncovered by an FERF survey (see
sidebar), most businesses expect to
continue making significant IT investments
in the near future. When hundreds of
manufacturing industry executives
were surveyed by IndustryWeek
magazine and Crowe Horwath LLP
in late 2009, 70 percent said they
expected to increase their IT investments
over the coming three years.4
Why is this so? Why are financial
executives resigned to spending more
on IT while achieving less?
In many cases, management recognizes
the problems, but may simply not
recognize the potential impact IT
investment will have on solving
those problems. For example, they
may not link a business intelligence
investment to potentially increased
sales. Or, they may develop inflated
expectations for sales increases that
are not realistic given a limited or
misaligned implementation scope.
The challenge can be especially acute
in companies where the executives
who make IT decisions are managing
multiple initiatives at once, and do not
have adequate time or resources to
analyze IT initiatives thoroughly. As a
result they may fail to fully understand
how deeply rooted IT is to overall
business performance.
In many cases, however, the underlying
problems are more complex – and the
solutions must be more comprehensive.
A primary objective of major IT software investments must be
to “do more with the same” – that is, to leverage automation
and technology in both production and back-office functions
in order to increase capacities, improve efficiency, enhance
workflows, and support greater access to the information that
is needed for effective decision-making.
– Josh P. Cole, Partner, Crowe Horwath LLP
6
Crowe Horwath LLP
Why Businesses
Struggle With
IT Issues
It is important to recognize that when
this situation exists – when the existing
IT foundation and proposed set of IT
initiatives are not linking to financial and
operational goals – it is not fundamentally
an IT problem. Rather, it is a management
problem, and management commitment
and involvement will be needed to
address it.
This situation can result from a number
of ongoing challenges, including:
■■ Poor communication between
nontechnical business leaders and
those in charge of the IT effort;
■■ A lack of common references,
priorities, and expectations;
■■ Internal biases or inaccurate
perceptions of technology providers,
based on outdated history or word-
of-mouth impressions;
■■ Increasingly complex IT solutions,
and highly complex business
system maps;
■■ Limits on funding for IT priorities,
mismatching expectations in terms
of real results from IT investments –
in short, IT is expected to “do more
with less”; and
■■ Opportunities that may be
misunderstood or underexploited
when considering new models of
information management such as
software as a service (SaaS).
A recent article in InformationWeek
Analytics described the current
environment in stark terms:
“Not mincing words, CEOs and CFOs
want to know why the firm is spending
so much on IT and what can be done
to bring those costs down.”5
Leaders will not be satisfied without
an understanding of the value driven
by the investment.
Warning Signs of IT Management Problems
Is your organization struggling with IT strategy, prioritization, implementation, or
management? How do you know if you have a problem?
Here are some common indicators of decision-making and management problems:
Many of the items in this list highlight the often unseen cost of poor IT planning
and management. Beyond the significant price of the technology itself is the often
greater cost that comes from failing to achieve the expected results. These costs
include internal inefficiencies, poor information to support management
decisions, and a frustrating customer experience.
1.	 There is a lack of proper evaluating
and planning for IT investments.
2.	 Poor implementations
destabilize your ability to
transact with customers.
3.	 Complex IT decisions are
sometimes made more on the
salesperson’s strength rather
than the technology fit.
4.	 IT spending is considerable, but
the business sees little or no
measurable improvement.
5.	 Upgrades to your IT platform
do not produce new benefits or
capabilities, but merely do what
your old systems did.
6.	 An integration is not delivering
anticipated synergy.
7.	 Compliance still depends on
manual detective-type financial
controls rather than automated
preventive systems.
8.	 Spending on noncore and costly
items such as internal data centers
does not consider innovative
alternatives such as outsourcing
or virtualization.
9.	 Financials must be restated for
any reason.
10.	Competitors deliver a richer IT
customer experience and your
competitive edge is eroding due in
part to inadequate IT capabilities.
11.	The organization is not reacting
to IT trends such as social
networking.
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
The Critical Need
for Improved IT
Management
The InformationWeek Analytics article
mentioned earlier presented a clear
indication of the critical need for improved
methods of strategizing, prioritizing,
implementing, and managing IT initiatives.
“Unfortunately,” the article noted, “IT
leadership is often handicapped by not
having the right data and tools to support
analysis of what’s actually driving costs.”6
This convergence of challenges is
producing new models for chief
information officers to consider as
they investigate their options and take
advantage of evolving technologies.
■■ The ability to accurately define the full
return on investment for technology
spending requires analytical tools
that directly relate IT to the business’s
financial and operational goals.
■■ The ability to efficiently execute
and manage IT initiatives in a way
that maintains a clear connection
to business results requires
implementation methodologies that
are specifically designed to achieve
this purpose.
Uncertainties such as these are often warning signs of a flawed IT strategy,
an inadequate decision-making process, or ineffective implementation and
management. The right approach to the complex issue of managing IT and
IT investments can remove these concerns from the executive’s desk,
or greatly minimize their impact.
Common Executive Concerns Over IT Spend
Many executives with a decision-making role regarding IT initiatives
have concerns and questions – questions they may be reluctant to voice aloud.
Are questions such as these keeping you up at night?
■■ “Are scarce resources being used to
serve genuine business needs – or
are we merely pursuing the newest
technology for its own sake?”
■■ “Will the IT projects I have in motion
deliver as expected? Will they work?
Will I get the results I promised?”
■■ “I’m not sure what’s happening
with an IT investment, or the status
of a current project. How can I get
updated information that’s reliable
and understandable?”
■■ “How can I be sure our IT
investments are truly aligned with
our business objectives? What
standard can I use to judge?”
■■ “Am I holding the right people
accountable for getting results?”
■■ “A significant project was recently
stopped or reprioritized. Why? Was
it due to a change or were there
problems with execution?”
■■ “Will my current IT projects come
in on budget and on time? If not,
will I be able to face my board and
executives, my colleagues, and
my employees to justify the choices
I made?”
