Page 1 © Siemens AG 2008. All Rights reserved. February 2008 NASSCOM 2008 India Leadership Forum ‘Transforming IT into a competitive advantage / driving business transformation‘ Dr. Christoph Kollatz Mumbai, February 14, 2008
Global leadership: IT as a competitive advantage,Dr. Christoph Kollatz, Group President, Siemens IT Solutions and Services
Jun 26, 2015
Global leadership: IT as a competitive advantage,Dr. Christoph Kollatz, Group President, Siemens IT Solutions and Services
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Page 1© Siemens AG 2008. All Rights reserved.February 2008
NASSCOM 2008India Leadership Forum
‘Transforming IT into a competitive advantage / driving business transformation‘
Dr. Christoph Kollatz
Mumbai, February 14, 2008
Page 2© Siemens AG 2008. All Rights reserved.February 2008
Responsiveness to change is more than ever key driver for sustainable competitive advantage
Past Future
How Analysts see the evolution of competitive advantage
1970 – 1995
Increasing productivity
1995 – 2005
Improving the cost base
2007 - onwards
Enabling innovative business
processes
Page 3© Siemens AG 2008. All Rights reserved.February 2008
Managing global operations
Thinking over the edge
Recruit and retain key people
Nowadays, driving sustainable competitive advantage requires people- , operational- and innovation excellence
My key elements of competitive advantage in 2010
Page 4© Siemens AG 2008. All Rights reserved.February 2008
SustainableCompetitiveAdvantage
Degree of vertical integration
Embodied industry best practices
Service scope and performance
Skills and mindset of key employees
Presence & location
Complementory services
From IT perspective sustainable competitive advantage requires the combination of efficiency and uniqueness
Economies of scale in R&D and production
Standardization of solution designs
Industrialization of service delivery
Best in class global delivery processes
Balance of input costs, quality and governance
Efficient capacity utilization
Cost Leadership Differentiation
Drivers of Cost Leadership and drivers of Differentiation
Page 5© Siemens AG 2008. All Rights reserved.February 2008
IT partnership with Siemens IT Solutions and Services drives BBC’ transformation towards the new digital age
1 Trust and competence is key forming a 10 year £2 billion partnership contract to provide technology services to the BBC
2 Major technology transformation programme is nearing completion to prepare the BBC for new ways of working
3 Over 1,000 BBC people on-site leaving free to focus on core business – content creation
4 Cost savings to the BBC of over £20 million per annum already being delivered
5 Next challenge is extending the partnership to enable the BBC to transform in the new digital age
Facts and figures about BBC and Siemens partnership
Page 6© Siemens AG 2008. All Rights reserved.February 2008
BBC Pre Transformation
Analogue Production
Traditional Ways of Working
Proprietary Systems
BBC Post Transformation
Digital Production & Delivery
New Ways of Working
Flexible & Agile Technology
Multiple Platform Delivery
360 view on BBC prior and after the technology transformation programme
BBC’ transformation changes production, infrastructure and ways of working as well as final household delivery
Page 7© Siemens AG 2008. All Rights reserved.February 2008
IT has to be managed as crucial component of a company‘s competitive advantage to really become one
high
low
low high
Po
ten
tial
fu
ture
bu
sin
ess
con
trib
uti
on
Dependence of Business from IT
Clustered IT Investments, modes for cooperation and respective KPI‘s
IT R&DProjects
StrategicVerticalSolution
Supportapplications
Key operational applications & infrastructure
Outtasking
Selective Outsourcing
IT Outsourcing
Process Outsourcing
Alliances
Shared Option
Equity Model
PartneringView
What really matters?
CostsQuality
to be different
Page 8© Siemens AG 2008. All Rights reserved.February 2008
Can your company afford ignoring IT as prospective component of your competitive strategy?
A strategic partner manages your technology different than a supplier.
Ideas decision makers should reflect on
A compelling competitive IT strategy provides your company the flexibility needed to keep responsive for change.
A professional IT service firm can leverage global skills, IT innovation and efficient operations much more responsive than an IT department.
Innovative IT processes are an essential lever in transforming our business towards the next level of customer and shareholder value.
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