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1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC www.thenorthpointgroup.net All Rights Reserved Maximizing.

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Presentation on theme: "1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC www.thenorthpointgroup.net All Rights Reserved Maximizing."— Presentation transcript:

1 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Maximizing The Value Of Cloud Computing Cloud Computing- Enterprise Risk to Value Assessment (CRVA) 1 Cloud is about changing the Business or Budget Model of the Enterprise at the lowest risk and highest value for performance improvement NorthPoint provides the Software that identifies the value opportunities and risk of implementation for customers preparing to evaluate Cloud as a strategic initiative.

2 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved The Research Objective  Identify the FBA’s (Fundamental Business Activities) that can be implemented in a Cloud environment  Measure via Executive – IT and Business leadership interviews  Knowledge required  Current knowledge deficit  How important each FBA is to making a Cloud implementation decision  Propensity to make a Cloud decision at this time The Business Objective  Provide a software based tool to identify the value  Risk and value TechKnowledge based assessment including the FBA’s to achieve success NorthPoint's research & software based tools to support Cloud business opportunities 2

3 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved NorthPoint’s Cloud software based tool identifies the most important business opportunities NorthPoint's Software identifies the value and risk for the Cloud Business or Budget model strategy  Completed 50 - IT and Business Leadership one hour executive interviews  What was their required knowledge scoring of ~70 elements of what Cloud can provide  Current knowledge deficit  How Important each FBA is to making a cloud implementation decision  Propensity to make a Cloud decision at this time 3  Results  Each interview provided three scores for each FBA How much information in this area do you want? How much information do you have? How much information do you need to make a cloud decision?  Knowledge from the 50 executive interviews How much information do you want – 93.7% How much information do you have – 35.1% How much information do you need to make the decision – 94.1%  Propensity to make a Cloud decision now – 21.9%  The missing knowledge is the key inhibitor as it spells risk to the organization

4 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Cloud engagement summary results 4  Completed – Eight (8) Cloud engagements with our CRVA (Cloud Risk to Value Software and Database Assessment) process  Software based tool with all of the Cloud business and budget model transformation opportunities  Risk and value TechKnowledge based assessment  Four hundred (400+) FBA’s related to changing the business or budget model of the enterprise  Customers scored each of the value opportunities for their business or budget model  Software and database captured the scoring results and identified What to do ? How to do it? What is the ROI?  The CRVA results – with 48 participants – issues and conclusions from over 400 steps, tasks and processes to design and implement a cloud strategy  Need to identify and lower the current risks in security with proof of performance  Need to improve the enterprise cost and cost structure with no security risk – priority is where there is real ROI  Need to develop the strategy of where and how to start and advance in Cloud technologies and services  Current Risk Index range from 88.7% to 94.6% - “Best-in-Class” 18.4% - represents high risk in the minds of the enterprise management  Hardware and software maintenance is not strategic and can be easily transferred to cloud

5 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Business leadership and IT / Financial leadership interests 5  Customers want to know all of what they could, should achieve from Cloud and what will the ROI be? In addition, what is the impact to the business or budget model  Customers need to know what to do and how to do it with associated risks to achieve the total value opportunities of Cloud

6 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Facilitated Stakeholder Sessions Consensus Driven Results NorthPoint analytical software enables and accelerates fact-based consensus among key decision makers Principles are … ►If the organization knows all of the required Steps, Tasks and Processes (STP’s) and executes them well…. then they can achieve a higher ROI on the Cloud investment. ►Risk with any investment is that the organization is not aware of all of the required STP’s and/or does not have the necessary KEP™ (Knowledge, Experience and Performance) to execute them. ►NorthPoint analytical process and database has the STP’s required and the level of KEP™ necessary for success NorthPoint process overview…  Step 1: Value – Risk Assessment (VRA) Session  Facilitated session with key stakeholders (1-day)  Analyze and score statements comprised of the Fundamental Business Activities (FBA’s), as well as the supporting Steps, Tasks and Processes (STP’s)  Drive stakeholder alignment through facilitator-led consensus scoring for each FBA/STP  Capture key discussion points / issues  Analytics and management report completed by NorthPoint based on proprietary “Best-in-Class” database (in< 5 days)  Step 2: Value – Risk Solution Session  Facilitated session with key stakeholders (1-day) to develop action plan / solutions from assessment results  Gain deep understanding, buy-in and follow through across the organization from collaborative methodology  Step 3: Execution and monitoring of the value – risk mitigation plan 6

7 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 1-Value – Risk Assessment (VRA) Session with the enterprise team 7 Value – Risk Assessment Session (1 Day)  Simple – 400+ statements that the business and IT organizations score  Fast - takes one day  Accurate - every statement is weighted in terms of importance to success  Value-identifies risks and value opportunities  Application architecture provides both prescriptive and predictive analytics

8 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Technology  Team experience with technology solution  Analysis / identification of what technologies to develop, acquire or license to provide solution  Team’s knowledge, experience and performance (KEP) with appropriate technology needed to provide solution Examples of Specific Risks Measured Marketing  Team’s experience in identifying and communicating value propositions required to maximize user adoption  Internal and external communication process  Project success metrics continuously monitored and communicated to stakeholders Management  Management team’s focus on financial objectives for project  Management team’s commitment to change management as part of the project delivery and implementation  Management team’s connectivity to customers / user adoption criteria  Management team’s focus on overall project risk management 8 Step 2- Value - Risk Solution Session  Team reconvenes and reviews the assessment output to identify the areas of greatest opportunities for improvement and risk by looking at the highest level Indexes.

