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1 IND SPO T HE BL ING T e ld IMINA T Charlie F HP Confidential EL 2 THE JOURNEY TECHNOLOGY EXPLOSION IT Everywhere Networked Computing - Internet Personal Mainframe 3 THE JOURNEY - BUSINESS 4 THE JOURNEY - BUSINESS Business

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  2. IND SPO T HE BL ING T e ld IMINA T Charlie F HP Confidential EL 2

  3. THE JOURNEY – TECHNOLOGY EXPLOSION IT Everywhere Networked Computing - Internet Personal Mainframe 3

  4. THE JOURNEY - BUSINESS 4

  5. THE JOURNEY - BUSINESS Business has moved from…. to this 5

  6. WHY COMPANIES FAIL • They didn’t see it coming • They see it coming but DON’T deal with it • They see it coming but CAN’T deal with it 6

  7. THE BLIND SPOT – CURRENT DIALOGUE “Do I really need a “Won’t cloud computing. Eliminate the need for an CIO or can I just IT department.” outsource everything?” “Why CIOs Are Last Among Equals” Wall Street Journal May 24, 2010 “Very few big “No one takes three transformational years to do anything. activities have The world is moving ever worked.” too fast.” 7

  8. IT LEADERSHIP – CHANGING THE DIALOGUE CIO has a critical leadership role ERA I IT as a Function SILO’S IT … 8

  9. IT LEADERSHIP – CHANGING THE DIALOGUE CIO has a critical leadership role ERA II Multiple IT Organizations as a Function In Multi-Business Units Business Unit 1 Business Unit n SILO’S SILO’S IT IT … . . . . … 9

  10. IT LEADERSHIP – CHANGING THE DIALOGUE CIO has a critical leadership role ERA III IT as a Shared Service Business Unit 1 Business Unit n SILO’S SILO’S . . . . Leveraged IT 10

  11. IT LEADERSHIP – CHANGING THE DIALOGUE CIO has a critical leadership role IT as a Global Integrator ERA IV Business Unit 1 Business Unit n SILO’S SILO’S . . . . IT 11

  12. IT LEADERSHIP – CHANGING THE DIALOGUE CIO has a critical leadership role Chief Information Officer is too limiting Needs to be Chief Integration Officer We need to step up our game 12

  13. IT LEADERSHIP DIALOGUE Management Framework WHY Marketplace Model WHAT Business Model HOW Systems Model WHO Organization Model 13

  14. WHY – MARKETPLACE MODEL • Customer /Supply Chain Everything’s Going The Wrong Way Power Revenue Margin Erosion • Competitiveness/Cost and Quality • Speed Cost 14

  15. WHAT – BUSINESS MODEL Old Industrial Business Model • Centralized/Decentralized • High Fixed Costs • Functional Dominance • Geographic Boundaries 15

  16. WHAT – BUSINESS MODEL Modern 21 st Century Hybrid Models • Customer Intimacy • Operational Excellence • Global Leverage • Variable Cost Structures • Speed and Innovation This is the ERA of AND 16

  17. WHAT – THE AND BUSINESS MODEL AGGRESSIVE GROWTH Enabler of Success – Sell More Stuff to More People Leveraging Your Brand and Cost Structure Margin Revenue Erosion Revenue Growth Cost Marketshare Grow th Product I nnovations Geographic Grow th AND AND • From which • M&A vs. • Types of competitors? Organic? products? • Wallet Share, etc… • Speed to • How? market AND AND AND Operational Excellence ‐ Cost and Quality Leveraged Platform (SCM, F&A, HR, MFG, Distribution, Etc.) 17

  18. Future State Leveraged Core WHAT – BUSINESS MODEL Current State The Journey Small Core 18

  19. HOW – SYSTEMS MODEL - ARCHICTECURE HOW Principles: I. Define your business and technology architecture before you begin construction II. Enforce a “Common Way” for development and quality engineering III. Be disciplined in your approach to program and project management 19

  20. HOW – SYSTEMS MODEL - ARCHICTECURE Over the last 30 ‐ 40 Years, we have pursued a functional/business unit ‐ centric approach to processes and systems … “Inside ‐ Out” View Customer Monolithic Process Process Process Process Business & Apps & Apps & Apps & Apps Systems Units Product C Product A Product B Product D Characteristics • BU-centric model • High functional expertise • Risk averse • Geographic separation • Lack of a wide-aperture view (3-5 years out) 20

