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Your own sub headline This is an example text. Go ahead and replace it with your own text. Engaging Non-IT Executives in IT Infrastructure Decisions Presented.

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Presentation on theme: "Your own sub headline This is an example text. Go ahead and replace it with your own text. Engaging Non-IT Executives in IT Infrastructure Decisions Presented."— Presentation transcript:

1 Your own sub headline This is an example text. Go ahead and replace it with your own text. Engaging Non-IT Executives in IT Infrastructure Decisions Presented By: Meaghan Carpenter

2 Agenda Collaboration and Alignment Productivity Paradox Case Background Processes, Decisions, Strategies Questions ✓

3 Your own footerYour Logo Case Background: Insurance Co. Insurance Co.: global insurance and financial service company –Three major business units (BU) Global Technology Group(GTS)-shared IT infrastructure for Insurance Co. : Corporate and Business Units –Hardware –Network –Software –Storage –Output processing

4 Corporate Level IT Structure Your own footer Corporate Insurance Co. 1 CTO Corporate Insurance Co. 1 CTO BU 1 CIO BU 1 CIO BU 2 CIO BU 2 CIO BU 3 CIO BU 3 CIO Applications, Support, Products

5 Your own footerYour Logo Rapid Expansion and IT’s Integral Role From multiple acquisitions of different financial and insurances companies, becoming 1/20 largest ins.co Offered wide variety of products –Life insurance –Annuities –Savings products –And much more IT’s role increased in operations: defining how applications interacted with one another and providing support for the applications

6 Became CTO in 2002 Spent first four years streamlining Ins Co. infrastructure Transformed GTS into a service management organization –Adopted IT infrastructure library (ITIL) –Trained employees on project management –Strengthened governance bodies –Simplified chargeback system-transforming 125 plus products to two dozen products –Relabeled products and services into an easy to read language –Found dislocations in billing Susan Travis-Chief Technology Officer

7 2006-Benson became CIO of large BU –Application Development Group had issues Felt AD Group was quick to fulfill requests, but the business had become a “product siloed organization” “Speed over efficiency”, with multiple applications performing the same function Non-IT colleagues wanted Benson group to be more cohesive and work with GTS (IT) CIO: Alice Benson

8 Your own footerYour Logo Travis (CTO) Reported Bad News to Benson Annual bill from GTS, going to increase by $12 million. GTS undercharging due to errors Increase demand for services: $20 million dollar estimate with only a $5 million dollar budget

9 Your own footerYour Logo Issues: Managers complained they had no control over GTS or IT expenditures Weak collaboration between GTS and Large BU’s IT struggled to keep cost down with a wide range of uniquely tailored products GTS and IT infrastructure costs taking away from other projects Expensive and confusing platform –Multiple applications performing same function –Speed of development over efficiency –Limited reporting and visibility of costs and applications

10 Your own footerYour Logo Challenge to eliminate $12 million out of infrastructure costs and keep GTS costs consistent GTS composed 45% of total IT expenditures Collaboration of all stakeholders (Non-IT and IT) to manage interdependencies between applications and IT infrastructure Increase communication and visibility of costs through reporting and company wide initiatives

11 Communication Campaign: spread awareness and create a common goal Pins, buttons, coasters Recognition and Initaitives Personal letters Public Recognition ”Wall of Honor” Set a new foundation for working together Shared responsibility and accountibility for establishing and effectively using resources Achieving Collaboration

12 Your own footerYour Logo Governance Mechanisms Client Delivery Organization (CDO)-each business unit had a service desk and a relationship manager, liaison between BU and GTS Customer Relationship Executive (CRE) –position within BU that reported to CTO not CIO, each segment also had a Non-IT person representing interest Board meeting(GTS) with IT and Non IT Executives once a quarter to review initiatives, numbers, and risk Large BU Planning Board-meeting w/ key managers and BU; objective to create synergy between divisions IT Operating Council-once a month CTO and one non IT Senior Vice President discussed project sequence/status

13 Your own footerYour Logo Managing Interdependencies: Total Cost of Ownership Reports Information on how applications relate and interact with one another and the infrastructure costs (total cost) Easy analyses of info and data in a number of different formats Uncover applications they did not understand and expose unassigned applications Develop a common understanding of how applications impact the entire business Created a starting point, eliciting conversation and raising awareness Most Importantly, increased visibility, making it harder to ignore expenses and accountability

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16 Timely Accurate Relevant –To context –To subject Just Sufficient Worth its Cost What Did These Reports Provide? As we learned in Class:

17 Picture: Alignment

18 Within One Year: $20 million dollars worth of demand was met with 3.8 million Decreased ongoing costs by $14 million Reduced the following years expenditures by $7 million Increased communication and collaboration between departments and achieved platform alignment Efficient management of shared resources The Impact of Collaboration and Communication

19 Benchmark-IT investments Diversify teams and collaborate Align IT investments with overall business strategy Sustain engagement: create accountability through clear goals Strategies

20 No single organizational structure works across all companies or industries Decentralization-projects funded within functional departments Standardization-architectural and application standards throughout company Internal IT capabilities-find ways to connect across department to achieve local and platform alignment IT Organizational Considerations

21 Include Non IT Execs in IT Infrastructure Investments –Establish a common goal –Gauge impact of technology (cost/benefit analysis) –Question decisions/processes Develop internal methods/reporting –Measure return on investments ROI –Mechanism to relate applications –Develop internal feedback system Understand IT infrastructure –Pinpoint bottlenecks Management Decisions

22 Productivity Paradox

23 1) Mismeasurement of outputs and inputs. Is this needed and what do we really need? 2) Lags: payoffs not easy to determine due to learning and adjustment (current cost vs. current benefit) 3) Redistribution: technology likely to be used in different ways, making it beneficial but does not add to output 4) Mismanagement –information or technology value misallocated, undervalued, or over used Paradox: Four Explanations

24 1.Why is it important to engage Non-IT executives in IT Infrastructure decisions? a)Non IT managers are better at planning b)It is too many decisions to make for one department c)Working together will create synergy across the company increasing efficiency and decreasing costs 2.What mechanism or process was credited with helping the company the most? a)The “Wall of Honor” b)TCO Reports c)Refined vocabulary for services 3.What is the most important move a company or project group should make when working on IT project decisions and infrastructure? a)Include Non-IT Executives b)Creating governance systems c)Keep employees informed and engaged d)Create and establish a common goal Questions:

25 THANK YOU! Your Logo

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