8
Can’taccessreal-tim
e
system
inform
ation
Questionabledataquality
andinform
ationintegrityNew
models of
information management
Poor links between IT spend
and business performance
Lack of common priorities and
expectations among leaders
Inaccurate perceptions
of providersReliance on manual process
Falling behind the competition
Improper evaluation of IT investment
Increased compliance spending
Expected results not achieved
Restated financial statements
Unrecognized IT impact
Misaligned IT spending
Poor communication
Complex IT decisions
Failed integration
Recessionary forces
Unknown
IT
ROI
Econom
ic
pressure
C
loud
com
puting
Do
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ore
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Because of ever-shifting variables, managing IT
is often experienced as a never-ending stream
of competing, interlacing, and overlapping
challenges, each of which affects – and
exacerbates – the others. Crowe’s IT
Advisory framework addresses this
confusion, as well as the business
drivers that organizations face when
making these significant investment
decisions. Crowe’s IT Advisory
solutions are geared toward solving
big problems in the right way,
regardless of the investment stage
in which the organization finds itself.
Are we doing the
right things?
Are we getting
them done well?
Are we doing them
the right way?
Are we getting
the benefits?
Four questions that frame
everything in IT – every
challenge, every project,
and every solution – and
bring order to chaos.
CONFUSION
Bad
dataNotime
SaaSInternalbias
9
ORDER
Crowe’s Suite of IT Advisory Solutions
Free IT Diagnostic
IT Assessment
IT Due Diligence
Business System
Assessment
Change Management
Ongoing IT Effectiveness
Review
System Selection Program and Project
Management
System Implementation
Custom Application
Development
IT Portfolio Value
Assessment
Lean IT
Strategic IT Road Map
Critical Business Triggers
Outgrown IT Foundation
Recent Merger or Acquisition
Changing Business Model
Excessive Internal Audit or Compliance Costs
Globalization
Any Business Failure in Which IT Played a Role
Any Major IT Project Failure
Cost Reduction Challenge
Critical Risk Management Issue
The Start of a Return to Growth
SustainEvaluate ImplementAssess
Stages of
IT Investment
10
Crowe Horwath LLP
Critical Business
Triggers Bring
Urgency and
Importance
Certain critical business events often add
urgency and importance to IT decisions.
Examples of these events include:
■■ Outgrowing the current IT
foundation. Years of organizational
growth, accompanied by under-
investment in IT capabilities or by
piecemeal solutions, can produce
a patchwork of systems requiring
a comprehensive upgrade. It is
worth noting the last major cycle of
enterprise IT investment occurred
during the Y2K era. The time span
that has passed since then is close to
the average life span of an enterprise
system, at which a major upgrade or
replacement is generally needed.
■■ A recent merger or acquisition.
Disparate systems and competing
technologies are among the most
commonly encountered challenges
in an M&A event. Beyond the capital
investment that may be required,
there is almost always significant
personnel change, as well as manage-
ment and business disruption risk.
When contemplating an acquisition
or divestiture, IT decision-making
requires special consideration due
to the rapid and critical nature of
solution deployment.
■■ Excessive internal audit and
compliance costs. Reducing the
costs of internal audit while also
delivering business process improve-
ment offers the opportunity for both
immediate financial savings as well as
a long-term reduction in future costs.
Building automated controls into the
system itself can reduce the need for
external or manual interventions.
Organizations often must make significant IT investment
decisions in an uncertain environment. Critical business
events highlight the uncertainty and inject additional
urgency into the situation. Crowe’s IT Advisory framework
addresses these complex, interlaced challenges.
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
■■ A changing business model. As
a result of strategic restructuring
initiatives, some organizations have
made wholesale changes to their
business models. For example, many
consumer product companies now
consider themselves marketing,
customer, and sales-focused
organizations – outsourcing much of
their manufacturing and distribution
operations. Such a change greatly
affects the focus of internal enterprise
systems as the traditional product
functions associated with an ERP
solution no longer support the
new strategy. New needs such as
product development management,
sophisticated forecasting, and
improved customer relationship
management (CRM) are often needed.
■■ Globalization. In addition to changes
directly related to outsourcing, the
increasingly global nature of today’s
businesses also sparks indirect
changes in IT requirements. These
are necessary to meet the more
sophisticated collaboration require-
ments that occur when working with
trading partners across vast spaces,
multiple time zones, and multiple
currencies. For example, long lead
times demand greater clarity into
shipment status as well as ability to
allocate shipments directly to
customer orders.
■■ Any business failure in which IT
played a role. Examples include
financial control failures that cause
restating of financial results, regardless
of whether the restatement is
required by Sarbanes-Oxley or other
regulations. Beyond the immediate
compliance costs are the indirect costs
of reduced business valuation and the
credit limitations that can result.
■■ Any major IT project failure.
Negative memories of past failures
can create organizational barriers
to investing appropriately in future
initiatives. Examples that illustrate this
include missed cutover dates, budget
overruns, poorly managed change
driven by IT, or unrealized benefits.
■■ Cost reduction initiatives.
These initiatives affect all areas
of a business, including IT. In many
cases, however, technology may
actually help reduce organizational
costs or help improve flagging
revenues. When cutting is applied to
the IT investment category, a refined
prioritization mechanism is important
when choosing between alternatives.
■■ Supporting a return to growth.
In the “Future of Manufacturing
2009” survey cosponsored by
Crowe and IndustryWeek magazine,
more than one third of respondents
are forecasting greater than 10
percent annual growth by the end
of the coming three-year period,
while the projected growth rates
in the work force are considerably
less.7
In this environment a
primary IT objective is to increase
efficiency and improve workflows
in order to “do more with less.”
■■ Business continuity issues. With
heightened business reliance on IT,
businesses must address resiliency
and recovery issues. For example, in
many industries today, the impact of a
company’s website going down is an
immediate interruption to the revenue
stream – a business continuity risk
today that was immaterial – if it existed
at all – 10 or 15 years ago. Mitigating
such risk must be a top IT priority.
12
Crowe Horwath LLP
Core Concepts
of the Crowe IT
Advisory Solution
In his precedent-setting book, “The
Information Paradox,” author John Thorp
suggested four critical questions to guide
IT decision-makers:
1.	 Are we doing the right things?
2.	 Are we doing them the right way?
3.	 Are we getting them done well?
4.	 Are we getting the benefits?8
In developing and defining its IT Advisory
services framework, Crowe Horwath LLP
has followed a comparable approach,
developing solutions to help businesses
make IT decisions that achieve critical
strategic and operational goals:
1.	 Doing what’s right. Crowe’s
approach helps businesses
objectively manage IT as an overall
portfolio, rather than as a series
of one-off projects. The approach
also helps companies ensure that IT
spend is evaluated based on clear
business cases, with a focus on
validating the assumptions that
were made to justify projects.
