IT Strategy I Best Practices I NuggetHub

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I T S T R A T E G Y
Best Practices

IT Strategy Approaches and Transformation3
IT Strategy Frameworks2
IT Strategy Definition and Introduction1
Agenda

In a digital world, IT must drive business innovation and process
digitalization – satisfying additional stakeholders beyond the CIO
Changing IT Focus
INTERNET OF
THINGSUBIQUITOUS
INTELLIGENCE
BUSINESS
ECOSYSTEM
ENERGY &
ENVIRONMENTAL
TECHNOLOGY
KNOWLEDGE-
BASED
ECONOMY
FUTURE
SERVICES
CLIMATE
CHANGE
Robotics and
IoT
Digital Culture
“Flat World”
Sustainability and
Regulations
Demographic Change
and
Urbanization
RESOURCE
COMPETITION
Shorter Innovation
Cycles
CONNECTED
DEVICES
NEW
WORKFORCE
VALUE CHAIN
& PROCESS
INTEGRATION
ROBOTICS
IT
Process digitalization
IT operation efficiency
IT driven innovationIT service quality
IT supported business models
Digitalization & InnovationIT Efficiency
“Enter new markets and increase revenues”
“Reduce costs, increase margins” CFO
“Increase efficiency and quality of processes”COO
“Understand client needs and improve service”
CMO
& CSO
CEO
IT as part of the value chain
“Enable digital business models and top-line growth”CDO

Efficiency gains are best achieved with the right mix of quick wins,
optimization measures and transformation initiatives
Approach to realize IT efficiency gains
Shift needed Recommended
approach
Radical change
Achieving cost efficiency
Quick wins demonstrate first results and allow
optimization and transformation initiatives to
deliver higher and sustainable gains
Quick wins
Today Tomorrow
Optimization
Transformation
IT efficiency gains over time
Current
IT
status
Cost killing
procedure
Cost
reduction &
reallocation
Innovation
Operation
Transformation

A new IT operating model is needed for the digital age to enable
adaptability to changing market trends and demanding business requirements
Target IT Operating Model in the Digital Age
Organiza-
tional / EA
Benchmark
Great Place
to Work
Influencing Factors Key Questions for the Digital Age IT Operating Model
Exceeding
Strategic
Goals
Exceptional
Customer
Service
Technical
Innovation
Benchmark
Legal Requirements
Environmental
Factors
§§
Other External Factors
Cloud & Mobile
first
Cognitive Analytics
Artificial
Intelligence
BlockchainRobotics Digital Workplace
Market & Technology Trends Capabilities & Skills
Which capabilities & skills are required in business and IT to leverage
market and technology trends?
1.
2.
Which of these capabilities & skills are provided internally, what can be
obtained from partners?
3.
How can these capabilities & skills be managed and allocated to maximize
business value?
Cooperation between Business and IT
(Corporate IT, Division IT)
How to define the optimal level for standards and shared services for
common and business specific parts?
5.
6.
How to manage business goal realization end-to-end? (from strategy to
implementation)
Fast-changing Environment
4.
How to deal with fast changing business environment and how to increase
IT speed and scale IT delivery?
Strategic Objectives
Economic Factors

In order to quickly address growing strategic requirements, IT will
need to further develop a distinct set of core capabilities
Core IT Capabilities for the Digital Age
Relevance Shift of Selected IT Capabilities
Today Future
Outlook
Entrepreneur-
ship
non-
core
core
As close partner of the business, entrepreneurial spirit and innovative thinking will
become an essential part of digital IT
Capability &
Skills
Management
non-
core
core Primary task for future CIOs and their management team will be to orchestrate the
right capabilities & skills (internal & external), including innovation sourcing
E2E Demand
Management
non-
core
core
To facilitate adequate reaction speed for fast changing business demands, an E2E
mindset for business and IT is necessary (from business strategy to IT operations)
Multi-Program
Management
non-
core
core To master all digital business demands, multi-speed business & IT transformations
and portfolio management are required
Analytics &
Data
Management
non-
core
core
Competitive advantage will be heavily tied to a company’s ability to utilize data
Cyber
Security
non-
core
core
Customers are more likely to engage with companies that are trustworthy of
protecting their intellectual property and assets
Application &
Infrastructure
Management
non-
core
core
The future of application & infrastructure management will be pervasive cloud-
based solutions such as SaaS, PaaS and IaaS

Agenda

A critical success factor for the business strategy is an IT that is an
innovation partner, advisor to the business, and supports multiple speeds
IT Strategy Framework 1
Cloud
Mobile
devices
Big data
&
analytics
Social
media
Internet
of things
Technology Trends
IT operating model
Governance Organization Architecture Sourcing
FoundationDifferentiationInnovation
IT vision
Business
& IT
alignment
“IT as a business partner”
 Leverage existing and create new business models via
IT enablement
 Ensure alignment between business and IT
 Advise the business pro-actively in all IT-related areas
 Deliver IT solutions efficiently, reliably and swiftly
B
“Three ITs in One”
 Set-up governance, organization, architecture and
sourcing to support multiple speeds within the IT
– Innovation: fast and agile delivery of innovative solutions
for new services (e.g., mobile apps)
– Differentiation: market / customer specificity (e.g.,
digital CRM)
– Foundation: cost and quality efficient “bread & butter”
business (e.g., ERP backend)
C
“IT as an innovation partner”
 Identify technology-driven business opportunities
 Turn digital technologies into solutions and services
A
IT enabled business model

Digital transformation needs of the business impose new design
paradigms to the IT that require consideration in addition to classical IT topics
IT Strategy Framework 1: Evaluation of focus fields
Basic IT Digital IT
IT Supplier Consolidation
Innovation Sourcing &
Partnering
Supplier consolidation
and replacement
Innovate, source,
deliver model
IT Business Process
Optimization
IT Supported Digital Business
Models
Core/ non-core
support for digital
business
Business process
automation
Business IT Alignment Cloud Operation Models
Cloud governance
and operation
Aligned IT planning
and operation
Plan / Build / Run IT Multi Speed IT
Satisfy innovation
and agility needs
Focus on
industrialized IT
operation
Architecture Harmonization Multi Pace IT Architectures
Harmonize legacy
infrastructure
Leverage cloud
solutions
IT Efficiency / Cost Reduction IT Innovation
Reduce IT operation
costs
Resources for IT
inno-vation /
transformation
Shared IT Services Digital IT Service UnitsIT Shared Services
Digital IT services
(e.g., analytics)
IT
Costs
Governance
Organizati
on
IT
Operating
Model
Organizati
on
Applications
Sourcing

In order to cope with new realities elements of a multi -speed
enabled IT organization have to be taken into account
IT Strategy Framework 1: IT-Organization (Multi Speed IT Organization)
MULTI SPEED IT
ORGANIZATION
Board
IT Service
Providers
IT Department
Provider Management
Business Services
Cloud Providers
Foundation UnitsAgile Units
IT Demand
Manager
IT Demand
Manager
IT Demand
Manager
IT Business Partner IT Business Partner
Board
IT Department
Business Services
IT Service Providers
Demand Mgmt. (Plan)
Development (Build)
IT Operation (Run)
Demand Mgmt. (Plan)
CURRENT IT ORGANIZATIONS

