Point of View 1 7 17 22 Our point of view How we can help from strategy through execution Our relevant Framework of response and our approach Current Trends about IT Strategy 14 Competitive intelligence Credentials 26 The art of developing a technology strategy at the digital age Contacts 32
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Point of View
1 7 17 22
Our point of view
How we can help from strategy through execution
Our relevant Framework of response and our approach
Current Trends about IT Strategy
14
Competitive intelligence
Credentials
26
The art of developing a technology strategy at the digital age
Contacts
32
1 Current Trends about IT Strategy 1
2 Our point of view 7
3 Competitive intelligence 14
4 Our relevant Framework of response 17
5 How we can help from strategy through execution 22
6 Credentials 26
7 Contacts 32
Contents
PwC
April 2016
Current Trends about IT Strategy
1
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
The market environment is strongly impacted by regulatory, consumer, cultural, technical and organizational changes
2
Point of view • The art of developing a technology strategy at the digital age
Section 1 – Current Trends about IT Strategy
CollaborationRegulations and
Standards Infrastructure
Risk, security and cybersecurity
Information any time, Anywhere New Markets
Consumer Expectations
Innovation
Business Model
Time to Market and agility
Mobile Applications Digitalisation Internet of Things
Cloud Computing User Experience
PwC
April 2016
In this highly evolving environment, IT Strategy is becoming more and more a way to build a market differentiation…
3
Point of view • The art of developing a technology strategy at the digital age
Section 1 – Current Trends about IT Strategy
Competitors can provide the same products or services with more productivity by using digital
Examples: sensors, e-working, collaboration,
Competitors can provide same products or services cheaper with digital approach
Examples: Omni-channel, social networks,
Competitors can innovate and provide new services not existing so far
Competitors can provide new services or products that other companies cannot provide as they have not adopted some specific technologies
Operation’s efficiency New clients interactions
Innovation for products and services
New business models
The use of technologies is a key factor of differentiation and creation of revenue
IT Strategy addresses business issues by enabling, enhancing and coordinating technologies across the company
IT Strategy helps to optimize, coordinate and select technologies.
Businessclients
challenges
Take opportunities
for growth
Comply to regulatory
change
Increase profit
Be better prepared for
threats
Evolving culture
Transform the
Business
Reduce
cost
Attract and retain talents
Enhance brand and reputation
PwC
April 2016
… leveraging innovative tools & applications
4
Point of view • The art of developing a technology strategy at the digital age
Section 1 – Current Trends about IT Strategy
IT Strategy helps companies to benefit new technologies by using the appropriate technology
Social Media
Consumer VoiceConsumer sentiment
Digital reputationSocial marketing
Crowd development
Peer to PeerShare economyCrowd-funding
Peer to peer lending
EnterpriseKnowledge Management
TransparencyFostering culture change
Big Data
ConsumersSmart suggestions
Contextual targetingSemantic maps
PatternsIdentifying opportunity
and risksUnderstand behaviors
Pre-cognition
Automation of knowledge-work
Greater data sets to enable machine learningMedical advances
businessesLow barrier to entryFast service deliveryOn demand delivery
AI in the CloudAccess advance techCognitive computing
Cloud & the EnterpriseMass adoption initiated
by employeesReduced complexity
Open standards
Internet of Things
ApplicationsMake lives easierDrive efficiency
Anticipate things without specialist
ThingsBuilding and home
automationOptimize supply chain
Electricity grids and cars
EnterpriseRevenue generation
Productivity and cost saving
For IDC there will be 30 billions connected things in 2020. For Cisco it will even reach 50 billions.
Gartner predicts that the IoT market will reach $309bn by 2020 – and a significant proportion is predicted to come from services.
PwC
April 2016
In addition, your IT Strategy has to keep control of increasingly decentralized IT developments (shadow IT)
5
Point of view • The art of developing a technology strategy at the digital age
Section 1 – Current Trends about IT Strategy
39% 39%42% 42%
43% 43%
46%
48%
51%
52%
53%
ENERGY & MINING
AUTOMOTIVE
HEALTHCARE
ENTERTAINMENT, MEDIA & COMMUNICATIONS
BUSINESS AND PROFESSIONAL SERVICES
RETAIL & CONSUMER
INDUSTRIAL PRODUCTS
HOSPITALITY & LEISURE
POWER & UTILITIES TECHNOLOGY
FINANCIAL SERVICES
47% overallSource: PwC’s 6th Annual Digital IQ Survey
• Access to new technologies is so simple that businesses use them without IT department acknowledgement.
