1. Delivering Transformation. Together. IT Asset Management Optimalisere IT Cost Mads Myrvoll, 30. juni 2016 mdm@soprasteria.com

2. Asset Management 2

3. OVERVIEW 3 1 Strategic importance of IT Cost Transparency / IT Asset Management 2 Introduction to TBM 3 How to start a TBM journey 4 Recommondations

4. Business Priorities IT Priorities Digital First Strategy | Market Expansion | Strategic Acquisitions | Business Agility | Talent Acquisition Infrastructure Modernization | Service Delivery | App Rationalization | Cloud Migration | Vendor Consolidation MANAGE COST & PLAN INVESTMENTS MAKE TECHNOLOGY DECISIONS Today’s IT Leadership – What We Hear From Customers DELIVER MORE INNOVATION SHOW VALUE TO BUSINESS

5. HR HRM Marketing RPM Sales CRM Finance ERP TBM is How IT Leaders Manage Their Business IT TBM “TBM shifts focus from tech cost to value for continuous improvement.”

6. 6 @apptio TBM is How IT Leaders Manage Their Business Manage the Work & Operation of IT Manage the Business of IT with Data, Analytics & Processes ERP/FINANCE SERVICE MANAGEMENT 3 rd PARTY BILLING GENERAL LEDGER SERVICE MANAGEMENT PROJECT MANAGEMENT ASSET MANAGEMENT BILLS & INVOICES OPERATIONS MANAGEMENT AUTOMATIONMONITORING Cost Basis Feeds Operational Data Feeds Billing Data Feeds TECHNOLOGY BUSINESS MANAGEMENT Cost Transparency Benchmarking Showback/ Chargeback Business Insights Planning

7. Where Do You Start?  Accelerate your transition to shared services or IT services  Drive cloud adoption  Target workloads to migrate to external cloud providers  Make informed strategic sourcing decisions  Broaden accountability for cost and business alignment  Accelerate your transition to shared services or IT services  Drive cloud adoption  Target workloads to migrate to external cloud providers  Make informed strategic sourcing decisions  Broaden accountability for cost and business alignment  Connect your planned dollars to IT deliverables  Get instant insight into budget, variance and forecasts  Continually align to changing business priorities  Improve budget owner accountability  Reduce the effort and time  Connect your planned dollars to IT deliverables  Get instant insight into budget, variance and forecasts  Continually align to changing business priorities  Improve budget owner accountability  Reduce the effort and time  Know your infra, labor, projects, cloud & vendor cost drivers  Use App TCO to identify the cost of redundant or dated apps  Show cost & consumption in a way the business understands  Provide levers and choices to the business  Shift RTB to CTB  Know your infra, labor, projects, cloud & vendor cost drivers  Use App TCO to identify the cost of redundant or dated apps  Show cost & consumption in a way the business understands  Provide levers and choices to the business  Shift RTB to CTB  Drive efficiency by exposing cost of unused capacity  Correlate asset TCO, age, and support to justify investment  Assess HW, SW, vendor, labor and cloud alternatives  Right size infrastructure to match application needs  Find outliers among cost trends and peer benchmarks  Drive efficiency by exposing cost of unused capacity  Correlate asset TCO, age, and support to justify investment  Assess HW, SW, vendor, labor and cloud alternatives  Right size infrastructure to match application needs  Find outliers among cost trends and peer benchmarks OPTIMIZE cost & investment PLAN efficiently and predictably TRANSFORM your IT business UNDERSTAND & Communicate IT Value How IT Gets Value from TBM

8. Where do You Need Better Cost Transparency?  What is driving labor costs by role, location?  How are we doing against our staffing plan?  Where are we using our staff? LABOR  Where are data gaps, duplicates, invalid values?  Where are our cost blind spots?  Which data from what systems don’t line up? DATA QUALITY 110010 011001 010110  What types of vendors are we spending most on?  Are we leveraging preferred providers?  How are we doing against spend targets? VENDORS  What is driving the costs of our top 10 apps?  What are project vs. run costs for these apps?  What are cost levers for reducing cost of this app? APPLICATIONS  What is our TCO for different compute services?  What is driving the cost of our database service?  How do our IaaS costs compare to Amazon’s? SERVICES  Which costs are within our control?  Where are largest sources of plan variance?  What is driving plan variance? SPEND  What is driving our run costs?  What’s our cost per GB of Tier 1 storage vs. peers?  Are we trending toward greater cost-efficiency? IT TOWER  How much are we investing for innovation?  How are we performing against project KPIs?  Which projects are exceeding planned resources? PROJECTS  How much is storage driving the cost of this app?  What is cost of large VMs with non-critical apps?  Where do we have infra on “retired” apps? INFRASTRUCTURE DETAIL  What is our investment level per BU?  What does it cost to deliver these apps to this BU?  Where do we spend the most per employee? BUSINESS UNITS  What is driving the total cost of our cloud use?  How much of which services are we consuming?  Is public cloud use affecting cost variability? CLOUD IT FINANCE IT EXECS APPS & INFRA BUSINESS 8