Modern IT organizations support different IT operating modes
IT Strategy Framework 1: IT-Organization (Multi Speed operating model)
Innovation
Agile and innovative
 Agile Delivery Model
 Secure Operation
 Innovation Architecture
Mobile Apps, Analytics,
Portals,
E-Shops
Differentiation
Market and customer
specific
 „Glocal“ Delivery Model
 Scalable Operation
 Modular Architecture
CRM, Wikis,
Supply Chain,
MES, GIS
Fundament
Cost efficient
 Industrialized Delivery
 IT Operational Excellence
 Harmonized Architecture
ERP-Systems
ERP Backbone
Business
Value
IT
Capabilities
Examples

Modern IT organizations support different IT operating modes in
order to balance IT efficiency and digital innovation needs
IT Strategy Framework 1: IT-Organization (IT Organization Alignment)
Business
Value
IT
Skills
Exam-
ples
Innovation
 Fast
 Innovative
 Agile Delivery
Model
 Secure Operation
 Innovation
Architecture
 Mobile apps
 Analytics
 Portals & wikis
 eShops
Differentiation
 Market- and
customer-specific
 „Glocal“ Delivery
Model
 Scalable
Operation
 Modular
Architecture
 CRM
 GIS
 Wikis
 Supply Chain
Foundation
 Cost and quality
optimization
 Industrialized
Delivery
 IT Operational
Excellence
 Harmonized
Architecture
 ERP Systems
 ERP Backbone
IT Department
IT Service
Provider
Board
Foundation UnitsAgile Units
Provider Management
Business Services
IT Business Partner IT Business Partner
Cloud Providers
IT Demand
Manager
IT Demand
Manager
IT Demand
Manager
Multiple IT Operating Models Multi Speed Enabled IT Organization

We recognize that IT roles and IT organization need to be in
alignment – best practices accelerate design
IT Strategy Framework 1: IT-Organization (Target IT Organization)
IT role model and IT organizational structure Approach
 Validate IT roles against business
requirements and our best practice IT
role model (for selected pilot areas)
 Adjust existing roles and define new
role profiles required leveraging our
templates and best practices
 Align role profiles within IT role model
 Define high-level target IT operating
model and assign roles
 Adjust existing IT organization
structure in a step-wise approach (level
by level) to define target IT
organization
Results
 Existing IT roles adjusted and
enhanced
 Required additional IT roles defined
 Target IT organization structure definedStep-wise, top-down
definition of target IT
organization
(level by level, illustrative)
IT role profiles
(e.g., future XaaS IT
roles)
Best practice
IT role model
(incl. role profile for each
role)
Operating
model
(high-level)
L1
(departments)
L2
(teams)
L3
(employees)

The discussion of core / non-core activities leads to a target IT
operating model and delivery recommendations
IT Strategy Framework 1: IT-Organization (IT Operating Model (core / non-core))
Target IT operating model (example) Approach
 Establish common understanding of IT
services and related IT tasks and
activities (for selected pilot areas)
 Identify IT value creation priority for
each task and activity
 Discuss categorization as core / non-
core based on prioritization
 Identify core activities for internal
delivery
 Identify non-core activities with
external sourcing options (initial
identification – validation still required)
Results
 Target IT operating model defined
 Common understanding of core / non-
core activities established
 Initial recommendations given for
 Focus of internal capacities
 External sourcing opportunities
1 High priority 2 Medium priority
IT value creation priority:
3 Low priority
Sourcing scope:
Focus internal
delivery
External sourcing possible
(validation required)
Service TransitionService Delivery
IT Governance & Coordination
Business
Enabling
Service Operations
Service Lifecycle Management
Application Provisioning
Plan &
Design Build/Buy Test Roll-out
Service Desk
IT
Strategy
1
1
IT
Portfolio
Mgmt
1
IT
Controllin
g
1 2
IT
Supplier
Mgmt
1 2
Asset &
License
Mgmt
1 2
IT Risk &
Sec.
Mgmt
1 2
Project
Mgmt
1
IT HR &
Skill
Mgmt
1 2
IT
Process,
Quality &
Methods
1
1 1 2 2 2
1 2
Demand
Mgmt
1
1 2 2 2 1 2
Release
Mgmt
1 2
Configu-
ration
Mgmt
1 2
Document.
Mgmt
1 2
Infrastructure Development
Plan &
Design Build/Buy Test Roll-out
2222
Service Level
Mgmt
1 2
Service
Catalog Mgmt
1 2
Service
Improvement
1 2
Incident
Mgmt (2nd
Level)
1 2
Service
Request
(UHD, 1st
Level)
2
Access
Mgmt.
2
Operation / Monitoring
2
Workplace
Mgmt
32
Infrastruc-
ture Mgmt
2
Application
Mgmt
1 2
Enterprise
Architec-
ture Mgmt
1
IT
Innovatio
n
Mgmt
1 2

The core / non-core discussion is detailed for all IT services to
derive and substantiate IT sourcing implications
IT Strategy Framework 1: IT-Organization (IT Sourcing Implications)
Qualitative evaluation matrix for service sourcing (illustrative example) Approach
 Evaluate strategic relevance and degree of
standardization for IT services and place IT
services within sourcing matrix (for selected pilot
areas)
 Revise core / non-core categorization where
necessary – particularly for services in quadrants
“standard services” and “key competence”
 Discuss “strategic” and “niche services”, derive
sourcing implications and identify options for
external sourcing
 Compare with market best practices and
benchmarks
 Evaluate potentials of identified sourcing
opportunities
Results
 Core / non-core categorization for IT services
substantiated
 IT sourcing implications derived
 Options for external sourcing identified and
potentials evaluated as basis for prioritization
Strategicrelevance
HighLow
HighLow
Degree of standardization
Key
Competence
Niche
Services
Strategic
Services
Standard Services
Appli-
cation
Mgmt.
Hosting Housing
Support
Infra.
Opera-
tions
Inno-
vation
Sourcing
Strateg.
Consul-
tancy
Internal
Sourcing
External
Sourcing
Int./Ext.
Sourcing
Int./Ext.
Sourcing
Services (exemplary)

Measures are detailed and selected in a structured approach and
summarized in an action catalogue
IT Strategy Framework 1: IT-Organization (Detailing of measures)
 Identified measures are logged as an „idea“,
along with a higher maturity the detailing is done
 Structured process for the development and
prioritization of action areas according to defined
maturity criteria
Ide
a
Selection
Concepti
on
Implementa
tion
Preparatio
n
As-Is analysis
Identification of
measures
Preparation of
RfP
Detailing of measures Creation of action catalogue
 All measures are elaborated and documented
quantitatively and qualitatively on a “opportunity
sheet” (e.g. target, cost, benefit)
 All measures are collected and structured in an
action catalogue
Maturity level / detailing

The IT-Strategy & Transformation Framework offers a consistent
base for the optimization of corporate IT
IT-Project-
portfolio
IT-Service-
portfolio
Business/ IT
Alignment
&
Innovations
IT effectivity
IT efficiency
IT -
Organisation
&
-Governance
IT-Sourcing &
Partner-
management
IT- Applications
&
-Architecture
Technology
Innovations
&
Standards
IT Skills &
Capabilities
IT Controlling
&
Performance
Management
Business
Process
Map
IT-Strategie
&
Transformation
Definition
IT-Roadmap
Review
IT-Strategy
Visioning/
Business
Alignment
Definition
IT-Zielbild
Elaborate
IT-Strategy

