Improve Business Values Through IT Alignment

Your Product Quality and Safety. Assured. 2013 SgT Group. All Rights Reserved. 1
Improve business values and
efficiency by IT
Liven Varghese
IT Director , SgT Group
www.sgtgroup.net
Your Product
Quality & Safety
Assured.

Improve business values and efficiency by IT
 Cost and investment center
 Don’t know business
 Biggest bottle neck of company
 Speak only technical language
 Sacrificing department
 Support center
What does IT means to executives?

Important issue for IT Heads
71
62
52
45
40
0 10 20 30 40 50 60 70 80
CEO/CFO demanding better ways to demonstrate value
Find it difficult to calculate ROI
Executives "skeptical" of ROI from IT
Metrics don't adequately capture business value
Do not measure business value from IT investments
% of respondents
Source : IVI

How we measure business values?
 Revenue
 Profit margin
 Market share
 Return on investment
 Shareholder value
 Organization efficiency
 Quality
 Customer satisfaction
 Market penetration
 Employee retention
Financial Operational

 Revenue
 Profit margin
 Market share
 Quality
 Re defining IT
How IT can improve business value?

Re defining IT = Aligning IT with business
 IT is the foundation for doing business
 Minimize / close the gap between business expects and what IT
delivers
 IT - business value enabler
 IT – powerful catalyst for change in business
 Service provider with partnership management
“ Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one
without the talking about the other.”- Bill Gates
Business-IT alignment is a dynamic state in which a business organization is able to use
information technology (IT) effectively to achieve business objectives - typically improved
financial performance or marketplace competitiveness.
Business
IT
DRIVES
ENABLES
Alignment

Alignment process
Aligning people
Alignment flavors
Understand the business

Alignment process
 Business process – formal and informal
 Acknowledge the culture
 Awareness of your future business
 Business managers communication
Aligning people
Alignment flavors

Strategic alignment
 Determine IT value imperatives
 Technology empowering business strategies
 “Can do “ versus what it “might do”
 Matching – Organization capabilities , opportunities , risks,
goals
 Enhance the awareness of IT values
 Operational –to - Strategic
Aligning people
Alignment flavors
Infrastructure alignment
 Reliability , performance ,security
 Partnership management – best sourcing strategies
 IT process frameworks , performance metrics, SLA’s
 IT estate and discover the value chains
Alignment process

Alignment process
 Critical factor in alignment
 Involvement of right peoples
 Domain knowledge IT
leadership
 Different set of skills and
competence.
 Communication
 Execution of alignment agenda
Aligning people
Alignment essence

 Revenue
 Profit margin
 Market share
 Quality
 Re defining IT
 Business transformation by IT
How IT can improve business value?

IT enabled Business transformation = IT Business integration
Business transformation into value level by 3 “I”‘s.
Improvement Informative Innovative

IT Business integration
Involvement of IT into other business function areas.
IT
 Business process improvement and Optimization –
automation , standardization , model of visualization,
Competitive advantage
 Employee efficiency & smoother transition
 Quantify the returns – reflects cost (ROI)
 Improvement
Costs
Risk
Customer Complaints
Manual efforts
Redundancy
Process Conflict
Employee Stress
“ IT is a value driven center”

 Informative
 Power of Business analytics - technology + information
 Big Data – megatrend in transforming business
 Power of IT in business analysis , digital marketing
 Leads to Smart Organization
 Leverage data more on supply chain than a warehouse
 Data scientist – comes from IT
Information
Technology
Business analytics
Performance indicators
Actionable insights
Business planning
Opportunities
Business Intelligence
(What’s has happened)
Forecasting
(What will happen)
Prediction
(What could happen)
Optimization
(What’s the best path)
Increasing Business Value
Types of Business Analytics
Make the transition from Support partner to Strategic partner

 Innovation is not based on technology nor invention
 Applying correct technology and adapt mega trends
 Globalization & Mobility
 Develop and execute end – to –end innovation process
 Drive the creation and management of innovation process
 Execute the innovation process
Ongoing
operations
Results Assessment
Strategic
challenge
Ideas Innovation funnel Value
 Innovative
“More strategic “ – “ add value” - be an innovative unit in business

 Business value enabler – aligning IT with business
 Transform IT from support partner to strategic partner
 IT be a value driven center
 Role of IT heads in driving business strategy.
 IT leaders – trusted business leader
 Customer – obsessed IT organization
 Utilization of trends and technology – be an innovative unit in business
 Agility , flexibility , optimization – stay competitive
 Turn crisis to opportunity and bring values to business
IT - Key partner in Business
IT – “ largest single influence on organizational architecture and design”

Your Product Quality and Safety. Assured.
www.sgtgroup.net
Mail : liven.varghese@sgtgroup.net
www.livenvarghese.com
Mail : liven.varghese@gmail.com
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Improve Business Values Through IT Alignment

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