1 © 2005 Intel Corporation. All Rights Reserved. Administrando la Tecnología de Información para generar Valor al Negocio Club de Investigación Tecnológica – Costa Rica - Luis Gimenez Manager Systemic Innovation Initiative Americas IT Innovation Centers Manager Sergio Cascante IT@Intel Latin America Manager Marzo 7, 2006 Luis Gimenez Manager Systemic Innovation Initiative Americas IT Innovation Centers Manager Sergio Cascante IT@Intel Latin America Manager Marzo 7, 2006

2 2 Objetivos del Seminario  Compartir nuestra investigación y a la vez establecer un dialogo con respecto al concepto de general valor al negocio de TI (Tecnología de Información)  Compartir:  Un modelo evolucionado referente al valor de negocio a TI, a fin ayudar a las organizaciones a obtener más beneficio de TI  El modelo se deriva de la síntesis de la investigación académica y la experiencia en la industria  Incluye áreas como:  Administrando el Presupuesto  TCO y ROI  Herramienta: “Business Value Index”  Ejemplos  Oportunidad para revisar, discutir y proveer retroalimentación Introducción Intel, the Intel logo, and other Intel brand name(s) are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

3 3 Definición de Valor al Negocio  Valor del negocio es la contribución que TI hace a la organización para que esta alcance sus objetivos.  Aumentar el valor de los accionistas = Funcion(Growth, Efficiency, Productivity) Business Value Business Value Revenue (Growth) Costs/Efficiency Assets (Productivity) Introducción

4 4 Generando valor al negocio Effective IT Governance Mechanisms Metrics, Incentives Clear Business Objectives Managing IT like a Business

5 5 Valor al negocio por Categorías de valor para TI ( Ejemplo de Intel IT) Managing IT for Business Value - 1

6 6 Ejemplo: Movilizando la fuerza laboral de Intel Source: An IT@Intel white paper, Nov 2003  Continuously connected, wireless mobile computers using enabled hotspots change the way employees work  Average 37% faster using an Intel ® Centrino TM mobile technology-based system for seven commonly performed office tasks  Participants who received upgrades gained more than 2 hours per week in productivity  Replacing 6,400 notebooks yields a 3-year net present value (NPV) of roughly $26 million Intel, the Intel logo, and Centrino are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

7 7 Un problema de la industria de TI  ¿Cuántas empresas calculan el retorno a la inversión en IT?  73% de los CIO no calculan el ROI en sus proyectos completados  70 % de las compañías encuentran dificultades al calcular el ROI - CIO Insight survey 2002  Problemas  Definiciones  Disciplina  Tiempo  Intangibles  Madurez  Prioridades  Liderazgo/Modelos a seguir Introducción

8 8 El Nuevo Reto Business Value Cost Reduction WorkloadInnovation Security Compliance Demand Introduction

9 9 Que le dice el CFO al CIO  Usted siempre está pidiendo más recursos  Usted no alcanza los niveles de eficiencia deseados  ¿Es TI tecnología solo por la tecnología ?  Cuídese de las promesas de retorno  Usted gasta mucho dinero Introducción

10 10 Que le dice el CEO al CIO  ¿Donde está la rentabilidad?  Necesito una ejecución y operación perfecta  Usted tiene que ser una fuente clave en la innovación del negocio  ¿ Por qué utiliza su propia jerga?  Su organización es muy lenta Introducción

11 11 Que le dice el CIO al CEO/CFO Help Enable Growth! Help Improve Margins! Help Reduce Fixed & Variable Costs! Demand for IT Solutions IT Budget Growing Flat Declining Company Revenue Introducción

12 12 Manage the IT Capability Manage IT like a Business Manage the IT Budget Manage for IT Business Value Repeatable Ad Hoc Defined Managed Optimized Level 1 Level 2 Level 3 Level 4 Level 5 Source: Intel, inspired by SEI CMM Administrando TI para generar Valor al Negocio Introduciendo el modelo de madurez Introducción

13 13 Valor del negocio en TI Marco del Modelo de Madurez 5.Optimizing 4. Managed 3. Defined 2. Repeatable 1.Initial Managing the IT Budget Managing The IT Capability Managing IT For Business Value Managing IT Like a Business Major Strategies Sustainable Economic Model Expanded Funding Options Systemic Cost Reduction Predictable Performance Strategic Business Partner Technology Supplier Technology Expert Options and Portfolio Management ROI & Business Case TCO Customer/ Service Orientation Technology/ Product focus Customer/ Service Focus Maturity Levels Beginning Optimized Value Corporate Core Competency Value Centre Source: Martin Curley Introducción