Close collaboration and alignment between Business and IT is
required to create an integrated IT architecture and a functional cooperation model
IT Strategy Framework 2: Business/ IT alignment & innovation
Group
Business-
strategy
Business Unit
strategies
Business model and
process definitions
Vision
Group
IT strategy
Business Unit
IT strategies
IT support for
business processes
IT
vision
Best
practices
and
benchmarks
IT best-
practices
and
benchmarks
Market
trends
IT trends
Sourcing
and shoring
models
Legal
require-
ments
Business/ IT Alignment
A collaborative approach from Business and IT is needed to develop the organization – to address the
alignment properly three areas have to be synced between Business and IT.
Business /
IT strategy
alignment
Project
portfolio
alignment
Service
portfolio
alignment
Business demand
 IT project portfolio
 Business process map
 IT service portfolio
IT supply
 Technology innovations & standards
 IT organization & governance
 IT applications & architecture
 Global IT delivery model
 IT skills & capabilities
 IT performance & controlling
Business view IT view

Transformation activities can be triggered by many drivers – these
activities require coordination of Business and IT concerning three interfaces
Drivers for transformation
 Communication of relevant strategic (Business) decisions
 Cooperation with IT to harmonise Business and IT strategies
 Early communication of change requests/ new requirements
Business
IT Strategy
Review
New technology & innovation
Social
media
Cloud
Big data
Mobile
devices
Internet of
things
IT
Business
Alignment
IT target
picture
definition
IT roadmap
definition
New technology & innovation, customer/ business demand and lifecycle issues are triggers for transformation
needs – to successfully implement the change Business and IT have to align on different levels.
Application and platform lifecycle
Business/ IT
strategy
alignment
Project portfolio
alignment
Service portfolio
alignment
Business processes
Required Business/ IT alignment
Customer/ business demand

IT enabled innovations have to be carefully prioritized jointly by
business and IT – all initiatives have to be rated with standardized methodologies
Innovation prioritization
 Definition of process requirements/
improvement pot. on basis new technologies
 Derivation of business case and organizational
impact
 Detailing of expected results
Business
Definition
of project
goals
IT
Filtering of
project
requests
Adjustment
of IT
project
portfolio
Mgmt. Of
IT project
portfolio
Business/ IT
strategy
alignment
Project
portfolio
alignment
Service
portfolio
alignment
Required Business/ IT alignment
1,000
100
Actuals

The IT organization needs to be supported by a clearly defined IT
governance
IT Strategy Framework 2: IT Organization & Governance
Exemplary approach IT governance structure
StrategicOperational
IT partici-
pants only
Business & IT
participants
Business
participants only
ISG
EB
SC-T
FI-M
ODM
NPC
SC-S&S
SC-ES
SC-XF
SC-ERP
OM
F-M
ERC
Notdepictedhere
 Establish structures, processes and decision-
making guidelines
– Support a sustainable planning and prioritisation
of key IT initiatives
– Ensure that IT strategy and Business strategy are
integrated and aligned
– Foster the control of IT in a way that maximises
the value for the organization and minimises
costs and risks
– Track performance and status of initiatives
through meeting structures across Business and
IT
 IT governance is about the integration of all
involved stakeholders/ parties dealing with IT,
e.g.
– Board of directors
– Key positions (procurement, HR, finance, …)
– Departments, subsidiaries
– internal and external IT contractors
– (Regulatory) authorities
EB = Executive board
ISG = IT steering group
SC = SubcommitteePart of IT governance
Not part of IT governance
Goals and benefits

Different viable options for organizing IT in global companies – the
ideal target picture has to be derived from the specific client situation
One central IT department
including supply and
demand IT
Demand IT and enterprise-
specific solutions remain in
Regions; supply IT is part
of Shared Service Center
Application management
and Infrastructure demand
remain in Regions;
infrastructure supply IT
forms central department
across the group
IT remains in the Region;
management of central IT
projects and initiatives is
conducted by Corporate IT
Sample
Scenario:
Visualization:
Name:
Demand IT
Supply IT
IT Governance &
Project Management
Regions
Company IT
Company ITCompany IT
Regional IT
Regions
Company IT
Company ITInfrastructure
demand IT
Company IT
Company ITCompany ITApplication
management
Central IT
Regions
Shared
Service
Center
IT Supply
Regions
Integrated
IT
Central
Corporate IT
Central Governance Selective Centralization Shared Services Full Integration

The transition path for IT organization & governance addresses pain
points and quick wins in a first stage
Levelofcustomercentricity/
integration
 Globally integrated IT support organization further
reduce coordination and escalation efforts
 Strong Business/ IT alignment for higher customer
centricity is fully integrated
 Globally harmonised support systems
 KPI-based performance controlling is lived
 Globally dispersed and fragmented IT support units
 Support quality not always sufficient
2nd level
1st level
3rd level
2nd level
1st level
3rd level
2nd level
1st level
3rd level
Current situation
Disintegrated
IT support
organization
 Existing regional support units are globally connected
 Virtual teams account for time zone and language
coverage
 Globally harmonised governance structure with
consistent communication channels (clear roles and
responsibilities)
 Full IT support coverage for all business units
 Increased support quality due to faster response time
tToday
Mid term
connected IT
support
organization
Long term
globally integrated
IT support
organization
High
Low
Stage 1
(quick
wins &
pain
points)
Stage 2

Effective IT controlling is essential for steering the IT in alignment
with the goals and needs of the Business
IT Strategy Framework 2: IT Performance & Controlling
Approach for IT controlling
Critical
success
factor
Operational goal
Operational goal
Operational goal
Supporting
figures
Supporting
figures
Supporting
figures
KPI
KPI
KPI
Basic data
Basic data
Basic data
 Optimise resource allocation according to Business
needs
 Identify cost-intensive activities and define cost
reduction goals
 Establish corporate KPI sets and scorecards to steer
the IT, comprised of monetary as well as non-
monetary factors
 Identify cost and performance differences within the
group (benchmarking: business units/ divisions and
regions) and define reduction goals
 Improve transparency and measurability of IT costs
and establish cost awareness through harmonised
reporting
 Establish group-wide as well as local requirements
for IT reporting
 Establish comparability of internal SLAs and pricings
Goals and benefits

IT projects should not only be managed and optimised individually
but also at the portfolio level
IT Strategy Framework 2: IT Project Portfolio
Approach for IT project portfolio
Strategicdimension
Financial dimension
Project A
Project B
Project C
Project D
Project F
Project E
Capacity
of internal
resources
Strategic criteria
 Business strategy
(corporate level)
 Business strategy
(division/ unit level)
 IT strategy
 Regulatory
requirements
Financial criteria
 Cost of implementation
 Operating costs
(as-is and to-be)
 Business process costs
 Free cash-flow (FCF)
 Return on investment
(ROI)
Project sheets
 Increase transparency of project efforts and
financial impact of projects
 Define strategic and financial criteria for the
assessment of IT projects in cooperation with
business units
 Prioritise IT projects aligned with business needs
 Effective and efficient resource allocation based
on project priority
 Ensure that project and portfolio objectives of
the Business are pursued
 Identify (inter)dependencies within the project
portfolio
 Increase transparency of the value added by IT
projects
Goals and benefits

