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IT as a Service Optimisation of IT Services Funding Daniel Amor, [email protected]. Key characteristics of a high-profitability FINANCIAL INSTITUTION. Differentiation Selection of a commercial strategy and incentives system Integrated multi-channel approach “Single customer view” - PowerPoint PPT Presentation
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©2009 HP Confidential template rev. 12.10.091 ©2009 HP Confidential1
IT as a ServiceOptimisation of IT Services FundingDaniel Amor, [email protected]
©2009 HP Confidential template rev. 12.10.092
KEY CHARACTERISTICS OF A HIGH-PROFITABILITY FINANCIAL INSTITUTION
Industrialization• Adoption of standards
(applications and systems)
• Planning and use of Components
• Standard processes
• Product Factory (Internal/External)
• Exploitation of economies of scale
• Flexibility and operational efficiency
Differentiation• Selection of a commercial
strategy and incentives system
• Integrated multi-channel approach
• “Single customer view”
• Pricing policies
• Agility and Time to Market
• Creation of new products; enrichment of portfolio offering
Decoupling of product creation and the distribution network.
Strategies for the selection of products and networks.
Hence an optimal application portfolio is required.
©2009 HP Confidential template rev. 12.10.093
WHY IT AS A SERVICE?
1
… in both directions: UpUp and DownDown
No Lock inNo Lock in – short minimum usage period, low minimum order quantitiesStay in control Stay in control of services any time - Web portal to adjust service usage & service levelsCost reduction Cost reduction of 20- 40% and increased cost transparency and - scalability
Long track Long track record of experience
Secure and compliant Secure and compliant operation of IT services out of redundant data center
FlexibilityFlexibility of service to adjust fast to new business needs
2
3
4
5
6
7
Enterprise ready, Standards, Flexibility, OPEX, Innovation, Enterprise ready, Standards, Flexibility, OPEX, Innovation, One Stop Shop, T&TOne Stop Shop, T&T
©2009 HP Confidential template rev. 12.10.094
MANY HAVE ALREADY STARTED THIS JOURNEY
IT modernization: An exercise in alignment, Economist Intelligence Unit, September 2009
Application Modernization and Migration Trends in 2009/2010, Forrester, November 2009
of senior executives
worldwide say they have
recently completed, are
in the midst of or are in
the planning stages of an
IT modernization project.
According to recent Forrester research,
TOP 3 PRIORITIES for IT leaders are:
Updating and MODERNIZING legacy applications;
CONSOLIDATING redundant packaged applications and
UPGRADING older packaged applications.”
45%
©2009 HP Confidential template rev. 12.10.095
SIGNIFICANT OUTCOMES CAN BE ACHIEVED Strategically and financially
– Alignment
– Agility
– Security
– Business Continuity
– More $ for innovation & new business projects
– Knowledge Capture
APPLICATIONS COST IMPROVEMENTSO
PER
ATIN
G C
OSTS
MA
INTEN
AN
CE C
OS
TS
DEV
ELO
PM
EN
T
CO
STS
30% - 60% 50% - 60% 30% - 50%
Typical ROI: 18 months
©2009 HP Confidential template rev. 12.10.096
THERE IS A REAL COST “TO DOING NOTHING”
– Costs increase year after year
– IT risks increase
– Application knowledge disappears
– Opportunity cost (the cost of doing nothing) increases
New projects
Non-discretionaryIT
budget
ONE CLIENT’S FORECAST
The cost of doing nothing
Can you afford to NOT start this journey?
©2009 HP Confidential template rev. 12.10.097
APPLICATION MODERNIZATION DELIVERS BUSINESS VALUE
– Reduces time-to-market for new products and services
– Improves customer satisfaction
– Enhances operational capability
– Creates new revenue via newly
enabled capabilities
– Reduces IT spending in software licensing, maintenance & support
– Reduces IT labor needed to deploy new functionality
– Reduces labor needs by improving work processes
– Reduces operating costs through improved business processes
Increase revenue/profit
Reduce costs
©2009 HP Confidential template rev. 12.10.098
FREEING IT INVESTMENT FOR INNOVATION— TO BE MORE COMPETITIVE
ROI forBusine
ss& IT
IT budget as %
of revenueApplication maintenance
Application innovation
Infrastructure maintenance
Infrastructure innovation
5%
30%
42%
Today
23%
72%
28%
In 3 years
15%
30%
45%
10%
45%
55%
Source: HP IT
©2009 HP Confidential template rev. 12.10.099
Nov2009
APPLICATIONS MODERNISATION
We believe that ‘one size does not fit all’ and every client and application is unique. Therefore, we execute the transformation journey by implementing a set of defined modernization strategies delivered
by global resources enabling the client to achieve their business objectives by reducing risk and TCO while modernizing to an agile environment
A Suite of Modernisation Strategies
©2009 HP Confidential template rev. 12.10.0910
MODERNISATION – EXAMPLE GRAPHSSUMMARY - GRAPHS
NET CASH FLOW
-100,000,000
-50,000,000
0
50,000,000
100,000,000
150,000,000
200,000,000
Initial Expense Year 1 Year 2 Year 3 Year 4
SUMMARY - Initial PURCHASE #REF!
COSTS and CUMULATIVE CASH FLOW
-100,000,000
-50,000,000
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
Initial Expense Year 1 Year 2 Year 3 Year 4
SUMMARY - Initial PURCHASE #REF! Proposed Environment Costs Current Environment Costs
COSTS Detailed Comparison
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
Hardware Software Personnel Facilities
Current Environment COSTS Proposed Environment COSTS
TCO Detailed Comparison
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Hardware Software Personnel Facilities
Current Environment - TOTAL COST OF OWNERSHIP Proposed Environment - TOTAL COST OF OWNERSHIP
©2009 HP Confidential template rev. 12.10.0911
Unmet Demand•Time To Market Delays•Missed deadlines•Lost Revenues
Over Provisioned• IT Management Costs•Business Opportunity Cost
Installed Capacity
Timeline
What problem can you solve consuming IT as a Service?
©2009 HP Confidential template rev. 12.10.0912
IT AS A SERVICE VIDEO
IT as a Service
HP breadth and depth of experience
©2009 HP Confidential template rev. 12.10.0914
TRANSFORMATION EXPERIENCE WORKSHOP (TEW) OFFERS KEY STARTING POINT
• Faster cost savings, quality improvements, agility and compliance
• Realize critical success factors
• Identify quick wins
• Gain stakeholder buy-in
• Traction to any project
• Leverage best practices
• Develop your roadmap in one day
• Clarify vision for enabling technologies including Cloud
• 2010 introduced TEW to the market with great success
• Delivered more than 50 so far in FY11 in EMEA
Fast Facts
Dennis ChenCIO SKFH & SKL
“It is more than a modernization, it completes my dream as a CIO.”
Ivan ChangCIO SKB
“Modernization is not only about the challenges we will face, and
expectations but also creates hope for us.”
Michael WhittakerUnilever
“If we had started at the beginning with this workshop, we could have cut the
timescales considerably. Very impressive!”
©2009 HP Confidential template rev. 12.10.0915 ©2009 HP Confidential15
Q&A
