Bridging the c suite gap

Bridging the c suite gap

• 1.
  Bridging The C‐Suite Gap How To Build The Business Case For  Data Center Transformation
• 2.
  Defining Data Center Transformation
• 3.
  DATA CENTER TRANSFORMATION Deliveringthe data center needed for your future success Dedicated infrastructure Shared infrastructure and applications and services The DCT opportunity » Reduce overall IT costs. » Support new initiatives and promote growth. » Shift spending to business priorities. » Allow for modular data centers. » Improve business continuity. » Increase environmental sustainability.
• 4.
  DATA CENTER TRANSFORMATION FourIntegrated Initiatives Simplify, standardize, and reduce the number of data centers, applications, servers, storage, and network resources. Automate the entire data center operations lifecycle. Protect business with resilient operations. Optimize the use of energy, floor space, and cooling infrastructure.
• 5.
  Bridging the C‐Suite Gap
• 6.
  VULCAN VS. KLINGON Doesit feel like you and your CIO are from separate planets? vs.
• 7.
  UNDERSTANDING YOUR CIO Howis he/she being measured? – By business outcomes Accelerate Lower costs Mitigate risks business growth • Maintain customer • Reduce IT cost and • Improve compliance relationships drive down business • Protect critical assets • Target new cost • Ensure continuity of opportunities and • Enhance operational business operations markets efficiency • Improve business • Improve return on IT decision making investments • Improve workforce productivity
• 8.
  DESIRED BUSINESS OUTCOMESDRIVE THE CIO AGENDA HP CIO Agenda framework Desired Business Priorities Metrics Outcomes Growth Business Business Costs Management IT Strategic & Operational Risks Technology Business: How CIOs help meet key business objectives and measure their business contribution Management: How CIOs manage the IT organization and resources Technology: Which technologies meet these needs 8
• 9.
  CIO AGENDA PRIORITIES(2009) Business Priorities Mgmt Priorities Technology Priorities 1. Improve business 1. Link business and IT 1. Business Intelligence operations and processes strategies and plans applications 2. Control enterprise wide 2. Reduce the cost of IT 2. Enterprise applications business costs operations (ERP, SCM, CRM, etc) 3. Improve the effectiveness 3. Deliver projects that 3. Real time infrastructure; of the enterprise workforce enable business growth servers and storage 4. Attract, retain & develop 4. Improve IT governance technologies customer relationships 4. Legacy application 5. Improve IT processes 5. Expand the use of and service delivery modernization, upgrade information / analytics in the quality or replacement business 6. Improve the business & IT 5. Collaboration 6. Create new products & technologies services (innovation) relationship 7. Attract, retain and 6. Networking, voice, data 7. Support change initiatives, and mobile technologies mergers/acquisitions develop IT personnel 8. Consolidate IT (shared 7. Technical infrastructure 8. Expand into new markets, geographies and services) management and capabilities automation 9. Enable the use of 9. Support regulation and information in operations, 8. Security technologies compliance requirements products or services 9. Service oriented 10. Manage environmental 10. Manage IT risk applications and impacts (Green IT, Carbon architecture Footprint) 10. Document and workflow management
• 10.
  So How do you build a Business Case?
• 11.
  BUSINESS CASE IN3 SIMPLE STEPS Represent everything in financial terms 1. Current State 3. What does it take to 2. Future State get there Tie it to the 3 objectives. Does this project help: » Reduce overall IT costs? » Shift spending to business priorities? » Mitigate risk and improve business continuity?
• 12.
  MORE ADVANCED TERMS •Revenues generated • Solution cost • Internal costs– including customer care and marketing expenses • Return on Investment • Cash flow and Payback • Net Present Value • Internal Rate of Return
• 13.
  Business Case in Action – Breaking it down for DCT Example: Data Center Consolidation
• 14.
  1. CURRENT STATE Complexitycontinues to grow. » Inconsistent or poor quality of service » Slow to respond to business needs » Escalating costs » Inefficient and manually intensive processes » Isolated applications and data » Aging facilities and infrastructure » Too many data centers » Inefficient use of technology assets Current data center facilities and infrastructure is a barrier to business growth, and expensive to maintain and manage
• 15.
  2. FUTURE STATE Reducedcomplexity = reduced cost, improved service levels, less downtime » Fewer data centers » HP’s own transformation: 85 -> 3 pairs » Fewer applications » HP’s own transformation: 8000 -> 1500 applications » Fewer infrastructure components » Virtualize and converge servers, networking, storage etc
• 16.
  3. GETTING THERE Lower complexity. Increase use of  shared infrastructure. Lower application life cycle  costs. Lower costs through  reduced space,  energy, and cooling  requirements;  simplified management;  and improved  asset utilization. Significantly reduce costs. Mitigate energy and space  costs and issues. Improved asset utilization. Improve quality  of service.
• 17.
  TYING CONSOLIDATION TOTHE 3 GOALS Improve elasticity and enable innovation. » Shift resources to innovation. » Rapidly deliver new business services. » Deploy new resources in minutes/hours instead of days/months. Lower costs. » Lower energy and maintenance costs. » Enhance productivity, utilization. » Achieve 20–50% costs improvements. Manage risks. » Reduce complexity. » Build in continuity and security.
• 18.
  GETTING THE BALLROLLING Two helpful tools Experience DCT Workshop CIO Agenda Workshop Workshop Focus Workshop Focus » Determine benefits, scope, scale,  » Best practice model based on  and critical success factors. annual Gartner CIO survey » Identify quick wins. » Clarify and align business, IT  » Gain stakeholder buy‐in and  management and technological  project traction. priorities  » Half day session » Build a next‐steps roadmap.