For the setup of an IT sourcing portfolio basic considerations should
be taken into account
IT Strategy Framework 2: Global IT Delivery Model
Costs
 Significant cost reductions feasible (scale, scope, productivity,
advantages in labour expenses), introduction of flexible investments
 Key topics: flexibility, „Benefits Sharing“, bonus malus system
Services/
competition
 Core competencies should not be transferred to external partners
 Services should be precisely specified (content, scope, quality, time)
 Only “usual in the market” services are appropriate for outsourcing
Competence/
learning
curve
 The outsourcer should have competences in the focused service
areas
 The learning curve is shortened by adequate solutions, methods,
tools
Controlling/
dependencies
 Tight controlling with focused bonus and malus rules
 The continuous proposal capability and a „multi vendor“ strategy
reduce dependencies
Innovation
 Outsourcing can significantly improve innovations
 Outsourcing can also be used to carve out „old technology“ or to
substitute processes step by step
Partnership
 Stability of partners and enforcement of fair, long term cooperation
 Enablement of „contracting entity capability“, enhancement of
demand management (aligned with Business)
Global IT
delivery
model

IT sourcing & partner management focuses on purchasing and
outsourcing options as well as managing external service level agreements (SLAs)
Approach for IT sourcing & partner management
Development of an IT
Sourcing Strategy
Vendor selection Implementation
Procurement risk
low medium high
Businessimpact
high
Low
Outsourcing
Potential
medium
Medium
Outsourcing
Potential
low
High
Outsourcing
Potential
Transformation:
Working area 1
Transformation:
Transformation:
RfP -Process Lot 1:
Business Software Maintenance
RfP -Process Lot 2:
Network & Hosting
Change Management
•Definition des
• -
• RfP -Process Lot 2:
Field Service & Help Desk
Transformation:
Working area 1
Transformation:
Working area 2
Transformation:
Working area 3
RfP -Process Lot 1:
Business Software Maintenance
RfP -Process Lot 2:
Network & Hosting
Project management
Change Management
Definition of
delivery areas
Definition of demand
requirements
Evaluation of
sourcing options
Corner stones:
RfP -Process Lot 2:
Field Service & Help Desk
externalinternal
IT service sourcing split
 Identify and evaluate sourcing options for IT
services through vendors
 Integral part of global delivery model
 Facilitate performance measuring and more
effective SLA definition
 Additional aspects (out-of-scope for this project)
– Vendor strategy based on defined criteria
– Analyse and evaluate price structures
– Reduce internal costs linked to poor
purchasing practices
– Reduce costs through volume purchasing and
outsourcing
– Reduce cost of services and maintenance by
standardising components and limiting number
of configurations
– Establish an IT partner program across the
organization
Goals and benefits

For each IT service the ideal form of delivery has to be identified –
options vary from completely internal delivery up to external sourcing
Long-term
measures
Short-term
measures
Internal External
Employee development
 Development programs
 IT careers
 Mentoring/ coaching
initiatives
Outsourcing
 Provider and location
selection
 IT spin-off/ carve-out
 Establishing retained IT
 Nearshoring/ offshoring
Internal mobility
 Competence centers
 Business Unit-/ location-
comprehensive assignment
 Job rotation
External contracting
 Freelancer pooling
 Partnering with contract
deployment agencies
 Temporary management
Service Sourcing
 Desktop Services
 ERP as SaaS1
 Server and network
infrastructure
Recruitment
 Professionalization of
recruiting process
 E-Recruiting
 Employee marketing
Delivery of service
Sourcing
model
Internal
competencies
= External sourcing
= Support of internal resources

Our integrated architecture approach ensures the alignment of the
target application landscape with Business and IT strategy
IT Strategy Framework 2: IT Applications and Architecture
Approach for IT application architecture management
 Reduce complexity of the IT application portfolio
across business units and regions
 Establish a frame of reference by using a domain
model for Business as well as IT decision makers
 Increase quality and effectiveness of business
services by improving transparency
 Reduce costs of IT application landscape by
establishing a continuous improvement process
 Stabilise operations and reduce risks of systems and
platforms
 Prepare application landscape for an effective and
cost-efficient group-wide delivery model
 Application lifecycle management gives indication
about potential operational risks
Domain model as an integrating element of
IT application architecture management
Goals and benefits

Architecture project work is following the Integrated Architecture
Framework (IAF) covering business to specific IT solution level
IT Strategy Framework 2: IT Applications and Architecture
Innovative
Architecture
Building Blocks
(Mobile, Big Data, …)
Global Data
Architecture
Business Reference
Architecture
 Domain model
 Catalogue of business
functions, qualified by
global or local provision
List of Sun-down / to-
be Modified
Applications
Detailing of new IT Landscape based on ref.
LSP Landscape
Standardized global
Integration Platform

The initial strategy framework provides the reference structure,
we then use the strategic pillars to develop the IT Strategy
Vision – Best IT
Mission – We care about our people, and delight our business partners and customers with innovation and technology.
Meeting and exceeding the
goals and objectives of the
global Business and IT
strategies with benchmark
results
Providing exceptional
customer service and most
value add solutions to its
business and customers
Setting benchmark results in
technical innovation in the
captive financial services
industry
Achieving the highest GPTW
results in the financial
industry
Exemplary organizational and
enterprise architecture which
sets an industry standard in
simplicity, security and
adaptability
Global Organization
Analysis / Changes /
Required Skills
Plan, Setup and
Execution Roadmap
Strategic Pillars -
Best Practices,
Methods and Models
Global Collaboration
Model
Global and Regional
Governance - KPIs
etc.
Continuous Strategy
Evaluation
Framework
Enablers
Objectives
Strategic pillars
Deliverables
API Integration
Platform
Master Data
Management
EA IAM ...Cyber SecurityDevOps
Cognitive
Analytics
Block-
chain
Operational
Excellence
AI /
EI
Open Source
Technologies
Cloud
Digital
Payment
Platform
Technology
Scouting /
Innovation
Mobile
/ IoT
Application
Landscape
Modernization
GPTW Skills / WFA
Care, Connect,
Collaborate
...
RenovationDigitalization People and Culture

The initial strategy framework provides the reference structure,
we then use the strategic pillars to develop the IT Strategy
RenovationDigitalization
Enablers
People and Culture
Objectives
Strategic pillars
Deliverables
Technology People
Architecture ProcessesOrganization
Meeting and exceeding
the goals and objectives
of the global Business
and IT strategies with
benchmark results
Providing exceptional
customer service and
most value add solutions
to its business and
customers
Setting benchmark
results in technical
innovation in the captive
financial services industry
Achieving the highest
GPTW results in the
financial industry Organizational / Enterprise
Architecture Benchmark
Great Place to
Work
Exceeding Strategic
Goals
Exceptional Customer
Service
Technical Innovation
Benchmark
Global Organization
Analysis / Changes /
Required Skills
Plan, Setup and
Execution Roadmap
Strategic Pillars -
Best Practices,
Methods and Models
Global Collaboration
Model
Global and Regional
Governance - KPIs
etc.
Continuous Strategy
Evaluation
Framework
Vision – Best IT
Mission – We care about our people, and delight our business partners and customers with innovation and technology.

