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Gaining Competitive Advantage through Benefits Realization

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Presentation by Prashanth Naidu at SVPMA Monthly Event August 2012: Approach to measure benefits of product investments and using that as a competitive advantage.

Click below for details notes from the event:

http://svpma.org/2012/08/august-2012-event/

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Gaining Competitive Advantage through Benefits Realization

  1. 1. BENEFITS REALIZATION:THE COMPETITIVEADVANTAGE PRASHANTH NAIDU AUGUST 1, 20121 © 2011 Hitachi Data Systems. All rights reserved.
  2. 2. INTRODUCING HITACHI DATA SYSTEMS Ranked # 140 for Innovation in 2010  Formed in 1989 as a subsidiary of Hitachi, Ltd. (NYSE: HIT)  Direct and indirect sales in 100+ countries and regions  5,000+ employees, worldwide  Focus: Information technologies, services, & solutions  Recognized industry leader Excellence in Customer Service Awards2
  3. 3. PHILOSOPHY ON GOALS AND PRIORITIES Life Example School Job Work Example Corporate Success Schedule ROI Cost3
  4. 4. PORTFOLIO MANAGEMENT IS STRATEGIC Strategic Benefits  Governance: Alignment Measurement Business council  Governance: Are we Executive  Tools: Portfolio, Are we doing the getting Council Business case right measurable  Tools: Value things? value? maps, Program metrics Are we Are we doing them getting  Governance:  Governance: the right Release them done? Project Steering way? Committee Management Council Architecture Project  Tools: Status  Tools: Project and Approvals Efficiency reports, Project gate checklist time system4
  5. 5. PORTFOLIO MANAGEMENT IS PROCESS 1. New Request 2. Proposal Collect Metrics 3. Council Approval 4. Investments 6. Closed In Flight 5. Steering5 Committee Review
  6. 6. GOVERNANCE MODEL IS KEY  Review business cases;  Set priorities and approve/reject projects guidelines; approve or  Funding: external spend reject projects Strategic for projects  Funding: cross functional Benefits Alignment  Members: business unit and large investments Measurement leaders  Members: executives  Meets: Monthly  Meets: Quarterly Business Executive Council Council  Review gates and  Review project health deliverables and new projects  Members: project  Funding: internal Architecture managers, support initiatives Project Approvals staff, architects  Members: department Efficiency  Meets: Weekly heads  Meets: Weekly Release Steering Management Committee Committee6
  7. 7. FOCUS ON MEASUREABLE RESULTS Executive Directive  Ensure all investments document measurable benefits  Present all approved investments to the Executive Council Benefits Quantified  Revenue Growth ($)  Revenue Impact ($)  Cost Savings ($)  Cost Avoidance ($)  Productivity Savings ($) Benefits Measurement  Metrics designed to measure benefits after deployment  Ownership and frequency defined for metrics collection  Benefit measurements compared against business case  Results reported back to executives and stakeholders7
  8. 8. DELIVER VALUE THROUGH METRICS ACCURATE & CONSISTENT VALUABLE Metrics • Business cases • Marketing campaigns • Product and • Revenue/Cost • Customer newsletters Resource plans savings delivered • Sales meetings • Weekly status Cost and Schedule • Internal all hands reports variances meetings • Product specs • Customer satisfaction • Executive committee • Time keeping ratings briefings systems • Productivity savings • Customer surveys Data RELIABLE Message8
  9. 9. USING METRICS TO DIFFERENTIATE In a competitive environment, meaningful differences between similar products or services are best determined by using metrics. Appearance alone is not enough to Specifications are valuable, determine value but may not always tell the whole story9
  10. 10. MEASURING BENEFITS – NEW CRM DEPLOYMENT EXAMPLE SCENARIO #1: DEPLOY NEW CRM PRODUCT AND COMPARE BUSINESS OUTCOMES BEFORE AND AFTER DEPLOYMENT Business Outcome Description Target Sales Orders Booked Number of customer orders processed 25% and revenue booked Increase Order Processing Time Time taken for leads to be converted into 20% booked orders Decrease Lead Conversion Rate Percentage of leads converted into 15% booked orders Increase Business Outcome Baseline Target Actual Sales Orders Booked 1000 25% Increase = 1250 1500 Order Processing Time 30 days 20% Decrease = 24 22 days Lead Conversion Rate 20% 15% Increase = 23% 25%10 The data displayed here is for informational purposes only and does not represent actual business results.
  11. 11. MEASURING BENEFITS – CRM ENHANCEMENT EXAMPLE SCENARIO #2: DEPLOY ENHANCEMENTS TO EXISTING CRM PRODUCT AND COMPARE METRICS BEFORE AND AFTER DEPLOYMENT Metrics Description Target Number of Clicks Number of mouse clicks required to price 5 clicks an order in the CRM system Processing Time Time to create a customer quote using the 15 minutes CRM system Metrics Baseline Target Actual Number of Clicks 20+ clicks 5 clicks 5 clicks Processing Time 25 minutes 15 minutes 5 minutes11 The data displayed here is for informational purposes only and does not represent actual business results.
  12. 12. MOBILE APPLICATION: VALUE MAP Faster Response to Increased Customer Customer Inquiries Satisfaction Real-time Access to Sales Information Increased Sales Rep Increased Booked Productivity Savings Orders Sales Mobile App Released Reduced Calls for Decreased Sales Sales Support Center Support Cost New Sales Capability Created Increased Innovation Maximize Use of Mobile Technology Increased Brand Recognition12
  13. 13. PRODUCT DELIVERY MATURITY: LEVELS 1 & 2 LEVEL 1: CHAOS  Late  Over budget  Outcomes are unpredictable  Unhappy customers LEVEL 2: REPEATABLE  Certain level of unpredictability  Issues and risks still unacceptably high13
  14. 14. PRODUCT DELIVERY MATURITY: LEVELS 3 & 4 LEVEL 3: DEFINED  Efficient  Fairly adaptable to changing needs LEVEL 4: MANAGED  Creative  Fully adaptable to changing needs14
  15. 15. PRODUCT DELIVERY MATURITY: LEVEL 5 LEVEL 5: OPTIMIZED  100% On time delivery  100% Customer satisfaction  100% Efficiency in processes15
  16. 16. IN CLOSING…  If you try to please everyone, you will fail!  Keep things simple – the more complicated it gets, the less adoption we see  Follow the 80/20 rule – realize 80% benefit with 20% investment Learn from the past, Enjoy the Set vivid, detailed goals for the future, Work journey and and live in the only moment of Smart have fun time over which you have any control …… Now! – Denis Waitley16

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