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DavidCarusoVP&ResearchFellowAMRResearchInc.AligningITWithBusinessStrategyITHasASeatintheBoardroomNow…TheBadNews:MajorITimplementationstargetingtraditionalcostsavingshaven’tachievedexpectationsChangingbusinessmodelspushtheactionbeyondtheERPfootprintThenewfocus:Strategicapplications-Globalprocesses–2ndorderbenefitsTheGoodNews:TechnologyInvestmentGetsCompetitiveThevisiblereasons:–Enteringnewmarkets&channels–Dealingwithanetworksupplychainmodel–Costreductioninmainstreamactivities…Thepowerplay:–IndustryleadersarefocusingcorecompetenciestodominatemarketsHighTechMarginModelMfgcostSellpriceCompeteonpriceCompetewithinnovationCapturemarketshare&marginsTimePoundsITGovernance:WhereDoestheCorporateWorldStand?•Leaders:Top20%-TheValuemanagers•Inplacebusiness-ledITgovernancecouncils•MiddleofthePack:50%-Transitionalplayers•ERPsteeringcommittees-nowconcernedwithwringingvalueoutofsystems•TheRest:remaining30%-Latestarters•Noformalbusiness/IToperatingmodelsITGovernanceCouncilTechnologyStrategy/InfrastructureRequirementsBusinessStrategyOrganisationdesignApplicationPortfolio/NewinvestmentrequestsMarketNeeds/Competitivestrategy/BenchmarksITBudget/constraintsAMRITGovernanceCouncilModelEducationROI&ReportingGuidelinesRightteamRightAgendaKeyPerformanceIndicatorsProgrammanagementPrioritised&fundedITPlansExecutiveOwnershipCommunicationBusiness&ITAlignmentSevenHabitsofHighlyEffectiveITGovernance1.ClarityofMission2.Organisedforaction3.Wellcraftedagenda4.ControloftheBudget5.Standardisedprocesses6.Messagesthatmatter7.ExecutiveownershipofbenefitdeliveryWhenItAllGoesRight…•Industryexample:Fujitsu•ProcessFocus:–EstablishedBenchmarks,ProcessImprovement,Measurement…•Chiefstrategicthrust:–UseProcessandTechnologytoImpactCompetitivePosition.•Tools:–ExtendedERPtoFullyRealiseBusinessProcessDesign•Results:•Buildcycle--21daysdownto2.3days•Inventorycycle-60daysdownto27•ForecastingAccuracy-70%upto85%•On-timeDeliveries-80%upto92%•Salesdoubledto$1.5B--headcountdown20%300%ROIinFirstYearCriticalSuccessFactorsCorporateBusinessProcessesDivisionalBusinessProcessesOperatingBusinessProcessesKPIsKPIsKPIsCorporateFinancialPerformanceMarketplaceBenchmarksDriveCompareInstitutionalisingITandBusinessAlignmentTheITWin:AlignYourselfwithyourBusinessPartnersTalktheirlanguageEducatethemProvideAggressiveAssessmentsofCostandTimeFocusonTime-to-BenefitShowthemhowtomeasuresuccessfortheInitiativesThankyou,DavidCarusoAMRResearch

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