alfabet value proposition

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Page 1: alfabet Value Proposition

Quick Value Calculator

Background Information

Page 2: alfabet Value Proposition

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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The planningIT effects

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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

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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:

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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

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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:

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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

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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

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