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Getting IT Right:
How to Plan, Manage, and Deliver on IT’s Promise




Audit | Tax | Advisory | Risk | Performance   The Unique Alternative to the Big Four ®
Despite the integral role that information
technology plays in today’s businesses, many
companies approach major IT initiatives in a
way that is far from businesslike. Frequently,
six- or seven-figure investments are made
without tying these decisions to clearly
defined business results.
Getting IT Right: How to Plan, Manage,
                                                              and Deliver on IT’s Promise




Moreover, businesses often fail to tie IT spending
directly to the business’s daily operational performance         Table of Contents
or, even more critically, to its long-term strategic goals.      Current Concerns Over
Small wonder, then, that surveys of C-suite executives           IT Effectiveness .............................. 5

consistently reflect significant levels of discomfort with       Rising Expenditures,
                                                                 Diminished Expectations ............... 5
the way IT investments are selected and managed.
                                                                 Why Businesses Struggle
                                                                 With IT Issues ................................. 6
What is needed is an objective, performance-based
methodology for developing an appropriate IT strategy,           Warning Signs of
                                                                 IT Management Problems ............. 6
making sound IT investment decisions, and then
                                                                 The Critical Need for
executing and managing the chosen initiatives in a               Improved IT Management .............. 7

way that relates these steps directly to organizational          Common Executive
                                                                 Concerns Over IT Spend .............. 7
performance measures including both financial and
nonfinancial metrics.                                            Critical Business Triggers Bring
                                                                 Urgency and Importance ............. 10

Fortunately, resources are now available to help                 Core Concepts of the
                                                                 Crowe® IT Advisory Solution ........ 12
businesses of all types and sizes to quickly develop
                                                                 The Major Stages of
a business-focused approach to critical IT issues.               IT Investment................................ 12

                                                                 Crowe’s Suite of IT
                                                                 Advisory Solutions ....................... 14

                                                                 Conclusion: An Objective and
                                                                 Results-driven Approach ............. 19

                                                                 About Crowe Horwath LLP .......... 20

                                                                 Contact Information ..................... 20




www.crowehorwath.com                                                                                                  3
Crowe Horwath LLP




4
Getting IT Right: How to Plan, Manage,
                                                                                         and Deliver on IT’s Promise




Current Concerns                            Rising Expenditures,                         investment to potentially increased
                                                                                         sales. Or, they may develop inflated
Over IT Effectiveness                       Diminished                                   expectations for sales increases that
The way IT investments are prioritized,     Expectations                                 are not realistic given a limited or
                                                                                         misaligned implementation scope.
implemented, and managed can
                                            Despite the overwhelming misgivings
have a tremendous impact – both
                                            uncovered by an FERF survey (see             The challenge can be especially acute
positive or negative – on organizational
                                            sidebar), most businesses expect to          in companies where the executives
performance and, ultimately, the
                                            continue making significant IT investments   who make IT decisions are managing
overall value of an enterprise.
                                            in the near future. When hundreds of         multiple initiatives at once, and do not
Despite IT’s critical impact on the
                                            manufacturing industry executives            have adequate time or resources to
business, however, the prioritization
                                            were surveyed by IndustryWeek                analyze IT initiatives thoroughly. As a
and management of IT initiatives are
                                            magazine and Crowe Horwath LLP               result they may fail to fully understand
often misaligned and inconsistent.
                                            in late 2009, 70 percent said they           how deeply rooted IT is to overall
                                            expected to increase their IT investments    business performance.
                                            over the coming three years.4
A survey by the Financial Executives                                                     In many cases, however, the underlying
Research Foundation revealed                Why is this so? Why are financial            problems are more complex – and the
significant dissatisfaction with            executives resigned to spending more         solutions must be more comprehensive.
the way their organizations use             on IT while achieving less?
information technology to improve
business performance.                       A primary objective of major IT software investments must be
■ Only 7 percent of the survey
                                            to “do more with the same” – that is, to leverage automation
  respondents said they had made            and technology in both production and back-office functions
  substantial progress with their top
                                            in order to increase capacities, improve efficiency, enhance
  information need in the past year.1
■ About 70 percent of the financial
                                            workflows, and support greater access to the information that
  officers surveyed said they believe       is needed for effective decision-making.
  their current level of information
                                            – Josh P. Cole, Partner, Crowe Horwath LLP
  integrity is negatively affecting their
  organization’s ability to achieve its
                                            In many cases, management recognizes
  business objectives.2
                                            the problems, but may simply not
■ About 40 percent of the responding        recognize the potential impact IT
  financial officers reported unknown,      investment will have on solving
  low, or even negative returns on          those problems. For example, they
  their IT investments.3                    may not link a business intelligence




www.crowehorwath.com                                                                                                                5
Crowe Horwath LLP




Why Businesses                                   an IT problem. Rather, it is a management
                                                 problem, and management commitment
                                                                                             ■ A lack of common references,
                                                                                               priorities, and expectations;
Struggle With                                    and involvement will be needed to           ■ Internal biases or inaccurate
IT Issues                                        address it.                                   perceptions of technology providers,
It is important to recognize that when                                                         based on outdated history or word-
                                                 This situation can result from a number
this situation exists – when the existing                                                      of-mouth impressions;
                                                 of ongoing challenges, including:
IT foundation and proposed set of IT                                                         ■ Increasingly complex IT solutions,
                                                 ■ Poor communication between
initiatives are not linking to financial and                                                   and highly complex business
                                                   nontechnical business leaders and
operational goals – it is not fundamentally                                                    system maps;
                                                   those in charge of the IT effort;
                                                                                             ■ Limits on funding for IT priorities,
                                                                                               mismatching expectations in terms
 Warning Signs of IT Management Problems                                                       of real results from IT investments –
 Is your organization struggling with IT strategy, prioritization, implementation, or          in short, IT is expected to “do more
 management? How do you know if you have a problem?                                            with less”; and
                                                                                             ■ Opportunities that may be
 Here are some common indicators of decision-making and management problems:                   misunderstood or underexploited
                                                                                               when considering new models of
1. There is a lack of proper evaluating          7. Compliance still depends on                information management such as
   and planning for IT investments.                 manual detective-type financial            software as a service (SaaS).
2. Poor implementations                             controls rather than automated
                                                    preventive systems.                      A recent article in InformationWeek
   destabilize your ability to
                                                                                             Analytics described the current
   transact with customers.                      8. Spending on noncore and costly
                                                                                             environment in stark terms:
3. Complex IT decisions are                         items such as internal data centers
   sometimes made more on the                       does not consider innovative             “Not mincing words, CEOs and CFOs
   salesperson’s strength rather                    alternatives such as outsourcing         want to know why the firm is spending
   than the technology fit.                         or virtualization.                       so much on IT and what can be done
4. IT spending is considerable, but              9. Financials must be restated for          to bring those costs down.”5
   the business sees little or no                   any reason.
                                                                                             Leaders will not be satisfied without
   measurable improvement.                       10. Competitors deliver a richer IT
                                                                                             an understanding of the value driven
5. Upgrades to your IT platform                      customer experience and your
                                                                                             by the investment.
   do not produce new benefits or                    competitive edge is eroding due in
   capabilities, but merely do what                  part to inadequate IT capabilities.
   your old systems did.                         11. The organization is not reacting
6. An integration is not delivering                  to IT trends such as social
   anticipated synergy.                              networking.