• The risk is that information is not secured, not shared, not managed.
• IT Strategy can limit these effects by gathering business and IT working closely.
IT spending outside of the CIO’s budget IT partnerships
• Partnership is key to succeed and accelerate innovation, as it facilitates the ecosystem development. CEOs start to build diverse collaborative networks.
Source: PwC 18th Annual Global CEO Survey, 2015
Question asked to CEO: Are you currently engaged or considering engaging with any of the following types of partners through JV, alliances or informal collaboration ?
PwC
April 2016
We observe evolving IT approaches to respond to new business challenges
6
Point of view • The art of developing a technology strategy at the digital age
Section 1 – Current Trends about IT Strategy
1990
1970
2010
Before 1995
Architecture: MainframeInfrastructure: Large investments in infrastructure which is owned and centralizedApplications: Developed internally on a best of breed approachOrganization: No CIOSourcing: Make
Post 2015
Architecture: SOAInfrastructure: Access to unlimited resources instantly, and on demand with hybrid CloudApplications: Hybrid as some application are in the ERP and some are used on SaaSOrganization: CIO, a strategic business partnerSourcing: Collaboration and partnership
1995 - 2015
Architecture: Clients, servers, and third partInfrastructure: Large investments in infrastructure which is owned and distributedApplications: all in ERPOrganization: Creation of the CIO functionSourcing: Make or buy
Main challenges were to : • Answer the business
needs• Control cost• Guarantee quality
Additional challenges are to: • Take part in business strategy• Be profitable and innovative• Take risks and share responsibilities
By dealing with all these challenges, companies explore the full potential of their IT. That could deeply transform the way companies work to enable business transformation and growth.
PwC
April 2016
Our point of view
7
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
Internal clients continue to express their individual needs to the IT, often perceived as a Support Function
8
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
I want to keep mycompetitive advantageregarding to mycompetitors, especiallynew joiners according tothe new marketopportunities enabledwith the emergence ofnew technologies
I wish to develop new “blue” markets and be disruptive while using the new technologies
I need to leverage on myIT in order to have abetter definition of mybusiness strategy
I want to assure mycompany’scompliance byanticipating with ITthe risks ®ulatory topics
I need to perform anefficient transformation ofmy company to deliver thestrategy (ensurecontinuous alignment ofbusiness and IT operatingmodel)
PwC
April 2016
IT should be part of Business Strategy to ensure full consistency with IT Strategy
9
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
How does a CIO ensure information technology
contributes to the success of the
overall strategy?
How does a CIO ensure that the information
technology function is ‘fit for purpose’ and delivers
the strategic contribution?
IT supports the business strategy…
…and is ‘fit for purpose’.
The Dual Role of IT StrategyEnable the Business Strategy and ensure IT is ‘fit for purpose’
Business Strategy
Coherency between• Way to Play• Differentiating Capabilities• Products & Services
IT Strategy
Delivery of • The IT component of
differentiating capabilities• A ‘fit for purpose’ IT function
1 2
Ensures capital investment in IT delivers
strategic impact
Ensures operational costs of IT deliver value
PwC
April 2016
IT needs to focus on regulatory requirements and assist the
Compliance function
10
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
IT Strategy must become routine
IT and business interactions are a key success factor
IT Strategy should engage IT leaders in the definition of Business Strategy
IT Strategy should be executed following programs well managed and monitored
Benchmarking is relevant when limited to peers, but IT performance monitoring
depends on company specificities
IT Strategy is designed cyclically every 3-5 years
Our point of view to build a successful IT Strategy
IT is a support function to the business lines
IT Strategy is performed as a function of the Business Strategy
Therefore, reshaping the way of thinking your IT strategy should be your priority
IT projects are monitored in silo without monitoring the IT strategy
IT Strategy is defined based on competitors practices. Benchmarking leads to IT Strategy
Implementing IT systems is the only benefit of IT to comply with regulations
01
02
03
04
05
06
PwC
April 2016
11
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
Our conviction for a successful IT Strategy follows 6 rules
01 Strategy must become routine
IT strategy is too often viewed as a point event that takesplace occasionally. As a consequence of this approach, ITStrategy is sporadic and its capacity to affect businessstrategy and internal processes efficiency is limited.