To accelerate our efforts to develop the new Strategy, we assessed
the framework and identified key considerations within each dimension
IT Strategy Framework 3: Considerations and Remarks
 What are the cultural changes needed to achieve
objectives?
 Which skills are needed in the future and how can these be
developed (upskilling) in order to support new technologies?
 How to increase employee commitment?
 How to enable the right set-up of organizational capabilities
to support digital IT services?
 How to build-up and govern the future IT organization?
 Which processes are needed in the future to deal with newly
adopted technologies and the developed agile organization?
 How to enable agile and DevOps and how to connect these
elements with the existing process framework?
 How to set up a “plug and play” architecture that enables
easy integration and adaptability via APIs and
microservices?
 How to integrate existing (legacy) Applications?
 How to create and align common technology target
pictures?
 How to select relevant digital technologies and use cases?
 Which existing technologies can be leveraged to enhance IT
operations?
Key Considerations
General Remarks
 Important to follow a clear structure for all dimensions (mutually exclusive & collectively
exhaustive)
 For a clearer distinction in our analysis and strategy development approach, we propose to
investigate Digitalization and Renovation in Technology and split Enablers into
Architecture, Processes, and Organization
 All dimensions will be reviewed and refined during the project
 Detailed elements for the strategic pillars will be added during the project work with the list
given by client as a starting point

The new IT operating model should be centered around necessary
capabilities in order to meet business demands and allocate resources
efficiently and effectively
IT Strategy Framework 3: Organization: Capability-based IT Operating Model
Strategic Portfolio Management
Starting from business strategy and business
demands, the catalogue of required business & IT
products, projects and services is derived and a
decision is taken whether its lead by global, regional
or local IT leaders
1.
Capability-based Allocation
The same IT employees can work in
products, projects and work in services
based on their capabilities, more and
more following DevOps principles
Central Resource Management
The resource management group is the
central instance for providing all relevant
resourcing information
Resource Management Platform
Agility in product, project and service
management is achieved based on having
all relevant data and information
accessible on-demand in a resource
management platform
Delivery Responsibility
Responsibility lies within products,
projects and services, not capability
groups. Being responsible for delivery,
project managers and service leads must
have the final say when it comes to
staffing
Design Principles
Office of the
CIO
Resource Mgmt.
& Supplier
Steering
Capability Groups
Global/regional/
local
Group 2 – App
development
Group 3 – … …Group 1 – Front
End design
Products
Services
(Operations)
Capability-based IT Operating Model
Projects
(Change)
Performance Evaluation
Project & Service Managers: Business goals
Capability Leads: Utilization rate & bus. goals
IT employees: Util. rate, project & service
goals
6. E2E Delivery Accountability
Regions have E2E delivery capability, whereas
major part of the people are assigned to
capabilities
5.
Capability Planning
Primary focus of CIO and capability leadership team:
Planning and ensuring the right capabilities and skills
in the right amount at the right locations (global,
regional, local)
2.
Capability Sourcing
Capability group leads, in cooperation
with project managers and service
leads are responsible for assessing the
different sourcing options (internal &
external)
3.
Demand Planning and Reporting
Product, project and service managers
plan and report required support of
employees from different capability
groups by leveraging resource mgmt.
4.

The target IT operating model should be capability-driven to sustain
an agile business and IT organization
 Business in the digital age changes rapidly. An agile business IT organization is capability driven to adjust itself in a flexible and fast way to the
business needs by simply adding new capabilities needed to cater for new technology needs
 The regions have full delivery accountability for regional projects and define WHAT needs to be delivered and the capability define HOW things
are implemented according to global standards and leveraging global tools
 Autonomy and entrepreneurial thinking in
squads which drive products, projects
and services E2E
 Squads are defined either global,
regional or local by Strategic Portfolio
Management
 Agility is based on agile staffing of
squads with required capabilities
 Capability groups responsible to adapt
capabilities to external environmental
changes
 Squads with heterogeneous skillset and
background support agility
 As much E2E delivery ownership as
possible in the BUs / Regions
 Aligned standards are defined in
capability groups
Design Frame for Agility
 Autonomous team with E2E
responsibility for reaching
business goals for a
product, project or service
are working in cross
functional team
 Employees are organized in
chapters of the same skill
group (e.g. App
Development, User Interface
development, Data
Intelligences)
 Multiple chapters of the same
field are organized in
capability groups (e.g.
Application development)
Governance Aspects
A
B
C
Office of
the CIO
Resource
Mgmt.
& Supplier
Steering
Capability Groups
Global/regional/
local
Group 2 –
App
developmen
t
Group 3 –…. …Group 1 –
Front End
design
Products
Services
(Operations)
Capability-based IT Operating Model
Projects
(Change)
A
C
B
IT Strategy Framework 3: Organization: Agile Business & IT Organization based on
Capabilities
Agile Business & IT Organization

Establishing a digital culture as described by eight key dimensions
facilitates creation of a capability-driven IT operating model
Agility
Adapting to changing market conditions and customer needs
Entrepreneurship
Encouraging and enabling employees as well as leadership to take risks and promote own ideas
Digital technologies and processes
Implementing newest digital technologies and platforms, decisions are made based on data
Innovation & Learning
Encouraging learning from mistakes and build a culture that fosters creativity & experimentation
Autonomous working conditions
Providing flexible working models to foster self- leadership and personal initiative
Collaboration
Promoting an interdisciplinary exchange amongst employees, customers and other companies
Digital Leadership
Emphasizing employee orientation, leadership acts as coach and supports a trustful relationship
Customer orientation
Placing customer in the center of all thinking and acting, solutions are developed together
Eight
dimensions
of digital
culture
A well-defined change management approach and top management commitment are key requirements to
implement a digital culture that facilitates the establishment of a capability-driven IT operating model.
IT Strategy Framework 3: People: Digital Culture

The evaluation of the strategic relevance of IT capabilities forms the
basis of understanding the needs of the IT organization and IT role / skill profiles
IT Strategy Framework 3: People: Adjustment of IT Roles
Process / Capability
Consultant
Tasks
 Overall requirements management across
capabilities
 Support of development activities
 Comparison of technical and functional
requirements
Competences / Responsibility:
 Ensuring quality and agility
Project Manager
Tasks:
 Project manager for technical and IT side
 Advice on efficient implementation
 Coordination of necessary resources
 Overall requirements / project responsibility
Capability Architect
Tasks:
 Translates requirements into IT architecture
specifications
 Consideration of relevant skills for architecture
 Understanding of internal and external
requirements
 Efficient use of existing skills
Product Development
Manager
Tasks:
 Coordination of the product roadmap with
consultants
 Coordination of different development skills
 Estimation of costs and necessary skills
Competences/ Responsibility
 Ensuring solutions that meet requirements
Focus Digital IT Capabilities
 Evaluation of the strategic relevance of IT
capabilities for the client
 Definition of core and non-core IT
capabilities and services
 Comparison and evaluation of IT role profiles
against the defined IT value added focus
 High-level IT role profiles
 Gap analysis of needed and existing IT roles
 Assessment of the implications for the IT
organization of the client
 Adaptation of the IT target organization and
creation of concrete skill profiles
Evaluation of IT Roles Adoption of Digital IT Roles
Organizations need to engage into up- and reskilling initiatives in order to adopt the required skills. We have great experience with regards to the
latest trends in learning & development and we successfully developed an upskilling program for a major global IT company.