2.	 Aligning with standards. Crowe’s
approach applies leading research
and best practice experience to help
executives understand the risks and
benefits of alternative decisions, and
to recognize the various categories
of investments and business
applications that must be managed.
3.	 Executing with rigor. Crowe’s
methodologies and tools help ensure
new projects are implemented
correctly, enable quick recovery
or termination of unsuccessful
initiatives, and establish clear
accountability for results.
4.	 Realizing the benefits. Crowe’s
approach focuses on helping
organizations minimize total cost of
ownership and maximize total value
over the full life cycle of IT initiatives,
not just the acquisition and
implementation phases.
The Major Stages
of IT Investment
For an executive who is seeking to
bring order to shifting and interlacing
challenges of IT investment, there is one
more question that must be considered:
Where does the business stand in terms
of the specific IT issue being addressed?
In general terms, the answer to this
question can be expressed as one of
four broad stages of IT investment
shown in the center of the illustration
on pages 8 and 9:
1.	 Assess: Enable understanding
and alignment
2.	 Evaluate: Support informed
decision-making
3.	 Implement: Plan and
execute effectively
4.	 Sustain: Manage and improve
for long-term results
Depending on the particular IT issue being
addressed, a business typically finds
itself in several stages of this continuum
at once. One specific technology issue
may require support in selecting the
appropriate system, while another will
require only steady management and
ongoing review of an existing platform.
Moreover, the solution to IT issues
does not always progress in a linear
fashion. For example, an execution and
implementation challenge can cause
the business to rethink its initial system
selection – or even reassess its original
strategic goals for the initiative.
13www.crowehorwath.com
Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
14
Crowe Horwath LLP
Assess: Enable Understanding and Alignment
A rapid diagnostic of the existing
environment. Identifies the key risks
and opportunities in leveraging IT
within the business along with a
high-level path to realizing benefits,
and suggests a series of next steps
to capitalize on areas of opportunity.
■■ Formal written deliverable,
consumable by IT and business
leaders
■■ Series of prioritized, specific
recommendations
■■ Actionable direction focused
on highest business value
■■ Objective opinion by third-party
experts
■■ Identification of key risks
■■ Documentation of opportunities
■■ No cost
1 Day
A structured exploration and
analysis of business systems,
security, spending, integrations,
hardware, communications,
personnel, policies and procedures,
and intellectual property. Designed
to uncover hidden risk and
opportunity and communicate
complex issues in a format that is
accessible and actionable by the
business owner or leader.
2 – 3 Weeks
Free IT Diagnostic
Benefits Benefits
IT Assessment/IT Due Diligence
Crowe’s Suite of IT Advisory Solutions
The Crowe suite of IT Advisory solutions offers effective tools for addressing critical
issues at all stages of the IT development and execution continuum:
15www.crowehorwath.com
Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
■■ Visual representation of all user
tools actually used to run the
business
■■ Clarity to functional gaps,
software integrations,
unmanaged tools, risks,
opportunities, unmet needs,
and support
A deep dive into understanding
and documenting the entire suite of
sponsored and user-created busi-
ness system software tools used to
run the organization. An important
foundational element for evaluating
major initiatives such as possible
ERP replacement or M&A activity,
and to identify strategic and func-
tional gaps, potential areas of risk,
and opportunities for improvement.
3 – 5 Weeks
Benefits
Business System Assessment
E
An effective bridge across all stages
of IT strategy, decision-making, and
execution planning. Draws from
time spent with the IT and business
leaders to clarify organizational
strategy and performance goals,
identify and evaluate a series of
alternative IT investment decisions
and projects, and then weigh their
impact on each of the objectives.
■■ Clear, 18 – 24 month plan for all
recommended IT investment
■■ Investment options delivered
for various budget levels
■■ Resource plans that indicate
exactly what is needed to
execute
■■ ROI analysis for each
investment alternative
6 – 8 Weeks
Strategic IT Road Map
Benefits
16
Crowe Horwath LLP
Evaluate: Support Informed
Decision-making
Implement: Plan and
Execute Effectively
■■ Objective and structured
leadership for significant
system decisions
■■ Insight from hundreds of system
selection decisions and leading
industry research
■■ Enhanced speed and quality of
decision-making
■■ Negotiation support to drive
cost savings
A proven and pragmatic approach,
combined with Crowe experience
with a variety of software systems,
that quickly and effectively guides
the organization to the best
decisions for critical business
systems. Work covers areas such
as strategy, selection criteria,
requirements definition, and vendor
evaluation, selection, negotiation,
and implementation planning.
4 – 8 Weeks
Benefits
System Selection
Helping to ensure that all defined
projects are progressing in a
coordinated and managed fashion,
with speed and efficiency. Includes
determining and assigning work
to be done, tracking progress,
managing exceptions, balancing
conflicting priorities, and
communicating to all parties
involved to help ensure all stay
focused on the end-goal.
■■ Project support activities
are planned, managed, and
communicated regularly.
■■ Scope of the work, and
associated risks, schedules,
costs, and needed resources
are accurately defined.
■■ Quality work is delivered and
issues are addressed as they are
encountered.
Determined by project
Program and Project Management
Benefits
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
I
■■ 	Reduced risk of scope creep
and budget overruns
■■ Quicker path to value through
structured methodology
■■ Business-first advice designed
to drive value from the
technology being implemented
■■ The ability to leverage onshore/
offshore models that are truly
cost efficient
■■ An established organization to
support solution implementation
■■ An established development
toolkit to provide velocity, reduce
costs, and minimize coding
The use of proven methodologies
and vision to anticipate looming
issues, and the application of skills
to manage internal and external
resources. Key to realizing the
benefits of the planning phases,
independent implementation
oversight reduces the risk of going
over budget, missing deadlines, or
failing to deliver on promises.