IT teaming with the business means that IT seeks out thebest opportunities to create value, regardless of structure.As a consequence, IT strategy must become an integral partof an organization’s daily operations, functioning in anengaged manner that is open to constant evolution andadapting itself to technological advances and changes inthe business.
This perspective short-changes the entire IT function froma support function to a function facilitating businessinnovation and changes and involved in the execution ofcorporate and business strategies.
02 IT and business interactions are a key success factor
IT leaders must promote an alignment with business thatfocus on how IT capabilities can stay in sync with a rapidlyevolving business culture – one in which products andchannels are continuously changing to maximizeadvantages in a highly competitive market.
What gives IT the ability to provide sustainablecompetitive advantages is the knowledge of where andwhen IT should enable strategy, utility-focused or somecombination thereof.
That knowledge can be attained and applied throughconscious and repeated interaction between business lineand IT leaders, and drive needed realignments allowing ITto be a part in moving the strategy forward.
Integrate IT Strategy in organization’s daily operations to support the execution
of the business strategy
IT must team with the business and seeks out the best opportunities to create value
PwC
April 2016
12
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
03 IT Strategy should engage ITleaders in the definition of BusinessStrategy
CIOs and other IT leaders need to be fully engaged in thebusiness to truly have equal standing with other executives.They must understand the challenges of their industry,their company’s corporate strategy and the role that ITplays in advancing that strategy.
Traditionally, IT was implicated in the corporate strategynear the end of it definition. This is gradually changing; theChief Information Officer designation is anacknowledgment of the importance of IT, placing CIOsnominally on a level with CEOs, COOs and CFOs and givingthem a place in the boardroom.
In order to be able to focus in the firm challenges, ITleaders must focus on those aspects of the system that canaffect business outcomes, and define IT projects compliantwith the firm challenges..
04 IT Strategy should be executed following programs well managed and monitored
In order to execute a strategy, a company needs a gameplan that outlines the tactical path to implementation. Howthis game plan is developed is a crucial first step toexecution.
Typically, game plans are drafted by condensing an ITstrategy into a set of manageable tasks organized bygroups, technology platforms or processes. Too often, whatis not considered is that the participation of business linemanagers may be affected by their own self-interest or thatIT professionals will lack visibility into business priorities.
Game plan creation is the definition of the transformationprograms required to execute IT Strategy. It has to takeplace in ways that are inclusive and collaborative. The maingoal is to feel the influence of IT strategy across the entireorganization and follow it execution by monitoring theprograms.
IT should focus in the firm challenges and be art of the definition and the execution of the business strategy
The execution of IT Strategy should be performed and followed through a well
defined program portfolio.
Our conviction for a successful IT Strategy follows 6 rules
PwC
April 2016
13
Point of view • The art of developing a technology strategy at the digital age
Section 2 – Our point of view
05 Benchmarking is relevant whenlimited to peers, but IT performancemonitoring depend on the companyspecificities
The temptation to benchmark and compare to othercompanies is especially strong in technology, since ITfunctions lack the bottom-line metrics of business lines,such as sales, revenue or profit.
However, companies all too often benchmark themselvesagainst companies that are not strategic peers even if theyshare common features. In such cases, firms maybenchmark what can be measured as opposed to whatshould be measured, with companies scrambling to findcommonalties.
For these reasons, benchmarking is often an ineffectivemethod to compare IT performance across firms. Typically,a company has a unique corporate strategy and consists ofbusinesses in different stages of their cycles, each withdifferent IT needs, such as invest to innovate/differentiate;invest to grow/scale; and invest to sustain/save/reducecost.
06 IT needs to focus on regulatory requirements and assist the Compliance function
For some industries as financial services, aeronautics andpharmaceutical industry, regulations are expected toincrease in complexities. The new regulatory rules areimpacting the competitive dynamics of industries forcingthem to rethink their business models and their processes tostay competitive in a new regulatory environment with highregulatory calculations and reporting requirements.
Leveraging on IT capabilities such as data gathering andstorage and computing performances could lead, when ITteams well with Compliance, to define calculation enginesand models with a high capacity to assess risks, and respondto regulatory requirements .
The alignment between IT strategy and Compliancechallenges allow to decline the compliance challenges in anIT architecture that is not just gathering and reporting data,but is using it as information's increasing its capacity torespond to regulations with more precision.
Benchmarks can inform while it is limited to peers, but IT performance must be
measured against the corporate strategy and how well IT is helping it execution.
