Transcript Harvard Business Review: “Don’t waste a Crisis: Use the Economic Downturn to lift IT’s Business Value”Cyrus Gibson, Jeanne Ross, Peter Weill,

Harvard Business Review: “Don’t waste a Crisis: Use the Economic Downturn
to lift IT’s Business Value”Cyrus Gibson, Jeanne Ross, Peter Weill, George Westerman,
Stephanie Woerner, Lynne Markus, Wanda Orlikoswki
“The power of IT reaches far beyond the technology itself. IT averages only
about 5% of the total cost in a business. Shrinking IT cost by 50% will generate
fewer savings than cutting business operations costs by 3%.“
Publication Date: February 2009
Optimized IT…
Companies in the top 25% of IT capability…
Fuels profitable
revenue growth
Grow revenue 6.8% faster
Encourages employee productivity
Enjoy 23% higher revenue per employee
Is a key driver of business productivity
and growth
Achieve superior productivity
Gives managers more insight and
control
per year than their peers in the bottom 25% of IT capability.
than their peers in the bottom 25% of IT capability.
(a company’s IT infrastructure is a key determinant).
Have significantly better insight into, and control over, key
dimensions of their business.
Source: Enterprise IT Capabilities and Business Performance, Marco Iansiti, David Sarnoff Professor of Business Administration, Harvard Business School George Favaloro, Principal, Keystone Strategy, Inc-March 2006,
http://www.microsoft.com/business/enterprise/itdrivesgrowth.mspx
5 Years of Experience
Infrastructure
Capability
Integration
Proved the benefits via
studies with IDC
Basic
Standardized
Cost
Center
More
Efficient
Cost
Center
Rationalized
Business
Enabler
Dynamic
Strategic
Asset
Business
Productivity
Core
Infrastructure
Gartner Maturity Model
MIT Maturity Model
Application
Platform
Perform
gap analysis
Use
current
theroadmap
architectural
guides
Define
the desired
level of
delivery
per aassessments
the
optimization
Build abetween
capabilitythe
level
for the
shortto assure you can
You can select from
a vertical
andPerform
horizontal
capabilities
required
coordinate
phase
the adoption of this technologies to
business
driver, based
on a 3 phase
approachto the
term
as wellbyasthe
the
long term
solution catalogue
with predefined
business
selected as the goal
drive the short and long term business goals
best practices
You can select from a vertical and horizontal
solution catalogue with predefined business
best practices
Manufacturing
Enterprise Resource Planning
Manufacturing Operations
Performance Management
Sales
Supply Chain Visibility and Collaboration
Retail
Business Insight
Store Systems
Financial Services
Advisor Platform
Customer and Performance Insight
Document and Records Management
Public Sector
Government (Fed, SLG)
Health
Connected Health
Improve collaboration
Enable seamless communication
Enhance business productivity
Secure access with simplified identity
management
Improve business decision making
Enabling
Lackingaccess
rich, advanced
to information
development
anytime,tools
fromto build
virtually
innovative
any location
business applications
Supporting
Deliveringthe
an business
IT infrastructure
with flexible,
for simple,
user-driven
automated
reporting
administration
and analytics
and monitoring utilities for
applications
Facilitating
structured and collaborative creation
and
Delivering
management
integrated
of documents
capabilities, such as
awareness
and document-based
Simplifying
process
participation to workflow,
improve with
desktop tools
employee
productivity
Providing
a secure,
platform
Enabling
better,
more enterprise-wide
secure collaboration
andto
enable integrated,
real-timeand
communications
communication
with internal
external team
members
Integrating business processes with line of business
applications
Finding
relevant information from disparate
document
Enablingstores,