14 14 Cerrando el ciclo respecto al Valor Business Strategy Business Context Introduction

15 15 Cerrando el ciclo respecto al Valor Métricas Importantes IT Posture IT Intensity IT Yield IT Capability IT Governance IT Budget IT Value Firm Performance Introducción

16 16 IT Posture Cerrando el ciclo respecto al Valor IT Intensity IT Yield Introducción

17 17 Valor del negocio para TI Marco de referencia para la Inversion + 0 IT Efficiency Business Value + - 0 - Requires incremental IT budget Creates resistance from line of business and users Improved business value with little or no IT efficiency penalty Improved IT efficiency with no business value penalty Improved business value AND IT efficiency Necessary, but low value Failure Alineando el negocio y los Beneficios de TI Win – Win Introducción

18 18 Administrando el Presupuesto de TI Managed Costs Predictable Financial Performance Chaos Systematic Cost Reduction Expanding Funding Options Sustainable Economic Model Level 2 Level 3 Level 4 Level 5 Managing the IT Budget CMF Managing the IT Budget Level 1

19 19 Nivel 2: Rendimiento Financiero Predecible Managing the IT Budget

20 20 Administrando el Presupuesto de TI Alcanzando un modelo económico sustentable  Mejora continua predecible y programa sistemático de reducción de costos.  Alcanzar el equilibrio entre la oferta y la demanda.  Administrar la relación entre los recursos y la demanda.  Reducción de costos que permitan reasignar presupuesto para la Innovación en TI.  Nivel adecuado de reservas para permitir flexibilidad y predecibilidad Managing the IT Budget

21 21 Nivel 3: Estrategias sistemáticas para la reducción de costos  Renegociación o cambio de proveedores  Ajuste en los Contratos de Nivel de Servicios (SLA)  Incrementar la automatización  Re-ingeniería de procesos para los negocios  Seguimiento al consumo  “Outsourcing”  Traslado de recursos a localidades de menor costo  Uso de tecnologías ‘disruptivas’  Administrando el portafolio de TI  Diseñando para Operaciones (DFO) Managing the IT Budget

22 22 La Batalla contra los Costos Diseñando para la Operación  Solucionando problemas estructurales  Cambio de estrategia - fuente servicios-  Cambio de comportamiento y patrones de uso  Mejorar eficiencias operaciones post- implementación Impact Higher Lower …Lecciones de TI en Intel Managing the IT Budget

23 23 Platform Performance Intel Antes: Compra de “Low End” PCs… 4-Year Depreciation Microsoft Windows NT* 4 capable Microsoft Windows* 2000 capable Premature upgrade 20K clients $40M capital Intel IT Purchases Intel IT Purchases Intel Roadmap Intel Roadmap 1997 1998 1999 2000 2001 2002 Shortened Useful Life *Other names and brands may be claimed as the property of others. Managing the IT Budget

24 24 Platform Performance 2000 2001 2002 2003 2004 2005 …Ahora con “High-End” PCs 4-Year Depreciation Microsoft Windows NT* 4 capable Microsoft Windows* 2000/XP capable Faster transitions Performance headroom New features Requires stable platforms Intel IT Purchases Intel IT Purchases Intel Roadmap Intel Roadmap Stable platforms enable us to balance efficiency and effectiveness *Other names and brands may be claimed as the property of others. Managing the IT Budget 

25 25 Factores de demanda de Capacidad en Intel Transistors 1970 197519801985199019952000 Pentium ® 4 Pentium ® III Pentium ® II Pentium ® i486™ DX i386™ 286 8080 8008 4004 1,000 10,000 1,000,000 10,000,000 100,000,000 100,000 8086 Chip Complexity Projections estimated engineering capacity requirements would drive a $300M+ yearly capital budget in 2002 and beyond Normalized CPU Hours (K) Intel Engineering CPU Cycle Demand 19921994199619982000 2003 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 105% Annual Demand Growth Rate 2002 Intel, Pentium, and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Managing the IT Budget

