1. CSZ QUANTUM LEAP – Vic Falls Peter Doona Finance Director BAT Zimbabwe

2.  Corporate and Enterprise Governance  IT Governance  Shareholder Value Equation  Signs & pitfalls of bad IT Governance  IT Governance to support the Business  Delivering a Business Focussed IT Organisation  Don’t forget the basics

3.  Corporate governance models may vary but principles are the same  Corporate governance is vested in a supervisory board that is responsible for protecting the rights of shareholders and other stakeholders (e.g. employees, government, customers, creditors)  The board works with a senior management team to implement governance principles to ensure the effectiveness of organisational processes

4. Board Marketing Senior executive team HR IT Operations Finance Vertical integration Horizontal integration towards achievement of overall business objectives e.g. growth.

5.  “Governance of enterprise IT focuses on delivering services to support top line growth while moving operational savings to the bottom line”  “Value from IT investment is not limited to the financials (discounted cash flow analysis and others)”  “Defining the value of a project must connect the investment with its contribution to strategic goals. Simple monetary returns are necessary but not sufficient.”

6. Future Cash Flows Cost of capital + Business Risk Sustainable future growth through optimal strategy and execution Innovation and Speed to Market Maximise Return on Investment through effective decisions Control of cost base and working capital Predictability of business performance Quality of governance and controls Risk mitigation procedures Growth Productivity

7.  IT is seen as impeding rather than strategically enabling corporate strategy and objectives  Executive doubts the value derived from IT investment  Application silos emerge (HR, Marketing, etc) with no enterprise architecture  IT projects run late and are over the budget (more often than not)  Poor management of conflicting goals

8.  IT investments benefits not tracked  IT investment not aligned to corporate objectives  Frequent project failure  Multiple non enterprise wide applications  Uncontrolled IT TCO  Focus on technology, not business objectives  No discipline in standardisation of business processesses and technical solutions  Breakdown in controls  Missed business opportunities

9. Value Focus IT Managers “know their numbers” Initiatives focussing on cost efficiencies and productivity enhancement across the business Visibility of benefits Clear Business Cases for IT investments Costs of investments and benefits delivered tracked and made visible to the Business Strategic alignment IT Managers are fully connected to the Business Strategy IT investments are prioritised and selected based on business goals Efficient control Technical solutions which enhance the control environment across the business without slowing it down

10.  Starts with the whole business leadership team  Participation in strategy formulation and business risk assessment  Full understanding of business operations  Alignment of IT initiatives with business objectives  Line of sight from the Board Room to the Computer Room  Clear performance measures – shared with other Functions  Drive for visibility – don’t hide

11. Operational & Technical Excellence Strategy Firewalls Access controls Records management Data protection Backups / BCPs Robust and rapid information for decisions: growth and productivity Speed of business operations Innovative solutions in marketing (emerging technologies) IT Organisation Focus Objectives Minimising Business Risk Maximising Future Cash Flows Delivering Shareholder Value

12.  THANK YOU