 Many of the items in this list highlight the often unseen cost of poor IT planning
 and management. Beyond the significant price of the technology itself is the often
 greater cost that comes from failing to achieve the expected results. These costs
 include internal inefficiencies, poor information to support management
 decisions, and a frustrating customer experience.




6
Getting IT Right: How to Plan, Manage,
                                                                                          and Deliver on IT’s Promise




The Critical Need
for Improved IT                                Common Executive Concerns Over IT Spend

Management                                     Many executives with a decision-making role regarding IT initiatives
                                               have concerns and questions – questions they may be reluctant to voice aloud.
The InformationWeek Analytics article
                                               Are questions such as these keeping you up at night?
mentioned earlier presented a clear
indication of the critical need for improved
methods of strategizing, prioritizing,         ■ “Are scarce resources being used to         ■ “Am I holding the right people
implementing, and managing IT initiatives.       serve genuine business needs – or             accountable for getting results?”
                                                 are we merely pursuing the newest           ■ “A significant project was recently
“Unfortunately,” the article noted, “IT
                                                 technology for its own sake?”                 stopped or reprioritized. Why? Was
leadership is often handicapped by not
having the right data and tools to support     ■ “Will the IT projects I have in motion        it due to a change or were there
analysis of what’s actually driving costs.”6     deliver as expected? Will they work?          problems with execution?”
                                                 Will I get the results I promised?”         ■ “Will my current IT projects come
This convergence of challenges is              ■ “I’m not sure what’s happening                in on budget and on time? If not,
producing new models for chief                   with an IT investment, or the status          will I be able to face my board and
information officers to consider as              of a current project. How can I get           executives, my colleagues, and
they investigate their options and take          updated information that’s reliable           my employees to justify the choices
advantage of evolving technologies.              and understandable?”                          I made?”

■ The ability to accurately define the full    ■ “How can I be sure our IT
  return on investment for technology            investments are truly aligned with
  spending requires analytical tools             our business objectives? What
  that directly relate IT to the business’s      standard can I use to judge?”
  financial and operational goals.
■ The ability to efficiently execute           Uncertainties such as these are often warning signs of a flawed IT strategy,
  and manage IT initiatives in a way           an inadequate decision-making process, or ineffective implementation and
  that maintains a clear connection            management. The right approach to the complex issue of managing IT and
  to business results requires                 IT investments can remove these concerns from the executive’s desk,
  implementation methodologies that            or greatly minimize their impact.
  are specifically designed to achieve
  this purpose.




www.crowehorwath.com                                                                                                               7
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8
Outgrown IT Foundation
                       Recent Merger or Acquisition
                         Changing Business Model
      Excessive Internal Audit or Compliance Costs
                                      Globalization
     Any Business Failure in Which IT Played a Role                             Critical Business Triggers
                        Any Major IT Project Failure
                          Cost Reduction Challenge
                     Critical Risk Management Issue
                     The Start of a Return to Growth




                                                                                                                     Stages of
Assess                        Evaluate                   Implement                       Sustain                     IT Investment



Free IT Diagnostic             System Selection           Program and Project
                                                                                          Change Management
                                                          Management


IT Assessment                                                                             Ongoing IT Effectiveness
                                                          System Implementation
                                                                                          Review


IT Due Diligence                                          Custom Application              IT Portfolio Value
                                                          Development                     Assessment

Business System
                                                                                          Lean IT
Assessment


                                 Strategic IT Road Map




                                     Crowe’s Suite of IT Advisory Solutions




                                                                              ER
                                                                          O RD

                                                                                                                               9
Crowe Horwath LLP




                               Critical Business                            ■ Outgrowing the current IT
                                                                              foundation. Years of organizational
                               Triggers Bring                                 growth, accompanied by under-

                               Urgency and                                    investment in IT capabilities or by
                                                                              piecemeal solutions, can produce
                               Importance                                     a patchwork of systems requiring
                               Certain critical business events often add     a comprehensive upgrade. It is
                               urgency and importance to IT decisions.        worth noting the last major cycle of
                               Examples of these events include:              enterprise IT investment occurred
                                                                              during the Y2K era. The time span
                                                                              that has passed since then is close to
                                                                              the average life span of an enterprise
                                                                              system, at which a major upgrade or
                                                                              replacement is generally needed.
                                                                            ■ A recent merger or acquisition.
                                                                              Disparate systems and competing
                                                                              technologies are among the most
                                                                              commonly encountered challenges
                                                                              in an M&A event. Beyond the capital
                                                                              investment that may be required,
                                                                              there is almost always significant
                                                                              personnel change, as well as manage-
                                                                              ment and business disruption risk.
                                                                              When contemplating an acquisition
                                                                              or divestiture, IT decision-making
                                                                              requires special consideration due
                                                                              to the rapid and critical nature of
                                                                              solution deployment.
                                                                            ■ Excessive internal audit and
                                                                              compliance costs. Reducing the
                                                                              costs of internal audit while also
Organizations often must make significant IT investment                       delivering business process improve-
decisions in an uncertain environment. Critical business                      ment offers the opportunity for both
                                                                              immediate financial savings as well as
events highlight the uncertainty and inject additional
                                                                              a long-term reduction in future costs.
urgency into the situation. Crowe’s IT Advisory framework                     Building automated controls into the
addresses these complex, interlaced challenges.                               system itself can reduce the need for
                                                                              external or manual interventions.




10
Getting IT Right: How to Plan, Manage,
                                                                                            and Deliver on IT’s Promise




