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1、David Caruso VP & Research Fellow AMR Research Inc.Aligning IT With Business StrategyIT Has A Seat in the Boardroom NowThe Bad News:Major IT implementations targeting traditional cost savings havent achieved expectationsChanging business models push the action beyond the ERP footprintThe new focus:
2、Strategic applications - Global processes 2nd order benefitsThe Good News:Technology Investment Gets CompetitiveThe visible reasons: Entering new markets & channels Dealing with a network supply chain model Cost reduction in mainstream activities The power play: Industry leaders are focusing core co
3、mpetencies to dominate marketsHigh Tech Margin ModelMfg costMfg costSell priceSell priceCompete on priceCompete on priceCompete with innovation Compete with innovation Capture market share & marginsCapture market share & marginsTimeTimePoundsPoundsIT Governance: Where Does the Corporate World Stand?
4、 Leaders: Top 20% - The Value managers In place business-led IT governance councils Middle of the Pack: 50% - Transitional players ERP steering committees- now concerned with wringing value out of systems The Rest: remaining 30% - Late starters No formal business/IT operating modelsIT Governance Cou
5、ncilTechnology Strategy/ Infrastructure RequirementsBusiness StrategyOrganisation designApplication Portfolio/ New investment requestsMarket Needs/ Competitive strategy/ BenchmarksIT Budget/constraintsAMR IT Governance Council ModelAMR IT Governance Council ModelEducationROI & ReportingGuidelinesRig
6、ht teamRight AgendaKey Performance IndicatorsKey Performance IndicatorsProgram managementProgram managementPrioritisedPrioritised & funded IT Plans & funded IT PlansExecutive OwnershipExecutive OwnershipCommunicationCommunicationBusiness & IT AlignmentSeven Habits of Highly Effective IT Governance C
7、larity of Mission Organised for action Well crafted agenda Control of the Budget Standardised processes Messages that matter Executive ownership of benefit deliveryWhen It All Goes Right Industry example: Fujitsu Process Focus: Established Benchmarks, Process Improvement, Measurement Chief strategic
8、 thrust: Use Process and Technology to Impact Competitive Position. Tools: Extended ERP to Fully Realise Business Process Design Results: Build cycle- 21 days down to 2.3 days Inventory cycle - 60 days down to 27 Forecasting Accuracy - 70% up to 85% On-time Deliveries - 80% up to 92% Sales doubled t
9、o $1.5B-headcount down 20%300% ROI in 300% ROI in First YearFirst YearCritical Success FactorsCritical Success FactorsCorporate Business ProcessesDivisional Business ProcessesOperating Business ProcessesKPIsKPIsKPIsCorporate Financial PerformanceCorporate Financial PerformanceMarketplace BenchmarksM
10、arketplace BenchmarksDriveDriveAccrueAccrueCompareCompareInstitutionalisingInstitutionalising IT and IT and Business AlignmentBusiness AlignmentThe IT Win: Align Yourself with your Business PartnersTalk their language Educate them Provide Aggressive Assessments of Cost and Time Focus on Time-to-Benefit Show them how to measure success for the InitiativesThank you,David Caruso AMR Research