The alignment between IT strategy and Compliance challenges seeks out the best
opportunities respond to regulatory requirements
Our conviction for a successful IT Strategy follows 6 rules
PwC
April 2016
Competitive intelligence
14
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
Some players already applying best practices, fully or partially
15
Point of view • The art of developing a technology strategy at the digital age
Section 3 – Competitive intelligence
Frequent Occasional Rare
Maturity level
Financial Institution A Financial Institution B Financial Institution C
IT strategy aligns with and enables the firm’s strategy
IT and Operations are combined under one senior executive sitting on the board
The IT strategy is directly sponsored by the CIO and implemented throughout the firm
IT strategy is often spearheaded by a small subset of critical applications
General direction is given by IT to support the business as IT understands it
The IT strategy is not expressed in business terms
Ad-hoc initiatives constitute the bulk of the IT strategy (e.g. cost reduction, standardization)
IT strategy supports technology across all silos, regions, and business units
Business-led technology projects involve IT from the start to lay the foundation for future support from IT
Whenever possible, systems and standards are shared and reused across silos, regions, and business units
Some individual business units have their own IT strategy and operate independently from other business units
An overarching business and IT strategy is developed to bind together multiple strategies after the fact
Each business unit and region follows its own IT strategy
Standards, when they exist and are enforced, are regional and may be changed by individual business units
Sharing of technology across business units and regions is only ad-hoc
Priorities established as part of IT strategy are used when authorizing IT projects
IT enterprise project portfolio management (EPPM) is established as a function and discipline: EPPM authorizes and tracks projects based on IT strategic objectives
Projects are reported by business units and tracked after the fact
The enterprise project portfolio is assembled and reconciled to the IT strategy only once or twice a year for budgeting exercise
Projects are tracked by business unit and regions and are not fully reconciled with IT strategic directions
There is no mapping of projects to strategic objectives
Reconciliation is ad-hoc and cost-reduction driven
Metrics and indicators are developed that relate to IT strategy
IT departments utilize measurements and indicators that are aggregated in business-relevant metrics
A consistent structure and categories are used throughout the firm for reporting
IT metrics are reported on a regular basis but do not relate to business indicators
Decisions are not metric-enabled at the business level
Ad-hoc reports are prepared by IT by request from business units
No governance exists for IT metrics
Reporting capabilities exist but are scattered across IT departments
Business IT typically creates its own IT metrics tracking
The enterprise architecture is consistent with the IT strategy
An enterprise architecture exists and is maintained by a central architecture team, with support from local teams
Standards are regularly reviewed, and efforts are made to maintain consistency and simplicity
Architecture standards are siloed in business units and regions
Standardization exercises are done every year to reduce the number of “rogue” standards
Business units manage their own application of standards
Standards exist but are not enforced and not tracked
Standardization exercises are implemented on an irregular basis every three to five years
Budgetary decisions align with IT strategy
The IT strategy is revised every year in time to be reflected in budgetary decisions
Change management includes managing impacts from possible budget reductions
The IT strategy is revised every year in time to be reflected in budgetary decisions
Change management is not mature enough to evaluate dynamically the impact on the budget outside of budget cycles
Strategic choices are unclear and do not reflect in budgetary decisions, except in the shape of cost-reduction exercises
Budget decisions are siloed and managed by senior leadership only at overall cost
PwC
April 2016
Some players already applying best practices, fully or partially
16
Point of view • The art of developing a technology strategy at the digital age
Section 3 – Competitive intelligence
Pharmaceutical industry Power & Utilities industry Telecommunication Carrier
IT strategy aligns with and enables the firm’s strategy
The company strategy is a starting point to write and construct the IT strategy. There could be some disconnects when the business strategy is less formalized and shared across the firm
The firm’s strategy is declined into business need that the IT Strategy aims to enables.The IT Strategy is challenged and revised every year with the business
The IT strategy approach is a common and collaborative effort between the IT Strategy and Enterprise Architecture team and the business transformation team. The outcomes is validated by the firm executive committee
IT strategy supports technology across all silos, regions, and business units
The IT strategy is mainly focused at the group level and for major subsidiaries and countries. Smaller businesses and regions are generally not included or build their own stand alone IT strategy
IT Strategy supports the technology evolution in terms of obsolescence and new needs.Whenever possible, IT is shared, across the whole company
The IT strategy is firm wide process that is accrosthe overall organization and embraces all the business units