■ A changing business model. As              ■ Any business failure in which IT                of the coming three-year period,
  a result of strategic restructuring          played a role. Examples include                 while the projected growth rates
  initiatives, some organizations have         financial control failures that cause           in the work force are considerably
  made wholesale changes to their              restating of financial results, regardless      less.7 In this environment a
  business models. For example, many           of whether the restatement is                   primary IT objective is to increase
  consumer product companies now               required by Sarbanes-Oxley or other             efficiency and improve workflows
  consider themselves marketing,               regulations. Beyond the immediate               in order to “do more with less.”
  customer, and sales-focused                  compliance costs are the indirect costs      ■ Business continuity issues. With
  organizations – outsourcing much of          of reduced business valuation and the          heightened business reliance on IT,
  their manufacturing and distribution         credit limitations that can result.            businesses must address resiliency
  operations. Such a change greatly          ■ Any major IT project failure.                  and recovery issues. For example, in
  affects the focus of internal enterprise     Negative memories of past failures             many industries today, the impact of a
  systems as the traditional product           can create organizational barriers             company’s website going down is an
  functions associated with an ERP             to investing appropriately in future           immediate interruption to the revenue
  solution no longer support the               initiatives. Examples that illustrate this     stream – a business continuity risk
  new strategy. New needs such as              include missed cutover dates, budget           today that was immaterial – if it existed
  product development management,              overruns, poorly managed change                at all – 10 or 15 years ago. Mitigating
  sophisticated forecasting, and               driven by IT, or unrealized benefits.          such risk must be a top IT priority.
  improved customer relationship
                                             ■ Cost reduction initiatives.
  management (CRM) are often needed.
                                               These initiatives affect all areas
■ Globalization. In addition to changes        of a business, including IT. In many
  directly related to outsourcing, the         cases, however, technology may
  increasingly global nature of today’s        actually help reduce organizational
  businesses also sparks indirect              costs or help improve flagging
  changes in IT requirements. These            revenues. When cutting is applied to
  are necessary to meet the more               the IT investment category, a refined
  sophisticated collaboration require-         prioritization mechanism is important
  ments that occur when working with           when choosing between alternatives.
  trading partners across vast spaces,
                                             ■ Supporting a return to growth.
  multiple time zones, and multiple
                                               In the “Future of Manufacturing
  currencies. For example, long lead
                                               2009” survey cosponsored by
  times demand greater clarity into
                                               Crowe and IndustryWeek magazine,
  shipment status as well as ability to
                                               more than one third of respondents
  allocate shipments directly to
                                               are forecasting greater than 10
  customer orders.
                                               percent annual growth by the end




www.crowehorwath.com                                                                                                                 11
Crowe Horwath LLP




Core Concepts                                In developing and defining its IT Advisory
                                             services framework, Crowe Horwath LLP
                                                                                              The Major Stages
of the Crowe IT                              has followed a comparable approach,              of IT Investment
Advisory Solution                            developing solutions to help businesses
                                             make IT decisions that achieve critical
                                                                                              For an executive who is seeking to
                                                                                              bring order to shifting and interlacing
In his precedent-setting book, “The
                                             strategic and operational goals:                 challenges of IT investment, there is one
Information Paradox,” author John Thorp
                                                                                              more question that must be considered:
suggested four critical questions to guide   1. Doing what’s right. Crowe’s
                                                                                              Where does the business stand in terms
IT decision-makers:                             approach helps businesses
                                                                                              of the specific IT issue being addressed?
                                                objectively manage IT as an overall
1. Are we doing the right things?
                                                portfolio, rather than as a series            In general terms, the answer to this
2. Are we doing them the right way?             of one-off projects. The approach             question can be expressed as one of
3. Are we getting them done well?               also helps companies ensure that IT           four broad stages of IT investment
                                                spend is evaluated based on clear             shown in the center of the illustration
4. Are we getting the benefits?8
                                                business cases, with a focus on               on pages 8 and 9:
                                                validating the assumptions that
                                                were made to justify projects.                1. Assess: Enable understanding
                                                                                                 and alignment
                                             2. Aligning with standards. Crowe’s
                                                approach applies leading research             2. Evaluate: Support informed
                                                and best practice experience to help             decision-making
                                                executives understand the risks and           3. Implement: Plan and
                                                benefits of alternative decisions, and           execute effectively
                                                to recognize the various categories
                                                                                              4. Sustain: Manage and improve
                                                of investments and business
                                                                                                 for long-term results
                                                applications that must be managed.
                                             3. Executing with rigor. Crowe’s                 Depending on the particular IT issue being
                                                methodologies and tools help ensure           addressed, a business typically finds
                                                new projects are implemented                  itself in several stages of this continuum
                                                correctly, enable quick recovery              at once. One specific technology issue
                                                or termination of unsuccessful                may require support in selecting the
                                                initiatives, and establish clear              appropriate system, while another will
                                                accountability for results.                   require only steady management and
                                                                                              ongoing review of an existing platform.
                                             4. Realizing the benefits. Crowe’s
                                                approach focuses on helping                   Moreover, the solution to IT issues
                                                organizations minimize total cost of          does not always progress in a linear
                                                ownership and maximize total value            fashion. For example, an execution and
                                                over the full life cycle of IT initiatives,   implementation challenge can cause
                                                not just the acquisition and                  the business to rethink its initial system
                                                implementation phases.                        selection – or even reassess its original
                                                                                              strategic goals for the initiative.




12
Getting IT Right: How to Plan, Manage,
                       and Deliver on IT’s Promise




www.crowehorwath.com                                            13
Crowe Horwath LLP




     Crowe’s Suite of IT Advisory Solutions
     The Crowe suite of IT Advisory solutions offers effective tools for addressing critical
     issues at all stages of the IT development and execution continuum:


     Assess: Enable Understanding and Alignment

     Free IT Diagnostic                              IT Assessment/IT Due Diligence
      1 Day                                           2 – 3 Weeks


      A rapid diagnostic of the existing               A structured exploration and
      environment. Identifies the key risks            analysis of business systems,
      and opportunities in leveraging IT               security, spending, integrations,
      within the business along with a                 hardware, communications,
      high-level path to realizing benefits,           personnel, policies and procedures,
      and suggests a series of next steps              and intellectual property. Designed
      to capitalize on areas of opportunity.           to uncover hidden risk and
                                                       opportunity and communicate
                                                       complex issues in a format that is
                                                       accessible and actionable by the
                                                       business owner or leader.




     Benefits                                        Benefits

      ■ Objective opinion by third-party               ■ Formal written deliverable,
        experts                                          consumable by IT and business
      ■ Identification of key risks                      leaders

      ■ Documentation of opportunities                 ■ Series of prioritized, specific
                                                         recommendations
      ■ No cost
                                                       ■ Actionable direction focused
                                                         on highest business value




14
Getting IT Right: How to Plan, Manage,
                                                                                  and Deliver on IT’s Promise




E

Business System Assessment               Strategic IT Road Map
 3 – 5 Weeks                             6 – 8 Weeks


 A deep dive into understanding           An effective bridge across all stages
 and documenting the entire suite of      of IT strategy, decision-making, and
 sponsored and user-created busi-         execution planning. Draws from
 ness system software tools used to       time spent with the IT and business
 run the organization. An important       leaders to clarify organizational
 foundational element for evaluating      strategy and performance goals,
 major initiatives such as possible       identify and evaluate a series of
 ERP replacement or M&A activity,         alternative IT investment decisions
 and to identify strategic and func-      and projects, and then weigh their
 tional gaps, potential areas of risk,    impact on each of the objectives.
 and opportunities for improvement.