collaboration
databases,
and workflow
and line of
tools
business
to
applications
support cross-functional
across the enterprise
teams
Reduce attrition and training costs
Improve CSRs productivity and
effectiveness
Improve multi-channel customer
experience
Increase up-sell and cross-sell
volume
Transform from a cost center to a
profit center
Providing
a unified
record of alllifetime
customer
Having
insight
into customers'
value and
transactions
and interactions
market
segments
Providing easy-to-use
data mining
and analysis
Balancing
CSR effectiveness
and efficiency
tools
Disseminating
and promoting best practices
Supporting
mission-critical,
contact
Training,
management,
and low-latency
usage of resources
center applications
Providing consistent experiences across service
Supporting dissemination of and access to current
channels
information
Capitalizing on up-sell and cross-sell opportunities
Providing infrastructure for tighter support for CSRs
from the rest of the organization
Communicating and collaborating with partners and
vendors
Define the desired level of delivery per
business driver, based on a 3 phase approach
ENHANCE BUSINESS PRODUCTIVITY
SECURE ACCESS
WITH SIMPLIFIED
IDENTITY MANAGEMENT
IMPROVE COLLABORATION
IMPROVE BUSINESS
DECISION MAKING
ENABLE SEAMLESS
COMMUNICATION
Phase 1
Provides the fundamental solution allowing
employees to collaborate and communicate
more effectively
Enables secure access to data
Provides efficient data management and
integrated search capabilities to simplify finding
information
Phase 2
Adds more collaboration tools
Enhances process participation
Improves communication and collaboration processes
Improves data reporting and analysis
Phase 3
Streamlines access to data, documents, and expert
resources
Enables seamless communication and collaboration with
external partners
Enables enterprise-wide reporting and analysis
Maximizes productivity and business performance
TRANSFORM FROM A COST CENTER TO A
PROFIT CENTER
INCREASE UP-SELL AND CROSS-SELL
VOLUME
REDUCE ATTRITION AND
TRAINING COSTS
IMPROVE MULTI-CHANNEL CUSTOMER
EXPERIENCE
IMPROVE CSRs PRODUCTIVITY
AND EFFECTIVENESS
Phase 1
Provides basic support for the most critical
elements of the business driver
Phase 2
Provides adequate, typical support for critical and priority
elements of the business driver
Phase 3
Provides thorough, streamlined support for the
business driver that enable differentiated levels of
performance
Perform the optimization assessments
Basic
Cost Center
Standardized
More Efficient
Cost Center
Rationalized
Dynamic
Business Enabler
Strategic Asset
Centralized Identity Mgmt
+ Information Protection
Firewall Secure Server Isolation
+ VPN + Application Gateway
Antivirus Centralized + Anti Spam
Multiple Directories
Centralized Directory
Firewall
Formal Firewall
Ad Hoc Antivirus
Standard Antivirus
Ad Hoc Network Services
Ad Hoc Monitoring
DNS, DHCP,+ Networking
Services
Monitoring Critical Servers
Ad Hoc Backup
Backup/Restore Critical Servers
Ad Hoc Patch Mgmt
Desktop Patch Management
Configuration & Asset Mgmt
+Service Desk
Ad Hoc Image Strategy
Standard Image Strategy
Automated Image Strategy
Ad Hoc Mobile Device Mgmt
Simple Mobile Device Mgmt
Mobile Device Provisioning & Mgmt
Ad Hoc Terminal Services
Ad Hoc Terminal Services
Terminal Services
Ad Hoc Virtual Services
Virtualization Dev and Test
Virtual Machine Mgmt
No Formal Processes
Formal Processes
Formal & Followed Processes with
SLA’s
Limited Security Policies
Deployed Security Policies
Defined & Followed
Security & Compliance Policy
Network Services Mgmt + Cache
SLA Based Administration,
Monitoring & Capacity Mgmt
Data Protection Mgmt
Sporadic or No Web
Conferencing
External or No Instant
Messaging
Basic Email
Traditional Phones Legacy
PBX
Web Conferencing
Unified Web Conferencing
Instant Messaging
Unified Instant Messaging
