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HOW TO SURVIVE &
                  IMPROVE OUR BUSINESS
INFOKOMPUTER FORUM - 12 May 2010
                  THROUGH IT SOLUTION
                  SUBHAN NOVIANDA
                  Director – IS Solution & Marketing, CEVA Indonesia
Agenda
2




                Business & IT Situation
                How to SURVIVE
                How to IMPROVE
                Take away ..
Business & IT – Situation
3

    Questions :
     Who did remember „Public Utilities Company ‟ when its
      service/supply (power/water) was OFF ? What did you
      feel ?
     Who do remember & „THANK THEM‟ during the Services is
      ON ?


                  Are we familiar with this situation ?
                           Do IT like that ?
             Are we part of Problem or part of Solution ?
    --- Don‟t worry you are not alone .. and we will have a cure…
The 2010 CIO Agenda : Leading in Time of Transition
    (Gartner Research)
4




                    Survive               Improve
Business Expectation
5
    (Gartner Research)




                      Title of Presentation   28 August 2010
How to SURVIVE
6


       Deliver the basic.
       Manage Cost - Quality - Value
                        VALUE




                COST            QUALITY
InSourcing  Outsourcing  SmartSourcing

7




     When to Outsource                           When to Insource
         reduce head count                         function is mission critical
         service a "commodity“                     is a core competency
         can‟t afford time, $ for new tech         cannot identify any cost savings
         can‟t keep good staff                     not clear that vendor is any better
         don‟t have good staff                     vendor cannot be "controlled"
         small project
         * Adam Murray : Costing , Outsourcing & Contract.
How to IMPROVE :
     Four sources of values from IT *
8




                         INTERNAL INFORMING              EXTERNAL INFORMING
             Improve     Provide information to          Embed information into
             Decision    improve operational decision.   product & service.
             Making

    SOURCE OF VALUES
                         OPTIMIZING                      RESHAPING / Collaboration
              Improve    Improve or transform internal   Change how customers &
              Process    processes through technology    partners interact with the
                                                         enterprise and its
                                                         product/Services
                               Internal                         External
                                          SCOPE OF CHANGE
         * The Real Business of IT : Richard Hunter and George Westerman
The four sources model: How IT
9
    improves business performance *
         Internal informing: Provide information to improve operational decision.
          Information is supplied to internal audiences to support decision making related to specific
          operational issues. Resulting performance improvements may be visible to external parties such
          as customers and suppliers, but the information itself typically is not.
         Optimizing: Improve or transform internal processes through technology
          Processes internal to the company are improved or transformed through automation. Though
          optimizing is typically about incremental process improvements, it can also include actions that
          replace whole sets of applications and processes.
         External informing: Embed information into product & service.
          Information is supplied directly to external parties, such as customers and suppliers, to enhance or
          change the enterprise‟s value proposition, relationships, or operations
         Reshaping (Collaboration): Change how customers & partners interact with the enterprise and its
          product/Services.
          Automation is used to change how customers and partners interact with the enterprise, how they
          work with the enterprise‟s products and services, or the levels and kinds of service provided.
          These may be large, such as integrating the global supply chain, or smaller, such as providing
          customers with self-service features they formerly had to request through a salesperson or call
          center.


                 * The Real Business of IT : Richard Hunter and George Westerman
Communicate the Value
10


        One of issue in IT is COMMUNICATION.
        There is NO BAD IT People , just only BAD IT COMMUNICATOR
        After CREATE it, you must COMMUNICATE the IT Value for
         Business
Take away …The path to IT value
11

        Step 1: Change your thinking to avoid the value traps.
         The road to (IT) hell is paved with good intentions. Avoid the value traps: practices
         that seem to be good ones but actually prevent IT from delivering and communicating
         value.
        Step 2: Show that IT provides value for money.
          As the “cost innovation officer,” you and your team demonstrate that the IT
         organization is providing the right services, at the right level of quality, at a
         competitive price.
        Step 3: Show how IT improves business performance.
         As the “chief improvement officer,” you and your team help everyone make the
         connection between investment in IT and improved business performance.
        Step 4: Show how you have value beyond IT.
         As the “CIO-plus,” you operate as a peer on the executive team, providing value
         beyond IT itself.
THANK YOU..!!