Benefits                                 Benefits

 ■ Visual representation of all user      ■ Clear, 18 – 24 month plan for all
   tools actually used to run the           recommended IT investment
   business                               ■ Investment options delivered
 ■ Clarity to functional gaps,              for various budget levels
   software integrations,                 ■ Resource plans that indicate
   unmanaged tools, risks,                  exactly what is needed to
   opportunities, unmet needs,              execute
   and support
                                          ■ ROI analysis for each
                                            investment alternative




www.crowehorwath.com                                                                                                       15
Crowe Horwath LLP




     Evaluate: Support Informed            Implement: Plan and
     Decision-making                       Execute Effectively

     System Selection                      Program and Project Management

     4 – 8 Weeks                           Determined by project


     A proven and pragmatic approach,       Helping to ensure that all defined
     combined with Crowe experience         projects are progressing in a
     with a variety of software systems,    coordinated and managed fashion,
     that quickly and effectively guides    with speed and efficiency. Includes
     the organization to the best           determining and assigning work
     decisions for critical business        to be done, tracking progress,
     systems. Work covers areas such        managing exceptions, balancing
     as strategy, selection criteria,       conflicting priorities, and
     requirements definition, and vendor    communicating to all parties
     evaluation, selection, negotiation,    involved to help ensure all stay
     and implementation planning.           focused on the end-goal.




     Benefits                              Benefits

     ■ Objective and structured             ■ Project support activities
       leadership for significant             are planned, managed, and
       system decisions                       communicated regularly.
     ■ Insight from hundreds of system      ■ Scope of the work, and
       selection decisions and leading        associated risks, schedules,
       industry research                      costs, and needed resources
     ■ Enhanced speed and quality of          are accurately defined.
       decision-making                      ■ Quality work is delivered and
     ■ Negotiation support to drive           issues are addressed as they are
       cost savings                           encountered.




16
Getting IT Right: How to Plan, Manage,
                                                                                    and Deliver on IT’s Promise




I

System Implementation                       Custom Application Development

    Determined by project                   Determined by project


    The use of proven methodologies         Custom-built solutions for niche
    and vision to anticipate looming        circumstances or online/Web needs
    issues, and the application of skills   where business requirements can-
    to manage internal and external         not be met though out-of-the box
    resources. Key to realizing the         applications. Leverages more than
    benefits of the planning phases,        20 years of Crowe experience with
    independent implementation              known platforms such as Java™  ,
    oversight reduces the risk of going     Microsoft® .NET, and open source
    over budget, missing deadlines, or      tools and applications.
    failing to deliver on promises.




Benefits                                    Benefits

    ■ Reduced risk of scope creep           ■ The ability to leverage onshore/
      and budget overruns                     offshore models that are truly
    ■ Quicker path to value through           cost efficient
      structured methodology                ■ An established organization to
    ■ Business-first advice designed          support solution implementation
      to drive value from the               ■ An established development
      technology being implemented            toolkit to provide velocity, reduce
                                              costs, and minimize coding




www.crowehorwath.com                                                                                                         17
Crowe Horwath LLP




Sustain: Manage and Improve for Long-term Results

Change Management                     Ongoing IT Effectiveness Review        IT Portfolio Value Assessment
 Determined by project                Determined by project                  Determined by project


 A structured approach to             Provides an ongoing evaluation          Leveraging the portfolio of IT invest-
 transitioning individuals, teams,    and tuneup on completed                 ment to derive maximum business
 and organizations to a desired       implementations and new projects        value from IT assets. Involves the
 future state. Aligns expectations,   in motion. Key components of the        application of systematic manage-
 communicates, integrates teams,      Crowe toolkit are used to advise on     ment to large classes of IT items
 and manages people training, using   risks and opportunities, and provide    including planned initiatives, proj-
 a pragmatic approach that includes   a scorecard on the organization’s       ects, and ongoing IT services, to
 skill upgrading to maximize the      use of IT.                              help organizations determine which
 implementation effort.                                                       portfolio of IT spend truly delivers
                                                                              value for the investment.




Benefits                              Benefits                               Benefits

 ■ Reduced resistance to change       ■ Short-phased visits that              ■ Central oversight of budget
 ■ Faster adoption of the strategic     maintain momentum on projects         ■ Risk management
   initiatives                          in process
                                                                              ■ Strategic alignment of IT
 ■ Early identification of issues     ■ Objective evaluation of possible        investments and demand
   before they drain projects of        changes to current plans
                                                                              ■ Standardization of investment
   anticipated benefits               ■ Highlighting and definition of          procedures, rules, and plans
                                        risk redemption requirements




18
Getting IT Right: How to Plan, Manage,
                                                                                      and Deliver on IT’s Promise




                                         Conclusion: An                               to the effort. Project leaders average
                                                                                      20 years of experience in IT-related
                                         Objective and                                Advisory services working for many

                                         Results-driven                               industries across a variety of specialty
                                                                                      business application environments.
S                                        Approach
                                                                                      This approach, proven in organizations
                                         Regardless of the specific solutions         of all sizes, is also adaptable on a global
Lean IT                                  the client employs within the Crowe          scale thanks to the international reach of
 Determined by project                   suite of solutions, Crowe pursues a          the Crowe Horwath International network.
                                         rapid, results-driven approach, with
                                         a specific set of deliverables in each       At all levels and throughout all phases
 The extension of lean manufactur-
 ing and lean services principles to     phase of the assignment. The overall         of the engagement, our emphasis is
 the development and management          goal is to successfully meld business        to provide pragmatic solutions that
 of IT products and services. The        process needs and company strategy           go beyond theory, and to work side-
 central concern is the elimination of                                                by-side with client teams in a flexible,
                                         into executable IT plans as quickly as
 waste, in particular work that adds
                                         possible, in order to deliver time-phased,   collaborative effort that takes into account
 no value. Particularly effective for
 companies that develop software as      budget-conscious solutions.                  each business’s unique staffing models,
 a product or have a high volume of                                                   time and resource constraints, and
 custom tools.                           Crowe’s methodologies support                available IT investment funding.
                                         clients seeking to assess their current
                                         systems and infrastructure as well as
                                         those organizations making strategic         1
                                                                                          “Technology Issues for Financial Executives,”
                                         investments that are looking for expert          Computer Sciences Corporation and Financial
                                                                                          Executives Research Foundation, 2008, p.2.
                                         guidance related to the transaction.
Benefits                                                                              2
                                                                                          ibid.
                                         The Crowe suite of IT Advisory solutions
■ Improved investment in Agile
                                                                                      3
                                                                                          “Technology Issues for Financial Executives,”
                                         provides businesses with a proven,               Computer Sciences Corporation and Financial
  software development                   systematic process for developing                Executives Research Foundation, 2008, p.3.
■ Reduced software defects               appropriate IT strategies, making            4
                                                                                          “The Future of Manufacturing 2009,” IndustryWeek,
■ Elimination of unnecessary or          objective IT system decisions, and               Penton Media Inc., 2009, p. 8.
  overbuilt solutions                    executing and managing their ongoing         5
                                                                                          “Know Your Costs: The Key to IT Business,”
■ Reduction of unnecessary               IT initiatives. Crowe’s business-driven          InformationWeek Analytics, April 2010, p. 5, http://
  equipment                              and vendor-neutral approach is in many           analytics.informationweek.com/abstract/81/2813/
                                                                                          Business-Intelligence-and-Information-
■ Improved productivity due to           respects the polar opposite of traditional       Management/informed-cio-it-cost-transparency.
  reduced “firefighting”                 vendor-driven IT spend decisions.                html.