9 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 9 Value - Risk Solution Session (1 Day)-continued  NP database calculates and benchmarks the metrics  CSP Performance – the CSP’s added value and risk of being the trusted business advisor.  Cloud KEP TM Customer / Client Readiness - the Knowledge, Experience and Performance of the client team and their readiness to move into Cloud  Cloud KEP TM CSP – the Knowledge, Experience and Performance view from the client team of the CSP.  Implementation Schedule - identifies the planned Cloud implementation schedule and the expected implementation schedule.

10 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 10 Value Risk Solution Session (1 Day) -continued  Team reviews the assessment output at the Fundamental Business Activity level to identify areas with significant performance issues (a level of detail underneath the Technology, Marketing/Communications Process and Management Indexes)  Software identifies the risk and missing knowledge  What are the areas of value opportunity and risks that the organization can immediately address? Cloud initiative assessment summary Assessment incorporates 25 FBA’s & 360+ STP’s

11 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 11 Value - Risk Solution Session (1 Day- continued)  The team can now review the assessment output at the next level of detail (in this case we are reviewing the “Business Leadership –data-information Availability Process & Performance” FBA)  For each of the major areas assessed (component level-Fundamental Business Activity scoring) there is a detailed statement with the Team’s score of the related the Steps, Tasks and Processes.  Team scoring of the Steps, Tasks and Processes is the input to the Performance Profile Score  The lowest Performance Profile Scores indicate areas with the most significant ROI’s for improvements Team score Step, Task, Process -3.00Application development processes to meet the unmet and unidentified needs of the organization -3.00Mashups architecture and technologies for important new enterprise improvements including shareable micro-applications is part of the enterprise strategy Technology and business process improvements are part of the enterprise cloud strategy and are resilient, complete and measureable -2.00Business process improvement from the cloud offerings has been endorsed and has been or will be implemented by the enterprise leadership 0.00Value based metric benchmarks for the software and associated technologies are available and effective in their performance 1.00There is an effective process to identify missing critical knowledge and assuring its availability, accuracy, synchronization and reliability to the right person at the right time, right quality and reliability

12 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 12 Team score Step, Task, Process -3.00Application development processes to meet the unmet and unidentified needs of the organization -3.00Technology and business process improvements are part of the enterprise cloud strategy and are resilient, complete and measureable -2.00Business process improvement from the cloud offerings has been endorsed and has been or will be implemented by the enterprise leadership 0.00Value based metric benchmarks for the software and associated technologies are available and effective in their performance 1.00There is an effective process to identify missing critical knowledge and assuring its availability, accuracy, synchronization and reliability to the right person at the right time, right quality and reliability Value - Risk Solution Session (1 Day- continued)  The team can now identify the prescriptive performance opportunities for each Step, Task and Process  Leaders are identified to address the areas of low performance. The Steps, Tasks and Processes in conjunction with the notes recorded in the software from the facilitated session (scoring of the statements) provides the knowledge required to commission the teams. The process developed the current unmet and unidentified needs of the enterprise in order to take advantage of the cloud capabilities. Eighty percent of the customer’s scored 44-54% on the identification of the unmet needs and 37-44% on the unidentified needs in the assessment process. Business process resiliency was scored as a 86% need and current performance scored at 34%. The assessment process showed that in the business leadership team there is a commitment to these options in cloud with over 70% of the leadership team saying it was important and they wanted to take advantage of the options. The assessment process identified that over 80% of the current benchmarks are unreliable. The process to identify the missing critical knowledge was scored at less than 20% and the need was scored at over 87%.

13 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 13 Value - Risk Solution Session (1 Day- continued)  The team reviews the scoring of the most important value propositions Value Proposition Assessment summary

14 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Value - Risk Solution Session (continued) 14 Value - Risk Solution Session (1 Day- continued)  The team reviews the scoring of the most important buying criteria Buying Criteria Assessment summary

15 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 3- Execution and monitoring of the value - risk mitigation plan 15 Execution (75-90 Days)  The Value - Risk Mitigation Plan is executed  Teams report regularly on progress  Benchmarks to “Best-in-Class”  New value is implemented  Risk is mitigated Improvements can be measured, goals identified and performance predicted based on “current course and speed” of the Fundamental Business Activities and the Steps, Tasks and Processes.

16 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Value of using this process  Identify all of the possible value propositions  Identity and measure the most important (highest scored by market segment) value propositions (22 possible)  Identify and measures the Buying Criteria – i.e. risks to the organization  Strategy content for the organization  ROI for business model / budget model improvements ranged from %  Competitive advantages of the options  Cost improvement opportunities of 6.6% % for SaaS in the first 18 months  Speed, costs and risk of bringing up applications  Remission IT – How to use IT effectively and efficiently in this new environment  Streamlining the infrastructure due to SaaS, PaaS and IaaS  Provide all of the STP’s (Steps Tasks and Processes ) and capabilities required to implement a cloud offering.  Business models for the organization  Fundamental changes to the business and budget model identified (improvement opportunities range from 26-36%)  Resilient business process for Cloud Computing environment  IP issues and leakage  Security – enterprise to IT, to personnel  Identify risk in achieving all of the value of Cloud Computing 16


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