How do you quantify the business value that an IT Infrastructure project delivers? Peter Williams Microsoft Technology Pre-Sales Manager Jane Pfeifer.

How do you quantify the How do you quantify the business value that an IT business value that an IT Infrastructure project Infrastructure project delivers?delivers?

How do you quantify the How do you quantify the business value that an IT business value that an IT Infrastructure project Infrastructure project delivers?delivers?

Peter WilliamsPeter WilliamsMicrosoft Technology Pre-Sales ManagerMicrosoft Technology Pre-Sales ManagerJane PfeiferJane PfeiferSenior Manager – BearingPoint AustraliaSenior Manager – BearingPoint Australia

AgendaAgenda

What is Business Value?What is Business Value?

Some Commercial ExamplesSome Commercial Examples

Some Public Sector ExamplesSome Public Sector Examples

Common Themes that occurCommon Themes that occur

Thoughts on how to improve your chances Thoughts on how to improve your chances of successof success

Recommendations on how to startRecommendations on how to start

Q+AQ+A

What is Business Value?What is Business Value?

The value of an IT initiative is defined as:The value of an IT initiative is defined as:a business performance improvement that a business performance improvement that is aligned with the organisations critical is aligned with the organisations critical success factors (CSFs) and that enables success factors (CSFs) and that enables the organisation to make optimal use of its the organisation to make optimal use of its resources within the context of acceptable resources within the context of acceptable risk.risk.

Some ExamplesSome Examples

An out of support system for a equipment An out of support system for a equipment suppliersupplier

We found 75% of the value was in inventory We found 75% of the value was in inventory reductionreduction

A people dependent business with a A people dependent business with a manual recruitment processmanual recruitment process

Inappropriate use of high value individualsInappropriate use of high value individuals

Business risk of people working without signed Business risk of people working without signed contractscontracts

Manufacturing Organisation manual Manufacturing Organisation manual processing of data causes bottleneck in the processing of data causes bottleneck in the processprocess

Cannot realise the value of a multi million dollar Cannot realise the value of a multi million dollar investment because of this data processing investment because of this data processing problemproblem

Some examplesSome examples

Major state govt authority with manual Major state govt authority with manual recruitment processrecruitment process

Unable to achieve KPIs due to labour intensive Unable to achieve KPIs due to labour intensive processprocess

Up to 44% of instances falling outside agreed Up to 44% of instances falling outside agreed limitslimits

Not for profit fund managerNot for profit fund managerPoor service to clients due to difficulty in Poor service to clients due to difficulty in accessing corporate knowledgeaccessing corporate knowledge

Marketing BureauMarketing BureauBusiness dependent on IT for content Business dependent on IT for content publicationpublication

Lack of resource – limited maintenance – Lack of resource – limited maintenance – content not reliable as a basis for decision content not reliable as a basis for decision making making

A word on the public sector…A word on the public sector…

There is no bottom line!There is no bottom line!

Focus is on efficient delivery of outcomes.Focus is on efficient delivery of outcomes.

Common ThemesCommon Themes

““Before I got married I six theories about bringing Before I got married I six theories about bringing up children; now I have six children and no up children; now I have six children and no theories” – John Wilmottheories” – John Wilmot

Where to lookWhere to lookCost reduction – savings, avoidanceCost reduction – savings, avoidance

Productivity gain – revenue generation, better Productivity gain – revenue generation, better use of working capitaluse of working capital

Risk Reduction – legal and statutory compliance Risk Reduction – legal and statutory compliance – intangible but the Directors can sleep at night– intangible but the Directors can sleep at night

Alignment with Strategic goals – product Alignment with Strategic goals – product innovation, improved customer experienceinnovation, improved customer experience

Your Business will be able to identify the Your Business will be able to identify the critical business process issues very easily critical business process issues very easily if you listenif you listen

Some Objectivity HelpsSome Objectivity Helps

The business may not want to expose its The business may not want to expose its issues internallyissues internally

Go in with an open mind to identify Go in with an open mind to identify opportunitiesopportunities

Align with the business agenda and don’t Align with the business agenda and don’t go with a fixed IT agendago with a fixed IT agenda

A external consultant can helpA external consultant can help

Potentially use a trusted party from Potentially use a trusted party from another part of the businessanother part of the business

““If you can measure it, you can If you can measure it, you can manage it”manage it”

Identify what you can and will measureIdentify what you can and will measure

Gather baseline dataGather baseline data

InnovateInnovate

Measure and keep measuring – Measure and keep measuring – communicatecommunicate

This will get easier over time – builds trust This will get easier over time – builds trust with the businesswith the business

Improve the oddsImprove the odds

Most projects fail to deliver value due to Most projects fail to deliver value due to lack of user involvement/adoptionlack of user involvement/adoption

Business Owner Executive Sponsorship will Business Owner Executive Sponsorship will drive user involvementdrive user involvement

A business case that aligns with the A business case that aligns with the business owners agenda will buy supportbusiness owners agenda will buy support

Taking the first stepTaking the first step

Do whatever you can to better understand Do whatever you can to better understand your company’s businessyour company’s business

If you have Project Management Office, If you have Project Management Office, talk to them, they will understand the talk to them, they will understand the Capital Expenditure approval process of Capital Expenditure approval process of your companyyour company

Use a Management Consulting Partner to Use a Management Consulting Partner to help you build your case, look for one that help you build your case, look for one that understands your industryunderstands your industry

Talk to your Microsoft Account manager, we Talk to your Microsoft Account manager, we have partnerships with all the major have partnerships with all the major management consulting partners and can management consulting partners and can help you find one that meets your needshelp you find one that meets your needs

QuestionsQuestions

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