The discussion of core / non-core activities leads to a target IT
process model that supports global collaboration and agile delivery
IT Strategy Framework 3: Processes: Process Model
Fulfilled
Service
R e q u e s t t o F u l f i l l m e n t
Service Catalogue
Mgmt.
Service Level
Mgmt.
Request
Fulfillment
Stable
Operation
D e t e c t t o c o r r e c t
IT Operations
Event Mgmt. Availability Mgmt.
Incident Mgmt.
Capacity Mgmt.
Problem Mgmt.
Change Mgmt.
Service Continuity
Mgmt.
Configuration Mgmt.
S u p p o r t P r o c e s s e s
New
Solution
Solution Life
Cycle Mgmt.
R e q u i r e m e n t s t o D e p l o y
Solution Engineering (agile and
waterfall)
IT
Portfolio
S t r a t e g y t o P o r t f o l i o
Strategy Mgmt. Innovation Mgmt. Demand Mgmt.
Enterprise Architecture Mgmt. IT Portfolio Mgmt.Business Relationship Mgmt.
BusinessSatisfaction
BusinessNeeds
M a n a g e m e n t P r o c e s s e s
Standards &
Policies
Risk Mgmt. Quality Mgmt. Process Mgmt.
Financial Mgmt.
Continuous Service
Improvement
Knowledge Mgmt. Supplier Mgmt.
Program & Project
Mgmt.
IT Resource &
Competence Mgmt.
Information
Security Mgmt.
 Establish common understanding of IT services
and related IT tasks and activities
 Identify IT value creation priority for each task
and activity
 Discuss categorization as core / non-core based
on prioritization
 Identify core activities for internal delivery
 Identify non-core activities with external sourcing
options (initial identification – validation still
required)
 Target IT process model defined
 Common understanding of core / non-core
activities established
 Initial recommendations given for
 Focus of internal capacities
 External sourcing opportunities
DevOps
Example process framework is based on the IT4IT framework, other frameworks like ITIL or COBIT may be applicable as well
Target IT Process Model – Illustrative Example Approach
Outcome

The DevOps blueprint provides an integrated framework
for a successful DevOps implementation
IT Strategy Framework 3: Processes: DevOps Blueprint
SolutionComponentsStrategyGoal
Agile / Lean Automation PlatformArchitecture
Organization /
Culture
Time to Market Quality Production Costs
KPIs
Deployment frequency &
speed of deployment
No. of business
functionalities delivered
Deployment success rate
Cycle time Dev to Prod
environment
% of build and unit test
failures
Mean time to restore
services
% Time spent on
unplanned changes
Defect rate
Challenges
KeySuccessfactors
 Agile framework
 Lean foundations
 Test-driven
development/
behavior-driven
development and
UX
 Business KPIs
 “Automate
everything!”
 Continuous design
 Cont. integration
 Cont. delivery
 Cont. testing
 Cont. monitoring
 Cont. development
 DevOps toolchain
 Microservices
 Cloud architecture
 Cloud security
 Container
 Loose coupling
 API driven
 Standard
catalogue-based
services
 PaaS (Platform as a
Service)
 IaaS
(Infrastructure as a
Service)
 Cross-functional
teams
 Development and
Ops team as one-
team
 Autonomous teams
(freedom and
responsibility)
 Leadership culture

Cloud technology enables business innovation and has a major
impact on current and future business
IT Strategy Framework 3: Technology: Cloud Computing
By 2025…
 Proprietary data centers will disappear and a
large part of the computing power will take place in
the cloud
 Even private clouds get hosted by a service
provider as the security standards are better
 Up to 90% of CRM systems will be hosted in the
cloud
 A lack of skilled employees in the area of cloud
computing will exist
Benefits
Reduction of average time for
provisioning a fully functional virtual
machine from 6 weeks to 5
minutes
Reduction of average time for a new
release of a self-developed business
application from 3 months to 1
week
Average reduction of TCO
and software defects: 30% – 70%
Agility
Speed
Cost reduction
Cloud Trends and Our View
Trends
Multi-vendor approach
Ability to move data quickly
Enterprises buy more public cloud
services
Serverless computing
Securing and auditing services

We provide a strategic framework to make systematic progress on
artificial intelligence implementation in large organizations
IT Strategy Framework 3: Technology: Cloud Computing
 78% of organizations implementing AI increase
operational efficiency by more than 10%
 79% of companies implementing AI generate new
insights and better analysis
 Organizations should focus on “low-hanging fruits”
and implement AI solutions with high benefits and low
complexity (must do AI initiatives)
 Examples of “must do” use cases:
 Network security
 Fault detection and performance measurement
 Regulatory compliance
 Companies focusing on “must do” use cases
achieve greater benefits than more slimline
approaches (both customer facing and operational)
 Open source AI platforms are an interesting
starting point for many companies
Discover
Craft a vision for
what the
organization wants
to achieve with AI
Explore AI’s initial,
high value use cases
and technologies
needed to
implement them
1
Deploy
Scale the pilots to
business-wide
scope
Establish
governance to
prioritize AI
projects
Sustain
Continuous
transformation
Nurture an AI /
insight-driven
culture
Devise
Start building
capabilities to
develop AI use cases
Launch proofs of
concept and pilot
implementations on
selected use cases
2
4
3
Our AI Implementation Roadmap Our View

Successful digital transformation requires both the IT operating
model as well as the IT architecture to be considered
IT Strategy Framework 3: Architecture: Digital Transformation Focus Areas
Modern IT Architecture
Requirements
Required IT Capabilities (Excerpt)
IT Operating Model
IT Architecture
Dynamic and asset-oriented
security mechanism ensured
Scalable cloud-based
infrastructure
Business cloud potentials
leveraged
Interoperability through
microservices and open API
IT capabilities and skills
aligned to business and
market needs
Advanced solution and
innovation sourcing
End-to-end (strategy to
operation) IT demand
accountability
Self-organizing agile teams
(DevOps, SCRUM)
Agility to react to changing IT
and business requirements
Increased demand on
reliability, data security,
and data privacy
Ability to “breath” and ensure
flexibility in scaling
resources
Balance between highest
performance, availability,
and low cost
Concept
Capability-based IT operating model
Technology Framework

Our Digital Platform Architecture Framework provides an architectural
blueprint for scalable and agile IT platforms that integrates on-premise and
cloud solutions
IT Strategy Framework 3: Architecture: Digital Platform Architecture Framework
The Digital Platform Architecture Framework defines capabilities of a digital
platform that integrates on-premise and cloud-based digital services with
respective back end systems to enable business services
Reference architecture & accelerators:
 Integration – Integrate data, mobility services & applications quickly
 API Management – Unlock and leverage data via API enablement
 Identity & Access Management – Authenticate customers at every touch
point
 Service Management – Evaluate performance and support operations
 Automated Provisioning – Implement cloud services for continuous delivery
 Application Lifecycle Management – E.g. governance, requirements &
project management
Central integration components Business services
Identity&AccessManagement
ServiceManagement
Personalisation & Interaction
Customer, Supplier, Partner Management
Operational
Business
Services
Common
Data
Services
Business
Support
Services
Automated Provisioning
Application Lifecycle Management
Integration
API Management (external)
API Management (internal)
Business Domains
Back End Systems Integration