Determined by project
Custom-built solutions for niche
circumstances or online/Web needs
where business requirements can-
not be met though out-of-the box
applications. Leverages more than
20 years of Crowe experience with
known platforms such as Java™
,
Microsoft®
.NET, and open source
tools and applications.
Determined by project
Benefits Benefits
Custom Application DevelopmentSystem Implementation
18
Crowe Horwath LLP
Sustain: Manage and Improve for Long-term Results
A structured approach to
transitioning individuals, teams,
and organizations to a desired
future state. Aligns expectations,
communicates, integrates teams,
and manages people training, using
a pragmatic approach that includes
skill upgrading to maximize the
implementation effort.
■■ Short-phased visits that
maintain momentum on projects
in process
■■ Objective evaluation of possible
changes to current plans
■■ Highlighting and definition of
risk redemption requirements
■■ Central oversight of budget
■■ Risk management
■■ Strategic alignment of IT
investments and demand
■■ Standardization of investment
procedures, rules, and plans
■■ Reduced resistance to change
■■ Faster adoption of the strategic
initiatives
■■ Early identification of issues
before they drain projects of
anticipated benefits
Determined by project
Provides an ongoing evaluation
and tuneup on completed
implementations and new projects
in motion. Key components of the
Crowe toolkit are used to advise on
risks and opportunities, and provide
a scorecard on the organization’s
use of IT.
Determined by project
Leveraging the portfolio of IT invest-
ment to derive maximum business
value from IT assets. Involves the
application of systematic manage-
ment to large classes of IT items
including planned initiatives, proj-
ects, and ongoing IT services, to
help organizations determine which
portfolio of IT spend truly delivers
value for the investment.
Determined by project
Change Management
Benefits Benefits Benefits
IT Portfolio Value AssessmentOngoing IT Effectiveness Review
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Getting IT Right: How to Plan, Manage,
and Deliver on IT’s Promise
Conclusion: An
Objective and
Results-driven
Approach
Regardless of the specific solutions
the client employs within the Crowe
suite of solutions, Crowe pursues a
rapid, results-driven approach, with
a specific set of deliverables in each
phase of the assignment. The overall
goal is to successfully meld business
process needs and company strategy
into executable IT plans as quickly as
possible, in order to deliver time-phased,
budget-conscious solutions.
Crowe’s methodologies support
clients seeking to assess their current
systems and infrastructure as well as
those organizations making strategic
investments that are looking for expert
guidance related to the transaction.
The Crowe suite of IT Advisory solutions
provides businesses with a proven,
systematic process for developing
appropriate IT strategies, making
objective IT system decisions, and
executing and managing their ongoing
IT initiatives. Crowe’s business-driven
and vendor-neutral approach is in many
respects the polar opposite of traditional
vendor-driven IT spend decisions.
The Crowe IT Advisory teams pursue
an investment-minded approach, and
provide client executive teams with the
tools and techniques to do the same.
Project staffing is composed of more
than technologists – adding a variety
of specialists in personnel, process,
strategy, and performance management
to the effort. Project leaders average
20 years of experience in IT-related
Advisory services working for many
industries across a variety of specialty
business application environments.
This approach, proven in organizations
of all sizes, is also adaptable on a global
scale thanks to the international reach of
the Crowe Horwath International network.
At all levels and throughout all phases
of the engagement, our emphasis is
to provide pragmatic solutions that
go beyond theory, and to work side-
by-side with client teams in a flexible,
collaborative effort that takes into account
each business’s unique staffing models,
time and resource constraints, and
available IT investment funding.
1	
“Technology Issues for Financial Executives,”
Computer Sciences Corporation and Financial
Executives Research Foundation, 2008, p.2.
2	
ibid.
3	
“Technology Issues for Financial Executives,”
Computer Sciences Corporation and Financial
Executives Research Foundation, 2008, p.3.
4	
“The Future of Manufacturing 2009,” IndustryWeek,
Penton Media Inc., 2009, p. 8.
5	
“Know Your Costs: The Key to IT Business,”
InformationWeek Analytics, April 2010, p. 5, http://
analytics.informationweek.com/abstract/81/2813/
Business-Intelligence-and-Information-
Management/informed-cio-it-cost-transparency.
html.
6	
ibid.
7	
“The Future of Manufacturing 2009,” p. 3.
8	
John Thorp, “The Information Paradox: Realizing
the Business Benefits of Information Technology,”
McGraw-Hill Education, 1999.
S
■■ Improved investment in Agile
software development
■■ Reduced software defects
■■ Elimination of unnecessary or
overbuilt solutions
■■ Reduction of unnecessary
equipment
■■ Improved productivity due to
reduced “firefighting”
The extension of lean manufactur-
ing and lean services principles to
the development and management
of IT products and services. The
central concern is the elimination of
waste, in particular work that adds
no value. Particularly effective for
companies that develop software as
a product or have a high volume of
custom tools.
Determined by project
Benefits
Lean IT
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rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2010 Crowe Horwath LLP
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Contact Information
Doug Schrock
317.706.2643
doug.schrock@crowehorwath.com
Jeff Shaffer
312.899.4493
jeff.shaffer@crowehorwath.com
Josh Cole
616.752.4274
josh.cole@crowehorwath.com
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United States. Under its core purpose of “Building Value with Values,®
” Crowe assists
public and private company clients in reaching their goals through audit, tax, advisory,
risk, and performance services. With 26 offices and 2,400 personnel, Crowe is
recognized by many organizations as one of the country’s best places to work. Crowe
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Getting it right

  • 1.
    The Unique Alternativeto the Big Four® Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise Audit | Tax | Advisory | Risk | Performance
  • 2.
    Despite the integralrole that information technology plays in today’s businesses, many companies approach major IT initiatives in a way that is far from businesslike. Frequently, six- or seven-figure investments are made without tying these decisions to clearly defined business results.
  • 3.
