alfabet value proposition
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Background Information
2© 2010
Background
This presentation provides you with background information on how the planningIT saving effects will be reached.
It gives you an understanding on how planningIT helps you with reducing your CAPEX, optimizing your CAPEX and how the productivity effect will be considered in more detail.
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3© 2010
The planningIT effects
4© 2010
The opex / capex challenge
Traditional IT Capex
Traditional IT Opex
Year 1
140.000.000 60.000.000
Stabilizing on a 70%/30% ratio requires an annual
Traditional IT Capex
Traditional IT Opex
140.000.000 60.000.000
Traditional IT Capex
Traditional IT Opex
140.000.000 60.000.000
Traditional IT Capex
Traditional IT Opex
140.000.000 60.000.000
Year 2 Year 3 Year 4......
Opex reduction capability10%
One time opex initiatives
Vendor squeezingAd hoc outsourcing Investment freezes
Continuous opex reduction approaches
(all having potential bounce back effects)
Technology standardizationApplication rationalizationConsolidation programs
20% of capex becoming
opex next year
5© 2010
The plannigIT advantage
a 10% opex reduction capability is required to ensure a stable opex-capex ratio based on the defined scenario
planningIT enables a min. 13% continuous anual opex reduction !
€ 4,50 M
In year 1:
€ 90,83 M
Over 10 years:
6© 2010
Operational expenditures
48%traditional
78%planningIT
manually process drivenTechnology standardizationStandards managementTechnology lifecycle managementTechnology change management
Exhaustion of the reduction potentialReduction measures
31%traditional
83%planningIT
ad hoc continuousApplication rationalizationConsolidationDecommissionLifecycle costing
17%traditional
91%planningIT
partial comprehensiveRoad mappingStrategic road mappingMigration planningScenario planning
Service level alignmentDemand managementSLA readjustment
45%traditional
86%planningIT
retrospective business-oriented
7© 2010
The planningIT advantage – Improved Capex effectivity
30% of all investments in IT don‘t deliver the desired value
planningIT saves annually min. 1/3 of all lost investments in IT projects !
€ 8,60 M
In year 1:
€ 101,24 M
Over 10 years:
8© 2010
Improved Capex Effectivity
30% of all investments in projects don’t deliver value ! Reasons:
Project stops
Bad project management Changed business requirements
Redundancy in projectsArchitectural project conflictsNo adequate architecural planning
Traditional capex optimizationincl. PPM tools
Content focussed architectural planning
Use of planningIT makes 1/3 of lost investments in projects effective
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Capital expenditures
27%traditional
85%planningIT
fragmented integratedCapability managementStrategy alignmentDemand management
exhaustion of the optimization potentialoptimization measures
64%traditional
91%planningIT
ad hoc process drivenPortfolio managementProject definition governancePrioritizationProject impact/redundancy analysis
17%traditional
72%planningIT
reactive proactiveChange managementProject rework governanceProject conflict governanceTotal quality management
10© 2010
planningIT productivity effect
Application
telephone inquiries
compliance inquiries
Data search & validation
Repository udates
Discussion groups
PlanningIT delivers a productivity increase of 5,45 men days per year
800 applications x 2hours x 12 month = 10,91 man years x 50% = 5,45
11© 2010
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