Business Technology Optimization: The New CIO Agenda

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Business Technology OptimizationThe New CIO
Agenda

• Kenneth R Klein
• Chief Operating Officer
• Mercury Interactive

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The New Strategic IT Agenda
Business Technology Optimization

• Optimize Business Process Quality
• Align IT Business Objectives
• Control IT Costs

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BTO Aligns IT Strategy and Execution With The
Business
IT GOVERNANCE
APPLICATION LIFECYCLE
DELIVER
DEVELOP
DESIGN
MANAGE
SUPPORT
Govern priorities, processes and people required
to run IT as a business Deliver and Manage the
output of IT business processes consistently and
cost effectively Manage the dynamic relationship
between IT strategy and execution
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Maximum BTO Impact
IT Governance Application Delivery and
Management
IT GOVERNANCE
APPLICATION LIFECYCLE
DELIVER
DEVELOP
DESIGN
MANAGE
SUPPORT

• Capital and operating expenses
• Operational efficiency
• Performance and quality

Strategic Impact
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The BTO Reality
Business Technology Optimization (BTO) is an
emerging industry category that optimizes
technology and business processes in the
enterprise.
IT governance and application delivery and
management create synergy between two BTO
markets. CIO's bridging the gap in these two
areas further enable the competitive position of
their enterprise.
BTO has now reached a maturity that will make it
a serious contender in infrastructure management.
The architecture is sound, the capabilities
complete and the deployment easy. A solution to
consider...
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BTO Industry Partners
Accenture Cap Gemini EY BearingPoint
Computer Sciences Deloitte EDS IBM
Spherion
SYSTEMINTEGRATORS
SAP Siebel Oracle PeopleSoft BEA IBM
Sun Microsoft Sybase
INFRASTRUCTURE AND APPLICATION VENDORS
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Manage Business Processes
Maximizing performance availability of embedded
business processes is key
BUSINESS PROCESS
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IT Governance Accelerates BTO
BUSINESS VALUE
IT GOVERNANCE
PERFORMANCE COST COMPLIANCE
BUSINESS PROCESS PRODUCTS SERVICES
DELIVER
DEVELOP
DESIGN
MANAGE
SUPPORT
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IT Governance
Managing the Business of IT
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Technology Focus of BTO
Govern, Deliver, Manage
CIOKPIsScorecard
CFOPortfolioNPV, Costs
LOB GMAvailabilityPriorities
VP DevStatus Quality
VP OpsSLAs Capacity
Engineers AnalysisTasks/Status
INTEGRATED IT PROCESS WORKFLOW
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Iterative Approach
No More Big Bang Projects
Start Small Realize Value E X P
A N D
Resolve Immediate Issues
Optimize Quality Throughout Projects
Standardize BTO Processes
BTO METHODOLOGY
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Business Measurement
How Well Is It Executed?
For automated business processes, how well do
you define and measure IT performance against
service levels that matter to business?
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What Can We Do Better?
Percent of firms describing their company as
very successful at the following activities
Optimizing the use of infrastructure that
supports these apps and processes
39
Testing the quality of apps before deploying them
30
Optimizing the performance of apps while they are
being used
16
Ensuring that apps and the business processes
they support meet service level and business goals
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GMAC - Major Residential Lender

• Effective portfolio and project management
• CEO, CFO Dashboards support IT
• Improved quality and performance
• Savings (on track for 5 million annually)
• Efficiency (required effort cut up to 90)
• Integration of Test Director and Demand Manager

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Fidelity - Large Financial Institution

• Reduce costs for implementation, maintenance,
  support, and operation of enterprise applications
• Breakthrough levels of efficiency and savings
  (value) through process automation
• Closed-loop defect and incident resolution
  processes for development, deployment, and
  production
• Integration of Testing, Tuning, and Management
  tools with Demand Manager and Change Manager

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BTO Essentials
BTO Leadership
Customer Success
Financial Excellence
Proven Technology
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Get Started
1. MEASURE
Measure critical business process against
SLA Identify opportunities for quality improvement
2. MAXIMISE
Leverage and re-deploy technology
investments Improve process results
3. MANAGE
Define optimization indicators Manage
performance Alert proactively