    3www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise Table of Contents Current Concerns Over IT Effectiveness............................... 5 Rising Expenditures, Diminished Expectations................ 5 Why Businesses Struggle With IT Issues.................................. 6 Warning Signs of IT Management Problems .............. 6 The Critical Need for Improved IT Management............... 7 Common Executive Concerns Over IT Spend ............... 7 Critical Business Triggers Bring Urgency and Importance.............. 10 Core Concepts of the Crowe® IT Advisory Solution......... 12 The Major Stages of IT Investment................................. 12 Crowe’s Suite of IT Advisory Solutions........................ 14 Conclusion: An Objective and Results-driven Approach.............. 19 About Crowe Horwath LLP........... 20 Contact Information...................... 20 Moreover, businesses often fail to tie IT spending directly to the business’s daily operational performance or, even more critically, to its long-term strategic goals. Small wonder, then, that surveys of C-suite executives consistently reflect significant levels of discomfort with the way IT investments are selected and managed. What is needed is an objective, performance-based methodology for developing an appropriate IT strategy, making sound IT investment decisions, and then executing and managing the chosen initiatives in a way that relates these steps directly to organizational performance measures including both financial and nonfinancial metrics. Fortunately, resources are now available to help businesses of all types and sizes to quickly develop a business-focused approach to critical IT issues.
  • 4.
  • 5.
    5www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise Current Concerns Over IT Effectiveness The way IT investments are prioritized, implemented, and managed can have a tremendous impact – both positive or negative – on organizational performance and, ultimately, the overall value of an enterprise. Despite IT’s critical impact on the business, however, the prioritization and management of IT initiatives are often misaligned and inconsistent. A survey by the Financial Executives Research Foundation revealed significant dissatisfaction with the way their organizations use information technology to improve business performance. ■■ Only 7 percent of the survey respondents said they had made substantial progress with their top information need in the past year.1 ■■ About 70 percent of the financial officers surveyed said they believe their current level of information integrity is negatively affecting their organization’s ability to achieve its business objectives.2 ■■ About 40 percent of the responding financial officers reported unknown, low, or even negative returns on their IT investments.3 Rising Expenditures, Diminished Expectations Despite the overwhelming misgivings uncovered by an FERF survey (see sidebar), most businesses expect to continue making significant IT investments in the near future. When hundreds of manufacturing industry executives were surveyed by IndustryWeek magazine and Crowe Horwath LLP in late 2009, 70 percent said they expected to increase their IT investments over the coming three years.4 Why is this so? Why are financial executives resigned to spending more on IT while achieving less? In many cases, management recognizes the problems, but may simply not recognize the potential impact IT investment will have on solving those problems. For example, they may not link a business intelligence investment to potentially increased sales. Or, they may develop inflated expectations for sales increases that are not realistic given a limited or misaligned implementation scope. The challenge can be especially acute in companies where the executives who make IT decisions are managing multiple initiatives at once, and do not have adequate time or resources to analyze IT initiatives thoroughly. As a result they may fail to fully understand how deeply rooted IT is to overall business performance. In many cases, however, the underlying problems are more complex – and the solutions must be more comprehensive. A primary objective of major IT software investments must be to “do more with the same” – that is, to leverage automation and technology in both production and back-office functions in order to increase capacities, improve efficiency, enhance workflows, and support greater access to the information that is needed for effective decision-making. – Josh P. Cole, Partner, Crowe Horwath LLP
  • 6.
    6 Crowe Horwath LLP WhyBusinesses Struggle With IT Issues It is important to recognize that when this situation exists – when the existing IT foundation and proposed set of IT initiatives are not linking to financial and operational goals – it is not fundamentally an IT problem. Rather, it is a management problem, and management commitment and involvement will be needed to address it. This situation can result from a number of ongoing challenges, including: ■■ Poor communication between nontechnical business leaders and those in charge of the IT effort; ■■ A lack of common references, priorities, and expectations; ■■ Internal biases or inaccurate perceptions of technology providers, based on outdated history or word- of-mouth impressions; ■■ Increasingly complex IT solutions, and highly complex business system maps; ■■ Limits on funding for IT priorities, mismatching expectations in terms of real results from IT investments – in short, IT is expected to “do more with less”; and ■■ Opportunities that may be misunderstood or underexploited when considering new models of information management such as software as a service (SaaS). A recent article in InformationWeek Analytics described the current environment in stark terms: “Not mincing words, CEOs and CFOs want to know why the firm is spending so much on IT and what can be done to bring those costs down.”5 Leaders will not be satisfied without an understanding of the value driven by the investment. Warning Signs of IT Management Problems Is your organization struggling with IT strategy, prioritization, implementation, or management? How do you know if you have a problem? Here are some common indicators of decision-making and management problems: Many of the items in this list highlight the often unseen cost of poor IT planning and management. Beyond the significant price of the technology itself is the often greater cost that comes from failing to achieve the expected results. These costs include internal inefficiencies, poor information to support management decisions, and a frustrating customer experience. 1. There is a lack of proper evaluating and planning for IT investments. 2. Poor implementations destabilize your ability to transact with customers. 3. Complex IT decisions are sometimes made more on the salesperson’s strength rather than the technology fit. 4. IT spending is considerable, but the business sees little or no measurable improvement. 5. Upgrades to your IT platform do not produce new benefits or capabilities, but merely do what your old systems did. 6. An integration is not delivering anticipated synergy. 7. Compliance still depends on manual detective-type financial controls rather than automated preventive systems. 8. Spending on noncore and costly items such as internal data centers does not consider innovative alternatives such as outsourcing or virtualization. 9. Financials must be restated for any reason. 10. Competitors deliver a richer IT customer experience and your competitive edge is eroding due in part to inadequate IT capabilities. 11. The organization is not reacting to IT trends such as social networking.
  • 7.
