1. The White Elephant
Mohammed Khaiata
Friday 25th October 2013

2. Mohammed-Khaiata
MohammedKhaiata
m.khaiata@gmail.com
@Khaiata

3. Three Gorges Dam - China
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Cost: US$26 billion
Largest hydroelectric dam in the world
18 years to build; 1994 till 2012
Height 181 m, base width 115 m, length 2,335 m
Caused 1.4 million people to be relocated
Caused the worst drought in 50 years
1300+ Chinese heritage sites were submerged
At risk of catastrophic failure (great earthquake)

5. Ciudad Real Central Airport
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€1.1bn Cost
Promised 6000 new jobs
Promised boom for the local economy
Closed in April 2012 after only four years of
operations

7. Castellón–Costa Azahar Airport - Spain
• €150 million Cost
• Got delayed for several years
• Declared "open" officially in March 2011
despite:
– No airlines signed up to land there, nor
– Government approval to operate
• Flights were due to begin on April 2012
• As of June 2013, there have been none

9. Agenda
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Alignment Paradigm
Selection Model
Project Portfolio Process
Open Discussion

10. Alignment Paradigm

11. Corporate Strategy

12. McKinsey’s 7S Model

13. Strategic Alignment Maturity Model

14. Business Impact

15. The Case of ERP Implementation

16. The Case in
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17. The Case in
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18. The Case in
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19. The Case in
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20. The Case in
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21. The Case in
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22. The Case in
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23. The Case in
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24. Selection Model

27. Selection Model
• Mathematical
• Comparative
– Cost / Benefit Analysis
– Scoring Models
– Economic Models
– Discounted Cash Flow
– IRR, NPV, …

28. Selection Model
• Know what you want
– Do your homework
• Define your scope, budget, timeline, and constraints
– Survey the market
– Know the risks
• Product Limitations
• Total Cost of Ownership TCO
• Myths of Vendors

29. Selection Model - Example

30. Selection Model - Example
• Client: Our requirement...this is something
big, you know.... we need an elephant…
• Vendor: … but why don’t you adjust with
a buffalo, it is also big and black?
• Client: No, we need only elephant, let me
explain our current process is … (1 hour …)
• Vendor: Fine, I understand. But our product
supports only buffalo…

31. Selection Model - Example
• Client: But we require only elephant!
• Vendor: Ok... Let me see if I can customize
• Signed SOW: Client wants:
– A big black four legged animal
– Long tail
– Less hair
– Having trunk is mandatory.

32. Selection Model - Example
• Specifications:
– Have One Trunk
– Have Four Legs
– Should Carry Load for Both Passenger and Cargo
– Black in Color
– Should be Herbivorous

33. Selection Model - Example
• Delivery Team:
– All features are supported in base product buffalo
– For trunk alone a separate customization is done.
– Added Value: Delivers Milk

34. Selection Model - Example

35. Selection Model - Example

36. The Case in
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• Scoring Models Used
• Survey the market – Benchmark:

37. Project Portfolio Process

38. Project Portfolio Process

39. Project Portfolio Process
• Balancing Dimensions

40. The Case in
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Four phases
Splitting Modules and licensing
HR then other functions
Pilot then rollout
Engaging Internal team with SI
Sponsorship
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41. Example of Full Lifecycle
• How The Customer Explained it

42. Example of Full Lifecycle
• How the project leader understood it

43. Example of Full Lifecycle
• How the analyst designed it

44. Example of Full Lifecycle
• How the programmer wrote it

45. Example of Full Lifecycle
• What the beta testers received

46. Example of Full Lifecycle
• How the business consultant described it

47. Example of Full Lifecycle
• How the project was documented

48. Example of Full Lifecycle
• What operations installed

49. Example of Full Lifecycle
• How the customer was billed

50. Example of Full Lifecycle
• How it was supported

51. Example of Full Lifecycle
• What marketing advertised

52. Example of Full Lifecycle
• When it was delivered

53. Example of Full Lifecycle
• What the digg effect can do to your site

54. Example of Full Lifecycle
• The disaster recovery plan

55. Example of Full Lifecycle
• What the customer really needed

56. Do You Really Know What You Want?

58. Open Discussion