Improve business values and efficiency by IT

Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 1
Improve business values and
efficiency by IT
Liven Varghese
IT Director , SgT Group
www.sgtgroup.net
Your Product
Quality & Safety
Assured.
ITSHOWCASE CHINA – 2013 , SHANGHAI

Improve business values and efficiency by IT
 Cost and investment center
 Don’t know business
 Biggest bottle neck of company
 Speak only technical language
 Sacrificing department
 Support center
What does IT means to executives?

Important issue for IT Heads
Source : IVI

How we measure business values?
 Revenue
 Profit margin
 Market share
 Return on investment
 Shareholder value
 Organization efficiency
 Quality
 Customer satisfaction
 Market penetration
 Employee retention
Financial Operational

 Revenue
 Profit margin
 Market share
 Quality
 Re defining IT Re defining IT
How IT can improve business value?

Re defining IT = Aligning IT with business
 IT is the foundation for doing business
 Minimize / close the gap between what business expects and
what IT delivers
 IT - business value enabler
 IT – powerful catalyst for change in business
 Service provider with partnership management
“ Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one
without the talking about the other.”- Bill Gates
Business-IT alignment is a dynamic state in which a business organization is able to use
information technology (IT) effectively to achieve business objectives - typically improved
financial performance or marketplace competitiveness.
BusinessBusiness
ITIT
DRIVESDRIVES
AlignmentAlignment

Alignment process
Aligning peopleAligning peopleAlignment flavorsAlignment flavorsUnderstand the businessUnderstand the business

Alignment process
 Business process – formal and informal
 Acknowledge the culture
 Awareness of your future business
 Business managers communication
 Business process – formal and informal
 Acknowledge the culture
 Awareness of your future business
 Business managers communication

Strategic alignment
Determine IT value imperatives
Technology empowering business strategies
“Can do “ versus what it “might do”
Matching – Organization capabilities , opportunities , risks,
goals
Enhance the awareness of IT values
Operational –to - Strategic
Strategic alignment
Determine IT value imperatives
Technology empowering business strategies
“Can do “ versus what it “might do”
Matching – Organization capabilities , opportunities , risks,
goals
Enhance the awareness of IT values
Operational –to - Strategic
Infrastructure alignment
Reliability and security
Performance – with little cost as possible
Partnership management – best sourcing strategies
Performance metrics, SLA’s
Discover the value chains
IT Process frameworks
IT estate
Infrastructure alignment
Reliability and security
Performance – with little cost as possible
Partnership management – best sourcing strategies
Performance metrics, SLA’s
Discover the value chains
IT Process frameworks
IT estate
Alignment process

 Critical factor in alignment
 Involvement of right peoples
 Domain knowledge IT
leadership
 Different set of skills and
competence.
 Communication
 Execution of alignment agenda
 Critical factor in alignment
 Involvement of right peoples
 Domain knowledge IT
leadership
 Different set of skills and
competence.
 Communication
 Execution of alignment agenda
Alignment process

 Revenue
 Profit margin
 Market share
 Quality
 Re defining IT Re defining IT
 Business transformation by IT Business transformation by IT
How IT can improve business value?

IT enabled Business transformation = IT Business integration
Business transformation into value level by 3 “I”‘s.
Improvement Informative Innovative

IT Business integration
Involvement of IT into other business function areas.
IT
 Business process improvement and Optimization –
automation , standardization , model of visualization,
Competitive advantage
 Employee efficiency & smoother transition
 Quantify the returns – reflects cost (ROI)
 Case study – Planning algorithms
Costs
Risk
Customer Complaints
Manual efforts
Redundancy
Process Conflict
Employee Stress
 Improvement
“ IT is a value driven center”“ IT is a value driven center”

 Informative
 Power of Business analytics - technology + information
 Key performance indicators , metrics
 Big Data – megatrend in transforming business
 Power of IT in business analysis , digital marketing
 Leads to Smart Organization
Business Intelligence
(What’s has happened)
Business Intelligence
(What’s has happened)
Forecasting
(What will happen)
Forecasting
(What will happen)
Prediction
(What could happen)
Prediction
(What could happen)
Optimization
(What’s the best path)
Optimization
(What’s the best path)
Increasing Business Value
Types of Business Analytics
 Insights to innovation to keep competitive
 Leverage data more on supply chain than a warehouse
 Data Scientist – comes from IT
 Case study – Retailer business , business opportunities
InformationInformation
TechnologyTechnology
Business analyticsBusiness analytics
Performance indicatorsPerformance indicators
Actionable insightsActionable insights
Business planningBusiness planning
OpportunitiesOpportunities
Make the transition from Support partner to Strategic partnerMake the transition from Support partner to Strategic partner

 Innovation is not based on technology nor invention
 Applying correct technology and adapt mega trends
 Globalization & Mobility
 Develop and execute end – to –end innovation process
 Drive the creation and management of innovation process
 Execute the innovation process
 Case study – Online services
Ongoing
operations
Results Assessment
Strategic
challenge
Ideas Innovation funnel Value
 Innovative
“More strategic “ – “ add value” - be an innovative unit in business“More strategic “ – “ add value” - be an innovative unit in business

 Business value enabler – aligning IT with business
 Transform IT from support partner to strategic partner
 IT be a value driven center
 Role of IT heads in driving business strategy.
 IT leaders – trusted business leader
 Customer – obsessed IT organization
 Utilization of trends and technology – be an innovative unit in business
 Agility , flexibility , optimization – stay competitive
 Turn crisis to opportunity and bring values to business
IT - Key partner in Business
IT – “ largest single influence on organizational architecture and design”IT – “ largest single influence on organizational architecture and design”

Your Product Quality and Safety.
Assured.
www.sgtgroup.net
Mail : liven.varghese@sgtgroup.net

Improve business values and efficiency by IT

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