Secure Email &
Calendar
Traditional Phones Legacy
PBX VoIP Segregated
Unified Email &
Calendar
Unified Phones
VoIP PBX
Ad-hoc Collaborative
Spaces
Multiple Collaborative
Portals
Company Wide
Collaboration
Static Intranet
Fragmented Intranet
Social Computing
Intranet
Departmental Electronic
Forms
Fragmented Document
Workspaces
LOB Aligned
Electronic Forms
Self Provisioned
Workspaces
Public Web Sites
Public Web Sites
Desktop or Server Search
Desktop or Server Search
Manual KPI’s
Group Scorecards
Data Silos IT Dependent
Limited Automation
Basic ETL Segmented Data
Warehouse
Public Web Sites
Unified
Search
Enterprise
Scorecards
Automated ETL
Centralized
Data Warehouse
Paper Forms
File Shares
Basic
Information Intelligence Platform
Business
Productivity
Enterprise Search Standard Services
Enterprise Content Services
Collaboration Standard Services
Communication Standard Services
Business Applications Remote Access Services
Optimized Desktop Services
Core
Infrastructure
Identity and Access Management
Security Services
Server Virtualization
Desktop Application Management
Server Configuration Mgmt
Server Operations Mgmt
Data Protection
and Recovery
Directory Services
Standardized
Rationalized
Dynamic
Standard Business Services
Customer
Industry
Leaders
Enterprise Content Services
Collaboration Services
3
2.5
Enterprise Search Services
Business Application Remote Access
Services
2
1.5
1
Information Intelligence Services
Optimized Desktop Services
0.5
0
Directory Services Platform
Core IT Infrastructure
Communication Services
Identity and Access Management
Platform
Data Protection and Recovery Platform
Server Operations Managment
Platform
Server Configuration Management
Platform
Security Platform
Server Virtualization Platform
Application Management Platform
1 Basic / 2 Standardized / 3 Rationalized / 4 Dynamic
Perform a gap analysis between the current
capabilities to the required by the phase
selected as the goal
B
B
SS
R/A
R/A
D
D
Security & Networking
Desktop,
Device &
Server
Mgmt
Virtualization
Desktop Mgmt
Server Mgmt
Mobile Device Mgmt
Data Protection & Recovery
Collab
IT & Security Process
Collaborative Workspaces
& Portals
Social Computing
Messaging
UC
IMPROVE COLLABORATION
ENABLE SEAMLESS COMMUNICATION
ENHANCE BUSINESS PRODUCTIVITY
SECURE ACCESS
WITH SIMPLIFIED
IDENTITY MANAGEMENT
IMPROVE BUSINESS DECISION MAKING
BPIO
•
•
•
•
•
•
•
Core IO
Identity & Access Mgmt
IM & Presence
Conferencing
ECM
Voice
Document & Records Mgmt
Web Content Mgmt
BI
Forms
Enterprise Search
Performance Mgmt
Reporting & Analysis
Data Warehousing
Phase 1
Provides the fundamental solution allowing
employees to collaborate and communicate
more effectively
Enables secure access to data
Provides efficient data management and
integrated search capabilities to simplify finding
information
Phase 2
Adds more collaboration tools
Enhances process participation
Improves communication and collaboration processes
Improves data reporting and analysis
Phase 3
Streamlines access to data, documents, and expert
resources
Enables seamless communication and collaboration with
external partners
Enables enterprise-wide reporting and analysis
Maximizes productivity and business performance
B
S
R
D
Security & Networking
Identity & Access Mgmt
•
Desktop,
Device &
Server Mgmt
Core IO
Server Mgmt
Mobile Device Mgmt
Collab
Collaborative Workspaces
& Portals
Social Computing
Messaging
UC
•
Desktop Mgmt
IT & Security Process
IM & Presence
Conferencing
Voice
Document & Records Mgmt
ECM
•
Virtualization
Data Protection & Recovery
BPIO
•
•
REDUCE ATTRITION AND TRAINING COSTS
IMPROVE CSRS PRODUCTIVITY AND
EFFECTIVENESS
IMPROVE MULTI-CHANNEL CUSTOMER
EXPERIENCE
INCREASE UP-SELL AND CROSS-SELL
VOLUME
TRANSFORM FROM A COST CENTER TO A
PROFIT CENTER
Web Content Mgmt
Forms
Enterprise Search
BI
Performance Mgmt
Reporting & Analysis