Priorities established as part of IT strategy are used when authorizing IT projects
For major projects the formal engagement process is supported by the IT Strategy roadmap
Program portfolio management authorized and monitor projects based on IT strategic objectives
The formal engagement process for IT transformation projects relies IT Strategy outcomes : business priorities and IT roadmap
Metrics and indicators are developed that relate to IT strategy
Metrics and measurement of the performance of the IT strategy does not include specific KPIs related to the IT Strategy
IT departments utilize measurements and indicators to manage the IT Strategy target achievement and to monitor the IT Transformation
A KPI is in place to measure the consistency of the IT project portfolio with the IT strategy
The enterprise architecture is consistent with the IT strategy
The Enterprise architecture process is generally a distinct process and requires to proceed to a specific alignment
The enterprise architecture target is aligned to the IT target defined by the IT Strategy.The enterprise architecture is revised to maintain consistency and simplicity and to ensure the alignment with the IT target
The IT strategy and the enterprise architecture are conducted by the same team within the IT division
Budgetary decisions align with IT strategy
The IT financial is not extensively developed in the IT strategy process. But the IT strategy is an input to build the budget for investments
The Budget decision is made on the IT Strategy roadmap basis
The IT strategy includes a financial dimension and is the starting point to establish the budget for investments
Frequent Occasional Rare
Maturity level
PwC
April 2016
Our relevant Framework of response and our approach
17
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
The most powerful business strategies are “coherent”. The understanding of the current and required capabilities, from both IT and Business executives, is mandatory to be coherent.
Section 4 – Our relevant Framework of response
How does technology and information create value for the business? How does it support the essential capabilities?
What is our vision for value creation, now and in the future?
How will we communicate that vision to the rest of the organization?
What are the firm’s essential capabilities and how do they create value for the business?
What suite of IT capabilities are required to deliver value to the business?
What information excellence capabilities are strategic vs. enabling?
How effectively and efficiently are we delivering the functional capabilities?
Is the service model architecture supported by capabilities and tied to value delivery?
Who will deliver the various services and how?
Do we have the talent to deliver the services we want to deliver?
World-Class IT
Key IT strategy questions
18
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016Point of view • The art of developing a technology strategy at the digital age
The IT Strategy framework consists of Blueprinting, IT Operating Model design and Strategy Execution planning elements
Section 4 – Our relevant Framework of response
IT Strategy framework (high-level view)
Scope of IT Strategy framework
Blueprint: The future state designs are derived based on the strategic drivers (corporate plan,
business strategies, industry trends, etc.) The blueprint establishes the IT capabilities and architectures the business needs to
execute their strategies
IT Operating Model: The future core IT services, organisation, and skills are based on what is required to build
and run the future state Blueprint for IT The business engagement model ensures the IT operating model is continuously in tune
with the business
1
Strategic Drivers
BusinessBusiness
Unit ABusiness
Unit BBusiness
Unit CBusiness
Unit …
Strategy Execution« what is the optimal plan to deliver the IT
strategy? »
Blueprint« What business capabilities are dependent on IT and require IT to build
or adapted solutions to support the business strategy? »
IT Operating Model« What IT functional capabilities are required to operate and maintain the
future state IT? (fit for puropose) »
Sets Direction
Delivers Capabilities
Future state Clients may optionally select components for delivery projects, although linkage to
business strategic drivers is critical to value
• Strategy Execution Plan: The future state is achieved by evaluating the gap with
the current state and developing an executable plan to deliver the IT strategy
The execution plan includes an implementation roadmap, sourcing strategy, demand profile and financial plans.
2
3
IT Strategy framework (high-level view)
19
PwC
April 2016
Our methodology starts with business requirements to establish the future state, and then targeted gap analysis to define a plan
20
Point of view • The art of developing a technology strategy at the digital age
Section 4 – Our relevant Framework of response
Capture key IT metrics and spend for applications, infrastructure and organization
Baseline IT’s capabilities
Develop high level business case, including savings and investment ranges and timing
Develop IT improvement hypotheses Conduct workshops on relevant topics (e.g., using IT to help
manage an expanding product line) and distill a list of most pertinent IT enablement opportunities
Define the future IT operating model vision
•“Big Rules”
•Detail on each component of the operating model
Identify key IT capabilities required
Assess gaps relative to future state capabilities
Identify key opportunities for improvement
Deep dive select key capability areas (savings schedule, high level plan, risks, etc.)