                                                                                      6
                                                                                          ibid.
                                         The Crowe IT Advisory teams pursue
                                         an investment-minded approach, and           7
                                                                                          “The Future of Manufacturing 2009,” p. 3.
                                         provide client executive teams with the      8
                                                                                          John Thorp, “The Information Paradox: Realizing
                                         tools and techniques to do the same.             the Business Benefits of Information Technology,”
                                         Project staffing is composed of more             McGraw-Hill Education, 1999.

                                         than technologists – adding a variety
                                         of specialists in personnel, process,
                                         strategy, and performance management




www.crowehorwath.com                                                                                                                         19
Contact Information                                                   About Crowe Horwath LLP
Doug Schrock                                                          Crowe Horwath LLP is one of the largest public accounting and consulting firms in the
317.706.2643                                                          United States. Under its core purpose of “Building Value with Values, ” Crowe assists
                                                                                                                                          ®


doug.schrock@crowehorwath.com                                         public and private company clients in reaching their goals through audit, tax, advisory,
                                                                      risk, and performance services. With 26 offices and 2,400 personnel, Crowe is
Jeff Shaffer                                                          recognized by many organizations as one of the country’s best places to work. Crowe
312.899.4493                                                          serves clients worldwide as an independent member of Crowe Horwath International,
jeff.shaffer@crowehorwath.com                                         one of the largest networks in the world, consisting of more than 140 independent
                                                                      accounting and management consulting firms with offices in more than 400 cities
Josh Cole
                                                                      around the world.
616.752.4274
josh.cole@crowehorwath.com

If you would like to start receiving
information via e-mail about
topics of importance to you,
please sign up on our website at
www.crowehorwath.com/emailsignup.




www.crowehorwath.com


                                                                                                                                                     When printed by Crowe Horwath LLP, this piece is printed
                                                                                                                                                     on Mohawk Color Copy Premium, which is manufactured
Java is a trademark of Sun Microsystems Inc. or its subsidiaries in the United States and other countries.                                           entirely with Green-e® certified wind-generated electricity.

Microsoft is a registered trademark of the Microsoft group of companies.

The Mohawk Windpower logo is a registered trademark of Mohawk Fine Papers Inc.

Green-e is a registered trademark of Center for Resource Solutions.


Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe
Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim
any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are
rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2010 Crowe Horwath LLP
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Getting IT Right

