This document provides an overview of CXO Advisor, a company that advises, innovates, and drives change for clients. It aims to save clients 20-30% of IT costs over 3-5 years. CXO Advisor has expertise in advising clients, driving innovation through platforms like Outsystems, and facilitating change such as liberating legacy systems and implementing business process as a service. The document discusses CXO Advisor's approach and principles, which involve benchmarking performance, prioritizing projects, and aligning IT with business strategy and objectives.
3. We do 3 things : -
Advise
ď§ Deeply experienced team
ď§ Backed by Ovum in Africa â IT Finance strength
ď§ Business â IT Transformation Model
Innovate
ď§ Return on Business Agility
ď§ Rapid Innovation with Outsystems
ď§ Business Model Innovation â Saas-it.net
Change
ď§ Liberate legacy - Adaptivity
ď§ Business Process as a Service â Procurement, IT Finance, Portfolio
ď§ Governance as a Service
4. Maintenance
Innovation
Why âas a Serviceâ for innovation
Internal
Systems
Hardware
Middleware
Application
Business
Process
Scope of Activities IT budget/Effort
â
Hardware
Middleware
Application
Business
Process
Scope of Activities IT budget/Effort
Innovation
Internally
Managed
IaaS
&
HaaS
Maintenance
Vendor
Management
Innovation
Internally
Managed
PaaS
&
IaaS
&
HaaS
Maintenance
Vendor
Management
Innovation
Internally
Managed
SaaS
&
PaaS
&
IaaS
&
HaaS
Maintenance
Vendor
Management
â
BPaaS
&
SaaS
&
PaaS
&
IaaS
&
HaaS
Liberate your legacyâŚ
5. SHARED SERVICES MODEL SOURCES
Porters Value Chain â Michael Porter â Harvard Business School
What Business Really Wants from IT â Terry White
Reinventing the IT department â Terry White
Speed up the mess â Terry White
6. What IT really does â Terry White
IT without fuss
76%
Improve
business
results
22%
Information
leadership
2%
Technology
delivery
IT without fuss
20%
Improve
business
results
60%
Information
leadership
20%
What the
CEO wants
⌠Agile Business - IT Transformation
7. How we see the world: The three ârolesâ in business
Shared and
support
services
Core business
Strategy
Leadership
Innovation
Given Porterâs value chain, there are three ârolesâ of business
ď§ Core business (not systems)
ď§ Shared services / business and customer support
ď§ Strategy, leadership, innovation â the âglueâ that holds it all together
8. What
should we
do?
How
should we
do it?
Getting it
done!
Strategy
Leadership
Innovation
Provide the glue:
âHow do we service
our customers?â
Your
Customer
One golden
thread
Sales
revenue vs.
cost
How we see the world: There is only one âCâ
Core
business
The people who pay for your products and services
ď§ The people who use your services again and, refer others to you and, have choices and ultimately
pay your salary
The Customer needs cross functional, organisation wide alignment
Gain
Customers
(Sales &
marketing)
Process
orders
Manufacture /
Deliver
services
Distribute
Collect
Payment
Shared and
support
services
Finance and Administration
Human Resources
Information Technology
Supply Chain
Legal & Governance
Support the core
business in serving
customers
9. How we see the world: Business momentum
Based on your rate of sales / against your cost burn rate
ď§ Sales
ď§ Costs
ď§ Geography
ď§ Staff
ď§ Legacy
All of these have their own cycle times
ď§ Decisions which ignore cycle times tend to fail
Shared and
support
services Core business
Strategy
Leadership
Innovation
Business
momentum
Current sales rate/
cost burn
The business engine
10. The business drivers of agility
Shared and
support services Core business
Strategy
Leadership
Innovation
Business momentum
Deliver
Fix
Improve
Service
Differentiate
Core
business
engine
Value
delivery
engine
Support
engine
Looming Threat
Change Strategy
Change
Environment
New products,
markets, channels
New, improved
processes
Service business
growth
Regulation,
mandates
New CxO, value
propositionsFix support engine
Training, upgrades
New, improved
processes
Cloud, outsource, B
Paas
11. Shared and
support services Core business
Strategy
Leadership
Innovation
Business momentum
Deliver
Fix
Improve
Service
Differentiate
Sustainability
Risk
Strategic Risk
Tactical Risk
Uncertainty
Operational
Risk
BTL activity drives cost
ATL activity drives revenue
Are we doing the right things?
