Managing IT for Business Value

Transcription

1 Get a jump on IT Managing IT for Business Value Ron Miller IT Portfolio and Operations Manager Intel IT June 14, 2007

2 Get a jump on IT This presentation is for informational purposes only. INTEL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. BunnyPeople, Celeron, Celeron Inside, Centrino, Centrino logo, Core Inside, Dialogic, FlashFile, i960, InstantIP, Intel, Intel logo, Intel386, Intel486, Intel740, IntelDX2, IntelDX4, IntelSX2, Intel Core, Intel Inside, Intel Inside logo, Intel. Leap ahead., Intel. Leap ahead. logo, Intel NetBurst, Intel NetMerge, Intel NetStructure, Intel SingleDriver, Intel SpeedStep, Intel StrataFlash, Intel Viiv, Intel vpro, Intel XScale, IPLink, Itanium, Itanium Inside, MCS, MMX, Oplus, OverDrive, PDCharm, Pentium, Pentium Inside, skoool, Sound Mark, The Journey Inside, VTune, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance, cost and total cost of ownership. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing. *Other names and brands may be claimed as the property of others. Copyright 2007, Intel Corporation. All rights reserved.

3 Overview Intel IT Strategy Creating Business Value for Intel

4 IT Reality Demand for IT Solutions Help Enable Growth! Help Improve Margins! Help Reduce Fixed & Variable Costs! IT Budget Company Revenue Growing Flat Declining

5 Intel IT Strategy Focus On Cost Savings thru Reduction in Client TCO Infrastucture Consolidation Standard based Open Architecture Operational Excellence thru Standard Processes and Indicators Security & Risk Management Customer Segmentation Invest in New Provides maximum Biz Value Innovation for the future Company growth

6 Business Value Managing for IT Business Value Level 4 Level 5 Investment Performance Analysis Options/Portfolio Management Level 2 Level 3 Simple ROI & IT Business Case Discipline Total Cost of Ownership Level 1 No or Ad Hoc Practices CMMI* Framework for Managing IT Business Value * Other names and brands may be claimed as the property of others.

7 Intel IT Business Value Program Financial value dials Days of inventory Headcount productivity Hardware and software cost avoidance Capital equipment cost avoidance Time to market Direct revenue Other cost avoidance Non-financial value dials Customer satisfaction Intellectual property risk reduction Product development agility Regulatory compliance Common Language Anchor for Funding Decisions Portfolio Approach

8 Metrics Linked to Business Performance What is the current state? What is the desired outcome? 28 days of inventory 12 hours throughput 20 orders handled/head 70% of market Reduce inventory by X days Reduce throughput by X Increase productivity by X% Increase market segment share by X% These metrics are IT enabled key business benefits measured as value dial improvements versus a current baseline

9 Result: New Measures of Success Not just availability Top and bottom line impact & value Rigorous finance definition for measuring ROI Each program carefully reviewed to validate Overall value heavily judged (by formula) HC Productivity 23% Hardware Avoidance 12% Value Created 2002: $423M 2003: $923M 2004: $1.2B 2005: $1.7B 2006: $1.3B Headcount Avoidance 4% Capital Equipment Avoidance 3% Other cost Avoidance 4% Time to Market 12% Software Avoidance 11% Revenue 28% Risk Avoidance 3%

10 IT Efficiency + 0 Creates resistance from line of business and users Business Value Index Invest #1 Improved IT efficiency with no business value penalty Necessary, Failure but low value Invest #5 Improved business Invest #2 value AND IT efficiency Invest #4 Improved business Invest value #3with little or no IT efficiency penalty - Failure Requires Invest #6 FailureInvest #7 increment al IT budget - 0 Business Value + ITAT0701P

11 Business Value thru Mobility at Intel Mobile computing: Key Intel strategy 80:20 mobile vs. desktop mix 87% of knowledge workers mobile-enabled Value proposition is high Wireless & mobile technologies offer >5% time-savings in an employee s work week Replacing 6,400 notebooks yields 3-year net present value (NPV) of approx. $26 million $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 53% TCO Reduction Notebooks Desktops Notebooks Desktops Notebook support costs decreasing faster; TCO narrowing End-user support Training Hardware Software

12 Mobility Aids Business Continuity Moving away from disaster Employees can take the office with them, out of harm s way Flood hits Folsom, CA building Burst water main floods office space Wireless notebooks easy to relocate No customer impacts Snow shuts down Portland, OR Roads impassable for three days 5,000 Intel employees simply work from home using notebooks SARS shuts down HK office Fast deployment of notebooks to HK from around the globe, employees work from home Minimal impact to operations

13 Showcases Intel IT Experiences Share IT best practices with industry peers Provide IT industry education Facilitate IT innovation through industry research

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