    7www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise The Critical Need for Improved IT Management The InformationWeek Analytics article mentioned earlier presented a clear indication of the critical need for improved methods of strategizing, prioritizing, implementing, and managing IT initiatives. “Unfortunately,” the article noted, “IT leadership is often handicapped by not having the right data and tools to support analysis of what’s actually driving costs.”6 This convergence of challenges is producing new models for chief information officers to consider as they investigate their options and take advantage of evolving technologies. ■■ The ability to accurately define the full return on investment for technology spending requires analytical tools that directly relate IT to the business’s financial and operational goals. ■■ The ability to efficiently execute and manage IT initiatives in a way that maintains a clear connection to business results requires implementation methodologies that are specifically designed to achieve this purpose. Uncertainties such as these are often warning signs of a flawed IT strategy, an inadequate decision-making process, or ineffective implementation and management. The right approach to the complex issue of managing IT and IT investments can remove these concerns from the executive’s desk, or greatly minimize their impact. Common Executive Concerns Over IT Spend Many executives with a decision-making role regarding IT initiatives have concerns and questions – questions they may be reluctant to voice aloud. Are questions such as these keeping you up at night? ■■ “Are scarce resources being used to serve genuine business needs – or are we merely pursuing the newest technology for its own sake?” ■■ “Will the IT projects I have in motion deliver as expected? Will they work? Will I get the results I promised?” ■■ “I’m not sure what’s happening with an IT investment, or the status of a current project. How can I get updated information that’s reliable and understandable?” ■■ “How can I be sure our IT investments are truly aligned with our business objectives? What standard can I use to judge?” ■■ “Am I holding the right people accountable for getting results?” ■■ “A significant project was recently stopped or reprioritized. Why? Was it due to a change or were there problems with execution?” ■■ “Will my current IT projects come in on budget and on time? If not, will I be able to face my board and executives, my colleagues, and my employees to justify the choices I made?”
  • 8.
    8 Can’taccessreal-tim e system inform ation Questionabledataquality andinform ationintegrityNew models of information management Poorlinks between IT spend and business performance Lack of common priorities and expectations among leaders Inaccurate perceptions of providersReliance on manual process Falling behind the competition Improper evaluation of IT investment Increased compliance spending Expected results not achieved Restated financial statements Unrecognized IT impact Misaligned IT spending Poor communication Complex IT decisions Failed integration Recessionary forces Unknown IT ROI Econom ic pressure C loud com puting Do m ore with less Because of ever-shifting variables, managing IT is often experienced as a never-ending stream of competing, interlacing, and overlapping challenges, each of which affects – and exacerbates – the others. Crowe’s IT Advisory framework addresses this confusion, as well as the business drivers that organizations face when making these significant investment decisions. Crowe’s IT Advisory solutions are geared toward solving big problems in the right way, regardless of the investment stage in which the organization finds itself. Are we doing the right things? Are we getting them done well? Are we doing them the right way? Are we getting the benefits? Four questions that frame everything in IT – every challenge, every project, and every solution – and bring order to chaos. CONFUSION Bad dataNotime SaaSInternalbias
  • 9.
    9 ORDER Crowe’s Suite ofIT Advisory Solutions Free IT Diagnostic IT Assessment IT Due Diligence Business System Assessment Change Management Ongoing IT Effectiveness Review System Selection Program and Project Management System Implementation Custom Application Development IT Portfolio Value Assessment Lean IT Strategic IT Road Map Critical Business Triggers Outgrown IT Foundation Recent Merger or Acquisition Changing Business Model Excessive Internal Audit or Compliance Costs Globalization Any Business Failure in Which IT Played a Role Any Major IT Project Failure Cost Reduction Challenge Critical Risk Management Issue The Start of a Return to Growth SustainEvaluate ImplementAssess Stages of IT Investment
  • 10.
    10 Crowe Horwath LLP CriticalBusiness Triggers Bring Urgency and Importance Certain critical business events often add urgency and importance to IT decisions. Examples of these events include: ■■ Outgrowing the current IT foundation. Years of organizational growth, accompanied by under- investment in IT capabilities or by piecemeal solutions, can produce a patchwork of systems requiring a comprehensive upgrade. It is worth noting the last major cycle of enterprise IT investment occurred during the Y2K era. The time span that has passed since then is close to the average life span of an enterprise system, at which a major upgrade or replacement is generally needed. ■■ A recent merger or acquisition. Disparate systems and competing technologies are among the most commonly encountered challenges in an M&A event. Beyond the capital investment that may be required, there is almost always significant personnel change, as well as manage- ment and business disruption risk. When contemplating an acquisition or divestiture, IT decision-making requires special consideration due to the rapid and critical nature of solution deployment. ■■ Excessive internal audit and compliance costs. Reducing the costs of internal audit while also delivering business process improve- ment offers the opportunity for both immediate financial savings as well as a long-term reduction in future costs. Building automated controls into the system itself can reduce the need for external or manual interventions. Organizations often must make significant IT investment decisions in an uncertain environment. Critical business events highlight the uncertainty and inject additional urgency into the situation. Crowe’s IT Advisory framework addresses these complex, interlaced challenges.
  • 11.
    11www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise ■■ A changing business model. As a result of strategic restructuring initiatives, some organizations have made wholesale changes to their business models. For example, many consumer product companies now consider themselves marketing, customer, and sales-focused organizations – outsourcing much of their manufacturing and distribution operations. Such a change greatly affects the focus of internal enterprise systems as the traditional product functions associated with an ERP solution no longer support the new strategy. New needs such as product development management, sophisticated forecasting, and improved customer relationship management (CRM) are often needed. ■■ Globalization. In addition to changes directly related to outsourcing, the increasingly global nature of today’s businesses also sparks indirect changes in IT requirements. These are necessary to meet the more sophisticated collaboration require- ments that occur when working with trading partners across vast spaces, multiple time zones, and multiple currencies. For example, long lead times demand greater clarity into shipment status as well as ability to allocate shipments directly to customer orders. ■■ Any business failure in which IT played a role. Examples include financial control failures that cause restating of financial results, regardless of whether the restatement is required by Sarbanes-Oxley or other regulations. Beyond the immediate compliance costs are the indirect costs of reduced business valuation and the credit limitations that can result. ■■ Any major IT project failure. Negative memories of past failures can create organizational barriers to investing appropriately in future initiatives. Examples that illustrate this include missed cutover dates, budget overruns, poorly managed change driven by IT, or unrealized benefits. ■■ Cost reduction initiatives. These initiatives affect all areas of a business, including IT. In many cases, however, technology may actually help reduce organizational costs or help improve flagging revenues. When cutting is applied to the IT investment category, a refined prioritization mechanism is important when choosing between alternatives. ■■ Supporting a return to growth. In the “Future of Manufacturing 2009” survey cosponsored by Crowe and IndustryWeek magazine, more than one third of respondents are forecasting greater than 10 percent annual growth by the end of the coming three-year period, while the projected growth rates in the work force are considerably less.7 In this environment a primary IT objective is to increase efficiency and improve workflows in order to “do more with less.” ■■ Business continuity issues. With heightened business reliance on IT, businesses must address resiliency and recovery issues. For example, in many industries today, the impact of a company’s website going down is an immediate interruption to the revenue stream – a business continuity risk today that was immaterial – if it existed at all – 10 or 15 years ago. Mitigating such risk must be a top IT priority.
