How To Survive & Improve Our Business Through IT Solution

HOW TO SURVIVE &

IMPROVE OUR BUSINESS

THROUGH IT SOLUTION

SUBHAN NOVIANDA

Director – IS Solution & Marketing, CEVA Indonesia

INFOKOMPUTER FORUM - 12 May 2010

Agenda2

Business & IT Situation

How to SURVIVE

How to IMPROVE

Take away ..

Business & IT – Situation3

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…

The 2010 CIO Agenda : Leading in Time of Transition

(Gartner Research)

4

Survive Improve

Business Expectation

(Gartner Research)

28 August 2010Title of Presentation

5

How to SURVIVE6

Deliver the basic.

Manage Cost - Quality - Value

COST QUALITY

VALUE

InSourcing Outsourcing SmartSourcing

When to Insource

function is mission critical

is a core competency

cannot identify any cost savings

not clear that vendor is any better

vendor cannot be "controlled"

When to Outsource

reduce head count

service a "commodity“

can‟t afford time, $ for new tech

can‟t keep good staff

don‟t have good staff

small project

7

* Adam Murray : Costing , Outsourcing & Contract.

How to IMPROVE :

8

INTERNAL INFORMING

Provide information to

improve operational decision.

EXTERNAL INFORMING

Embed information into

product & service.

OPTIMIZING

Improve or transform internal

processes through technology

RESHAPING / Collaboration

Change how customers &

partners interact with the

enterprise and its

product/Services

ImproveDecisionMaking

ImproveProcess

SOURCE OF VALUES

Internal External

SCOPE OF CHANGE

* The Real Business of IT : Richard Hunter and George Westerman

Four sources of values from IT *

The four sources model: How IT

improves business performance *9

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

Communicate the Value10

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

Take away …The path to IT value

11

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.

THANK YOU..!!