IT Strategy – a greyhound or a rocket powered beagle?

1. IT Strategy – a greyhound or a rocket powered beagle? Rod Clarke

2. Greyhounds and rocket powered beagles…. • An ill thought out e-commerce strategy is a bit like strapping a beagle to a rocket and entering it in a greyhound race….. • You’ll get a brilliant start, but things will get really messy when you hit the first corner. • Colin Statter, • (ex) Internet Services Director, • Corporate Express

3. An IT Strategy – some key elements • Driven by clearly articulated business strategy – the value disciplines plus… • Written for real people not techies • Focus on: • Business processes to deliver business strategy - first • Application software to support business processes – and only then… • Hardware and networks to support software • About a 5 year horizon, but “rolling” • Agreed by, owned by, and monitored by, the business

4. Value Disciplines

5. An IT Strategy – the tests… • Is your IT strategy… • Written in Plain language • Focused on the business needs • Understood at Board level • Flexible, yet precise • Affordable • Referred to as decisions are made • Reviewed and updated regularly as business and technology changes Does it pass the “PO” test?

6. Evolution of an organisation HIGH Connected Technology, People and Processes joined-up. I T I M P O R T A N T C E “Computerised” Highly automated environment Controlled Failures in operations are very rare, being eliminated Co-ordinated. Operations and processes perform as expected most but not all of the time. Chaos Manual Environment; lack of processes; informal ; “entrepreneurial”; constant change of direction. LOW

7. A coherent systems map “E-enabled” Customer and suppliers connected on the web, all processes computer controlled, and well managed. Connected Technology, People and Processes joined-up. Everywhere Planning, Manufacturing Execution, CRM, Warehouse automation. “Computerised” Highly automated environment Much Integrated ERP system, Planning and performance measures Controlled Failures in operations are very rare, being eliminated Some Production control, and spreadsheets Co-ordinated. Operations and processes perform as expected most but not all of the time. None Chaos Manual Environment; lack of processes; informal ; “entrepreneurial”; constant change of direction.

8. Rules on IT Strategy • Do not computerise the uncontrolled • Do not use systems and processes one level up for a level further down • Do-not e-enable the “chaotic” • Do-not automate before you have control • Walk up the steps

9. Quality Data People Measures Improvement Vision Strategy Prioritisation Demand Supply Innovation Support The Delos ModelFor Business Integration

10. A IT Systems Map Quality Data HR Systems Data Warehouse Statistical Process Control PDM Vision Strategy Optimiser CRM/SFDM APS/MPS PERT AP/AR/GL

11. CRM SFDM APS MPS PERT PDM Customer Relationship Management Sales Forecasting and Demand Management Advanced Planning System Master Production Scheduling Project Evaluation Technique Product Data Management The Acronyms

12. Business Scenarios Business Principles IT Principles How to build an IT Strategy Desired End State Do-wells Strategic Imperatives Gap Analysis Business/IT Strategy Action Plans • DELIVERING: • Technology as the outcome, not as the start point • Clear time phased action plans and priorities • Ability (and willingness) to pay • Organisational implications

13. IT Solution IT Principles Business Strategy How not to build an IT Strategy Undesired End State Gap Analysis/ IT Strategy Business Strategy/ Company direction • DELIVERING: • Technological Solution in search of a business problem • Short-term reaction to IT Development • Insufficient funds to complete technological improvements • Dysfunctional organisation

14. Developing an IT Strategy • Carry out an independent evaluation of your current state • Conduct an up to date view of best practice and latest technology • Get an independent review of the market – hardware, software and support • Create a planned and controlled process to fit the IT solution correct for Business • Establish a business led process to implement

15. Sources of help for strategy • “Strategic” consultancy • Accenture • Cap Gemini • IBM • “Specialist IT” consultancy • IBM • CSC • Software or Hardware Vendor • IBM • HP • SAP • Oracle

16. Rod Clarke • 20 years in Life Sciences - ICI Agrochemicals, Zeneca Agrochemicals, Glaxo Wellcome • Business, not IT, background • Manufacturing and Supply Chain Management focus • MRPII Project Lead in ICI UK and USA • MRPII Class A at ICI • CIO for Global Manufacturing & Supply at Glaxo Wellcome – the SAP decision • Founder member of the Delos Partnership Limited January 2003

17. Wherever you go…. • You need someone who is: • Truly independent • Understands your business issues • Can talk to the business without mention of bits and bytes • Has experience of IT in a Business Excellence environment Rod Clarke The Delos Partnership Limited +44 (0)1473 414512 +44 (0)7801 063006 rodclarke@delospartnership.com