The IT Transformation at Applied Materials

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The IT Transformation at Applied Materials
NASSCOM 2007 India Leadership Summit Session 2A
The New CIO Leader Setting the agenda,
delivering results
Ron Kifer Group Vice President and CIO February
8th 2007
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Applied Materials Global Leader in
Nano-Manufacturing
FIRST
THEN
NEXT
Silicon
Display
Solar Energy
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Applied Materials OverviewAs of October 29, 2006
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The IT Transformation of Applied Materials

• The starting point..
• 17 independent IT groups
• 90 of IT spend on sustaining/maintaining
• Wrong mix of core versus context competencies
• Contractor staff augmentation model
• U.S. centric geographic footprint
• Order-taker perception of IT
• lt1 year later..
• Governance and budget consolidated under CIO
• 30 shift in spend from run to build
• New organizational structure and core
  competencies
• Managed services in place for context/commodity
  IT
• Centralization/consolidation of IT infrastructure
• IT strategic leadership of business transformation

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IT Governance
Integrated IS and Business Strategy
IT Management
Operations Client Applications Telecom
Services Front End Services Infrastructure
Integration Service Management Global Operations
Solutions Management Office Build
Production Services Run
Strategy Planning Plan
Enterprise Architecture Information Security
Risk Management Vendor Management Service
Support Office Cost Management Technology
Innovation Optimization Applied Life Cycle
Management
Software Engineering Domain Relationship
Management Program Management Office Business
Intelligence Resource Management
Customers and Clients
New organizational structure and core competencies
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Managed Services

• 3 PM (Demand Management)
• Service Management
• Vendor Management
• Cost Management
• Information Security
• Information Technology Innovation
• Application Life Cycle Management
• Process and Technology Architecture
• Continuous Process Improvement

Do the Best Outsource the Rest
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Enterprise Managed Services Model
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IT Infrastructure
Centralization / Consolidation of IT
Infrastructure
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Business TransformationCross Functionally
Reengineered Business Processes
Concept to End-of-Life
Plan to Accept
Plan to Fulfill
Service to Satisfaction
Source to Pay
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Business TransformationTechnical Architecture
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Order Taker
IT Transformation Roadmap
Centralized Governance
Strategic Imperative IT is a part of the business
where information and information services are
considered core business competencies, adding the
most value when they contribute to revenue
generation as well as cost control
Best in Class Process and Skills
Managed Services
Business Enabling IT Innovation
IT is a Strategic Weapon
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New Leadership Challenge of the CIO

• Enterprise Change Agent first adopter, change
  leader, modeling new behaviors
• Business Process Officer process optimization
  methodology and program leadership
• Enterprise managed services SPOC for vendor
  engagement and management
• Business Transformation enterprise wide
  transformation program leadership

Driving Business Innovation Agility
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