Defining and Implementing

1

• Defining and Implementing
• Technology Strategy
• Discussion Framework
• March 20, 2001

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Contents

• Introductions / AG Overview (5)
• Strategic Analysis vs. Technology Strategy (5)
• Technology Due Diligence and other useful
  Frameworks (15)
• E-Business Strategy Case Study (20)
• Q A

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Who We Are

• Athens Group is an employee-owned consulting
  firm, integrating technology strategy and
  software solutions.

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What We Do
Assessment
Implementation
Planning

• Technology Plans
• Architecture Roadmaps

Strategic Planning

• Risk Analysis
• Risk Management Plan
• Competitive Analysis
• Recommendations

Due Diligence
Multi-project Oversight
Program Management
Dedicated Project Oversight
Project Management

• Integration Architecture
• Recommendations

Package Selection
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We Assist Clients in the Application of
Information Technology to Increase the Value of
Their Business
Change Management (Business Integration)
Technology Strategy
Emerging Technologies
Assessment
Planning
Implementation

• Internet Evolution (e-Business)
• Technology Due Diligence
• Appropriate Technology Selection

• MA Due Diligence
• IT Benchmarking
• Business Alignment Evaluation
• Project Assessment

• IT Strategy Plan
• Architecture Design
• Disaster Recovery Plans

• Requirements Definition
• Package Selection
• S/W Development Process

• Business Alignment Goal Deployment
• IT Strategy Implementation
• Business Process Improvement
• Program / Project Management

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What We Do Knowledge Centers
Customer Relationship Management
Manufacturing Systems
Business Performance Management
Hardware Integration
eBusiness
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A Few of Our Clients
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A Few of Our Clients
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A Few of Our Clients
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Strategic Analysis vs. Technology Strategy

• Strategic vs. tactical strategy
• Response to specific situations
• We need to be an e-business by the end of the
  year! --CEO
• Should we acquire Abc corp? --CEO
• Should I invest in Xyz.com corp? --VC
• Do we need an ERP system? What is the best one
  for us? CIO
• How do we define and implement the right systems
  to support our new business strategy? --CEO

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Common Tools

• Technology Due Diligence Process
• Risk Analysis
• Business Case Framework
• Project Prioritization
• Package Selection Process
• IT Roadmap

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Technology Due Diligence

• Product vs. MA
• People
• Process
• Technology

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Technology Due Diligence - People

• Develop some usable frameworks and collect
  metrics. value is in comparison
• Starting point Carnegie-Mellon SEI
• http//www.sei.cmu.edu/cmm-p/

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Technology Due Diligence - Process

• Business and Engineering
• Examples order processing, customer support,
  software development
• Starting point
• http//www.sei.cmu.edu/cmm/cmms/transition.html

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Technology Due Diligence - Technology

• Very situation-specific
• Code reviews
• Performance benchmarking
• Security validation (see http//www.iss.net)
• Architecture validation
• Scalability, integration, skillset
• Customer interviews

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Risk Analysis

• Simple Framework
• Identify Risks, Probability, Severity
• Multiply Probability X Severity
• Sort by risk
• Develop mitigation strategy and contingency plan
  for each high risk
• Implement risk management process!
• Example frameworks

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Product Development Risk Analysis
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The Business Case Is Built In A Logical Sequence
Of Steps
Step 5
Finalizing the Business Case
Step 4
Validating Benefits with process owners
Step 3
Quantifying Opportunities and determining Benefit
Logic

• Opportunity charts
• Financial and operational assumptions

Step 2
Findings based Opportunity Identification and
Baselines

• Studies covering the key levers identified in the
  financial analysis
• Baseline development

Step 1
Financial Decomposition

• Understanding economic drivers of business
• Understanding financial projections and
  historical trends

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Prioritization Frameworks

• Simple (matrix)
• Weighted
• Gated

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Simple Prioritization Applications Example
STRATEGIC
HIGH POTENTIAL
Applications that are critical to companys
current business strategy
Applications that may be important to companys
future business strategy
Critical to Business Strategy
KEY OPERATIONAL
LEGACY
Applications which company needs to run business
Applications targeted for replacement / no
further investment
Strategic Impact
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Weighted Prioritization Example
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Gated Prioritization Example
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Package Selection Process
Confidential and Proprietary
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Requirements Management / Package Selection Tool
Example
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Process Map (IDEF0) Example
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Four Components of the Technology Strategy

• Purpose
• Defines the organizations reason for existence
• Identifies customers of the technology
  organization the value Technology provides

Measurement
Customers New Customers Share of Wallet Service
Revenue
Financial ROI Budget of revenue

• Guiding Principles
• Set the general direction for the technology
  organization
• Defines how it will operate
• Provide a focal point for employees

Employees Satisfaction Retention Productivity
Innovation Investments Skills Patents

• Critical Success Factors
• Limited in number the critical few
• Identifies things that must go right to be
  successful

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Framework for a Technology Roadmap

• Build the Roadmap
• Identify the gaps
• Define objectives
• Establish priorities
• Target completion dates

• Current Environment
• Surveys
• Staff Interviews
• Management Discussions
• Capability Assessment

• Future Environment
• Purpose
• Guiding Principles
• CSFs
• Measures

• Framework
• Time horizon
• Strategic Elements

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eBusiness Case StudyIntegrating Business and
Technology Strategies
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The Assignment

• You are the CIO !
• The CEO informs you the BoD has requested a
  strategy plan to develop implement
  competitive eBusiness capabilities for the
  company.
• The initial set of these capabilities must be
  in-place within 12 months.

