Improve business values and efficiency by IT

Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 1

Improve business values and efficiency by IT

Liven VargheseIT Director , SgT Group

www.sgtgroup.net

Your ProductQuality & Safety

Assured.

ITSHOWCASE CHINA – 2013 , SHANGHAI



Cost and investment center

Don’t know business

Biggest bottle neck of company

Speak only technical language

Sacrificing department

Support center

What does IT means to executives?


Important issue for IT Heads


Source : IVI


How we measure business values?

Revenue

Profit margin

Market share

Return on investment

Shareholder value

Organization efficiency

Quality

Customer satisfaction

Market penetration

Employee retention

Financial Operational



Revenue

Profit margin

Market share


Shareholder value


Quality


Market penetration

Employee retention


Re defining IT Re defining IT


How IT can improve business value?


Re defining IT = Aligning IT with business

IT is the foundation for doing business

Minimize / close the gap between what business expects and

what IT delivers

IT - business value enabler

IT – powerful catalyst for change in business

Service provider with partnership management

“ Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one

without the talking about the other.”- Bill Gates

Business-IT alignment is a dynamic state in which a business organization is able to use

information technology (IT) effectively to achieve business objectives - typically improved

financial performance or marketplace competitiveness.

BusinessBusiness

ITIT

DRIVES

DRIVES

AlignmentAlignment





Alignment process

Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the business Understand the business



Alignment process

Business process – formal and informal

Acknowledge the culture

Awareness of your future business

Business managers communication

Business process – formal and informal

Acknowledge the culture

Awareness of your future business

Business managers communication





Strategic alignment

Determine IT value imperativesTechnology empowering business strategies“Can do “ versus what it “might do”Matching – Organization capabilities , opportunities , risks, goalsEnhance the awareness of IT valuesOperational –to - Strategic

Strategic alignment

Determine IT value imperativesTechnology empowering business strategies“Can do “ versus what it “might do”Matching – Organization capabilities , opportunities , risks, goalsEnhance the awareness of IT valuesOperational –to - Strategic

Infrastructure alignment

Reliability and securityPerformance – with little cost as possiblePartnership management – best sourcing strategiesPerformance metrics, SLA’sDiscover the value chainsIT Process frameworksIT estate

Infrastructure alignment

Reliability and securityPerformance – with little cost as possiblePartnership management – best sourcing strategiesPerformance metrics, SLA’sDiscover the value chainsIT Process frameworksIT estate


Alignment process




Critical factor in alignment Involvement of right peoples Domain knowledge IT

leadership Different set of skills and

competence. Communication Execution of alignment agenda

Critical factor in alignment Involvement of right peoples Domain knowledge IT

leadership Different set of skills and

competence. Communication Execution of alignment agenda


Alignment process



Revenue

Profit margin

Market share


Shareholder value


Quality


Market penetration

Employee retention


Re defining IT Re defining IT

Business transformation by IT Business transformation by IT


How IT can improve business value?


IT enabled Business transformation = IT Business integration

Business transformation into value level by 3 “I” ‘s.

Improvement Informative Innovative



IT Business integration

Involvement of IT into other business function areas.

IT

Business process improvement and Optimization –

automation , standardization , model of visualization,

Competitive advantage

Employee efficiency & smoother transition

Quantify the returns – reflects cost (ROI)

Case study – Planning algorithms

CostsRisk

Customer ComplaintsManual efforts

RedundancyProcess ConflictEmployee Stress

Improvement


“ IT is a value driven center”“ IT is a value driven center”


Informative Power of Business analytics - technology + information

Key performance indicators , metrics

Big Data – megatrend in transforming business

Power of IT in business analysis , digital marketing

Leads to Smart Organization

Business Intelligence(What’s has happened)

Business Intelligence(What’s has happened)

Forecasting(What will happen)

Forecasting(What will happen)

Prediction(What could happen)

Prediction(What could happen)

Optimization(What’s the best path)

Optimization(What’s the best path)

Increasing Business Value

Types of Business Analytics

Insights to innovation to keep competitive

Leverage data more on supply chain than a warehouse

Data Scientist – comes from IT

Case study – Retailer business , business opportunities



InformationInformation

TechnologyTechnology

Business analyticsBusiness analytics

Performance indicatorsPerformance indicators

Actionable insightsActionable insights

Business planningBusiness planning

OpportunitiesOpportunities

Make the transition from Support partner to Strategic partner Make the transition from Support partner to Strategic partner


Innovation is not based on technology nor invention

Applying correct technology and adapt mega trends

Globalization & Mobility

Develop and execute end – to –end innovation process

Drive the creation and management of innovation process

Execute the innovation process

Case study – Online services

Ongoingoperations

Results Assessment Strategicchallenge

Ideas Innovation funnel Value

Innovative



“More strategic “ – “ add value” - be an innovative unit in business“More strategic “ – “ add value” - be an innovative unit in business


Business value enabler – aligning IT with business

Transform IT from support partner to strategic partner

IT be a value driven center

Role of IT heads in driving business strategy.

IT leaders – trusted business leader

Customer – obsessed IT organization

Utilization of trends and technology – be an innovative unit in business

Agility , flexibility , optimization – stay competitive

Turn crisis to opportunity and bring values to business


IT - Key partner in Business

IT – “ largest single influence on organizational architecture and design” IT – “ largest single influence on organizational architecture and design”


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