12. Shared and
support services Core business
Strategy
Leadership
Innovation
Business momentum
Deliver
Fix
Improve
Service
Differentiate
Risk
Cost
PoA
Sustainability
Risk
Risk
Cost efficiency
Time
Risk
NPV/Time
BTL- PBP
CVA
PBP
CVA
PoA
Strategic Risk
ROI = Breakeven?
Benefits realisation
Baseline
ROI > IRR
ROI = IRR + >40%
**
Hit rate >70%
PoA
Time < 2yrs
Hit rate > 50%
PoA
Horizon 1-3 yrs
Hit rate > 30%
PoA
Horizon â 1-20 yrs
Tactical Risk
Uncertainty
Historical CVA
Ongoing Benefits
TCO
Current CVA
Ongoing Benefits
Current Performance
Planned CVA
Planned Benefits
Planned Performance
Risk Tolerance
Operational
Risk
Can we measure them?
13. Financial Cost view
Shared and
support services Core business
Strategy
Leadership
Innovation
Business momentum
Deliver
Fix
Improve
Service
Differentiate
Sustainability
Risk
Strategic Risk
Tactical Risk
Uncertainty
Operational
Risk
Typically total fixed cost
Typically Capex or New Services Contract
Typically total variable cost
14. Financial Performance view
Shared and
support services Core business
Strategy
Leadership
Innovation
Business momentum
Deliver
Fix
Improve
Service
Differentiate
Sustainability
Risk
Strategic Risk
Tactical Risk
Uncertainty
Operational
Risk Cost of sales
Production Costs
Return on Capital Employed / ROA
Sales / Total Revenue
Net cash flow / working capital
Cash Value added
15. The 3RM is used at every stage
15
Formulate
Strategy
Strategic
Plan
Prioritise
planned
Initiatives
Resource
planned
Initiatives
Execute and
track
Run the
Business
Strategic
inputs
Innovation
Research & Advisory
Trends
Business strategic inputs
Where do we want to be?
Whats important?
Are we achieving what we should be?
17. Cost / savings flow
17 CXO Advisor Š Client distribution only
Run the engine
Budget
ITWF IBR IL
Strengthen
IT
Strengthen
Engine Meaning Attention
Results in change of
momentum line costs
Momentum line
18. Todays decisions drive subsequent spend profiles
18 CXO Advisor Š Client distribution only
Each subsequent period shows the effects of activities from the previous period
⢠High spend in IBR in year 1 results in higher Ops engine costs in year 2
⢠High spend in âStrengthen the engineâ in year 2 should result in lower Ops engine costs in
year 3
Momentumline
Momentum line
Momentumline
Year 1
Year 3
Year 2
19. Comparisons can be revealing
19 CXO Advisor Š Client distribution only
⢠Portfolio to budget Y0
⢠Year to year
⢠Between divisions
⢠Between countries
⢠Between organisations
Organisation 1
Organisation 2
Both spend the sameâŚ
Which is better according to this
benchmark?
20. CXO
A D V I S O R
Right of Way TM â Portfolio Prioritisation
Prioritisation
pain points
⢠How do you
compare apples with
monkeys?
⢠Noise & politics
define priorities?
⢠What about
regulatory
compliance
projects?
⢠Everything MUST
have a positive ROI
⢠Are your initiatives
aligned with your
strategy?
⢠What about the real
value from the
initiative?
⢠How do
dependencies play
out in prioritisation?
⢠What about marginal
projects, that just
must be done?
⢠What about
innovation â how do
you put a value to it?
Right of Way TM
benefits
⢠Fixes the
prioritisation
problem
⢠Prioriisation aligned
with your strategic
objectives
⢠Rigourous & fair
prioritisation
⢠ROI is not the only
criterion â focus on
value to your
organisation
⢠Has the right
discussion around
project right of way
⢠What should we
do, & why?
⢠What should we
delay & why?
⢠What value will
we derive?
⢠Develops scenarios
around different
priorities
⢠What benefits will
we focus on?
⢠Clarifies
understanding!
