IT ADVISORY SERVICES

1. IT ADVISORY SERVICES IT Governance and PerformanceSeptember 22, 2008 AUDIT / TAX / ADVISORY Dan Manley Senior Manager IT Advisory Services KPMG LLP

2. IT Governance and Performance • Let’s define some terminology… • IT Governance • Performance • Frameworks and Standards • Metrics and measurements

3. IT Governance and Performance • What do these things mean to business in Today’s World….. • What is impact on the control environment? • Effective • Efficient • Available • Confidential • Reliable • Integrity • Compliant • What is the relevance to how I managing a Business? • Strategy • Operations • Resource Management • Financial Management

4. IT Governance and Performance Industry Data The Opportunity • Almost 60% of organizations have either no process or only an informal process to measure realization of business benefits • For 50% of companies, IT Governance was not an integral part of their organization’s corporate governance • COBIT and ITIL frameworks are used effectively by less than 20% of organizations • Over 60% of organizations felt that the emphasis on cost targets & financial success criteria were about right in their IT outsourcing contracts, however, only 41% include financial measures in assessing overall benefits delivered by the outsourcing contract at the board level • IT Outsourcing is being selectively and partially reversed by some organizations – especially in the areas of IT architecture, planning, and project management • Well over a majority of IT projects deliver on less than 75% of their business case benefits • Almost 50% of respondents reported project failure costs ranging from $500k to over $5M • Companies are starting to recognize the need and potential benefits of IT Governance and Performance • The Big Four are playing an ever increasing role in the IT Performance space • Many companies leverage outside assistance in resolving IT performance issues

5. What does Well-Managed IT look like?

6. IT Governance and Performance • IT Governance and Performance is about a structured approach to improving the management of IT as a business. IT Performance can enable an organizations ability to: • Manage IT Costs • Improving the alignment between business needs and IT operations • Improving IT Processes and Service Delivery (Control Environment and Service Quality) • Simplifying IT Compliance • There are a variety of challenges driving organizations to focus on running IT as a business: • Business unit dissatisfaction with IT (Services and/or Costs) • Increased viability of off-shoring IT operations • Disproportionate amount of IT spend is focused on supporting embedded technology • Emergence of standard IT delivery models • Continual cost & compliance pressures

7. KPMG View of IT Governance & Performance • Sample Areas of Focus: • IT Process Improvement • IT Transformation • Service Management • Cost Control • Value Management • Project Management (PMO) • Asset Optimization • Sourcing Operations • Standards & Policy Development IT Performance is a business issue that impacts a wide range of risks and issues. IT Performance IT Operations Analysis & Assurance IT Strategy Services MigrationandConversion Functional Requirements Detailed Design Development IT for Business Enablement Setting the Direction Achieving the Direction Sustainingthe Direction

8. IT Governance and Performance • ITIL – IT Infrastructure Library (www.itil-officialsite.com) • COBIT – Control Objects for Information and Related Technology (www.isaca.org) • ISO/IEC 20000 - ISO 20000 is an International standard for IT Service management. (http://20000.fwtk.org/standards.htm) • ITUP – IBM Tivoli Unified Process (http://www306.ibm.com/software/tivoli/governance/servicemanagement/itup/tool.html) • MOF – Microsoft Operations Framework (http://www.microsoft.com/technet/solutionaccelerators/cits/mo/mof/default.mspx ) • CMMI – Capability Maturity Model Integration (http://www.sei.cmu.edu/cmmi/ )

9. Contact Information Dan Manley Senior Manager IT Advisory Services KPMG LLP Suite 2300 Office 704.371.8217 401 South Tryon Cell 704.560.6127 Charlotte, NC 28202 dmanley@kpmg.com KPMG LLP is a U.S. limited liability partnership. All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.