  • 1. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise Audit | Tax | Advisory | Risk | Performance The Unique Alternative to the Big Four ®
  • 2. Despite the integral role that information technology plays in today’s businesses, many companies approach major IT initiatives in a way that is far from businesslike. Frequently, six- or seven-figure investments are made without tying these decisions to clearly defined business results.
  • 3. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise Moreover, businesses often fail to tie IT spending directly to the business’s daily operational performance Table of Contents or, even more critically, to its long-term strategic goals. Current Concerns Over Small wonder, then, that surveys of C-suite executives IT Effectiveness .............................. 5 consistently reflect significant levels of discomfort with Rising Expenditures, Diminished Expectations ............... 5 the way IT investments are selected and managed. Why Businesses Struggle With IT Issues ................................. 6 What is needed is an objective, performance-based methodology for developing an appropriate IT strategy, Warning Signs of IT Management Problems ............. 6 making sound IT investment decisions, and then The Critical Need for executing and managing the chosen initiatives in a Improved IT Management .............. 7 way that relates these steps directly to organizational Common Executive Concerns Over IT Spend .............. 7 performance measures including both financial and nonfinancial metrics. Critical Business Triggers Bring Urgency and Importance ............. 10 Fortunately, resources are now available to help Core Concepts of the Crowe® IT Advisory Solution ........ 12 businesses of all types and sizes to quickly develop The Major Stages of a business-focused approach to critical IT issues. IT Investment................................ 12 Crowe’s Suite of IT Advisory Solutions ....................... 14 Conclusion: An Objective and Results-driven Approach ............. 19 About Crowe Horwath LLP .......... 20 Contact Information ..................... 20 www.crowehorwath.com 3
  • 5. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise Current Concerns Rising Expenditures, investment to potentially increased sales. Or, they may develop inflated Over IT Effectiveness Diminished expectations for sales increases that The way IT investments are prioritized, Expectations are not realistic given a limited or misaligned implementation scope. implemented, and managed can Despite the overwhelming misgivings have a tremendous impact – both uncovered by an FERF survey (see The challenge can be especially acute positive or negative – on organizational sidebar), most businesses expect to in companies where the executives performance and, ultimately, the continue making significant IT investments who make IT decisions are managing overall value of an enterprise. in the near future. When hundreds of multiple initiatives at once, and do not Despite IT’s critical impact on the manufacturing industry executives have adequate time or resources to business, however, the prioritization were surveyed by IndustryWeek analyze IT initiatives thoroughly. As a and management of IT initiatives are magazine and Crowe Horwath LLP result they may fail to fully understand often misaligned and inconsistent. in late 2009, 70 percent said they how deeply rooted IT is to overall expected to increase their IT investments business performance. over the coming three years.4 A survey by the Financial Executives In many cases, however, the underlying Research Foundation revealed Why is this so? Why are financial problems are more complex – and the significant dissatisfaction with executives resigned to spending more solutions must be more comprehensive. the way their organizations use on IT while achieving less? information technology to improve business performance. A primary objective of major IT software investments must be ■ Only 7 percent of the survey to “do more with the same” – that is, to leverage automation respondents said they had made and technology in both production and back-office functions substantial progress with their top in order to increase capacities, improve efficiency, enhance information need in the past year.1 ■ About 70 percent of the financial workflows, and support greater access to the information that officers surveyed said they believe is needed for effective decision-making. their current level of information – Josh P. Cole, Partner, Crowe Horwath LLP integrity is negatively affecting their organization’s ability to achieve its In many cases, management recognizes business objectives.2 the problems, but may simply not ■ About 40 percent of the responding recognize the potential impact IT financial officers reported unknown, investment will have on solving low, or even negative returns on those problems. For example, they their IT investments.3 may not link a business intelligence www.crowehorwath.com 5
  • 6. Crowe Horwath LLP Why Businesses an IT problem. Rather, it is a management problem, and management commitment ■ A lack of common references, priorities, and expectations; Struggle With and involvement will be needed to ■ Internal biases or inaccurate IT Issues address it. perceptions of technology providers, It is important to recognize that when based on outdated history or word- This situation can result from a number this situation exists – when the existing of-mouth impressions; of ongoing challenges, including: IT foundation and proposed set of IT ■ Increasingly complex IT solutions, ■ Poor communication between initiatives are not linking to financial and and highly complex business nontechnical business leaders and operational goals – it is not fundamentally system maps; those in charge of the IT effort; ■ Limits on funding for IT priorities, mismatching expectations in terms Warning Signs of IT Management Problems of real results from IT investments – Is your organization struggling with IT strategy, prioritization, implementation, or in short, IT is expected to “do more management? How do you know if you have a problem? with less”; and ■ Opportunities that may be Here are some common indicators of decision-making and management problems: misunderstood or underexploited when considering new models of 1. There is a lack of proper evaluating 7. Compliance still depends on information management such as and planning for IT investments. manual detective-type financial software as a service (SaaS). 2. Poor implementations controls rather than automated preventive systems. A recent article in InformationWeek destabilize your ability to Analytics described the current transact with customers. 8. Spending on noncore and costly environment in stark terms: 3. Complex IT decisions are items such as internal data centers sometimes made more on the does not consider innovative “Not mincing words, CEOs and CFOs salesperson’s strength rather alternatives such as outsourcing want to know why the firm is spending than the technology fit. or virtualization. so much on IT and what can be done 4. IT spending is considerable, but 9. Financials must be restated for to bring those costs down.”5 the business sees little or no any reason. Leaders will not be satisfied without measurable improvement. 10. Competitors deliver a richer IT an understanding of the value driven 5. Upgrades to your IT platform customer experience and your by the investment. do not produce new benefits or competitive edge is eroding due in capabilities, but merely do what part to inadequate IT capabilities. your old systems did. 11. The organization is not reacting 6. An integration is not delivering to IT trends such as social anticipated synergy. networking. Many of the items in this list highlight the often unseen cost of poor IT planning and management. Beyond the significant price of the technology itself is the often greater cost that comes from failing to achieve the expected results. These costs include internal inefficiencies, poor information to support management decisions, and a frustrating customer experience. 6
  • 7. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise The Critical Need for Improved IT Common Executive Concerns Over IT Spend Management Many executives with a decision-making role regarding IT initiatives have concerns and questions – questions they may be reluctant to voice aloud. The InformationWeek Analytics article Are questions such as these keeping you up at night? mentioned earlier presented a clear indication of the critical need for improved methods of strategizing, prioritizing, ■ “Are scarce resources being used to ■ “Am I holding the right people implementing, and managing IT initiatives. serve genuine business needs – or accountable for getting results?” are we merely pursuing the newest ■ “A significant project was recently “Unfortunately,” the article noted, “IT technology for its own sake?” stopped or reprioritized. Why? Was leadership is often handicapped by not having the right data and tools to support ■ “Will the IT projects I have in motion it due to a change or were there analysis of what’s actually driving costs.”6 deliver as expected? Will they work? problems with execution?” Will I get the results I promised?” ■ “Will my current IT projects come This convergence of challenges is ■ “I’m not sure what’s happening in on budget and on time? If not, producing new models for chief with an IT investment, or the status will I be able to face my board and information officers to consider as of a current project. How can I get executives, my colleagues, and they investigate their options and take updated information that’s reliable my employees to justify the choices advantage of evolving technologies. and understandable?” I made?” ■ The ability to accurately define the full ■ “How can I be sure our IT return on investment for technology investments are truly aligned with spending requires analytical tools our business objectives? What that directly relate IT to the business’s standard can I use to judge?” financial and operational goals. ■ The ability to efficiently execute Uncertainties such as these are often warning signs of a flawed IT strategy, and manage IT initiatives in a way an inadequate decision-making process, or ineffective implementation and that maintains a clear connection management. The right approach to the complex issue of managing IT and to business results requires IT investments can remove these concerns from the executive’s desk, implementation methodologies that or greatly minimize their impact. are specifically designed to achieve this purpose. www.crowehorwath.com 7