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How To Survive & Improve Our Business Through IT Solution

  • 1. HOW TO SURVIVE & IMPROVE OUR BUSINESS INFOKOMPUTER FORUM - 12 May 2010 THROUGH IT SOLUTION SUBHAN NOVIANDA Director – IS Solution & Marketing, CEVA Indonesia
  • 2. Agenda 2  Business & IT Situation  How to SURVIVE  How to IMPROVE  Take away ..
  • 3. Business & IT – Situation 3 Questions :  Who did remember „Public Utilities Company ‟ when its service/supply (power/water) was OFF ? What did you feel ?  Who do remember & „THANK THEM‟ during the Services is ON ? Are we familiar with this situation ? Do IT like that ? Are we part of Problem or part of Solution ? --- Don‟t worry you are not alone .. and we will have a cure…
  • 4. The 2010 CIO Agenda : Leading in Time of Transition (Gartner Research) 4 Survive Improve
  • 5. Business Expectation 5 (Gartner Research) Title of Presentation 28 August 2010
  • 6. How to SURVIVE 6  Deliver the basic.  Manage Cost - Quality - Value VALUE COST QUALITY
  • 7. InSourcing  Outsourcing  SmartSourcing 7 When to Outsource When to Insource  reduce head count  function is mission critical  service a "commodity“  is a core competency  can‟t afford time, $ for new tech  cannot identify any cost savings  can‟t keep good staff  not clear that vendor is any better  don‟t have good staff  vendor cannot be "controlled"  small project * Adam Murray : Costing , Outsourcing & Contract.
  • 8. How to IMPROVE : Four sources of values from IT * 8 INTERNAL INFORMING EXTERNAL INFORMING Improve Provide information to Embed information into Decision improve operational decision. product & service. Making SOURCE OF VALUES OPTIMIZING RESHAPING / Collaboration Improve Improve or transform internal Change how customers & Process processes through technology partners interact with the enterprise and its product/Services Internal External SCOPE OF CHANGE * The Real Business of IT : Richard Hunter and George Westerman
  • 9. The four sources model: How IT 9 improves business performance *  Internal informing: Provide information to improve operational decision. Information is supplied to internal audiences to support decision making related to specific operational issues. Resulting performance improvements may be visible to external parties such as customers and suppliers, but the information itself typically is not.  Optimizing: Improve or transform internal processes through technology Processes internal to the company are improved or transformed through automation. Though optimizing is typically about incremental process improvements, it can also include actions that replace whole sets of applications and processes.  External informing: Embed information into product & service. Information is supplied directly to external parties, such as customers and suppliers, to enhance or change the enterprise‟s value proposition, relationships, or operations  Reshaping (Collaboration): Change how customers & partners interact with the enterprise and its product/Services. Automation is used to change how customers and partners interact with the enterprise, how they work with the enterprise‟s products and services, or the levels and kinds of service provided. These may be large, such as integrating the global supply chain, or smaller, such as providing customers with self-service features they formerly had to request through a salesperson or call center. * The Real Business of IT : Richard Hunter and George Westerman
  • 10. Communicate the Value 10  One of issue in IT is COMMUNICATION.  There is NO BAD IT People , just only BAD IT COMMUNICATOR  After CREATE it, you must COMMUNICATE the IT Value for Business
  • 11. Take away …The path to IT value 11  Step 1: Change your thinking to avoid the value traps. The road to (IT) hell is paved with good intentions. Avoid the value traps: practices that seem to be good ones but actually prevent IT from delivering and communicating value.  Step 2: Show that IT provides value for money. As the “cost innovation officer,” you and your team demonstrate that the IT organization is providing the right services, at the right level of quality, at a competitive price.  Step 3: Show how IT improves business performance. As the “chief improvement officer,” you and your team help everyone make the connection between investment in IT and improved business performance.  Step 4: Show how you have value beyond IT. As the “CIO-plus,” you operate as a peer on the executive team, providing value beyond IT itself.