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The Situation

• Global manufacturer of custom engineered,
  consumable production tools for the semiconductor
  industry
• 12 sites in 7 countries growth through
  acquisition
• Critical business drivers changing from
  technology leadership and quality to also include
  speed of delivery and common face to global
  customers
• Your competitors are six months ahead of you in
  building their eBusiness capabilities
• Six months earlier you were assigned as CIO to
  form a consolidated, global IS organization
  reporting to yourself
• Last quarter, you began the implementation of a
  global ERP project as your top priority for the
  next 18 to 24 months

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What Would You Do?

• What can you hope to accomplish in 12 months?
  What are some realistic objectives?
• What should be your approach? What common
  tools can be applied?
• What challenges should you expect? Within the IS
  organization with other functional managers
  with customers with vendors / consultants?
• Where do you start?

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Athens Group Approach
Business Goals and Priorities
Global IT
Web
eBusiness
Prioritization Process
Strategy
Platform
Strategy
Roadmap
Selection
OrderEntry
Web
Application

• Athens Group provided consulting services every
  step of the way
• Strategy- Planning- Implementation

OrderStatus
Web
Application
Future
Web
Applications
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Global IT Strategy Roadmap
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Global IT Strategy Roadmap

• IT Strategy mapped to specific projects and laid
  out in a timeline over the next three years
• IT organization can forecast resource
  requirements and capabilities far in advance

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Global eBusiness Strategy
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Global eBusiness Strategy

• eBusiness strategy integrated with other IT
  projects to be completed in the three year time
  horizon

• Investments in eBusiness infrastructure can be
  made with confidence

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Prioritization Process
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P4 Prioritization Process
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Web Platform Package Selection
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Web Platform Package Selection

• Systematic analysis of platform technologies and
  vendors with consideration of many factors
• Scalability- Security- Personalization-
  Internationalization- Fault tolerance-
  Developer availability- etc
• Client can make a rational selection based on a
  documented comparison of the options

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Online Order Entry System
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Online Order Entry System

• Order entry wizard leads the customer through a
  complex process step-by-step

• System creates custom screens for an order based
  on answers from earlier screens

• Orders are entered more quickly and with fewer
  errors

• Client saves time and money Clients customers
  save time and money.

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Order Status System
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Order Status System

• Customers can see the status of all their orders
  in just the format they want even set up
  multiple custom views.

• Customers can get additional details on an order
  with another click of the mouse.

• Customers can set up a schedule to get status
  delivered by email or fax just when they need it.

• Customers can even request that order status be
  delivered to their local system via XML.

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Questions/Discussion
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Athens Group Overview
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Mission Statement

• Be a trusted partner of our clients.
• Provide solutions to business problems through a
  marriage of systems thinking and appropriate
  technology.
• Maximize the potential of knowledge workers
  through a work environment based on mutual
  support, cooperation, and professional
  excellence.
• Provide the foundation for high quality of life
  for our employees.
• Demonstrate that humanizing the workplace is not
  only compatible with business success, but is a
  competitive advantage.
• Be an asset to our communities.

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How We Do It Our Strengths

• The best people
• The right process
• The appropriate technology

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How We Do It People

• Our employee-owned model attracts the very best
  talent
• Industry-leading retention rate
• Employee-owned Personal responsibility
• Respect for the project and project team

The best people the best results for our clients
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How We Do It Technology

• Technology breadth and expertise
• Industry-leading domain experience
• Commitment to up-to-date technical training
• No ties to any particular vendor, environment or
  tool-set

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How We Do it the Right Process
Plan
Improve
Risk Reduction
Research
Planning
Management Plan
Risk Analysis
Databases
Quality
Specifications
Estimating
ROI Analysis
Needs Assessment
Adapt
Observe
Project Plans
Configuration Management
Training
Analyze
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Value to Clients

• Three levels of value
• Technology
• Process
• Domain
• High-value consulting
• Experienced (gt15 years on average)

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Additional Value to Clients

• Experienced consultants that combine business
  strategy with technical knowledge
• Proven, effective process
• Automated tools
• No allegiance to a specific vendor
• Extensive domain and industry knowledge
• Full Lifecycle Capability

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What We Do Knowledge Centers

• Knowledge Center a specific solution area in
  which Athens Group has deep experience and proven
  expertise.
• Knowledge Centers are supported by our
  knowledgebase of successful client engagements
  and internal investments.

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Employee Value Proposition

• Organizational Employee Control
• Employee ownership
• Democratic decision-making
• Professional Challenge and Growth
• Technology, process and domain skills
• A commitment to training
• Personal Quality of Life
• Excellent compensation and benefits
• Overtime discouraged, not congratulated

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Value to Community

• Five Leadership Austin alumni
• Two Profiles in Power award winners
• One assistant faculty member at Southwest Texas
  State University

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Value to Community (2)

• Community leadership Greater Austin Chamber of
  Commerce, Austin YouthWorks, Open Door School,
  Austin Music Commission, Womens Legislative Days
  Steering Committee, Big Brothers Big Sisters,
  United Way, Leadership Austin, Leadership Texas
  and GACC Blue Ribbon Task Force on Light Rail,
  ACC Center for Non-Profits
• Professional leadership Software Quality
  Institute, Her Domain of Austin, Delphi Users
  Group, Oracle Users Group, Austin Software
  Council, Austin Software Process Improvement
  Network (ASPIN), Technology Business Network,
  Computer Science 2000