Initial list of prioritized improvement opportunities and programs
Review existing Client growth, technology and functional plans
Develop hypotheses regarding the essential capabilities that drive value to the business
Conduct interviews with key management stakeholders (IT and Business) to
•Test essential advantage hypotheses and refine as needed•Understand their current view of IT and the IT capabilities required now and in the future•Validate growth options and essential capabilities, leveraging PwC market knowledge
Finalize high level business case and prioritized list of initiatives
Develop the 3–5 year IT roadmap, defining sequencing of key initiatives and major milestones
Define standard IT metrics to measure progress and report back to the business
Refine IT strategic planning management and governance communication process to support instantiation of IT strategy
… define IT operating model vision…
2
… Baselining and benchmarking…2’
… define IT capabilities and prioritize opportunities…
3Define Business requirements & Imperatives
1… develop IT strategy roadmap !
4
PwC
April 2016
The benefits of our future-state-focused methodology
21
Point of view • The art of developing a technology strategy at the digital age
Section 4 – Our relevant Framework of response
Business strategy is used as the starting point, ensuring IT alignment with the business is built in as the foundation
Avoids the risk of developing a tactical view.
With a future state blueprint designed first, targeted current state comparison is more meaningful and gaps prioritised
Effort is not expended exploring current state elements that do not contribute to the future.
A focus on the future state rather than the current state avoids polluting the future with existing limitations
The execution plan is focused on remedying the gaps that matter to enable business strategy.
Strategic
Efficient
Progressive
Our approach differs from many competing methodologies, where lengthy baseline analyses typically precede a future state design process – we believe our approach is more efficient.
PwC
April 2016
How we can help from strategy through execution
22
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
PwC can help throughout the whole Technology strategy process
23
Point of view • The art of developing a technology strategy at the digital age
Section 5 – How we can help from strategy through execution
Considers a broader spectrum of enterprise technologies beyond the traditional domains of back-office IT; we pay special attention to how technology will enable strategic use of enterprise information assets.
Considers technology’s impact across the breadth of a holistic enterprise operating model.
Develops the case for change, using portfolio investment management concepts to balance risks and returns; take measured risk for strategic benefits to an enterprise rather than being overly risk averse or conservative.
Corporate Strategy
Target Operating
Model
Roadmap & Case for Change
Integrates technology strategy as an enabler of the corporate strategy so that it not only supports the corporate strategy but challenges where necessary to drive greater and more competitive innovation.
Starts by designing a clear target operating model, rather than focusing on the current state, in order to drive change across.
Develops an actionable roadmap for implementing the technology strategy.
PwC
April 2016
We focus on delivering the highest value that our clients expect
24
Point of view • The art of developing a technology strategy at the digital age
Section 5 – How we can help from strategy through execution
re-defyning your position vs competitors
… and much more!
Combination of ourtechnology skills and your industry deep knowledge can provide new insight into your enterprise, including…
identifying new market potential
increasing profitability through new strategy implementation
your interaction with customers
PwC
April 2016
What makes PwC distinctive: we can help you to make your technology strategy project a success…… with our four main offers around technology strategy
25
Point of view • The art of developing a technology strategy at the digital age
02IT operating model reshaping
IT operating model aims to develop the management of IT organization as a business unit including demand, supply, sourcing and finance.
04Emerging technologies introductionEmerging Technologies focuses on driving on technical innovations which can be leveraged to create competitive advantage for our clients.
PwC
Technology Strategy
Technology master plan
Technology Strategy applies a business-driven approach to align
both existing and disruptive technology investments and initiatives
with specific business goals and objectives.
03Enterprise Architecture
Enterprise Architecture is a discipline dedicated to understanding, planning,
aligning and enabling relationships among strategy, business capabilities,
information and technology.
01
Section 5 – How we can help from strategy through execution
PwC
April 2016
Credentials
26
Point of view • The art of developing a technology strategy at the digital age
PwC
April 2016
Financial Services Credentials
27
Point of view • The art of developing a technology strategy at the digital age
Section 6 – Credentials
Results and benefits
PwC recommended and helped implement a digitization solution that enabled the client to reduce loan processing time by 30% as well as:
Reduce loan cycle time.
Lower operational costs.
Improve productivity related to document reviews, stipulation clearing, and data entry.
Reduce time for validation and booking.
Address the problem of lost documents.
