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Unstoppable drivers are creating a new market reality
CompetitiveDarwinism
Due to increasingly transparent markets, competitive intensity is growing in severity as existing players and new entrants scramble to provide value to customers
The change in customer demands, technological innovations and government regulation is increasingly sudden and dramatic
The growth and pre-dictability of revenues and margins becomes even more challenging due to economic uncertainties and demanding investors
Pervasive dangers become real and prevalent as global firms see increased exposure to natural disasters, unstable geopolitics and other market shocks
UnrelentingFinancial Pressures
UnpredictableThreats
ContinuousDiscontinuous
Source: IBM Institute for Business Value
Eroding competitive advantage
Sub-optimal resource allocation
Undifferentiated customer value proposition
Lack of clear organizational focus
Empowered customers Aggressive competition
challenging industry models
Reacting to changes in market demand and product definition
Complexity and compe-titive shifts in supplier and partner networks
Inflexible value chains and processes
Unpredictable costs leading to increased operational risk
Close scrutiny from stakeholders and the broader market
Need to reduce fixed costs and capital requirements
Business recovery from natural disasters, terrorism, etc.
Risk management across product and business portfolios
Support for complex globalization and business expansion
Maintaining privacy and security for customers and employees
75% of IT projects fail to deliver the expected business value
The lack of a framework to identify benefitsis cited as the key reason that benefits did not emerge as planned
What is missing in the market?
CEOs know they need IT, but feel it is slow and cumbersome when it comes to delivering change and value
"The key to demonstrating the contribution of IT investments to business value is to link the IT business-case benefits to the drivers of business value."
A higher percentage of the IT budget must be allocated to the development of new vital solutions – in support of the core businesses and the achievement of key business objectives
IT must suggest technology investments that can improve the satisfaction of customers, employees, investors, and other stakeholders
IT must contribute significantly to improvements in responsiveness and resilience
IT must support rapid change – even act as a change enabler
The more senior executive involvement – the more value creation and realization you achieve
Because:
comprehensive understanding of the company wide strategy is vital.
a company perspective on all major challenges is important.
senior executives have the power to determine major changes in areas like organizational structure, the business model, partner strategies, and core business focus.
only senior executives can prioritize the investment initiatives – to ensure alignment with short and long term company goals.
soft values (in contrast to tangible values) may often play a major role in the “value equation”– and to decide on what weight soft values should have is not a task for none-executives.
Strategy, process, organization and technology are parameters that you can adjust and that will initially have an effect on the way you run your business and the value you experience at the end of the day.
Designed for:
taking a holistic view combining business and IT
getting business and IT goals better aligned
focusing on business aspects
rapid value identification
rapid value realization and ROI
lowering cost (TCO)
making the value creation journey happen
in steps – at your pace
...an approach aimed at helping executives better prioritize and align IT investments - to realize those values that matter the most in reaching key business objectives.
Despite the recent economic slowdown, change continues to accelerate across nearly every dimension of business. Link IT initiatives to the drivers of the fundamental business values like:
Value Identification RoadmapThe IBM Express Value Creation approach offers a step-by-step roadmap built around a set of workshops.
A holistic view secures that all major business and technology perspectives are taken into consideration, thus helping companies prioritize IT investments according to the business values that matter the most.
Executive workshopsExpress Value Creation is about zooming in on values that matter the most. The executive workshops secure that the project moves in the right direction from the very beginning.
The extent of the project varies from 2-5 workshops of approximately 6 hours each. Moving from one step to another requires some analysis and preparation primarily by the IBM team, but will also involve some of your business and IT experts.
Roadmap – high level description of phases and steps
Align Assess Activate
1
3
5
2
4
6
7 8
9 10
1211
Implement
Prepare/Analyze
Workshop Decision Prepare/Analyze
Workshop Decision
13 1
Accelerated AssessmentPrepare/Analyze
Workshop Decision
The roadmap is a set of workshops bring the executive team effectively through the process of selecting exactly which areas to focus on in order for the company to realize most business value. The project develops in three steps – Align, Assess and Activate – with workshops tailored for each. Depending on complexity a company will go through 2-5 workshops before the final decision making and actual implementation.