STKI Summit 2012 - אנשים ומחשבים - פורטל חדשות היי-טק ... me and I’ll forget STKI Summit 2012 Show me and I may remember Involve me and I’ll understand

STKI Summit 2012 Tell me and I’ll forget Show me and I may remember Involve me and I’ll understand Galit Fein

VP & Senior Analyst

Office of the CIO

Market Trends

2012

Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic

Israeli Enterprise 2012: Under Pressure

Enterprise

2012 Global Economy Innovation

2

COM PETI TION


1980’s - IT Department

BO Operations MIS

Infrastructure

DRP

Security

Back Office

3


1990’s - IT Department

BO

Infrastructure

Security

Transactions IT

manager CFO

Back Office

DRP ERP

4


2000’s - IT Organization

Infrastructure

DRP

Processes

Security

Back Office

BO CIO CFO

Sales

ERP

CRM Web site

5


HR

2005 - IT Organization

Infrastructure

DRP

Processes

Security

Back Office

ERP

CIO

CRM

HR

BO CFO

Sales

6


HR

2008 - IT Organization

Infrastructure

DRP

Processes

Security

Back Office

ERP

CIO

CRM HR

OCIO

PPM

BO CFO

Sales

7


HR

2010’s – Technology & Business Systems

Infrastructure

DRP

Business Products

Security

Back Office

ERP

BO

VP Technologies & Business

Systems

CFO Sales

CRM HR

OCIO

PPM

CMO

Mobile

Social media

Analytics

BI

OR

CEO

8


Capex increasing, Opex not decreasing

Time

Opex1: 5-10% decrease on existed

Capex:

New business demand for IT services

Opex2: Last year capex x 15%

$$

9


How Can We Fill The Gap?

Time

Business demand for IT services

IT Budget

$$

10


IT Budget Trends

11

• Modest increase in IT budget -average rise of 3.7%

• IT Capex flattens at beginning

of year due to uncertainty

• Despite continued volatility,

IT staffing remains constant


Capital Organizational Spending

Technology Investments

47%

Other 53%

12

Source: IDC 2012


The Majority of IT total spending goes to Maintenance

Breakdown of Total IT Expenditure 2009-2012

Source: CIO Executive Board 2012

13

Innovation

Business opportunity

Maintenance

Mandatory


If you can’t beat them…

Agile world – ability to respond on the fly to constant changes

in business requests

Small, cost-sensitive, more likely to be "disposable"

Resource: Cutter

Changing requirements

Poor estimation

Pressure from management to accept unreasonable schedules

What are the main reasons for SW project overruns?

14

56%

17%

15%

IT Portfolio is changing quickly due to changes in

competitive conditions


Changing Requirements AND Deliverables All the Time

15

A1

A2

A80

A7

A1

A13

A79

Business requests

Sprint A

Detailed Planning

A2

A3

B1

B2

P R I O R I T I Z A T I O N

Sprint B Previous requests AND New business demands

P R I O R I T I Z A T I O N


Consumer Power

End of IT monarchy:

• IT spending is gradually changing it’s guards - from ITO to business departments

• IT will be one of possible sources of development that departments can use, and in many cases internal IT will compete with outside contractors for specific jobs

16


Efficiency and Agility are under focus. AGAIN

• IT can find itself nearly irrelevant, unless it becomes

efficient , agile, and competitive with other market offerings

• Lean IT – Maximize customer

value by eliminating waste and

optimizing the existing processes

in all aspects of a firm’s production

activities: HR, vendor relations ,

technology, and the mngt of materials and inventory

17


Why do we need Lean IT?

• We are doing all we can.

• Example of Kaizen procedures in Service Desk scenario

in leading IT organization:

Reduce support time for incident by 50% (same staff)!

Answering the phone according to SLA – from 76% to

96% !

18


Customer VALUE and WASTE

• The purpose is to deliver VALUE that the customer needs and is willing to pay for

• If it ain’t value, its WASTE

– Extra (unused) features

– Handoffs

– Task switching

– Delays

– Defects / REWORK

– Partially done work / work in process

19

Source: AgileSparks


Lean Benefits

20

Relentlessly focus on reducing non-value adding activities

Work Time (value add)

Cycle Time

Before

After

Wait Time (non value add)

Cost/

Chaos

Same work

completed in less time

Cycle time

Requirements Design Development

Waiting Waiting Defect Fixing

FLOW Avg time 3 weeks


Anything that slows down development

• Inefficient manual steps to build/ install/ test/ release

• Not fixing broken build/tests

• Code Complexity (skipping refactoring, duplicate code, coupling and spaghetti code, etc.)