26 26 Un Caso de Reducción de Costos Migration to Intel® Architecture + Linux* $782M in Capital Savings (1997 – 2003) Annual growth rate for computing capacity = 105% Year RISC Replacements Yearly $M’s Saved ’97-’003,413$99M 20016,348$143M 20027,241$210M 200312,887$330M Total$782M Above savings do not reflect a 2x average performance difference between Intel Architecture and RISC – Savings based on 1:1 system replacement Capital Spend ($M) Savings ($M) Intel Architecture Migration Savings vs. Spending 19951996199719981999200020012002 0 100M 200M 300M 400M 500M 600M 700M 800M 900M $1 Billion 2003 2004 Accumulated Savings due to Intel Architecture Migration Projected 2004 Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others. Accumulated Savings Intel Architecture Migration 0 100M 200M 300M 400M 500M 600M 700M 800M 900M Managing the IT Budget

27 27 Mejores practicas administrando PCs  Managed software loads on a stable hardware platform  Proactive support services  Training  Help desk  Proactive upgrade cycles  Smooth the capital investment profile  Ensure ability to upgrade application software for all users  Reduces support costs  3 to 3.5 years optimum, with high performance purchase specification  Synchronize operating system upgrades with hardware upgrades for lowest deployment cost  Methods to reduce total cost of ownership (TCO)  IT manages PC budget for Intel  Purchase systems with long useful life  Best use of current assets — recycle  Reduce or eliminate engineering and support  Reduce platform churn  Single image Managing the IT Budget

28 28 Definiendo el caso de negocio  Utilice los casos del negocio para :  Asignar prioridades al las alternativas  Considerar en retorno financiero  Entender las restricciones  Componentes del case de negocio:  Costo  Beneficio  Valorización  Justificación Managing IT for Business Value 2

29 29 Caso de negocio estratégicos  Presente el caso a la gerencia general  Use el formato estandard de la empresa  Refuerza la disciplina del la empresa  Muestra las necesidades de la empresa (Intel)  Utiliza las convenciones contables de la empresa  Calidad y credibilidad son claves  Problema ‘garbage in, garbage out’  Verifique la calidad y veracidad d la información financiera  Incluya beneficios indirectos (ej. Satisfacción del cliente) Managing IT for Business Value 2

30 30 Beneficios Intangibles  Considere las ventajas intangibles para el análisis completo  Ejemplo de intangibles:  Lealtad del cliente  Nuevas oportunidades de negocio  Aumento de productividad  Disminución de riesgo  Considere la Distancia de rédito (brecha entre la inversión y las consecuencias)  Refinar métodos para evaluar intangibles Managing IT for Business Value 2

31 31 Nivel 4: Hacia el nivel 4 de CMF  Hacia el Nivel 4:  Capacidad de producir casos de negocio de alta calidad y robustos  Aplique la disciplina contemplando el impacto en la empresa  Decida las inversiones con plan comprensivo  Balance costos y beneficios  Administración de Portafolio  Administración de Opciones  Administración de Riesgo Managing IT for Business Value 2

32 32 4: Business Value Index (BVI) + 0 IT Efficiency Business Value + - 0 - Requires incremental IT budget Creates resistance from line of business and users Improved business value with little or no IT efficiency penalty Improved IT efficiency with no business value penalty Improved business value AND IT efficiency Necessary, but low value Failure Managing IT for Business Value 2

33 33 Nivel 4: Using the BVI CriterionWeight1234 Customer Pull3LowMediumHighVery High Business Strategic Fit3Low/NAMediumHighVery High End-User Performance Improvement 2DecreaseNone10% Managing IT for Business Value 2

34 34 Pasos para el calculo del BVI identify proposed investments determines criteria and weightings compute BVI values makes decisions based on those BVI rankings BVI are re-assessed and recalculated periodically takes decisions based on previous step investment owners management investment committee (MIC) investment owners MIC Input is fed back to the MIC for evaluation

35 35 Nivel 4: El ciclo del BVI Understand business strategy Assign criteria BVI Cycle Propose solution (Biz Case Value Dials) Assess benefits, costs, risks; compute BVI, ROI Prioritize and rank proposals Make Investments, establish measurement mechanisms Monitor through stage-gates by tracking BVI, ROI; re-balance portfolio Measure benefits/ value delivered, obtain customer feedback Managing IT for Business Value 2