Digitization at a top-five insurance company reduces loan processing time
A leading bank enlists help in preparing its IT organization for the Dodd-Frank Act
Client issue
The client, a top-five insurance company, recognized that digitization could help reduce the burden associated with loan processing. However, this digitization was not purely an IT challenge: To succeed it required many parts of the company to work together toward the same goal, adopting standards and replacing inefficient business processes with more effective ones. To help address this issue, IT implemented imaging and content management, allowing the lender to control the document lifecycle within lending and leasing business operations.
Results and benefits
The client developed a multiphase program to comply with Dodd-Frank and launched Phase 1.
Client issue
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), which was signed into law on July 21, 2010, significantly reshapes financial regulation in the United States. As a result of the law, a leading US bank reached out to PwC to (1) discuss the impact of the regulation on its IT organization and (2) request assistance in complying with Dodd-Frank as follows: Increase transparency to respond to ad-hoc requests from
regulators and to collect and report data on a periodic basis to support trading activity.
Establish business intelligence and decision support to determine required business-model changes.
Automate business processes including: – Tracking of investments in hedge funds and private equity funds
(such as tracking just below the 3% limit for investments).– Maintenance of daily trading records for swap transactions.– Public reporting of swap transaction by swap dealers.– Central monitoring of counterparty credit risk.– Development of governance and systems to monitor regulatory
capital and margin requirements.– Automated enforcement of fiduciary standard, however it is
defined, for retail broker-dealers.
PwC
April 2016
Financial Services Credentials
28
Point of view • The art of developing a technology strategy at the digital age
Section 6 – Credentials
A global financial institution gains assistance in improving time to market by sharing data and applications
An investment bank consolidates platforms to reduce complexity and inefficiency
Client issue
Each business unit within this financial institution used its own data and applications to maintain operations, monitor productivity, and generate reports. However, because this information was divided among so many different pools, it could not easily be used as the starting point for firmwide projects and initiatives. It also did not always help company leaders and decision makers understand events and trends in real time.
Results and benefits
By consolidating platforms, the client reduced operating costs by 10% (excluding personnel) and:
Reduced time to market for new products.
Grew assets.
Improved efficiency.
Achieved better risk management through data aggregation and system integration.
Gained scalability for flexible analytics and reporting.
Client issue
This leading investment bank used multiple platforms to support its front-office, middle-office, and back-office functions. Not only did multiple platforms exist across asset classes and regions, but legacy platforms from merger and acquisition activities also were part of the IT infrastructure. As a result, business activity had become costly, and evolving toward more efficient platforms became a difficult proposition. This client engaged PwC to help consolidate platforms across asset classes and lines of business to improve efficiency and even provide new functionality, such as a consolidated front-end trading service.
Results and benefits
With PwC’s assistance in implementing a service-oriented architecture (SOA) model for its application factory, the client was able to reduce time to market by 30% to 50% as well as:
Share data in a common repository.
Create tools to analyze information more efficiently and effectively.
Roll out new financial products and services more quickly.
Develop applications more effectively because of standardization and the use of reference data.
PwC
April 2016
Industries & Services Credentials
29
Point of view • The art of developing a technology strategy at the digital age
Section 6 – Credentials
IT Infrastructure master plan for a large Energy company
IT blueprint and enterprise architecture support for a large Energy company
Client issue
Two years before the PwC assessment, an energy company launched a €200 million plan to transform its infrastructure. The plan covered workspace, communication/collaboration resources, network, security, data centers and a private cloud. The program did not meet expectations concerning deadlines, user satisfaction, operating efficiency and cost savings. The client performed an internal audit and decided to completely revamp the group’s infrastructure blueprint.
Results and benefits
• Big picture view of business ambitions and IT roadmaps
• Clarification of fundamental assumptions for metering, invoicing and flow issues in an environment of itinerant electricity supply
• Identification of links between project deployment and IT preparation
• Consistency with the medium-term plan (5-year budget) and prioritization
Client issue
The IT department of a large energy group with some one hundred corporate applications in production and nearly a hundred IT projects under way is faced with the major challenge of ensuring consistency among architecture, urban planning, studies and safety. It is responsible for ensuring a cross-functional vision of IT (repositories, flows). It leads the development of the IT blueprint and has had to reassess its basic framework in an environment of major organizational and strategic change with the deployment of a digital transformation program. In particular, the department is rethinking its positioning as network manager for electric mobility issues.