Data Warehousing
Phase 1
Provides basic support for the most
critical elements of the business driver
Phase 2
Provides adequate, typical support for critical and
priority elements of the business driver
Phase 3
Provides thorough, streamlined support for
the business driver that enable
differentiated levels of performance
Capabilities
Security & Networking
Identity & Access Mgmt
Core IO
Desktop, Device and Server Mgmt
Virtualization
Desktop Mgmt
Server Mgmt
Mobile Device Mgmt
Data Protection & Recovery
IT & Security Process
Current
B
S
R/A
D
Capability
Gaps
Phase 2
B
S
R/A
D
Description
Fully-automated IT management,
dynamic resource usage, session
initiation protocol for secure
communication
Certificate and smart card integration,
workflow-driven provisioning, single
sign-on
Server consolidation for production
workloads with virtualization
Automated asset management
(hardware and software); automated
image and application deployment;
desktop error monitoring of
application crashes
SLA monitoring of mission-critical
servers
Certificate provisioning and
authorization for mobile devices; Web
applications (thin client) via
WAP/HTTP on mobile devices
Backup/restore on all servers with
service-level agreements via
virtualization
Security policy compliance on
network-connected devices
Capabilities
Current
B
S
R/A
D
Capability
Gaps
Phase 2
B
S
R/A
D
Description
Collab
Collaborative
Workspaces & Portals
Collaborative workspaces supporting
offline and online use
Social Computing
Content-centric social computing
capabilities, including wikis, blogs, and
RSS feeds, integrated into existing
productivity infrastructure and
business productivity desktop tools
Unified messaging, mobile access to
e-mail calendar
Rich, integrated presence enables line
of business applications
Seamless integration of desktop
productivity tools with Web
conferencing
Voice mail integrated with unified
inbox with e-mail and fax, PCs
integrated with IP telephony
Integrated content and records
management with information rights
management capabilities
Multiple authoring tools
Messaging
IM & Presence
UC
Conferencing
BPIO
Voice
Documents &
Records Mgmt
ECM
Web Content Mgmt
Forms
Enterprise Search
BI
Performance Mgmt
Forms and workflow orchestration
across systems and organizations
Simple text-based search across
portals, e-mail, and databases
Strategy-driven, enterprise-wide
scorecards
Capabilities
B
Account
S
R/A
D
Capability Gaps
B
S
Phase
R/A
D
Description
Security & Networking
Managed and consolidated IT Infrastructure is required
Identity & Access Mgmt
Information protection infrastructure (Microsoft®
Windows® Rights Management Services)
Virtualization
Core IO
Desktop, Device and
Server Mgmt
Desktop Mgmt
Server Mgmt
Mobile Device Mgmt
Standard desktop images with OS, antivirus,
management tools, and common desktop applications;
automated patch management
Defined set of standard server images; SLA monitoring of
mission-critical servers; if branches: centralized
management of branches
Mobile device provisioning
Data Protection & Recovery
Back up/restore on all servers and SLA is recommended
IT & Security Process
Formal security policies are recommended
Capabilities
Collaborative Workspaces
& Portals
Collab
Social Computing
Messaging
IM & Presence
B
Account
S
R/A
D
Capability Gaps
B
S
Phase
R/A
D
Description
End-user ability to create basic composite applications
containing unidirectional consumption of LOB data;
portals deliver customized, targeted, or aggregated views
of information to individuals based on user identities; IT
and enduser abilities to create collaborative processes
with workflow using collaborative workspaces and portal
infrastructure
Content-centric social computing capabilities, including
wikis, blogs, and really simple syndication (RSS) feeds,
integrated into existing productivity infrastructure