  • 12.
    12 Crowe Horwath LLP CoreConcepts of the Crowe IT Advisory Solution In his precedent-setting book, “The Information Paradox,” author John Thorp suggested four critical questions to guide IT decision-makers: 1. Are we doing the right things? 2. Are we doing them the right way? 3. Are we getting them done well? 4. Are we getting the benefits?8 In developing and defining its IT Advisory services framework, Crowe Horwath LLP has followed a comparable approach, developing solutions to help businesses make IT decisions that achieve critical strategic and operational goals: 1. Doing what’s right. Crowe’s approach helps businesses objectively manage IT as an overall portfolio, rather than as a series of one-off projects. The approach also helps companies ensure that IT spend is evaluated based on clear business cases, with a focus on validating the assumptions that were made to justify projects. 2. Aligning with standards. Crowe’s approach applies leading research and best practice experience to help executives understand the risks and benefits of alternative decisions, and to recognize the various categories of investments and business applications that must be managed. 3. Executing with rigor. Crowe’s methodologies and tools help ensure new projects are implemented correctly, enable quick recovery or termination of unsuccessful initiatives, and establish clear accountability for results. 4. Realizing the benefits. Crowe’s approach focuses on helping organizations minimize total cost of ownership and maximize total value over the full life cycle of IT initiatives, not just the acquisition and implementation phases. The Major Stages of IT Investment For an executive who is seeking to bring order to shifting and interlacing challenges of IT investment, there is one more question that must be considered: Where does the business stand in terms of the specific IT issue being addressed? In general terms, the answer to this question can be expressed as one of four broad stages of IT investment shown in the center of the illustration on pages 8 and 9: 1. Assess: Enable understanding and alignment 2. Evaluate: Support informed decision-making 3. Implement: Plan and execute effectively 4. Sustain: Manage and improve for long-term results Depending on the particular IT issue being addressed, a business typically finds itself in several stages of this continuum at once. One specific technology issue may require support in selecting the appropriate system, while another will require only steady management and ongoing review of an existing platform. Moreover, the solution to IT issues does not always progress in a linear fashion. For example, an execution and implementation challenge can cause the business to rethink its initial system selection – or even reassess its original strategic goals for the initiative.
  • 13.
    13www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise
  • 14.
    14 Crowe Horwath LLP Assess:Enable Understanding and Alignment A rapid diagnostic of the existing environment. Identifies the key risks and opportunities in leveraging IT within the business along with a high-level path to realizing benefits, and suggests a series of next steps to capitalize on areas of opportunity. ■■ Formal written deliverable, consumable by IT and business leaders ■■ Series of prioritized, specific recommendations ■■ Actionable direction focused on highest business value ■■ Objective opinion by third-party experts ■■ Identification of key risks ■■ Documentation of opportunities ■■ No cost 1 Day A structured exploration and analysis of business systems, security, spending, integrations, hardware, communications, personnel, policies and procedures, and intellectual property. Designed to uncover hidden risk and opportunity and communicate complex issues in a format that is accessible and actionable by the business owner or leader. 2 – 3 Weeks Free IT Diagnostic Benefits Benefits IT Assessment/IT Due Diligence Crowe’s Suite of IT Advisory Solutions The Crowe suite of IT Advisory solutions offers effective tools for addressing critical issues at all stages of the IT development and execution continuum:
  • 15.
    15www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise ■■ Visual representation of all user tools actually used to run the business ■■ Clarity to functional gaps, software integrations, unmanaged tools, risks, opportunities, unmet needs, and support A deep dive into understanding and documenting the entire suite of sponsored and user-created busi- ness system software tools used to run the organization. An important foundational element for evaluating major initiatives such as possible ERP replacement or M&A activity, and to identify strategic and func- tional gaps, potential areas of risk, and opportunities for improvement. 3 – 5 Weeks Benefits Business System Assessment E An effective bridge across all stages of IT strategy, decision-making, and execution planning. Draws from time spent with the IT and business leaders to clarify organizational strategy and performance goals, identify and evaluate a series of alternative IT investment decisions and projects, and then weigh their impact on each of the objectives. ■■ Clear, 18 – 24 month plan for all recommended IT investment ■■ Investment options delivered for various budget levels ■■ Resource plans that indicate exactly what is needed to execute ■■ ROI analysis for each investment alternative 6 – 8 Weeks Strategic IT Road Map Benefits
  • 16.
    16 Crowe Horwath LLP Evaluate:Support Informed Decision-making Implement: Plan and Execute Effectively ■■ Objective and structured leadership for significant system decisions ■■ Insight from hundreds of system selection decisions and leading industry research ■■ Enhanced speed and quality of decision-making ■■ Negotiation support to drive cost savings A proven and pragmatic approach, combined with Crowe experience with a variety of software systems, that quickly and effectively guides the organization to the best decisions for critical business systems. Work covers areas such as strategy, selection criteria, requirements definition, and vendor evaluation, selection, negotiation, and implementation planning. 4 – 8 Weeks Benefits System Selection Helping to ensure that all defined projects are progressing in a coordinated and managed fashion, with speed and efficiency. Includes determining and assigning work to be done, tracking progress, managing exceptions, balancing conflicting priorities, and communicating to all parties involved to help ensure all stay focused on the end-goal. ■■ Project support activities are planned, managed, and communicated regularly. ■■ Scope of the work, and associated risks, schedules, costs, and needed resources are accurately defined. ■■ Quality work is delivered and issues are addressed as they are encountered. Determined by project Program and Project Management Benefits
  • 17.