  21. HOW – SYSTEMS MODEL - ARCHICTECURE Current customer experience: Any transaction which is multi product/channel/ business unit is complex and frustrating Challenging navigation across multiple screens detracting from quality of customer conversation Complex Interfaces and multiple points to enter data Line of business / product-centric approach to business processes and systems Product A Product B Product C Product D 21

  22. HOW – SYSTEMS MODEL - ARCHICTECURE BUILD TO A MODERN FUTURE STATE BUSINESS PROCESS AND TECHNOLOGY ARCHITECTURE Architectural BOM & System s Fram ew orks Elevation Pre-Fabricated Architecture Spec Hom e “Blue Prints” “Com ponents” “W iring Diagram s” Physical Contact Sales Mobile Online Kiosks Etc… Facilities Center Specialist Business Units Products BU 1 BU 2 BU 3 BU 4 Decoupling from the old way… 22

  23. HOW – SYSTEMS MODEL - ARCHICTECURE WE MUST BUILD A MODERN BUSINESS PROCESS AND TECHNOLOGY ARCHITECTURE …and building the speed and quality for the 21 st Century StoreFront TM Human to System System to System Role Based & Physical Contact Sales Mobile Kiosks Etc… Online Specialist Facilities Center Session Oriented Work Portal Presentation Work Lists 2 ‐ 4 years Collaboration CrossFlow TM Configurable Orchestration Create a well engineered data, Data Operational ETL/Data Warehousing Workflows BPM/BAM Business Data / Events messaging, process, business rules Flows & Marting Flows Rules (ODS & CEP) hub to enable the decoupling BackBoard TM Application / Data / Utility Messaging / Event / Data Enterprise Services Integration Services Integration Canonical Bus Transformations Enterprise Model Legacy Package Native Services Adapters Adapters Traditional IT Address Applications & Product A BU 1 BU 2 BU 3 BU 4 Location Product B Data Currency Product C Across Legacy, Rating Product D … Packages and … Native Services 5 ‐ 10 years StoreFront™ CrossFlow™ and BackBoard™ are registered trademarks of The Feld Group, LLC 23

  24. WHO – ORGANIZATION MODEL WHO Principles: ORGANIZATION Matters I. LEADERSHIP Matters II. CULTURE Matters III. IV. PERFORMANCE Matters 24

  25. ORGANIZATION MATTERS Leaders as “Bridge Builders” Creating ONE IT Organization That Is Collaborative AND Responsible to the Business Silo Mentality Cross Functional Collaboration Business A Business B Business C Business D IT IT IT IT Common Application Services IT TO IT Common Technical Services Infrastructure IT 25

  26. THE IT LEADERSHIP PROFILE Critical Leadership Competencies for Successful Transformation Setting the Agenda Building a Great Team Consistently Delivering Build Main Enabler of Success – Sell More Stuff to More People Leveraging Your Brand and Cost Structure Revenue Margin Erosion Revenue Growth Cost Marketshare Product Geographic Grow th • I nnovations Grow th From which • Types of • M&A competit AND Build Scorecard AND products? ors? vs. • Wallet • Speed to Share, Organic? market etc… • How? 26

  27. CULTURE MATTERS Playing NOT to Lose or Playing to WIN Playing NOT to Lose Playing to WI N The survival and comfort game The growth and learning game • Creating the future • Maintain the past • Embracing discomfort for • Staying comfortable growth • Repeating old patterns • Exploring new possibilities • Doing enough to get by • Directing 100% energy at task • Hiding mistakes • Sharing & learning from mistakes • Compete with co-workers • Cooperate, strive together • Victim • Accountable • Peer pressure • Support • Being cautious • Being courageous • Win-lose • Win-win • Avoid • Stretch 27

  28. PERFORMANCE MATTERS Leaders as “Performance Managers” and People Developers Level 1 HIGH MEDIUM LOW Level 2 HIGH MEDIUM Level 3 LOW HIGH MEDIUM LOW 28

  29. THE WHO IS THE DIFFERENTIATOR FOR A SUSTAINABLE TRANSFORMATION JOURNEY Whether or Not You Outsource Blind Spot Charlie Feld 29

  30. To order the Blind Spot visit www.feldgroup.com 30

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