The Reality of the Struggle to Align the Business with

I.T.

Rosana F. Chaidez

Large Company Technology Networking Conference June 17th – 18th, 2008

Professional Bio Flooring Industry Since 1987 FlorStar Sales – Director of Operations and I.T. J.J. Haines 2002 – Present CIO 2002 - 2005 VP of Supply Chain 2005 – Current

Customer Service and Claims Administration I.T. and Telecommunications Purchasing and Inventory Control Wheeler Advisor

Bachelors of Science – Business Master of Business Administration

Where Does it all Begin? The Role of I.T. Executives and Managers

Planning and Decision Making Internal Education - Technical Solutions Knowledge of the Business Awareness and Communication Customer Focused

What are the Business Priorities? How is it aligned with I.T. plans? Does it direct the I.T. priorities?

Understanding the Culture of the Corporation Where does technology rank?

Employee Dependency on technology

Balanced Scorecard

Common Business Priorities

“Wholesale” Increase Operating Revenue

Implement Strategy - Growth

Competitive Advantage Solutions

Reduce Operating Expense

Improve Employee Productivity

Improve Business Efficiencies

Safety First IWMS, Warehouse Equipment, Wire Solutions

Customer Focus B2B, HOL, Call Center Solution, Network Infrastructure

Strong Profitable Growth Flexible and Scalable Telecommunications Network

Invest in our People Technical Tools, Training, and Education

Implement the Strategy Maximize synergies with Acquisitions

Corporate Priorities Aligned with I.T. for JJH

Presenting a Business Case

“What do I get back ('return') for the money

I'm being asked to spend ('investment')?

What is it really worth (the "ROI")?

Return on Investment (ROI) Financial Benefits include

impacts on the organization's budget and finances: cost reductions or revenue increases

Non Financial Benefits include impacts on operations or mission performance and results: improved customer satisfaction, better information, shorter cycle-time.

Business Case

Payback Period: The amount of time required for the benefits to pay back the cost of the project

Net Present Value (NPV): The value of future benefits restated in terms of today’s money

Internal Rate of Return (IRR): The benefits restated as an interest rate.

Total Cost of Ownership

The aim of TCO analysis is to identify, quantify, and reduce the overall costs associated with ownership of networked assets

Hard costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs

Soft costs related to management, support, training, hidden costs, and downtime.

Strategic Alignment

Assuring that investments in IT projects and assets are directed toward achieving the organization’s strategic vision and maximizing business value

Alignment requires an IT governance structure that can quickly identify the right ideas, translate them into action, and convert the action into improved performance and results

Conclusion The Reality of the Struggle to Align the

Business with IT- is very REAL! It takes leadership, vision, communication, and most

importantly, alignment of business goals and priorities.

What is Standing Between You and Alignment?