E-mail solution provides multi-layer anti-virus, anti-spam,
and anti-phishing protection with business continuity to
minimize down times and data loss
Rich integrated presence-enabled LOB applications
UC
BPIO
ECM
Conferencing
Standardized, integrated Web/audio/video conferencing
managed by IT is required
Voice
PC integration with IP telephony infrastructure, PC used
to make and receive calls
Documents & Records
Mgmt
Web Content Mgmt
Disconnected departmental document & records
repositories; framework for management of distributed
repositories and content metadata
Multiple authoring tools
Forms
Forms integrated with LOB systems
Enterprise Search
Performance Mgmt
BI
Reporting & Analysis
Single index across multiple data sources implemented in
a standardized approach; primary search sources are
collaborative and content-managed data stores,
databases, LOB applications (including basic Business
Insight [BI] data), and people (skills and social networking
scenarios)
Strategy-driven, enterprise-wide scorecards; automated
tools for budgeting, planning, and forecasting
Web-based interactive analysis; user-driven report
building; wizard-based publishing of data from front-end
analytical applications; analytical tool connecting to
subject-oriented data ; data mining and analysis tools;
predictive analytics
Perform a gap analysis between the current
capabilities to the to the Industry or region of
the selected goal
Capabilities
Security & Networking
Core IO
Desktop, Device and
Server Mgmt
Identity & Access
Mgmt
Virtualization
Desktop Mgmt
Server Mgmt
Mobile Device
Mgmt
Data Protection &
Recovery
IT & Security Process
B
Account
S
R/A
D
Capability
Gaps
B
Industry
S
R/A
D
B
Industry
S
R/A
D
Capability
Gaps
Solution Phase
B
S
R/A
D
Capabilities
Collab
Collaborative
Workspaces &
Portals
Social Computing
Messaging
IM & Presence
UC
Conferencing
Voice
BPIO
ECM
Documents &
Records Mgmt
Web Content
Mgmt
Forms
Enterprise Search
BI
Performance
Mgmt
Reporting &
Analysis
Data Warehousing
B
Account
S
R/A
D
Capability
Gaps
B
Industry
S
R/A
D
B
Industry
S
R/A
D
Capability
Gaps
B
Solution Phase
S
R/A
D
Build a capability level roadmap for the short
term as well as the long term
Windows 2008 R2 Active Directory.
Take advantage of the Read-Only
domain Controller features, Windows
Next Policies, NAP, TS, etc
Evaluate Identity and Certificate
Management platform: 1. Account
provisioning process automation. 2 Account
synchronization including ERP, Database and
AD.
1
2
2
2009 H2
2010 - 2011
Implement: Directory
Synchronization Services To
automate the user accounts creation,
password provisioning, password
recovery process. ERP synchronization
Right Management strategy for
Finance and Field teams that manages
confidential information
3
TCO Comparison Average by Year
Current
To Be
Annual Benefits per User
PC Operations and Administration
$335.6
$290.4
$45.2
Server Operations and Administration
IT Service Desk
Tools and Directory Management
End User Operations
Service Desk Problem Resolution Downtime
$83.7
$218.4
$65.4
$297.1
$66.5
$47.9
$89.1
$45.3
$276.9
$26.6
$35.7
$129.3
$20.1
$20.2
$39.9
$1,066.7
$776.2
$290.5
Total
Optimized Desktop
Services Vision
planning.
1
SCCM R2 strategy New platform to
rationalized desktop processes including
application deployment, patch
management, …
Desktop and Server
Imaging strategy:
Standardized and integrated
with SCCM
2
3
2
3
2009 H2
Implement: SMS to SCCM
architecture and migration plan.
Implement: Integrate
Server and Desktop and OS
imaging strategy…
Application
Virtualization
platform integration
Desktop Initiative
2010
5
6
5
6
Implement:
Application
Virtualization
Infrastructure with
SCCM R2
Application
Virtualization. Separate
dependencies between…
Windows 7
Rollout
8
7
2011
Implement: Application
Virtualization
infrastructure planning
…
Citrix/TS strategy.