• Code that not executed (but supported)

• No documentation and leveraging

of knowledge

21

Source: AgileSparks


Office of the CIO

22


Office of the CIO penetration in Israel 2012

IDF

Goverment

Industry

Health

Telecom

Credit Cards

Banking

92%

92%

73%

33%

8%

8%

43%

8%

8%

27%

67%

92%

92%

57%

OCIO

23


MEGA IT Trends 2012 C

on

sum

eri

zati

on

Real Time Predictive Analytics

IT Services

and Mobility

Context based

social

24


25

Agenda

MEGA Trends

2012

Office of the CIO

IT Services and

Chargeback

Sourcing

Office of the CMO

Mobility

Social Media


IT services and cost transparency

We deliver IT

26

• By implementing OCIO tools and methodologies , ITOs

achieved greater business satisfaction with IT

• NOW, encouraged by better visibility and cloud models

alternatives, business managers do not want the

technology cost to become overhead cost or annual tax

• More business leaders are willing to take primary

responsibility for managing delivery. BRMs consistently

underestimate business partners' willingness to lead

• IT must sell and deliver cost based services


From unresponsive corporate overhead

to an agile business partner

All-you-can-eat buffet

• Everyone pays the same price

• Food selections are driven by the chef’s priorities

Fast-food restaurant

• Price is affordable

• Choices driven by market demand

• Customers pay only

for what they consume

VS

27


The new IT

Client/user

Packaged Application

28


Why do we need IT Chargeback

29

• It helps organizations understand that IT is not free

• It gives BUs greater visibility and control over their technology budgets

• It demonstrates the cost savings from shared services

• Demand for visibility in IT costs comes

from outside the ITO


IT Chargeback Recommendations

1. Well-defined portfolio of IT activities along with output

in terms which are coherent to the customer

2. Start mapping types of

requirements which repeat themselves:

• BI reports

• Changes in GUI (field, color, etc.)

• Client differentiation

DRP

Upgrade

Server

30

“When we are no longer able to change a situation, we are challenged to change ourselves”.

Victor Frankl


Cost Model with Variable Pricing - Examples

Standard service definitions

Security guarantees

Performance guarantees

Availability High-level description of the service

mission critical 24 x 7 with 4/9 uptime

E-mail delivery

Business critical/ operational

10 x 5 with 3/9

administration

Costs Costs

Email server

Direct costs Equipment Cost of tech Help desk support Software

Per-foot operating cost of a DC

Indirect costs Manager Labor

1st level support

2nd level support

Permanent IT staff Fixed Facilities

Temps Variable costs 3rd party services 31


OCIO is Very Busy

• IT Operations

• Project mng/ Development

• QA/ Testing

• Vendors mng

• Legal/ Compliance

• Remote sites - DR/BCP

• Critical Success Factors

• Key Process Indicators

• Controls in general

• Roll Out - Does not end after project goes live! OCIO must maintain charge of employees knowledge and usage of new system/ features

• BRM (Key Users)

• Budget plan

• IT HR

• EA • Procurement plan

• Change mng – ITIL-related

– Project-related

• Risk/ security mng

• Configuration Items:

– New ones that will be installed

– Existing ones that will be change


PPM Tools Positioning of the Israeli Market

33

Loca

l Su

pp

ort

Market Presence

Clarity (CA)

MSP

Microsoft

Sciforma

Primavera

HP

Clarizen

Enterprise

Worldwide

Leader

SaaS Player

ITCC

New Player


PPM Tools & Integrators in Israel

34

Integrators New Clients 11’ Clients

Proceed

Orange, Pelephone Ministry of Tourism, Clalit, SanDisk, Leumi Card, Harel, Jewish Agency, Strauss, Bank Leumi

Clarity (CA)

CA, Orantech Teva, Bank Hapoalim

ONE1 Min.of the Environment Visa CAL, BDO

Menora, IAI, Tel-Aviv Munic. Ayalon-ins, Cellcom, Phoenix, Leumit, Justice Department, Clal Bit, Bank Igud, Delek, Paz, YES, CIO Dashboard: Random Logic, IDF, Elbit. iTeam (budget planning)

MSP

Xioma Signifer, Aman

HOT, ZIM, Isracard, Machteshim agan eng. Given Imaging

Bank Discount, Menora, Teva, Visa Cal, BVR, Nova, Evogene, Leadcom

Hazera Genetics, Bid Band Networks, IDE, Veraz, Opgal, Teva Tech

Sciforma

HP, BDA Mataf, Motorola(Global), LivePerson PPM (HP)


PPM Tools & Integrators in Israel

35

Integrators New Clients 11’ Clients

Matan, Orantech, Neway, PZ Projects

MS 2010 Amdocs, Defense Matan: Strauss, Tel-Aviv Municip. Elta, Marvell Orantech: Navy, Shabas, Teva R&D, Sorek, Leumi Le’Mashcantaot PZ Projects: Justice Department, Elisra

M-system, Leumit, IAI, IAA, Lotem, Bezeq, Mekorot, Orbotech, Bank Leumi, Coca-Cola, Nice, Matan: Machteshim Agan, Prime Minister, Maccabi, Alvarion, IAA, Better Place, Tnuva, Random Logic; Orantech: Netafim, ECI, Ceragon, Logic, AD Gency ,Sol gel ,Rocar ,Playtech, Sandisk; KAKAL, MODU, Kodak, RAD; PZ Projects: Min. of Foreign Affers; Proceed: Malam

EPM (Microsoft)

Approach, SalesForce.com

Netafim Approach PPM on Force.com

Clarizen Tnuva Clarizen

Aviv Mercava, IDF, Intel Primavera (Oracle)

Matrix Jacada (Global), Retalix (Global) Compuware Changepoint

that's IT ECI, Tama, Metro Motor ITCC

STKI Summit 2012 - אנשים ומחשבים - פורטל חדשות היי-טק ... me and I’ll forget STKI Summit 2012 Show me and I may remember Involve me and I’ll understand

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