How To Survive & Improve Our Business Through IT Solution
1. HOW TO SURVIVE &
IMPROVE OUR BUSINESS
INFOKOMPUTER FORUM - 12 May 2010
THROUGH IT SOLUTION
SUBHAN NOVIANDA
Director – IS Solution & Marketing, CEVA Indonesia
2. Agenda
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Business & IT Situation
How to SURVIVE
How to IMPROVE
Take away ..
3. Business & IT – Situation
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Questions :
Who did remember „Public Utilities Company ‟ when its
service/supply (power/water) was OFF ? What did you
feel ?
Who do remember & „THANK THEM‟ during the Services is
ON ?
Are we familiar with this situation ?
Do IT like that ?
Are we part of Problem or part of Solution ?
--- Don‟t worry you are not alone .. and we will have a cure…
4. The 2010 CIO Agenda : Leading in Time of Transition
(Gartner Research)
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Survive Improve
6. How to SURVIVE
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Deliver the basic.
Manage Cost - Quality - Value
VALUE
COST QUALITY
7. InSourcing Outsourcing SmartSourcing
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When to Outsource When to Insource
reduce head count function is mission critical
service a "commodity“ is a core competency
can‟t afford time, $ for new tech cannot identify any cost savings
can‟t keep good staff not clear that vendor is any better
don‟t have good staff vendor cannot be "controlled"
small project
* Adam Murray : Costing , Outsourcing & Contract.
8. How to IMPROVE :
Four sources of values from IT *
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INTERNAL INFORMING EXTERNAL INFORMING
Improve Provide information to Embed information into
Decision improve operational decision. product & service.
Making
SOURCE OF VALUES
OPTIMIZING RESHAPING / Collaboration
Improve Improve or transform internal Change how customers &
Process processes through technology partners interact with the
enterprise and its
product/Services
Internal External
SCOPE OF CHANGE
* The Real Business of IT : Richard Hunter and George Westerman
9. The four sources model: How IT
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improves business performance *
Internal informing: Provide information to improve operational decision.
Information is supplied to internal audiences to support decision making related to specific
operational issues. Resulting performance improvements may be visible to external parties such
as customers and suppliers, but the information itself typically is not.
Optimizing: Improve or transform internal processes through technology
Processes internal to the company are improved or transformed through automation. Though
optimizing is typically about incremental process improvements, it can also include actions that
replace whole sets of applications and processes.
External informing: Embed information into product & service.
Information is supplied directly to external parties, such as customers and suppliers, to enhance or
change the enterprise‟s value proposition, relationships, or operations
Reshaping (Collaboration): Change how customers & partners interact with the enterprise and its
product/Services.
Automation is used to change how customers and partners interact with the enterprise, how they
work with the enterprise‟s products and services, or the levels and kinds of service provided.
These may be large, such as integrating the global supply chain, or smaller, such as providing
customers with self-service features they formerly had to request through a salesperson or call
center.
* The Real Business of IT : Richard Hunter and George Westerman
10. Communicate the Value
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One of issue in IT is COMMUNICATION.
There is NO BAD IT People , just only BAD IT COMMUNICATOR
After CREATE it, you must COMMUNICATE the IT Value for
Business
11. Take away …The path to IT value
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Step 1: Change your thinking to avoid the value traps.
The road to (IT) hell is paved with good intentions. Avoid the value traps: practices
that seem to be good ones but actually prevent IT from delivering and communicating
value.
Step 2: Show that IT provides value for money.
As the “cost innovation officer,” you and your team demonstrate that the IT
organization is providing the right services, at the right level of quality, at a
competitive price.
Step 3: Show how IT improves business performance.
As the “chief improvement officer,” you and your team help everyone make the
connection between investment in IT and improved business performance.
Step 4: Show how you have value beyond IT.
As the “CIO-plus,” you operate as a peer on the executive team, providing value
beyond IT itself.