Presentation by Prashanth Naidu at SVPMA Monthly Event August 2012: Approach to measure benefits of product investments and using that as a competitive advantage. Click below for details notes from the event: http://svpma.org/2012/08/august-2012-event/

1. BENEFITS REALIZATION:
THE COMPETITIVE
ADVANTAGE
PRASHANTH NAIDU
AUGUST 1, 2012
1 © 2011 Hitachi Data Systems. All rights reserved.

2. INTRODUCING HITACHI DATA SYSTEMS
Ranked # 140 for Innovation in 2010
 Formed in 1989 as a subsidiary of Hitachi, Ltd. (NYSE: HIT)
 Direct and indirect sales in 100+ countries and regions
 5,000+ employees, worldwide
 Focus: Information technologies, services, & solutions
 Recognized industry leader
Excellence in Customer Service Awards
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3. PHILOSOPHY ON GOALS AND PRIORITIES
Life Example
School
Job
Work Example
Corporate Success
Schedule
ROI
Cost
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4. PORTFOLIO MANAGEMENT IS STRATEGIC
Strategic Benefits
 Governance: Alignment Measurement
Business council  Governance:
Are we Executive
 Tools: Portfolio, Are we
doing the getting Council
Business case
right measurable  Tools: Value
things? value? maps, Program
metrics
Are we Are we
doing them getting  Governance:
 Governance: the right
Release them done? Project Steering
way? Committee
Management
Council Architecture Project  Tools: Status
 Tools: Project and Approvals Efficiency reports, Project
gate checklist time system
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5. PORTFOLIO MANAGEMENT IS PROCESS
1. New
Request
2. Proposal
Collect
Metrics
3. Council Approval
4. Investments
6. Closed
In Flight
5. Steering
5 Committee Review

6. GOVERNANCE MODEL IS KEY
 Review business cases;  Set priorities and
approve/reject projects guidelines; approve or
 Funding: external spend reject projects
Strategic for projects  Funding: cross functional Benefits
Alignment  Members: business unit and large investments Measurement
leaders  Members: executives
 Meets: Monthly  Meets: Quarterly
Business Executive
Council Council
 Review gates and  Review project health
deliverables and new projects
 Members: project  Funding: internal
Architecture managers, support initiatives Project
Approvals staff, architects  Members: department Efficiency
 Meets: Weekly heads
 Meets: Weekly
Release
Steering
Management
Committee
Committee
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7. FOCUS ON MEASUREABLE RESULTS
Executive Directive
 Ensure all investments document measurable benefits
 Present all approved investments to the Executive Council
Benefits Quantified
 Revenue Growth ($)  Revenue Impact ($)
 Cost Savings ($)  Cost Avoidance ($)
 Productivity Savings ($)
Benefits Measurement
 Metrics designed to measure benefits after deployment
 Ownership and frequency defined for metrics collection
 Benefit measurements compared against business case
 Results reported back to executives and stakeholders
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8. DELIVER VALUE THROUGH METRICS
ACCURATE &
CONSISTENT VALUABLE
Metrics
• Business cases • Marketing campaigns
• Product and • Revenue/Cost • Customer newsletters
Resource plans savings delivered • Sales meetings
• Weekly status Cost and Schedule • Internal all hands
reports variances meetings
• Product specs • Customer satisfaction • Executive committee
• Time keeping ratings briefings
systems • Productivity savings
• Customer surveys
Data RELIABLE Message
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9. USING METRICS TO DIFFERENTIATE
In a competitive environment, meaningful differences
between similar products or services are best
determined by using metrics.
Appearance alone
is not enough to
Specifications are valuable, determine value
but may not always tell the
whole story
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10. MEASURING BENEFITS – NEW CRM DEPLOYMENT
EXAMPLE SCENARIO #1: DEPLOY NEW CRM PRODUCT AND COMPARE
BUSINESS OUTCOMES BEFORE AND AFTER DEPLOYMENT
Business Outcome Description Target
Sales Orders Booked Number of customer orders processed 25%
and revenue booked Increase
Order Processing Time Time taken for leads to be converted into 20%
booked orders Decrease
Lead Conversion Rate Percentage of leads converted into 15%
booked orders Increase
Business Outcome Baseline Target Actual
Sales Orders Booked 1000 25% Increase = 1250 1500
Order Processing Time 30 days 20% Decrease = 24 22 days
Lead Conversion Rate 20% 15% Increase = 23% 25%
10 The data displayed here is for informational purposes only and does not represent actual business results.

11. MEASURING BENEFITS – CRM ENHANCEMENT
EXAMPLE SCENARIO #2: DEPLOY ENHANCEMENTS TO EXISTING CRM
PRODUCT AND COMPARE METRICS BEFORE AND AFTER DEPLOYMENT
Metrics Description Target
Number of Clicks Number of mouse clicks required to price 5 clicks
an order in the CRM system
Processing Time Time to create a customer quote using the 15 minutes
CRM system
Metrics Baseline Target Actual
Number of Clicks 20+ clicks 5 clicks 5 clicks
Processing Time 25 minutes 15 minutes 5 minutes
11 The data displayed here is for informational purposes only and does not represent actual business results.

12. MOBILE APPLICATION: VALUE MAP
Faster Response to Increased Customer
Customer Inquiries Satisfaction
Real-time Access to
Sales Information
Increased Sales Rep Increased Booked
Productivity Savings Orders
Sales Mobile
App Released
Reduced Calls for Decreased Sales
Sales Support Center Support Cost
New Sales Capability
Created
Increased Innovation
Maximize Use of
Mobile Technology
Increased Brand
Recognition
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13. PRODUCT DELIVERY MATURITY: LEVELS 1 & 2
LEVEL 1: CHAOS
 Late
 Over budget
 Outcomes are unpredictable
 Unhappy customers
LEVEL 2: REPEATABLE
 Certain level of
unpredictability
 Issues and risks still
unacceptably high
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14. PRODUCT DELIVERY MATURITY: LEVELS 3 & 4
LEVEL 3: DEFINED
 Efficient
 Fairly adaptable to changing needs
LEVEL 4: MANAGED
 Creative
 Fully adaptable to changing needs
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15. PRODUCT DELIVERY MATURITY: LEVEL 5
LEVEL 5: OPTIMIZED
 100% On time delivery
 100% Customer satisfaction
 100% Efficiency in processes
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16. IN CLOSING…
 If you try to please everyone, you will fail!
 Keep things simple – the more complicated it gets, the
less adoption we see
 Follow the 80/20 rule – realize 80% benefit with 20%
investment
Learn from the past, Enjoy the
Set vivid, detailed goals for the future, Work journey and
and live in the only moment of Smart have fun
time over which you have any control
…… Now! – Denis Waitley
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