Innovation World 2014

Alfabet World: Make IT the Engine

of Innovation for Enterprise
Transformation

Dr. Ulrich Kalex,

VP Product Management and Marketing
October 15, 2014
Change is Fundamental to any Business

Source : Forrester Research, Inc., October 2013 “Competitive Strategy In The Age Of The
Customer”
• Change is constant and it is
nothing new
• Embracing change is key to
business success
• IT transformation is
elemental to business change

Innovation World 2014 October 13 – 15 New Orleans

Digital Engagement is driving current IT Transformation
Intuitive, Anytime, Anywhere

Innovation World 2014 October 13 – 15 New Orleans

IT Transformation Challenges - IT Complexity

• EA, PPM and other IT teams are working

in silos. This causes expensive errors and
Capabilities Strategies Demands
conflict.
• Data on the IT portfolio is poor and is not
integrated. An unreliable basis for
Risks
decision making. Applications

• Overlaps and redundancy in IT support

are not recognized. This leads to higher
costs. Regulations
Technologies

 IT projects fail. Business is frustrated

and has no confidence in IT.
Devices Budgets

Roadmaps Projects Skills

Innovation World 2014 October 13 – 15 New Orleans

IT Transformation Challenges - Aligning to Business
Strategy

• Business strategy is unknown and lacks detail.

• Strategy is siloed resulting in conflicts.
• Business and IT are speaking different
languages - or just not speaking.
• Lack of transparent governance leads to pet
projects trumping projects that are strategic
or mandated.

Innovation World 2014 October 13 – 15 New Orleans

IT Transformation Challenges - Getting the Budget

Transform the business

The available budget for IT
Total IT Budget

transformation has been squeezed

from above and from below.

Keep the lights on

Time

Innovation World 2014 October 13 – 15 New Orleans

Portfolio Management enables IT Transformation

EMPLOYEES C U S TO M E R S PARTNERS

TRANSFORMATION
Through Portfolio Management
Flexibility allows for Manage IT assets through Understand and manage
IT transformation an integrated environment impact of change

Systems of Record

Innovation World 2014 October 13 – 15 New Orleans

IT Portfolios - Highly Interconnected and Volatile

• Delivery roadmaps
• Roadmaps
• Costs & risks

IT change
portfolios
• Business strategies • Portfolio strategies
• Tactical demands • Tactical demands

• Metrics on performance of IT support

Business
IT asset
strategy
portfolios
portfolios • Business assessments of IT support

Innovation World 2014 October 13 – 15 New Orleans

Establish an Integrated IT Portfolio Practice involving
Business

Create application Map business context to

portfolio Business application portfolio
 Understand how
 Transparency across existing application
applications, devices Capabilities Strategies Demands portfolio supports the
and technologies business
Applications Risks  Identify gaps

Technologies Regulations

Architecture Finance & Risk

Link to existing program Devices Budgets Integrate finance & risk
portfolio perspectives
Roadmaps Projects Skills

 Understand ongoing  Add risk, regulatory

transformation through Projects and financial view to
running and future the integrated IT
projects portfolio

Innovation World 2014 October 13 – 15 New Orleans

 Communicate using Business Structures

• Use strategies, operating E.g., use business capabilities to align

models and business project investments to business
capabilities. priorities

• Associate them to demands,

projects and IT architecture.
• Use heat maps to take the
politics out of discussions.
• Prioritize using portfolio
metrics.
• Implement transparent IT
governance workflows.

Innovation World 2014 October 13 – 15 New Orleans

Optimize the IT Portfolio

• Establish and empower IT

portfolio management roles.
• Use natural (given) business
structures for the portfolio
breakdown.
• Set clear goals and monitor
them.
• Use dashboards to provide
stakeholder-specific
overviews.

Innovation World 2014 October 13 – 15 New Orleans

The Advantages of IT Portfolio Management
• Teams collaborating with a single view of IT
• Reliable data and informed decision making
• Successful transformation
$13M savings in $1.1M yearly
• IT delivering real business value
first year through savings from
strategic improved
standardization! productivity &
reduced scope!

Data accuracy up
to 95% with
integrated Reduced
repository! compliance effort
and better
governance!
$11M yearly
savings by
avoiding
development
projects!

