I.T. HAS TO MAKE MONEY.

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Damon Jackson
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1 I.T. HAS TO MAKE MONEY. HOW DIGITISATION AFFECTS BEST-FIT SOURCING: Reducing costs while increasing quality of service using tailored sourcing strategies

2 These are the core challenges facing you. S THE SITUATION: IT DEVELOPMENTS LEAD TO NEW SERVICE PORTFOLIOS. Cloud technology, anything as a service, and outsourcing deals with no potential left to create savings are creating pressure for changes in IT service procurement as the use of a multitude of software-as-a-service solutions at departmental level is creating shadow IT structures. C THE COMPLICATION: THINKING ABOUT THE DAY AFTER TOMORROW, TODAY. Following sobering track records, the golden years of big outsourcing deals are past. At the same time, it appears ever easier to use public cloud or SaaS offers to cover requirements. Yet today s approaches to IT procurement are lagging behind these developments, making new procurement approaches an urgent necessity. Q THE CORE QUESTION: WHAT DOES THE BEST-FIT SOURCING APPROACH LOOK LIKE? How can the balance be struck between the short times to market promised by cloud and SaaS solutions and the need for watertight contractual constructions? A THE SOLUTION: HOW CHANGE PROCESSES CAN BE MADE TO WORK. A structured change from IT service purchasing through to a solution broker team can open the door to new, innovative solutions. The central issue here is redesigning contractual processes and service packages to create a clear focus on adapting available standards rather than focussing on customised holistic solutions. S = Situation C = Complication Q = Question A = Answer e&co. AG ENABLING DIGITAL VALUE ECONOMY DIGITAL TRANSFORMATION 2

No pain, no gain: opportunities for your company. By turning IT service provider procurement into solution brokers, you can retain control and continue shaping the IT landscape.

3 No pain, no gain: opportunities for your company. By turning IT service provider procurement into solution brokers, you can retain control and continue shaping the IT landscape. Seize chances to make active changes to the way your business creates value by becoming the driving force behind IT-based innovations. Increase the speed of IT implementation by integrating flexible cloud and SaaS solutions, all the making sure that contractual agreements offer real protection. You will be able to reach and significantly improve on your financial company goals (IT budgets, value creation). Solve problems with outsourcing contracts with a consistent approach to redesigning your IT landscape e&co. AG ENABLING DIGITAL VALUE ECONOMY DIGITAL TRANSFORMATION 3

4 The results you can expect from us. If you can t measure it, you can t manage it which is why we use metric models to define the goals to work towards. We will produce a custom IT sourcing strategy tailored to your business model and existing IT landscape focussing specifically on the following points: creating transparency with regard to current contracts; identifying potential savings and possibilities for improving quality of service and time to market; advising on procurement of innovative, flexible IT solutions; defining and setting up IT solution broker processes and organisations; implementing new sourcing projects (including negotiation support). We will compile a runbook of specific steps required for the measures planned. We will provide joint monitoring and problem-solving through to a successful launch of the planned IT procurement procedures. We will support you implementation and make sure you reach your goals e&co. AG ENABLING DIGITAL VALUE ECONOMY IT BEST FIT SOURCING 4

5 Enabling digital value for you: your experienced contacts. MANFRED SIEGL PARTNER Dipl. Physiker, (Univ.), General Management Degree EXPERTISE 20 years experience as a manager at country and multinational level, as a consultant, project leader, and interim manager. Industries: IT, e-commerce & retail, utilities, conglomerates, professional services (law, tax, auditing, & general), finance Consultancy: IT; strategy and business planning; turnover and profit; senior project leadership; interim management; sales; business development & marketing; omnichannel; general management, board coaching & sparring partner; M&A E: Manfred.Siegl@eandco.com M: e&co. AG ENABLING DIGITAL VALUE ECONOMY DIGITAL TRANSFORMATION 5

architecture and software development of international IT programmes across various business sectors Implementing IT sourcing projects, specialising in tendering processes and IT costs reduction

6 Enabling value for you: our experienced consultants. TIM EHRICH MANAGING CONSULTANT More than three years experience consulting on major IT programmes and tendering processes; several years experience in IT management, IT project management, software architecture and software development of international IT programmes across various business sectors Implementing IT sourcing projects, specialising in tendering processes and IT costs reduction projects. Optimising software portfolios, including IT sourcing and the development of project roadmaps Experience in leading international IT project teams Expertise in Automotive DR. CONSTANTIN MONTANA MANAGING CONSULTANT More than 9 years experience as a consultant, principally for renowned DAX30 companies and German hidden champions Author of published studies in sourcing advisory, renewable energies, and telecommunications Sourcing advisory knowledge: IT strategy, benchmarking, cloud solutions, tendering, contract negotiations, governance Experience of net working capital optimization, supply chain management, and after-sales services International projects focussing on the automotive, aviation, and telecommunications industries e&co. AG ENABLING DIGITAL VALUE ECONOMY IT BEST FIT SOURCING 6

7 A selection of our most successful projects to date. DAX 30 industrials: identifying potential savings of approx. 45% (roughly 6m) through to 2020 and further options for reducing costs (e.g. licencing fees). Running benchmarking and tendering processes for German multi-brand OEM, reducing time-to-market by six months for new applications, generating eight-figure savings (approx. 55%). Working on complex CHANGE MANAGEMENT processes at the interface between IT and business functions. Compiling IT SOURCING concepts and implementing the first global cloudbased hosting solutions for a major German industrial. Setting up an ENABLEMENT PLATFORM to orchestrate a digital eco-system and harmonise it with the legacy world COSTS REDUCTION IN I.T. INFRASTRUCTURE FOR GERMAN BRAND MANUFACTUERER generating savings amounting to 8m/ 20% on running costs over four years. Benchmarking at a global brand manufacturer, achieving savings of 25% as against offers made by established providers e&co. AG ENABLING VALUE IT COST ENGINEERING 7

Try our starter workshop package THE BEST WAY TO START WORKING WITH US: Take part in our exclusive workshop to find out what we know and how we work and to help us learn about the specifics of the

8 Try our starter workshop package THE BEST WAY TO START WORKING WITH US: Take part in our exclusive workshop to find out what we know and how we work and to help us learn about the specifics of the challenges you are facing. We start by working with you to define the topics that are important so that we can prepare the workshop in detail. We are then able to offer you consultation on the basis of our preparation and highlight the areas in which you need to take action all during the workshop session. Our starter workshop package is available for 10,000 (excl. VAT) plus travel costs and expenses e&co. AG ENABLING DIGITAL VALUE ECONOMY IT BEST FIT SOURCING 8

Our offices. SAARBURG SEOUL WOLFSBURG MUNICH e&co. AG Hubertusstraße 50 54439 Saarburg T.

9 Our offices. SAARBURG SEOUL WOLFSBURG MUNICH e&co. AG Hubertusstraße Saarburg T.: E: Diese Präsentation ist urheberrechtlich geschützt. Das Copyright liegt bei der e&co. AG.

e&co. Cloud Transformation Advisory. End2End Cloud Delivery Model for Enterprises.

e&co. Cloud Transformation Advisory. End2End Cloud Delivery Model for Enterprises. WE DELIVER TRANSFORMATION. ENABLING DIGITAL VALUE. Our complete End2End Cloud Delivery Model for Enterprises. Especially