9. What can YOU DO with Better Cost Transparency?  Consolidate vendors  Arm for negotiations  Align vendor spend to portfolio strategy VENDORS  Accelerate staffing decisions  Adjust mix of internal vs. outsource  Manage mix of onshore vs. offshore LABOR  Identify areas for data, process improvement  Reduce management blind spots  Improve IT business visibility over time DATA QUALITY 110010 011001 010110  Drive business value-based conversations  Evaluate on-prem cost vs. SaaS  Rationalize applications APPLICATIONS  Manage cost of shared services  Influence demand for different service offerings  Accelerate cloud migration decisions SERVICES  Drive fact-based tradeoff conversations  Influence business consumption  Collaboratively prioritize investments and resources BUSINESS UNITS  Improve forecasting accuracy  Manage spend to budget or forecast  Shift to variable spend to scale with demand SPEND  Demonstrate efficiency to justify investment  Drive IT behavior change through measurement  Influence app teams’ choice of infra IT TOWER  Reign in runaway projects  Manage spend to budget  Align investment to innovation goals PROJECTS  Align storage tier to app type  Align virtual server size to app type  Consolidate servers and storage INFRASTRUCTURE DETAIL  Control public cloud sprawl  Manage cloud adoption  Understand how cloud fits your hybrid IT business CLOUD IT FINANCE IT EXECS APPS & INFRA BUSINESS 9

10. TBM Adopters in Every Industry RETAIL AEROSPACE MANUFACTURING INSURANCE FINANCIAL SERVICES INTERNET / MEDIA ENERGY CONSUMER GOODS PUBLIC / EDUCATIONHOSPITALITY TRANSPORT/LOGISTICS TELCO HEALTH / LIFE SCIENCE HIGH TECH

11. Christopher Furst CIO Univision Communications Larry Godec SVP & CIO First American Financial Sunny Gupta CEO Apptio Guillermo Diaz SVP & CIO, IT Cisco Ralph Loura CTO Rodan + Fields Greg Morrison SVP & CIO Cox Enterprises Tom Murphy VP, IT & CIO University of Pennsylvania Jim Scholefield CIO Nike Phuong Tram CIO DuPont George Westerman Research Scientist MIT Center for Digital Business Debra Bailey CIO Nationwide Building Society Mike Dreyer Former CIO Visa Brian Adams CIO WorleyParsons Mike Brown IT Vice President ExxonMobil Jim DuBois CIO Microsoft Michael Neff Chief Managing Director & CIO RWE AG TBM Council Board of Directors Collaboration | Education | Standards The TBM Council is a non-profit organization dedicated to advancing the discipline of managing the business of IT 2,200+ Members 45% CXOs 40% I&O and Finance TBM Community Mike Brady Global CTO AIG James LaPlaine CIO AOL John Bruno EVP, Ent. Innovation & CIO Aon Anil Cheriyan EVP & CIO SunTrust Banks

12. Your IT Finance Function How Do You Manage Costs Today? IT as a corporate expense 1. Current state? 2. At what layers do you report and manage technology costs? Annual allocation to BU With showback? Chargeback/cost recovery Consumption-based? A BC Order Fulfillment, Risk Management, Global Sales, & Service… Wintel, UNIX, Tier 1 Storage… Actuals vs. Budget or Estimate Hardware, Software, Labor… Cost Centers & Accounts Application Hosting, Messaging, Print Services… 3. Where can you improve transparency and efficiency? Oracle General Ledger… Servers, Storage, Data Centers, Application Development, Help Desk… Applications Business Capabilities IT Products General Ledger Cost Pools Finance Business IT Services TowersProjects