36 36 Level 4: Assessment Criteria - Business value CriterionExplanation IT customer pullExtent to which IT’s customers are asking for this deliverable – describe volume and strength and influence of the request or demand. Firm strategic fit/impactLevel of alignment with strategic objectives (SO) – describe which SO’s and how impacted. Firm end-user performance improvementUser productivity, system performance, quality; not limited to only IT users. New or enhanced capabilityCompletely new solution to solve a business problem, an enhancement, or incremental improvement? Impact on firm’s business riskImprovement in firm’s business continuity security, stability, and disaster recovery. (Total risk=severity of occurrence x frequency of occurrence) Level of innovation and learning for IT customersNew technology approach/tools for customers. Impact on key business variablesDeliverable addresses one of the value dials from the list that is not covered by any criteria here – identify the specific value dials that are impacted. Impact on firm’s revenueDirectly related to protecting or enhancing the revenue generation environment, but not the magnitude of the impact. End customer satisfaction and VOCImpact on IT customer satisfaction, i.e. the firm’s business units. Size and level of customer impact (i.e., visibility)Magnitude of firm’s population affected. Use of firm’s own productsExtent to which project showcases use of the firm’s own products. Confidence of successDegree of confidence, from a business standpoint, that the benefit will be delivered. Other intangible benefitsPlease list additional benefits not captured above. Managing IT for Business Value 2

37 37 Level 4: Assessment Criteria - IT Efficiency CriterionExplanation Internal IT customer demandExtent to which internal IT customers are asking for this deliverable. Include the volume and strength of request. IT’s strategic fit and impactLevel of alignment with IT strategic objectives. Level of innovation and learning for IT New technology approach or tool for IT internal usage. Unit cost reductionLowers the unit cost of products – documents the products and the type of costs affected. Time to marketIncreases the speed at which IT products and services are deployed to customers firm-wide. IT employee satisfaction impactLevel of impact on IT employee well-being, development, and growth. Confidence of successMeasurement of level of confidence to deliver on commitment. Size and level of impact to ITMagnitude of IT population affected. Impact to IT employee productivityImproved efficiency, faster project throughput, and higher quality solutions. Managing IT for Business Value 2

38 38 Level 4: Assessment Criteria Financial Attractiveness CriterionExplanation Net Present Value (NPV) A calculation that weighs an investment against its payback over time. The calculation demands for estimates, payback amount, payback period, a discount rate, and the investment amount. Negative NPVs can and do occur, both when paybacks are simply less than the investment or when paybacks are overridden by the discount factor, which is essentially the cost of money over time. Payback periodPeriod between initial investment and recovery of the total investment. Level of investmentTotal investment required – allows an assessment of how many investments can be made against a particular budget. Includes both initial and life cycle cost. Option ValuePotential future value not reflected in NPV. Internal Rate of Return (IRR) The actual rate of return (projected or realized) of the investment, taking into account the time value of money. (The IRR is the discount rate that makes an investment exactly equal to its payback over time). Managing IT for Business Value 2

39 39 Level 4: Visualizing BVI Business Value Index IT Efficiency Index 1 2 5 8 64 3 7 7 9 Managing IT for Business Value 2

40 40 Level 4: Visualizing BVI - Affordability Line Investment Project NameInvestment (SK) Business Value Index IT Efficiency Index Financial Attractiveness Index Total BVI Cumulative Investment ($K) Project 618407873 2241840 Project 47007453802072540 Project 31507457702012690 Project 81127657631962802 Project 12869039631933088 Project 91867339701833274 ----------------------------------------------$3.3 million affordability line---------------------------------------------- Project 532286759531796474 Project 2296927631596503 Project 71806039501496711 Total Investments ($K)6711 Managing IT for Business Value 2

41 41 Nivel 4: BVIs a lo largo del tiempo  Grafique los resultados de BVI a través del tiempo (similarmente al desempeño de un stock/accion)  Use BVI resultados y tendencias para invertir en “opciones”  Inversiones pilotos  Si las opciones resultan favorables se incrementa la inversión  Intel IT inversión en opciones resulto en el desarrollo de la tecnología “ peer-to-peer” Managing IT for Business Value 2

42 42 Resumen  Maximice el valor de las inversiones de TI asignando prioridades a los proyectos y buscando alineación a los objetivos de la empresa  Llevar la toma de decisiones al nivel apropiado  Intégrelo con el modelo de gobernabilidad y operación de la operación  Balancear la asignación de los recursos de proyecto en función de prioridades  Reduzca las redundancias usando técnicas para aumentar la visibilidad para proyectar inventario  Supervise y optimice el proceso entero de la entrega del proyecto Managing IT for Business Value 2

43 43 Gracias ! Introduction