Results and benefits
• A program designed to meet the IT infrastructure’s strategic challenges more effectively and in alignment with the group’s business challenges
• Upgraded infrastructure (with a particular focus on obsolete resources)
• Rationalized infrastructure and costs
• A better understanding of the approach and participant buy-in for the IT department’s goals
PwC
April 2016
Industries & Services Credentials
30
Point of view • The art of developing a technology strategy at the digital age
Section 6 – Credentials
IT Master Plan and RoadmapHuman Resources IT master plan
Client issue
An innovative pharmaceuticals group that is the European leader in contrast agents for medical imaging, with growth prospects in the U.S. and Asia, wanted to integrate regulatory, industrial and sector constraints and measure the potential impacts of these new challenges on its IT system. The goal was to gain a clear vision of the IT target that would help de-compartmentalize the businesses through horizontal communication and disseminate a basic IT knowledge base across the group.
Results and benefits
• Forward-looking plan for each business unit: roadmap/project portfolio
• Alignment of corporate/business unit needs
• Development of cross-functionality and cooperative working methods
• Alignment of initiatives and optimization of training investment, development of employee benefits at the international level, harmonization of expatriation policies, enhanced initiatives to improve social dialogue
Client issue
A major energy group’s corporate human resources department designed an initial blueprint for its HR management IT systems. It wanted to apply the same approach to the group’s entire HR function.
The main goals were to support the group’s strategic ambitions, promote a culture of excellence and innovation and enhance professionalism. The challenges stemmed from the group’s complexity and size, the wide range of HR-related functions to be addressed, stakeholder buy-in for the program and the target and compliance with deadlines and milestones.
Results and benefits
• Understanding of business needs in the value chain and impacts on IT
• Better knowledge of application and infrastructure assets and of the project portfolio
• Dissemination of best practices within the IT department
• Identification of other projects to address the group’s challenges
• Forward-looking roadmap for ERP, finance, quality, marketing, sales, steering, strategy, R&D and support functions
• Detailed budgets for application and technical infrastructure projects
PwC
April 2016
Industries & Services Credentials
31Point of view • The art of developing a technology strategy at the digital age
Section 6 – Credentials
Finance and Business Lines information system master plan
Information system master plan
Client issue
An energy company wanted to be supported in defining a target and roadmap for the group’s financial information systems (control department, accounting, taxation, cash and finance, insurance), taking into account such major business challenges as new regulatory obligations. It had the goal of reducing IT OPEX by 6% a year over three years and of using the blueprint as a sustainable resource for governance and dialogue between the Business Lines and the IT department.
Results and benefits
• IT target for 2017 and related roadmap, as well as estimated deployment cost
• Optimization of business processes (improved steering and control, optimized HR management, improved collaboration, etc.)
• Mapping of functions and applications
• Improved IT organization and governance, with a clear division of roles and responsibilities (corporate vs local, IT vs businesses) and a structured, managed IT function
Client issue
A company in innovation consulting and advanced engineering wanted to increase the benefits of IT to the different businesses at the national and group levels (France, Spain, Italy, Germany). The challenges included improving operating efficiency (staffing management, invoicing, customer management), improving management and business controls, and realigning IT management (distribution of governance roles and responsibilities).
Results and benefits
• Identification of areas in which change is necessary, desirable or elective
• Portfolio of change projects that will support current functional needs, take future needs on board and/or attenuate risk
• Functional convergence among different IT projects: functional needs and overall consistency
• Project prioritization to optimize use of resources (teams and costs) while addressing major objectives
• Improved dialogue with Finance, front-line teams (MOA), AMOA and MOE
• Forecast of IT OPEX and CAPEX
• Stronger positioning for Finance Department IT as the main contact for finance professions
• Optimized management rules for financial IT: governance and management of costs and risks
PwC
April 2016
32
Point of view • The art of developing a technology strategy at the digital age
Patrick AkikiPartnerFinancial Services Technology leader
We would like to thank all the contributors for their effort on this publication, including: Bhilal Mougammadou, Mohammed El Moujahid and Elliott Thak.
This publication has been prepared for general guidance on matters of interest only, and does notconstitute professional advice. You should not act upon the information contained in this publicationwithout obtaining specific professional advice. No representation or warranty (express or implied) isgiven as to the accuracy or completeness of the information contained in this publication, and, to theextent permitted by law, PwC France, its members, employees and agents do not accept or assume anyliability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining toact, in reliance on the information contained in this publication or for any decision based on it.