  • 8. Inte r na l bi Sa as No Do aS Ba tim m or d e e C da wi lo ta ON Ec ud th on le co om ss I Because of ever-shifting variables, managing IT m US ic pu pr tin NF Un es g is often experienced as a never-ending stream kn su ow re CO Re n c es IT of competing, interlacing, and overlapping sio RO na I ry Fa for challenges, each of which affects – and iled c es int Four questions that frame Co eg exacerbates – the others. Crowe’s IT m ple rat i on everything in IT – every x IT challenge, every project, dec Advisory framework addresses this isio and every solution – and Poo ns r bring order to chaos. com confusion, as well as the business mun ic atio Misa n drivers that organizations face when ligne d IT spen Are we doing the ding making these significant investment right things? Unrec ognize d IT im decisions. Crowe’s IT Advisory pact Restated solutions are geared toward solving fi nancial s tatements Are we doing them the right way? big problems in the right way, Expected results not achieved regardless of the investment stage in which the organization finds itself. ce spending Are we getting Increased complian them done well? tment IT inves ation of er evalu Improp etition comp Are we getting hind the Falling be the benefits? ess proc nual o n ma nce ons Relia epti s te perc rovider cura of p Inac nd sa ritie aders prio g le on n omm s amo en d of c ation sp e k ct IT anc Lac xpe n ee form of e etw s per b s els ent ks e d r lin sin mo em oo d bu P n ew anag lity a N m qua rity on ta teg ati da n in at e m m im or le o ab ati ion inf or l-t ion form inf rea t es in m ss Qu and ste ce sy t ac n’ Ca 8
  • 9. Outgrown IT Foundation Recent Merger or Acquisition Changing Business Model Excessive Internal Audit or Compliance Costs Globalization Any Business Failure in Which IT Played a Role Critical Business Triggers Any Major IT Project Failure Cost Reduction Challenge Critical Risk Management Issue The Start of a Return to Growth Stages of Assess Evaluate Implement Sustain IT Investment Free IT Diagnostic System Selection Program and Project Change Management Management IT Assessment Ongoing IT Effectiveness System Implementation Review IT Due Diligence Custom Application IT Portfolio Value Development Assessment Business System Lean IT Assessment Strategic IT Road Map Crowe’s Suite of IT Advisory Solutions ER O RD 9
  • 10. Crowe Horwath LLP Critical Business ■ Outgrowing the current IT foundation. Years of organizational Triggers Bring growth, accompanied by under- Urgency and investment in IT capabilities or by piecemeal solutions, can produce Importance a patchwork of systems requiring Certain critical business events often add a comprehensive upgrade. It is urgency and importance to IT decisions. worth noting the last major cycle of Examples of these events include: enterprise IT investment occurred during the Y2K era. The time span that has passed since then is close to the average life span of an enterprise system, at which a major upgrade or replacement is generally needed. ■ A recent merger or acquisition. Disparate systems and competing technologies are among the most commonly encountered challenges in an M&A event. Beyond the capital investment that may be required, there is almost always significant personnel change, as well as manage- ment and business disruption risk. When contemplating an acquisition or divestiture, IT decision-making requires special consideration due to the rapid and critical nature of solution deployment. ■ Excessive internal audit and compliance costs. Reducing the costs of internal audit while also Organizations often must make significant IT investment delivering business process improve- decisions in an uncertain environment. Critical business ment offers the opportunity for both immediate financial savings as well as events highlight the uncertainty and inject additional a long-term reduction in future costs. urgency into the situation. Crowe’s IT Advisory framework Building automated controls into the addresses these complex, interlaced challenges. system itself can reduce the need for external or manual interventions. 10
  • 11. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise ■ A changing business model. As ■ Any business failure in which IT of the coming three-year period, a result of strategic restructuring played a role. Examples include while the projected growth rates initiatives, some organizations have financial control failures that cause in the work force are considerably made wholesale changes to their restating of financial results, regardless less.7 In this environment a business models. For example, many of whether the restatement is primary IT objective is to increase consumer product companies now required by Sarbanes-Oxley or other efficiency and improve workflows consider themselves marketing, regulations. Beyond the immediate in order to “do more with less.” customer, and sales-focused compliance costs are the indirect costs ■ Business continuity issues. With organizations – outsourcing much of of reduced business valuation and the heightened business reliance on IT, their manufacturing and distribution credit limitations that can result. businesses must address resiliency operations. Such a change greatly ■ Any major IT project failure. and recovery issues. For example, in affects the focus of internal enterprise Negative memories of past failures many industries today, the impact of a systems as the traditional product can create organizational barriers company’s website going down is an functions associated with an ERP to investing appropriately in future immediate interruption to the revenue solution no longer support the initiatives. Examples that illustrate this stream – a business continuity risk new strategy. New needs such as include missed cutover dates, budget today that was immaterial – if it existed product development management, overruns, poorly managed change at all – 10 or 15 years ago. Mitigating sophisticated forecasting, and driven by IT, or unrealized benefits. such risk must be a top IT priority. improved customer relationship ■ Cost reduction initiatives. management (CRM) are often needed. These initiatives affect all areas ■ Globalization. In addition to changes of a business, including IT. In many directly related to outsourcing, the cases, however, technology may increasingly global nature of today’s actually help reduce organizational businesses also sparks indirect costs or help improve flagging changes in IT requirements. These revenues. When cutting is applied to are necessary to meet the more the IT investment category, a refined sophisticated collaboration require- prioritization mechanism is important ments that occur when working with when choosing between alternatives. trading partners across vast spaces, ■ Supporting a return to growth. multiple time zones, and multiple In the “Future of Manufacturing currencies. For example, long lead 2009” survey cosponsored by times demand greater clarity into Crowe and IndustryWeek magazine, shipment status as well as ability to more than one third of respondents allocate shipments directly to are forecasting greater than 10 customer orders. percent annual growth by the end www.crowehorwath.com 11
  • 12. Crowe Horwath LLP Core Concepts In developing and defining its IT Advisory services framework, Crowe Horwath LLP The Major Stages of the Crowe IT has followed a comparable approach, of IT Investment Advisory Solution developing solutions to help businesses make IT decisions that achieve critical For an executive who is seeking to bring order to shifting and interlacing In his precedent-setting book, “The strategic and operational goals: challenges of IT investment, there is one Information Paradox,” author John Thorp more question that must be considered: suggested four critical questions to guide 1. Doing what’s right. Crowe’s Where does the business stand in terms IT decision-makers: approach helps businesses of the specific IT issue being addressed? objectively manage IT as an overall 1. Are we doing the right things? portfolio, rather than as a series In general terms, the answer to this 2. Are we doing them the right way? of one-off projects. The approach question can be expressed as one of 3. Are we getting them done well? also helps companies ensure that IT four broad stages of IT investment spend is evaluated based on clear shown in the center of the illustration 4. Are we getting the benefits?8 business cases, with a focus on on pages 8 and 9: validating the assumptions that were made to justify projects. 1. Assess: Enable understanding and alignment 2. Aligning with standards. Crowe’s approach applies leading research 2. Evaluate: Support informed and best practice experience to help decision-making executives understand the risks and 3. Implement: Plan and benefits of alternative decisions, and execute effectively to recognize the various categories 4. Sustain: Manage and improve of investments and business for long-term results applications that must be managed. 3. Executing with rigor. Crowe’s Depending on the particular IT issue being methodologies and tools help ensure addressed, a business typically finds new projects are implemented itself in several stages of this continuum correctly, enable quick recovery at once. One specific technology issue or termination of unsuccessful may require support in selecting the initiatives, and establish clear appropriate system, while another will accountability for results. require only steady management and ongoing review of an existing platform. 4. Realizing the benefits. Crowe’s approach focuses on helping Moreover, the solution to IT issues organizations minimize total cost of does not always progress in a linear ownership and maximize total value fashion. For example, an execution and over the full life cycle of IT initiatives, implementation challenge can cause not just the acquisition and the business to rethink its initial system implementation phases. selection – or even reassess its original strategic goals for the initiative. 12
  • 13. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise www.crowehorwath.com 13
  • 14. Crowe Horwath LLP Crowe’s Suite of IT Advisory Solutions The Crowe suite of IT Advisory solutions offers effective tools for addressing critical issues at all stages of the IT development and execution continuum: Assess: Enable Understanding and Alignment Free IT Diagnostic IT Assessment/IT Due Diligence 1 Day 2 – 3 Weeks A rapid diagnostic of the existing A structured exploration and environment. Identifies the key risks analysis of business systems, and opportunities in leveraging IT security, spending, integrations, within the business along with a hardware, communications, high-level path to realizing benefits, personnel, policies and procedures, and suggests a series of next steps and intellectual property. Designed to capitalize on areas of opportunity. to uncover hidden risk and opportunity and communicate complex issues in a format that is accessible and actionable by the business owner or leader. Benefits Benefits ■ Objective opinion by third-party ■ Formal written deliverable, experts consumable by IT and business ■ Identification of key risks leaders ■ Documentation of opportunities ■ Series of prioritized, specific recommendations ■ No cost ■ Actionable direction focused on highest business value 14