We propose leveraging our reference framework to develop a common
IT technology solution map
IT Strategy Framework 3: Architecture: Technology Framework
Identity&AccessManagement
Phone eMail SMS Mail Desktop Mobile Social
ServicesManagement
Integration
Integration
Connected DevicesTablet
External API API Management
Internal API / Services and Data Integration
Operations Management
Content & Knowledge Management
Automated Provisioning
Application Lifecycle Management
Customers Partners Employees Public Authorities
Leasing / Financing, Insurance, Fleet, Mobility Services, Banking
Customer Management
Interactions Management
Public Front Ends Enterprise Front Ends
Leasing /
Financing
Insurance Mobility Services
Back End Systems Integration
Fleet
Description / Best Practices
 Internal IT delivery focus should lie on
business services
 Unlock data held within the business to
enable innovation of new services
 Integrate new cloud services from
your ecosystem of partners with existing
IT
 Avoid vendor lock-in, enable the ability
to swap services
 Maintain reliable microservice-enabled
integration flows
 Deliver change quickly and consistently
exposing your business services using
APIs
 Enable the continuous and rapid delivery
in a DevOps model
 Integrate federated identity
management
 Secure provisioning and operation of
combinations of cloud-based and on-
premise applications
Banking

Agenda

Agenda
Approach I
Approach III
Approach II

Our digital IT strategy approach positions IT for optimized
business support and leads to an actionable transformation plan
Digital IT Strategy Approach
IT Operating Model
Organization
Sourcing
Governance
Architecture
IT cost
Set strategic
guidelines
Conduct focus
interviews
Execute
assessment,
identify
optimization/
efficiency
potentials
Fill transparency
questionnaire
(based on
existing data)
Define
future IT
positioning
Evaluate
digital IT
trends
Evaluate/ align
assessment
results
Evaluate and validate
IT target picture
scenarios
Elaborate IT target
pictures scenarios
Investment
planning/
business case
evaluation
Evaluate and
prioritize
measures and
align in
transformation
roadmap
 Actionable roadmap measures
defined
 Decision for IT transformation
based on sound planning obtained
Legend: Workshops (WS) or
interviews
 Full transparency gained
(Factbook)
 Optimization potentials identified
 IT efficiency potential identified
Steering
Committees
Target picture
WS
OUTCOMES
~ 4 weeks
IT visioning WS
 Digital IT trends identified and
evaluated
 Sound IT target pictures defined
and aligned
~ 4 weeks ~ 4 weeks
Focus interviews
TARGET PICTURE DESIGNASSESSMENT
TRANSFORMATION
PLANNING
ACTIVITIES
Roadmap WS
Specify IT
transformation
measures
(requirements,
costs, business
value, risks)
Select IT target
pictures
IT Assessment
WS

Our Digital IT Assessment Approach provides a comprehensive and
fact-based assessment of the current IT situation along six key dimension
Digital IT Assessment Dimensions
IT Task split
Roles
Process Coverage
FTE Analysis
Cloud models
IT Efficiency – Provide room for digital innovation
Digital IT alignment – IT as enabler for digital
transformation
Governance
IT Operating
Model
Organization
Sourcing
Applications /
Infrastructure IT Costs
IT value creation focusCore / Non-core
IT Service Coverage
Central / de-central IT
Responsibilities
DevOps Readiness
Cloud operating
model
Responsibility Split
Committee Structures
Business partnering models
Process maturity
IT Application Landscape
Applications Costs
Cloud Applications /
Infrastructure
IT Infrastructure
Landscape
Data center
Multi Speed IT
Organization
Analytics Service Units
IT Organization Structure
Span of Control
Digital Service Unit
IT supplier models
IT supplier consolidation
IT innovation sourcing
Sourcing of commodity services
IT supplier quality
IT costs benchmarking
IT Innovation / IT Project
Costs
Workplace Costs
IT Operating Costs
IT Costs / Employee

Business focus interviews provide a comprehensive understanding of
the current and future business requirements for IT across business functions
Business focus interviews
Interview
guide
 Management
board
representatives
 CXOs
 Department
heads and
business units
representatives
Strategic
requirements
Understand strategic
business requirements
and project expectations
Strategic requirements and priorities
per business unit / department
Strengths/
weaknesses of
IT
Understand strength and
future potentials of IT
Understand current IT business
positioning
Current and
future IT
support
Understand business
requirements per business
functions (mapping on
business processes)
Understand business requirements
per business functions (mapping on
business processes)
IT delivery
and operation
Understand strength and
potentials of IT delivery
and operation
Understand focus areas for IT
strategy, identify first action items
Contents Analysis (examples)

A proven IT analysis tool set helps to quickly identify optimization
and improvement levers within the prioritized focus fields
IT Analysis Tool Set
IT Analysis Tool Set (Selection) Approach
Business
process
coverage
IT delivery
evaluation
Risks /
criticality
assessment
IT cost
distribution
analysis
IT cost KPI
bench-
marking
IT
budgeting
analysis
IT orga-
nization
analysis
IT process
maturity
assessment
IT steering
structures
assessment
IT project
portfolio
analysis
IT (digital)
innovation
focus
IT project
spent
analysis
IT value
creation
focus
IT supplier
analysis
IT sourcing
analysis
IT applic.
landscape
assessment
IT infra-
structure
assessment
Data
Centre /
Network
assessment
 Selective use of readily available IT
analysis tool set
 Application within predefined IT focus
fields
 Benefit: Swift identification of root
causes, fact-based identification of
improvement measures
 Example use cases
 Identify legacy infrastructure risks
 FTE split and business IT FTE
distribution
 Evaluation of current IT role profile
focus
 Current IT value creation focus in
comparison strategy requirements
 IT supplier requirements / quality
mismatch
 IT supplier consolidation potentials
 IT sourcing depth

We use an established approach for the target picture design,
starting from business requirements
Approach for the development of a target picture
Achieve transformation
readiness via planning of task
handovers and trai-nings, job
ads, supplier qualification …
Ensure stepwise evolution
towards
defined target scenario (e.g.,
aligned with business, cloud
ready)
Derive adjustments to IT
organization model in a
stepwise approach (layer by
layer) and define target picture
Identify change needs and
plan organizational
transformation, incl. changes
to underlying suppliers
Target
IT organization
Transformation
plan
Transformation
readiness
Stepwise
transformation
towards target scenario
5. 6. 7. 8.




Evaluate resource allocation and
gaps vs. requirements, target
prioritization and core/ non-core
categorization
Adjust IT roles and define
and align target IT role model
Establish common
understanding on business
strategy and objectives as well
as IT cornerstones and
guidelines
Capture IT tasks and services,
define strategic priority for each
and derive core/ non-core
categorization
Business
requirements
and IT guidelines
Current and target
IT tasks and services
IT service allocation
and gap analysis
Target IT role
alignment
1. 2. 3. 4.

