4. The current IT business model may be unsustainable:
• Increased demands on Information Technology, Growth in Information.
• The rapid growth of the data center, energy consumption, capital and operating
expense are outstripping the gains of increased computing capability (Moore’s
law).
• Impacts of Virtualization, Cloud Computing, Mobility and Big Data
• The demand for data center space now exceeds the supply
• By 2015, the talent pool of qualified senior level technical and management data
center professionals will shrink by 45%.
• A lack of collaboration between functions within the company.
• Budgets and Projects continue to be cut.
• Add to this increasing breach of security, you have a situation ripe for disaster: loss
of competitive advantage, loss of market share and customer trust
How will we manage and survive????
What Business Problem Are You Trying To Solve and
How Will the Cloud Make A Difference?
5. So Why the Need for a Sourcing Strategy?
Innovation:
• The introduction of something new
• A new idea, method or device
Examples are Ford product line, McDonalds, Apple, Internet, Mobility
Leadership:
leadership in an organizational role involves (1) establishing a clear
vision, (2) sharing (communicating) that vision with others so that they
will follow willingly, (3) providing the information, knowledge, and
methods to realize that vision, and (4) coordinating and balancing the
conflicting interests of all members or stakeholders.
6. The objective of this session is to discuss the challenges IT faces and describe
how the right sourcing strategy can take an organization beyond not only
decreasing costs but increasing business process excellence and
innovation.
Once IT leaders develop a partnership with the business they can respond to
evolving corporate objectives, changes in the economy and competitive
environments.
Sourcing Strategies include:
• Understanding the business problems, vision, objectives, metrics
• How to be Innovative with business process
• Providing Leadership and direction
• Developing a three year technology strategy
• Managing people during the transformation
• Managing vendors and expectations
No ‘single sourcing strategy’, regardless of the size or breadth of the company can
produce optimal value for all stakeholders. A better approach is a Sourcing
strategy that recognizes those strategies and opportunities that produce value
from the IT organization.
7. Revenue Growth, Customer Focus Top List of Priorities
CIOs report their average IT budget as a percentage of revenue is 8.6 percent, up from
5.2 percent last year and 4.7 percent in 2012
Growing overall company revenue (78 percent), customer acquisition and retention
(75 percent), and addressing the rising expectations of customers (72 percent) are
among the top business issues considered as critical or high business management
priority among the CIOs surveyed.
While customer focus is a priority, nearly half (47 percent) have challenges in getting their
IT staff to be more business-oriented and customer-facing.
IT executives are split on the potential impact of cloud and other service providers on their
role; roughly half (52 percent) believe the future CIO role will likely be focused primarily
on managing contractors, cloud and other IT service providers.
Most of the IT executives surveyed agree that the CIO role is becoming more important
to their business (86 percent) and that their role is increasingly becoming more
challenging (90 percent) while 65 percent think the CIO role is becoming more rewarding.
Top List of Priorities 2014
8. Before You Jump to the Cloud:
1. Why do you need to source outside of your company?
2. What is the technology strategic roadmap?
3. Do you know what your core competencies are so that you can focus
and prioritize your technology initiatives on them?
4. Can you define your services, processes and your objectives so that
you can transport them easily to vendors/partners?
5. What services are core versus non core?
6. Are you able to measure innovation and its impact in all aspects of
your business?
7. What people knowledge do you lose?
8. Can you monitor improvement from your sourcing strategies?
9. How do you manage the vendor/partner relationship?
10. Do you lose control?
11. Will your cloud strategy address the priorities?
9. Questions & Answers
Fred Mapp
Quality Service Solutions
fred@mapping-it.com
Fred Mapp
Quality Service Solutions
fred@mapping-it.com
10. Questions & Answers
Fred Mapp
Quality Service Solutions
fred@mapping-it.com
Fred Mapp
Quality Service Solutions
fred@mapping-it.com