Innovation World 2014 October 13 – 15 New Orleans

Alfabet Business Value – Return on Information

60% direct savings 10% increase in 10% reduction in

in the man-day
efforts made
for collection, processing, validating
and reporting on IT architecture
elements - a task done continuously for
reasons such as SOX, risk management,
data protection, user satisfaction etc.
These savings alone can finance an EA
program.
deliverables from
investments in IT
projects
by ensuring that projects are
architecturally checked and correct,
and that potential architectural
conflicts during the roll-out of IT
projects are discovered and avoided.
Thus budget over-runs, missed
delivery-dates, reduced scope in the
project deliverables or total project
failure are avoided.
yearly operating
costs
by the discovery of redundancies in the
IT infrastructure and by standardizing
the architecture, which not only leads
to cost reduction but also to increases
in the flexibility and agility of the
enterprise.

Innovation World 2014 October 13 – 15 New Orleans

Alfabet - Delivering customer value
through IT Portfolio Management

Innovation World 2014 October 13 – 15 New Orleans

Transforming Financial Services

OPPORTUNITY:
• Free up IT budget to directly R E S U LT:
support
- Aggressive international growth
in the private banking sector
- Higher cross-selling across
Payback in SEVERAL
divisions
MILLION
R E S U LT S :
• Avoided development projects:
DOLLARS
Credit Suisse saves $6 million
annually SAVED
6 MONTHS
• Eliminated software costs: the
organization is saving $5 million
annually

Innovation World 2014 October 13 – 15 New Orleans

Business and IT Transformation being driven by business
reality, e.g. “Age of the Customer”
• Getting the right customer experience will drive business growth
 retain, service, upsell
• Top four technology priorities of business are all about the customer
• Harmonized systems of engagement need BPM and EA intersection
• Role of BPM is to design the processes that will actively support the envisioned
customer experience.
• Role of EAM is to define architecture principles as a basis for decisions and govern
how architecture solutions are designed for optimal customer experience

Gartner Strategic Planning Assumption:

“By 2015, over 75% of EA and BPM constituencies will be jointly
developing high-level function and process views of the enterprise, using a
variety of techniques. ”
Source: Gartner, “To Assess the Impact of Change, Connect Process
Models With Business Capability Models,” Bruce Robertson, 27 March 2013

Innovation World 2014 October 13 – 15 New Orleans

BPA & EA: Different perspectives on transformation and
alignment

How can I How do I

reduce process costs? make IT less complex
and more agile?

How do I
deliver new How do I
business models? standardize to
reduce IT costs?

How can I Poor input

make business more on requirements is
agile? leading to expensive IT
projects.

How can I How do I

measure process KPIs? Business IT align to business
BPA EA strategy?

We don’t We don’t
understand the impact understand what
Enterprise
on IT! Project Focus process teams are
Focus doing.

Innovation World 2014 October 13 – 15 New Orleans

Turn individual standpoints into a combined strength

Understanding of process Enterprise-wide scope helps

content helps detect harmonize siloed process
redundant IT support initiatives

Business process view for EA Application, project and

makes business technology context enable
requirements better BPM to understand the
understood impact of process change

Process excellence and BPM EA Future-state planning

intelligence enables EA to provides the roadmap
reduce implementation context for big process
costs change initiatives
Enterprise
Project Focus
Focus

Process KPIs inform EA on the Planning and

quality of supporting implementation governance
solutions ensures success on large
business initiatives

Innovation World 2014 October 13 – 15 New Orleans

Market-leading solutions for Business and IT Transformation
ARIS - Leader in BPA
• Understand, analyze and transform
your business processes
• Measure & track process
performance KPIs
• Discover and analyze variations in
processes
• Provide the critical intelligence
needed to help you reduce process
costs and transform the business
• Reduce the costs of IT
implementation by clearly
documented processes
Innovation World 2014 October 13 – 15 New Orleans
ALFABET - Leader in EA and ITPM
• Get reliable information on
applications, their integrations and
how they support business
• Identify redundancy in IT support for
business processes
• Plan IT consolidation which helps
reduce process costs and makes IT
more agile
• Move IT spending from operating
applications to investing in business
change
• Get more budget for your business
process transformation projects
Integration Alfabet and ARIS
Business Model

Business Business
Capabilities Operating Model

B u s i n e s s Pr o c e s s e s

I T Po r t f o l i o

Navigate
to Process

Navigate
to System

Innovation World 2014 October 13 – 15 New Orleans

Alfabet - Proven Leadership

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Innovation World 2014 October 13 – 15 New Orleans