All identified business and IT action items will be detailed to gain a
clear understanding and aligned in an overall digital IT transformation plan
Approach Transformation Planning
 Detailing of each action item
(description, requirements,
costs, benefits) in factsheet
 Detailing of prioritized measures
into detailed fact documents
(incl. architecture,
implementation plan)
Detailing
 Prioritization of IT
transformation measures based
on business value and
implementation effort
 Input for transformation plan
Prioritization
 Alignment of all IT
transformation measures in
overall transformation plan
 Consideration of
interdependencies
Transformation Planning
 Clear - stakeholder aligned -
understanding of IT
transformation measures as
reference for
implementation
 Understanding of IT measures
with short and long-term
impact
 Input for feasible IT
transformation plan
 Transformation plan as basis for
decisions
 Information regarding required
and available resources
Phase
Activities
Results

To enable sound decision-making, transformation investments and
benefits are planned for different scenarios
Investment and Benefit Planning
Financial planning on individual measure and transformation level Approach
Results
 Identify and estimate benefits and costs
for each measure (for selected pilot
areas)
 Analyze each measure’s benefits and
costs and overall ROI
 Plan overall investment into and returns
from transformation using multiple
scenarios (e.g., conservative, moderate
and opportunistic)
 Compile detailed decision paper for IT
top management
 Fact sheets for all individual measures
extended with financial information
 Preparation of key financial KPIs of
overall transformation
 Decision paper for IT top management
/ steering committee
Investment planning
of the overall
transformation in
scenarios
Benefits and costs
estimation
of individual measures

IT infrastructure operation efficiencies can build up capacities in
other critical IT competence areas & provide capacity for important innovations
Case study: evolution of an IT organization
ERP
Infrastructure
Analytics
Collaboration
Digital/CRM
Local IT Mgmt
Corporate
Existing capacity Planned capacity
2017 2018 2019 2020 2021
Innovation
Appl. Mgmt. Innovation
Operations Innovation
Innovation
Decreasing capacity Capacity build up
Innovation
Innovation
IT application and infrastructure harmonization
Innovation
Innovation
Innovation
Innovation
Planned, but
not realized
Appl. Mgmt. Appl. Mgmt. Appl. Mgmt. Appl. Mgmt. Appl. Mgmt.
Appl. Mgmt.
Operations Operations
ILLUSTRATIVE

Target-group-specific initiatives ensure a common understanding and
increase support for planned changes
Change and Communication Initiatives
Elements of change and communication planning Approach
Results
 Conduct structured and confidential stakeholder
analysis to identify key target groups of upcoming
changes to the IT organization (for selected pilot
areas)
 Detect information needs, support opportunities as
well as potential conflicts for each target group
(“heatmaps”)
 Plan specific change initiatives for each target
group, leveraging our change management
toolbox
 Define communication measures for each target
group as well as measures for the “general public”
 Overview of all stakeholders and key target
groups established
 Target-group-specific change initiatives planned to
increase support for planned changes within the IT
organization
 General and target-group-specific measures
planned to establish a common under-standing
(integrated communication plan)
Stakeholder analysis
and identification of
key target groups
Target-group-specific
change initiatives
increase support for
organizational changes
Integrated
communication plan
ensures a common
understanding within the
organization

Agenda
Approach I
Approach II
Approach III

IT Flash Assessment
Categories and Tools
IT Spend
 IT spend history
 IT cost in relation to revenue and cost
 Cost breakdown in company
–value chain
–processes
–platforms
–organization
–services / IT value chain
IT Sourcing
 Supplier overview per technology and business
domain
 Supplier volumes
 Type of agreements and sourcing mix
IT Performance
 Enterprise IT governance
 Business and IT alignment for strategy and
organization
 IT process efficiency
 IT organizations
 Workforce competence and demographics
 Service culture and change readiness
IT Infrastructure
 Number, distribution, size and cost of data centers
 Number, distribution and cost of servers and server
management
 Number, distribution and cost of clients
 Communications overview
 Service levels and performance
IT Projects
 Project portfolio management
 Project management and effectiveness
 IT prioritization process
 Project portfolio spend, estimated benefits and balance in portfolio
IT Applications
 Application inventory
 Application lifecycle overview (overall and split per business processes)
 Business value of applications
 Perceived application process match
 Cost of applications
 Service levels and performance

Agenda
Approach I
Approach II
Approach III

Based on our experience, we've found that there are six critical
enablers to project success
Success Factors for the Project
Customized
Methods & Tools
Assess demands of all relevant stakeholders
through innovative workshop formats in
order to create common understanding
Target-group specific change
management (meetings, workshops,
communication) during strategy development
and implementation
Close collaboration between all
stakeholders and the consulting team is
necessary
Our established project management tools
and templates contribute to close progress
monitoring and effective deliverables steering
Joint agreement of project scope helps to
keep a proper level of detail at all times
Our established frameworks and tools are
adjusted to client needs to achieve results
that fit strategic and operational
requirements
Stakeholder
Involvement
Change
Management
Stringent Project
Management
Close
Collaboration
Sustainable Scope
Management

Over 14 weeks, we will develop ,refine, and align the IT Strategy
through an iterative approach that is designed to deliver implementation -
ready results
Project Approach
… & Alignment
<<<<
Transparency analysis
(data questionnaire)
 Aligned IT Strategy Guidelines / Hypotheses
 Updated IT Strategy Framework
 IT Capability Assessment (Fact Book, IT
Strategy Development Input)
~ 5 weeks
Strategy DevelopmentGap Analysis Strategy Rollout Map
Outcomes
 Target Picture "IT Operating
Model" (80% draft)
 Target Picture "IT Target
Architecture" (80% draft)
<<<<
Activities
Workshop (WS) Steering Committee (SC) Focus Teams
~ 5 weeks ~ 4 weeks
Project
setup
Focus interviews
IT capability
assessment
Strategy alignment (Balan-
ced Strategy, DITNO, …)
Market, digital & IT
trends evaluation
 Aligned and
refined IT IT
Target Pictures
(IT Operating
Model, IT Target
Architect.)
 Documented and aligned IT Strategy incl.
 Target picture & strategic initiative details
 Overall rollout and investment / benefits plan
 Strategic plan 2018 incl. initiatives pilots
 Strategy governance and KPI model
IT Target Architecture
IT Target Operating Model
"Kick Off" (WS) “Guidelines & Scoping” (SC)"Assessment" (WS / SC) "Target Picture" (WS / SC) "Transformation" (WS / SC)"Approval" (WS / SC)
Target Picture
Alignment
Workshop
Target Picture
refinement
Initiatives detailing (fact
sheets)
IT Strategy rollout plan
Investment & benefits
planning
IT Strategy
governance & KPIs
Initiative pilots
2018 identification
Strategic plan
2018
IT Strategy
Framework
update
Skill & Role
Model
Reg. / Global
Organization
Reg. / Global
Collaboration
Technology
Strategy
Integration
Platform
Business
Services
Stakeholder and Project Management
Global analysis of
organization,
changes and
required skills
Plan, Setup
and
Execution
Roadmap
Strategic
Pillars - Best
Practices,
Methods and
Models
Global
Collaboration
Model
Continuous
Strategy
Evaluation
Framework
Global and
Regional
Governance
- KPIs etc.
Deliverables

IT Strategy I Best Practices I NuggetHub

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