  • 15. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise E Business System Assessment Strategic IT Road Map 3 – 5 Weeks 6 – 8 Weeks A deep dive into understanding An effective bridge across all stages and documenting the entire suite of of IT strategy, decision-making, and sponsored and user-created busi- execution planning. Draws from ness system software tools used to time spent with the IT and business run the organization. An important leaders to clarify organizational foundational element for evaluating strategy and performance goals, major initiatives such as possible identify and evaluate a series of ERP replacement or M&A activity, alternative IT investment decisions and to identify strategic and func- and projects, and then weigh their tional gaps, potential areas of risk, impact on each of the objectives. and opportunities for improvement. Benefits Benefits ■ Visual representation of all user ■ Clear, 18 – 24 month plan for all tools actually used to run the recommended IT investment business ■ Investment options delivered ■ Clarity to functional gaps, for various budget levels software integrations, ■ Resource plans that indicate unmanaged tools, risks, exactly what is needed to opportunities, unmet needs, execute and support ■ ROI analysis for each investment alternative www.crowehorwath.com 15
  • 16. Crowe Horwath LLP Evaluate: Support Informed Implement: Plan and Decision-making Execute Effectively System Selection Program and Project Management 4 – 8 Weeks Determined by project A proven and pragmatic approach, Helping to ensure that all defined combined with Crowe experience projects are progressing in a with a variety of software systems, coordinated and managed fashion, that quickly and effectively guides with speed and efficiency. Includes the organization to the best determining and assigning work decisions for critical business to be done, tracking progress, systems. Work covers areas such managing exceptions, balancing as strategy, selection criteria, conflicting priorities, and requirements definition, and vendor communicating to all parties evaluation, selection, negotiation, involved to help ensure all stay and implementation planning. focused on the end-goal. Benefits Benefits ■ Objective and structured ■ Project support activities leadership for significant are planned, managed, and system decisions communicated regularly. ■ Insight from hundreds of system ■ Scope of the work, and selection decisions and leading associated risks, schedules, industry research costs, and needed resources ■ Enhanced speed and quality of are accurately defined. decision-making ■ Quality work is delivered and ■ Negotiation support to drive issues are addressed as they are cost savings encountered. 16
  • 17. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise I System Implementation Custom Application Development Determined by project Determined by project The use of proven methodologies Custom-built solutions for niche and vision to anticipate looming circumstances or online/Web needs issues, and the application of skills where business requirements can- to manage internal and external not be met though out-of-the box resources. Key to realizing the applications. Leverages more than benefits of the planning phases, 20 years of Crowe experience with independent implementation known platforms such as Java™ , oversight reduces the risk of going Microsoft® .NET, and open source over budget, missing deadlines, or tools and applications. failing to deliver on promises. Benefits Benefits ■ Reduced risk of scope creep ■ The ability to leverage onshore/ and budget overruns offshore models that are truly ■ Quicker path to value through cost efficient structured methodology ■ An established organization to ■ Business-first advice designed support solution implementation to drive value from the ■ An established development technology being implemented toolkit to provide velocity, reduce costs, and minimize coding www.crowehorwath.com 17
  • 18. Crowe Horwath LLP Sustain: Manage and Improve for Long-term Results Change Management Ongoing IT Effectiveness Review IT Portfolio Value Assessment Determined by project Determined by project Determined by project A structured approach to Provides an ongoing evaluation Leveraging the portfolio of IT invest- transitioning individuals, teams, and tuneup on completed ment to derive maximum business and organizations to a desired implementations and new projects value from IT assets. Involves the future state. Aligns expectations, in motion. Key components of the application of systematic manage- communicates, integrates teams, Crowe toolkit are used to advise on ment to large classes of IT items and manages people training, using risks and opportunities, and provide including planned initiatives, proj- a pragmatic approach that includes a scorecard on the organization’s ects, and ongoing IT services, to skill upgrading to maximize the use of IT. help organizations determine which implementation effort. portfolio of IT spend truly delivers value for the investment. Benefits Benefits Benefits ■ Reduced resistance to change ■ Short-phased visits that ■ Central oversight of budget ■ Faster adoption of the strategic maintain momentum on projects ■ Risk management initiatives in process ■ Strategic alignment of IT ■ Early identification of issues ■ Objective evaluation of possible investments and demand before they drain projects of changes to current plans ■ Standardization of investment anticipated benefits ■ Highlighting and definition of procedures, rules, and plans risk redemption requirements 18
  • 19. Getting IT Right: How to Plan, Manage, and Deliver on IT’s Promise Conclusion: An to the effort. Project leaders average 20 years of experience in IT-related Objective and Advisory services working for many Results-driven industries across a variety of specialty business application environments. S Approach This approach, proven in organizations Regardless of the specific solutions of all sizes, is also adaptable on a global Lean IT the client employs within the Crowe scale thanks to the international reach of Determined by project suite of solutions, Crowe pursues a the Crowe Horwath International network. rapid, results-driven approach, with a specific set of deliverables in each At all levels and throughout all phases The extension of lean manufactur- ing and lean services principles to phase of the assignment. The overall of the engagement, our emphasis is the development and management goal is to successfully meld business to provide pragmatic solutions that of IT products and services. The process needs and company strategy go beyond theory, and to work side- central concern is the elimination of by-side with client teams in a flexible, into executable IT plans as quickly as waste, in particular work that adds possible, in order to deliver time-phased, collaborative effort that takes into account no value. Particularly effective for companies that develop software as budget-conscious solutions. each business’s unique staffing models, a product or have a high volume of time and resource constraints, and custom tools. Crowe’s methodologies support available IT investment funding. clients seeking to assess their current systems and infrastructure as well as those organizations making strategic 1 “Technology Issues for Financial Executives,” investments that are looking for expert Computer Sciences Corporation and Financial Executives Research Foundation, 2008, p.2. guidance related to the transaction. Benefits 2 ibid. The Crowe suite of IT Advisory solutions ■ Improved investment in Agile 3 “Technology Issues for Financial Executives,” provides businesses with a proven, Computer Sciences Corporation and Financial software development systematic process for developing Executives Research Foundation, 2008, p.3. ■ Reduced software defects appropriate IT strategies, making 4 “The Future of Manufacturing 2009,” IndustryWeek, ■ Elimination of unnecessary or objective IT system decisions, and Penton Media Inc., 2009, p. 8. overbuilt solutions executing and managing their ongoing 5 “Know Your Costs: The Key to IT Business,” ■ Reduction of unnecessary IT initiatives. Crowe’s business-driven InformationWeek Analytics, April 2010, p. 5, http:// equipment and vendor-neutral approach is in many analytics.informationweek.com/abstract/81/2813/ Business-Intelligence-and-Information- ■ Improved productivity due to respects the polar opposite of traditional Management/informed-cio-it-cost-transparency. reduced “firefighting” vendor-driven IT spend decisions. html. 6 ibid. The Crowe IT Advisory teams pursue an investment-minded approach, and 7 “The Future of Manufacturing 2009,” p. 3. provide client executive teams with the 8 John Thorp, “The Information Paradox: Realizing tools and techniques to do the same. the Business Benefits of Information Technology,” Project staffing is composed of more McGraw-Hill Education, 1999. than technologists – adding a variety of specialists in personnel, process, strategy, and performance management www.crowehorwath.com 19
  • 20. Contact Information About Crowe Horwath LLP Doug Schrock Crowe Horwath LLP is one of the largest public accounting and consulting firms in the 317.706.2643 United States. Under its core purpose of “Building Value with Values, ” Crowe assists ® doug.schrock@crowehorwath.com public and private company clients in reaching their goals through audit, tax, advisory, risk, and performance services. With 26 offices and 2,400 personnel, Crowe is Jeff Shaffer recognized by many organizations as one of the country’s best places to work. Crowe 312.899.4493 serves clients worldwide as an independent member of Crowe Horwath International, jeff.shaffer@crowehorwath.com one of the largest networks in the world, consisting of more than 140 independent accounting and management consulting firms with offices in more than 400 cities Josh Cole around the world. 616.752.4274 josh.cole@crowehorwath.com If you would like to start receiving information via e-mail about topics of importance to you, please sign up on our website at www.crowehorwath.com/emailsignup. www.crowehorwath.com When printed by Crowe Horwath LLP, this piece is printed on Mohawk Color Copy Premium, which is manufactured Java is a trademark of Sun Microsystems Inc. or its subsidiaries in the United States and other countries. entirely with Green-e® certified wind-generated electricity. Microsoft is a registered trademark of the Microsoft group of companies. The Mohawk Windpower logo is a registered trademark of Mohawk Fine Papers Inc. Green-e is a registered trademark of Center for Resource Solutions. Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2010 Crowe Horwath LLP PERF11316A