The steps to portfolio prioritisation success
Using the Right of WayT M processes & tools
Decide on utility factors from
strategic intent
Weight 3RM classes utility,
according to investment
policy
1 3 3 3 5
3 0 9 2 4
4 5 1 4 6
Fast, profitable,
innovative,
customer focused
Project 1
Project 2
Project 3
1
2 3
Classify projects & define utility
contribution per project
Proioritise
projects by
strategically
aligned utility
scores
Project 1
Project 2
Project 3
95
56
74
Project1
Project3
Project2Project âŚ
Project âŚ
Step 5
Step 3
Step 4
Step 1 Step 2
Score projects by
contribution,
utility & class
95
Do
these
Donât do
these
21. CXO
A D V I S O R
Performance
pain points
Benchmarking
benefits
Performance and cost benchmarking
⢠Our legacy is draining
our budget
⢠Maintenance uses up
to 80% of our
resources
⢠The drivers of our cost
are unclear
⢠We have too much
inertia and
bureaucracy
⢠We are unable to
innovate internally
⢠We seem to keep
digging the same hole
⢠The balanced
scorecard doesn't tell
us if weâre missing
something â it tends to
be a lag indicator of
performance
⢠Follows 80/20 rule â
focus on important
performance issues
⢠De-politicises
performance
⢠Clear definition of
lead/lag drivers and
appropriate response
to each
⢠Extract value from
current processes /
systems
⢠All measures within
3RM paradigm â
aligned to business
strategy, resourcing,
communication
models
The steps in indexing, base-lining
and benchmarking
Understand lead / lag measures, focus
areas, levers of performance and index
them
Step 2
Benchmark only where focus will produce
results
Step 3
Know what the definition of
performance is for each business
driver
Step 1
Execute value realisation plans
Step 4
Legacy
value
Core
value
unlock
22. 3RMŠ - ROA engagement model
22 CXO Advisor Š Client distribution only
Baseline current agility &
innovation
Analyse
drivers, resources and
plan
Show agile improvement
opportunities
Develop continuous
innovation roadmap
23. Our Principals
Transaction
Advisory
Business
improvement
IT Financial
Management
IT Business
Alignment
CIO and Financial
Industry
exprience
Expert in Cloud
enablement
Cloud business
models
Cloud market
dynamics
Vendor
transformation
Ex-CIO/CTO of 20
000 strong ICT
company
Worldwide
recognition of
ICT
management
thinking
Expert in IT
Finance
Author of three
books on IT
management
Worked with IVI
developing
maturity
frameworks for
IT Value
SaaS-it advises
Microsoft, Nokia
and others on
Cloud go-to-
market
propositions
Deep
experience in
Telecoms and
ICT
Profound
insights into
customer
focused
strategies
Extensive
experience
Mergers,
Acquisitions and
operational
restructures
Held executive
positions for
global
Information
Technology and
Telecommunicat
ions companies.
Established CXO
Advisor
Craig Terblanche Gerhardt van Wyngaardt Kim Andersen Terry White Anders Trolle-Schultz
24. Our partners
Advise
ď§ www.ovum.com
ď§ CXO Advisor is backed by Ovum in Africa
Innovate
ď§ www.Outsystems.com
ď§ CXO Advisor is an OutPartner
Change
ď§ www.Adaptivity.com
ď§ CXO Advisor is a reseller and consulting partner
This is our current tagline â not sure about it though â what is the customer call to action
IT is currently spending most of their time in delivering the technology.If thereâs a challenge to this breakdown its most often that it is weighted too much in the IBR and IL space.But CEOs want a different profile of activity from their IT departments.
The metaphor thatâs missed by most people â the blue is the glue that holds it all together
The metaphor of the customer being gold
Metaphor â you have three âenginesâ that should support the customer âgoldâ
The engine delivers, you sometimes needs fixing (itâs broken) â Service (your car, your machinery â preventative maintenance). No good metaphor for âimproveâ yet. Differentiate â change the environment (SLI), change the company (core), change the support structures.From a performance point of view:Strategic goals & operational objectivesFinancial performance and operational driversShort & long term pressuresTop-down and bottom-up pespectives
Shared services cost: Total costShared services cost: Revenue
Shared services cost: Total costShared services cost: Revenue
Need icons for the 3 Role Model, and perhaps icons for the âthreeâ stages â What should we do, how should we do it, do it