    17www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise I ■■ Reduced risk of scope creep and budget overruns ■■ Quicker path to value through structured methodology ■■ Business-first advice designed to drive value from the technology being implemented ■■ The ability to leverage onshore/ offshore models that are truly cost efficient ■■ An established organization to support solution implementation ■■ An established development toolkit to provide velocity, reduce costs, and minimize coding The use of proven methodologies and vision to anticipate looming issues, and the application of skills to manage internal and external resources. Key to realizing the benefits of the planning phases, independent implementation oversight reduces the risk of going over budget, missing deadlines, or failing to deliver on promises. Determined by project Custom-built solutions for niche circumstances or online/Web needs where business requirements can- not be met though out-of-the box applications. Leverages more than 20 years of Crowe experience with known platforms such as Java™ , Microsoft® .NET, and open source tools and applications. Determined by project Benefits Benefits Custom Application DevelopmentSystem Implementation
  • 18.
    18 Crowe Horwath LLP Sustain:Manage and Improve for Long-term Results A structured approach to transitioning individuals, teams, and organizations to a desired future state. Aligns expectations, communicates, integrates teams, and manages people training, using a pragmatic approach that includes skill upgrading to maximize the implementation effort. ■■ Short-phased visits that maintain momentum on projects in process ■■ Objective evaluation of possible changes to current plans ■■ Highlighting and definition of risk redemption requirements ■■ Central oversight of budget ■■ Risk management ■■ Strategic alignment of IT investments and demand ■■ Standardization of investment procedures, rules, and plans ■■ Reduced resistance to change ■■ Faster adoption of the strategic initiatives ■■ Early identification of issues before they drain projects of anticipated benefits Determined by project Provides an ongoing evaluation and tuneup on completed implementations and new projects in motion. Key components of the Crowe toolkit are used to advise on risks and opportunities, and provide a scorecard on the organization’s use of IT. Determined by project Leveraging the portfolio of IT invest- ment to derive maximum business value from IT assets. Involves the application of systematic manage- ment to large classes of IT items including planned initiatives, proj- ects, and ongoing IT services, to help organizations determine which portfolio of IT spend truly delivers value for the investment. Determined by project Change Management Benefits Benefits Benefits IT Portfolio Value AssessmentOngoing IT Effectiveness Review
  • 19.
    19www.crowehorwath.com Getting IT Right:How to Plan, Manage, and Deliver on IT’s Promise Conclusion: An Objective and Results-driven Approach Regardless of the specific solutions the client employs within the Crowe suite of solutions, Crowe pursues a rapid, results-driven approach, with a specific set of deliverables in each phase of the assignment. The overall goal is to successfully meld business process needs and company strategy into executable IT plans as quickly as possible, in order to deliver time-phased, budget-conscious solutions. Crowe’s methodologies support clients seeking to assess their current systems and infrastructure as well as those organizations making strategic investments that are looking for expert guidance related to the transaction. The Crowe suite of IT Advisory solutions provides businesses with a proven, systematic process for developing appropriate IT strategies, making objective IT system decisions, and executing and managing their ongoing IT initiatives. Crowe’s business-driven and vendor-neutral approach is in many respects the polar opposite of traditional vendor-driven IT spend decisions. The Crowe IT Advisory teams pursue an investment-minded approach, and provide client executive teams with the tools and techniques to do the same. Project staffing is composed of more than technologists – adding a variety of specialists in personnel, process, strategy, and performance management to the effort. Project leaders average 20 years of experience in IT-related Advisory services working for many industries across a variety of specialty business application environments. This approach, proven in organizations of all sizes, is also adaptable on a global scale thanks to the international reach of the Crowe Horwath International network. At all levels and throughout all phases of the engagement, our emphasis is to provide pragmatic solutions that go beyond theory, and to work side- by-side with client teams in a flexible, collaborative effort that takes into account each business’s unique staffing models, time and resource constraints, and available IT investment funding. 1 “Technology Issues for Financial Executives,” Computer Sciences Corporation and Financial Executives Research Foundation, 2008, p.2. 2 ibid. 3 “Technology Issues for Financial Executives,” Computer Sciences Corporation and Financial Executives Research Foundation, 2008, p.3. 4 “The Future of Manufacturing 2009,” IndustryWeek, Penton Media Inc., 2009, p. 8. 5 “Know Your Costs: The Key to IT Business,” InformationWeek Analytics, April 2010, p. 5, http:// analytics.informationweek.com/abstract/81/2813/ Business-Intelligence-and-Information- Management/informed-cio-it-cost-transparency. html. 6 ibid. 7 “The Future of Manufacturing 2009,” p. 3. 8 John Thorp, “The Information Paradox: Realizing the Business Benefits of Information Technology,” McGraw-Hill Education, 1999. S ■■ Improved investment in Agile software development ■■ Reduced software defects ■■ Elimination of unnecessary or overbuilt solutions ■■ Reduction of unnecessary equipment ■■ Improved productivity due to reduced “firefighting” The extension of lean manufactur- ing and lean services principles to the development and management of IT products and services. The central concern is the elimination of waste, in particular work that adds no value. Particularly effective for companies that develop software as a product or have a high volume of custom tools. Determined by project Benefits Lean IT
  • 20.
    When printed byCrowe Horwath LLP, this piece is printed on Mohawk Color Copy Premium, which is manufactured entirely with Green-e® certified wind-generated electricity. PERF11316A Java is a trademark of Sun Microsystems Inc. or its subsidiaries in the United States and other countries. Microsoft is a registered trademark of the Microsoft group of companies. The Mohawk Windpower logo is a registered trademark of Mohawk Fine Papers Inc. Green-e is a registered trademark of Center for Resource Solutions. Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2010 Crowe Horwath LLP www.crowehorwath.com Contact Information Doug Schrock 317.706.2643 doug.schrock@crowehorwath.com Jeff Shaffer 312.899.4493 jeff.shaffer@crowehorwath.com Josh Cole 616.752.4274 josh.cole@crowehorwath.com If you would like to start receiving information via e-mail about topics of importance to you, please sign up on our website at www.crowehorwath.com/emailsignup. About Crowe Horwath LLP Crowe Horwath LLP is one of the largest public accounting and consulting firms in the United States. Under its core purpose of “Building Value with Values,® ” Crowe assists public and private company clients in reaching their goals through audit, tax, advisory, risk, and performance services. With 26 offices and 2,400 personnel, Crowe is recognized by many organizations as one of the country’s best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest networks in the world, consisting of more than 140 independent accounting and management consulting firms with offices in more than 400 cities around the world.