13. Your Operating Model How Are You Structured Today? Tomorrow? IT helps the business choose services, including internal, cloud, and outsourced, and manages the mix IT publishes a service catalog to the business; service owners accountable for cost and quality IT org focused primarily on availability and performance of technical functional areas TECHNOLOGY PROVIDER ServersStorage NetworkApplicationsSupport SERVICE PROVIDER ServersStorage NetworkApplications Email Service Collaboration Service SAP Financials Service SERVICE BROKER & MANAGER ServersStorage NetworkApplications Email Service Provider 1 (cloud) SAP Financials Provider 2 (on-prem) Payroll Provider 3 (BPO) Credit Check Service Provider 4 (hybrid) A B C

14. Organizational Considerations Who Would Own IT Cost Transparency iniatives ? Who Would Benefit? Which processes could benefit from faster data consolidation? Better analytics? QBRs Monthly BU Reviews Ops Reviews Quarterly Forecasts Monthly Variance Month-End Close Portfolio Reviews Annual Plan Project Financials Vendor Management Capacity Owner? Key stakeholders? Procurement OFFICE OF THE CIO  Reduce RUN, defend GROW, increase TRANSFORM  Demonstrate business value, financial stewardship  Drive alignment on performance against strategy INFRASTRUCTURE & OPERATIONS  Justify investments and optimize for demand  Drive cost accountability to operational leaders  Promote standards for simplicity and agility BUSINESS RELATIONSHIPS MGMT  Convey value  Defend IT costs  Change behavior with cost/quality tradeoff IT FINANCE  Drive financial accountability  Explain and defend allocations  More analysis, less data manipulation STRATEGY & PLANNING  Optimize portfolios  Focus on unique advantage  Drive accountability to plan

15. Opportunities for Value Where Could You Accelerate Outcomes with Better Analytics? Transformational TBM Impact?  Demonstrate business value  Influence business demand  Create a performance-based culture  Improve management data & processes  Budget & procure per expected demand  Align RTB/CTB budget for innovation  Aligned fixed/variable structure for financial agility Specific Focus Area?  Accelerate existing process (cost reporting, chargeback, project financials, budgeting)  Manage virtual sprawl, consolidate servers  Reclaim storage, match tier to biz need  Migrate workloads to cloud  Justify technology refresh & investment  Consolidate vendors, negotiate contracts  Adjust internal & contract labor mix  Manage rates & recover costs Current Strategic Initiative?  Cost reduction  Application rationalization  Datacenter consolidation  Outsourcing / Insourcing  Shared services transition  Infrastructure modernization  Others? What consolidated/correlated information would accelerate those outcomes? COST UTILIZATION CONSUMPTION DEMAND

16. Cost Transparency Every Business Expects PRODUCTS CUSTOMERS FOUNDATION What is driving the total costs of products we provide? How much are our customers buying? What is driving the cost of what we do? Biz FunctionsProjectsVendors LaborTotal Spend Contractors 16

17. Cost Transparency for the Business of IT 17 ProjectsVendors Labor Business Units Data Quality 110010 011001 010110 ServicesApp Portfolio APPLICATIONS & SERVICES BUSINESS UNITS FOUNDATION IT COST TRANSPARENCY What is driving the total costs of products we provide? How much are our customers buying? What is driving the cost of what we do? Spend Cloud App Total Cost IT Towers

18. © 2015 Apptio, All rights reserved 18

19. ATUM TM Cost Categories in Foundation © 2015 Apptio, All rights reserved 19

20. ATUM TM Cost Categories in Apps & Services © 2015 Apptio, All rights reserved 20

21. © 2015 Apptio, All rights reserved 21 Definitions – Services Used to manage the entire Lifecycle of all Services, and includes three Categories: Service Pipeline (proposed or in Development); Service Catalog (live or available for Deployment); and Retired Services 1 A database or structured document with information about all Live IT Services. The Service Catalog is the only part of the Service Portfolio published to Customers, and is used to support the sale and delivery of IT Services 1 An organizing taxonomy or hierarchical list of IT Service Offerings Mmaintains the taxonomy and attributes of services for reporting and analytics 1. Source: Pink Elephant Service Library Service Catalog Service Taxonomy Service Portfolio

