Balancing Supply and Demand in IT

1. Balancing Supply and Demand in IT Compuware Corporation August 22, 2007

2. Agenda • Delivering Business Impact • Supply and Demand • A Balanced Approach • Compuware Changepoint

3. Delivering Business Impact

4. Business-centric ITHarnessing technology for maximum business impact

5. Law of Supply and Demand IT Demand—requests for IT projects and services generated by business units IT Supply—projects and services IT provides the business Supply and Demand Price Demand Supply Equilibrium P* Quantity Q*

6. Manage Demand for IT Services

7. Supply and Demand Through an Integrated Solution • Manage business demand and customer satisfaction using a defined and repeatable approach • Collaborate with business counterparts using a transparent decision-making process • Obtain visibility into the entire IT portfolio

8. Portfolio Decision Making Plan and set expected costs of IT services delivered

9. IT Demand Management • Manage and prioritize business-driven requests effectively • Strategic demand: Formal evaluation and prioritization of requests • Operational demand: Less-formal evaluation of day-to-day requests • Communicate IT value in business terms • Align with corporate objectives • Financial assessment Demand Management

10. Business Initiative ProjectsStrategic demand Use consistent, defined criteria for investment decision making across business units Demand Management

11. Routine Work RequestsOperational demand • Manage expected demand more effectively • Automate business processes for demand fulfillment Demand Management

12. IT Supply Management • Optimize business processes for demand fulfillment • Improve efficiency of IT services delivered • Complete projects on time • Reduce costs • Increase client satisfaction • Assess the availability and skill sets of resources Supply Management

13. Obtain visibility into resource availability Optimize the allocation of resources across all demand Resource Management Supply Management

14. Project Portfolio Management Use defined criteria to measure and assess IT activity and ensure ongoing alignment Supply Management

15. Client Satisfaction Increase client satisfaction through: • business alignment • increased business value • execution excellence Supply Management

16. Business Value Balance Supply and Demand • Reliable delivery • At risk for poor alignment • Resource-driven approach to decision making • Business-centric IT management • Balanced criteria for decision making • Focused on overall IT performance management Efficiency in Supply Management • Inherent conflict • Tactical/cost cutting • Lack of credibility with business • Highly collaborative with business • At risk for over-committing • Financial approach to decision making Effectiveness in Demand Management

17. More predictable and manageable IT services IT resources are more strategically allocated Increased value (from both an IT and business perspective) Effective decision making Efficiency of IT services Increased credibility within the IT organization Business value realized IT becomes more strategic and integral to drive competitive advantage and innovation Balanced Supply and Demand Benefits “Organizations that are switchingto the demand-supply modelenjoy significant gains inproductivity and prioritizationof investments.” McKinsey Quarterly, September 2006,“Splitting Demand From Supply in IT” by David Mark and Diogo P. Rau

18. Changepoint Value • Enables IT executives to take a balanced approach to the efficient management of IT supply and effective management of business demand • Delivers business-centric IT management • closed-loop demand management • portfolio management • project and resource management • value transparency • Maximizes business value • enhanced IT performance • improved relationship between IT and business leadership • closer alignment of resources and activities with the business strategy • increased responsiveness to changing business needs • more effective life-cycle management of the entire IT portfolio

19. Questions