Deliver applications to
mobile users/task …
8
Implement:
Application
Virtualization
infrastructure planning
…
TCO Comparison Average by Year
PC Power
Server Maintenance and Support Contracts
PC Operations and Administration
Server Operations and Administration
IT Service Desk
Tools and Directory Management
End User Operations
Service Desk Problem Resolution Downtime
PC Planned Downtime
PC Data Loss / Recovery
Total
Current
To Be
Annual Benefits per
User
$31.8
$197.7
$335.6
$107.0
$224.5
$65.4
$297.1
$68.8
$10.1
$6.3
$21.4
$194.7
$279.5
$62.5
$84.8
$45.3
$268.2
$25.1
$9.7
$5.7
$10.3
$3.0
$56.1
$44.5
$139.7
$20.1
$29.0
$43.7
$0.5
$0.7
$1,344.3
$996.8
$347.5
Collaboration and
Search client – Office 14
rollout
Portals and
Platform
strategy.
Intranet strategy. Enable a
platform for corporate groups to
share news, information,
corporate process
1
2
1
2
Workgroup workspaces. To
enable collaboration between
corporate users.
File Servers and Databases Search. Locate
information in unstructured repositories such
as file shares, Portals, Document Libraries,
Web sites and Exchange Server
LOB Applications Search
integration. Use search as an
interface for LOB systems to retrieve
complex data from a business data
catalog.
4
5
6
4
5
6
3
People Search. Provide a
dedicated tab to find subject
matter experts based on their
knowledge and contacts
2010
Implement: analysis and
architecture design session
for Search strategy
Implement and migrate: current
intranet to MOSS – SharePoint Server and
pilot some workgroups within the
company
Implement and migrate: current
intranet to MOSS – SharePoint
Server and pilot some workgroups
Implement: and integrate Office SharePoint
server for Enterprise Search with File Servers,
Database servers , Offer service to Windows
and intranet users
Implement: and integrate Office
SharePoint server for Enterprise Search
with MOSS applications and SAP – Offer
service to Windows 7 and intranet users
Implement: and integrate Office
SharePoint server for Enterprise
Search with AD – Offer Service to
Windows 7 and intranet users
Cost Reduction area
Voice, Video and Web Conferencing
Reduce Travel and training costs
20-40%
Reduce Real state and facility costs
30-40%
Reduce telephony and audio conferencing Charges
10-40%
Reduce the Cost of Voicemail
20-60%
Reduce cost of conf call bridge numbers
30-40%
Reduce IT infrastructure and administration cost
50%
Communications Platform
Services strategy. Implement a
secure, company-wide
messaging solution that uses a
unified directory and
interoperates with applications
1
Communications Platform
Infrastructure planning. Use
Core Platform capabilities:
Configuration, Operations and
Security Platform
New Communication platform
upgrade. Exchange 2007 and
OCS taking advantage of SAN
replacement.
Unified messaging
enablement
2
3
2
3
1800 bridge number.
4
5
4
5
2010
2009 H2
Implement: TCO/ROI analysis
and architecture design session
to validate communication
technologies standardization
with OCS
Web Conferencing initiative.
For internal and remote users
Implement: Exchange 2007
and OCS 2007 to support
communication services
infrastructure
Implement: and integrate
OCS Unified Messaging with
Exchange.
Implement: Office
Communications Server Live
meeting service for pilot users
and extend to organization in
the future
Implement: Office
Communications Server
Voice Bridge to pilot users
and extend to organization in
the future
Audio conferencing VOIP
Services. across the
enterprise
6
6
2011
Implement: Office
Communications Server VoIP
pilot users and extend to
organization in the future
Cost Reduction area
Voice, Video and Web Conferencing
Reduce Travel and training costs
20-40%
Reduce Real state and facility costs
30-40%
Reduce telephony and audio conferencing Charges
10-40%
Reduce the Cost of Voicemail
20-60%
Reduce cost of conf call bridge numbers
30-40%
Reduce IT infrastructure and administration cost
50%
Use the architectural guides to assure you can
coordinate the adoption of this technologies to
drive the short and long term business goals
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