22. © 2014 Apptio, Inc. All rights reserved. 22 Service Library Hierarchy Hierarchy 1. Service Type 2. Service Category 3. Service 4. Service Offering Example  End User Services  Client Computing  Traveling Workspace  Ultraportable Laptop Standard categories Customer specific modifications © 2015 Apptio, All rights reserved 22

23. APPLICATIONS & SERVICES BUSINESS CAPABILITIES IT TOWERS & SUB-TOWERS END USER SERVICESTECHNOLOGY SERVICES APPLICATIONS / BUSINESS FACING SERVICES COST POOLS Communication & CollaborationConnectivityClient Computing Collaborative Workspace Conferencing Email & Calendaring Messaging Phone & Voicemail Fixed Workspace Mobile Workspace Virtual Workspace Cop/Print/Fax/Scan Network Access Remote Access © 2015 Apptio, All rights reserved 23

24.  Desktop Video  Audio Conference  Live Event Broadcast  Telepresence  Video Conference Room  Social Communities  Internal Collaborative Workspace  External Collaborative Workspace  Public Shared Folder  Instant Messaging  Unified Messaging  Standard Personal Mailbox  Premium Personal Mailbox  Group Mailbox  Application Mailbox  Work analog phone and voicemail  Work VOIP phone and voicemail  Home office phone and voicemail  Mobile phone and voicemail  Pager Conferencing Collaborative Workspace Messaging Email Phone & Voicemail  Standard Desktop  Virtual Desktop  Developer / Power User Workstation  Virtual Developer Workstation  Shared Workspace  Standard Laptop  Ultraportable Laptop  Tablet  Standard Smart Phone  High-use Smart Phone  BYOD Activation  Copy/Print/Fax/Scan  Wireless (may include with Desktop service)  Hotspot  Aircard (may include with Laptop service) Basic Workspace Technical Workspace Shared Workspace Traveling Workspace Copy/Print/Fax/Scan Network Access Remote Access 24 Service Library – End User Services End User Services Client Computing Connec- tivity Communication & Collaboration End User Services Port- folio Svc. CategoryServiceService Offering Port- folio Svc. CategoryServiceService Offering

25. APPLICATIONS & SERVICES BUSINESS CAPABILITIES IT TOWERS & SUB-TOWERS END USER SERVICESTECHNOLOGY SERVICES APPLICATIONS / BUSINESS FACING SERVICES COST POOLS IT Professional ServicesHosting ServicesApps & Integration Program & Project Mgmt Business Process Mgmt Enterprise Architecture Service Desk Deskside Service Governance, Risk & Compliance App Design & Development SaaS Integration System Integration Application Testing Application Hosting Web Hosting as a Service Platform as a Service Database as a Service Compute as a Service Storage as a Service Connectivity as a Service © 2015 Apptio, All rights reserved 25

26. Service Library – Other Services © 2015 Apptio, All rights reserved 26 Apps. & Integration IT Professional Services Hosting  Original Development  SaaS Integration  Application Support  Quality Assurance  Program & Project Mgmt.  Business Process Mgmt.  Enterprise Architecture  Service Desk- Regular Business Hours  Service Desk- After Hours / 7x24  Standard Deskside Support  Premium Deskside Support App. Design & Dev. Application Support Quality Assurance Program & Project Mgmt. Business Process Mgmt. Enterprise Architecture Service Desk Deskside Support Hosting  (Generic, includes all supporting infrastructure)  Web Service - Physical  Web Service - Virtual  App Platform - Physical  App Platform - Virtual  Database Service – Physical  Database Service - Virtual  Wintel Service - Physical  Wintel Service - Virtual  Linux Service - Physical  Linux Service - Virtual  Platinum Storage  Gold Storage  Silver Storage  Bronze Storage  Connectivity by Node Application Hosting Web hosting as a Service Platform as a Service Database as a Service Compute as a Service Storage as a Service Connectivity as a Svc. IT Professional Services Port- folio Svc. CategoryServiceService Offering Port- folio Svc. Category Service Service Offering

27. Recommondations – next steps Take an “top-down” approach to IT Asset Management – focus on the business language (IT Goverance) Use a IT Cost Transparency initative for a basis for creating a more services oriented delivery model (Service Portfolio Management) Start. PS! It is OK to ask for help.. 27

28. 28

29. Title presentation 29 Delivering Transformation. Together.