BENEFITS REALIZATION: THE COMPETITIVE ADVANTAGE

1 1 © 2011 Hitachi Data Systems. All rights reserved.

BENEFITS REALIZATION:

THE COMPETITIVE

ADVANTAGE

PRASHANTH NAIDU

AUGUST 1, 2012



Formed in 1989 as a subsidiary of Hitachi, Ltd. (NYSE: HIT)



Direct and indirect sales in 100+ countries and regions



5,000+ employees, worldwide



Focus: Information technologies, services, & solutions



Recognized industry leader

INTRODUCING HITACHI DATA SYSTEMS

Excellence in Customer Service Awards

3

Schedule

PHILOSOPHY ON GOALS AND PRIORITIES

Job Life Example Work Example School ROI Cost Corporate Success

PORTFOLIO MANAGEMENT IS STRATEGIC

Are we doing the right things? Strategic Alignment Are we doing them the right way? Architecture and Approvals Are we getting them done? Project Efficiency Are we getting value? Benefits Measurement  Governance: Business council  Tools: Portfolio, Business case  Governance: Release Management Council  Tools: Project gate checklist measurable  Governance: Project Steering Committee  Tools: Status reports, Project time system  Governance: Executive Council  Tools: Value maps, Program metrics

5

PORTFOLIO MANAGEMENT IS PROCESS

1. New Request 4. Investments In Flight 2. Proposal 6. Closed 3. Council Approval 5. Steering Committee Review

Collect

Metrics

GOVERNANCE MODEL IS KEY

Business Council Executive Council Release Management Committee Steering Committee

 Review gates and deliverables

 Members: project managers, support staff, architects

 Meets: Weekly

 Review project health and new projects

 Funding: internal initiatives

 Members: department heads

 Meets: Weekly

 Review business cases; approve/reject projects

 Funding: external spend for projects

 Members: business unit leaders

 Meets: Monthly

 Set priorities and guidelines; approve or reject projects

 Funding: cross functional and large investments

 Members: executives  Meets: Quarterly Project Efficiency Architecture Approvals Benefits Measurement Strategic Alignment

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FOCUS ON MEASUREABLE RESULTS

Executive Directive

Benefits Quantified

Benefits Measurement



Ensure all investments document measurable benefits



Present all approved investments to the Executive Council



Revenue Growth ($)



Cost Savings ($)



Revenue Impact ($)



Cost Avoidance ($)



Productivity Savings ($)

 Metrics designed to measure benefits after deployment

 Ownership and frequency defined for metrics collection

 Benefit measurements compared against business case

• Business cases • Product and Resource plans • Weekly status reports • Product specs • Time keeping systems • Customer surveys • Revenue/Cost savings delivered Cost and Schedule variances • Customer satisfaction ratings • Productivity savings

Data

• Marketing campaigns • Customer newsletters • Sales meetings

• Internal all hands meetings

• Executive committee briefings

Metrics

Message

DELIVER VALUE THROUGH METRICS

A

CCURATE

&

C

ONSISTENT

R

ELIABLE

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USING METRICS TO DIFFERENTIATE

In a competitive environment, meaningful differences

between similar products or services are best

determined by using metrics.

Appearance alone is not enough to determine value Specifications are valuable,

but may not always tell the whole story

MEASURING BENEFITS – NEW CRM DEPLOYMENT

Business Outcome Description Target

Sales Orders Booked Number of customer orders processed and revenue booked

25% Increase Order Processing Time Time taken for leads to be converted into

booked orders

20%

Decrease Lead Conversion Rate Percentage of leads converted into

booked orders

15% Increase

EXAMPLE SCENARIO #1: DEPLOY NEW CRM PRODUCT AND COMPARE BUSINESS OUTCOMES BEFORE AND AFTER DEPLOYMENT

Business Outcome Baseline Target Actual

Sales Orders Booked 1000 25% Increase = 1250 1500 Order Processing Time 30 days 20% Decrease = 24 22 days Lead Conversion Rate 20% 15% Increase = 23% 25%

11

MEASURING BENEFITS – CRM ENHANCEMENT

Metrics Description Target

Number of Clicks Number of mouse clicks required to price an order in the CRM system

5 clicks Processing Time Time to create a customer quote using the

CRM system

15 minutes

EXAMPLE SCENARIO #2: DEPLOY ENHANCEMENTS TO EXISTING CRM PRODUCT AND COMPARE METRICS BEFORE AND AFTER DEPLOYMENT

Metrics Baseline Target Actual

Number of Clicks 20+ clicks 5 clicks 5 clicks

Processing Time 25 minutes 15 minutes 5 minutes

MOBILE APPLICATION: VALUE MAP

Sales Mobile App Released Real-time Access to Sales Information Faster Response to Customer Inquiries Increased Customer Satisfaction

Increased Sales Rep Productivity Savings

Increased Booked Orders

New Sales Capability Created

Reduced Calls for Sales Support Center

Decreased Sales Support Cost Maximize Use of Mobile Technology Increased Innovation Increased Brand Recognition

13

PRODUCT DELIVERY MATURITY: LEVELS 1 & 2



Late



Over budget



Outcomes are unpredictable



Unhappy customers

LEVEL 1: CHAOS



Certain level of

unpredictability



Issues and risks still

unacceptably high

PRODUCT DELIVERY MATURITY: LEVELS 3 & 4



Efficient



Fairly adaptable to changing needs

LEVEL 3: DEFINED



Creative



Fully adaptable to changing needs

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PRODUCT DELIVERY MATURITY: LEVEL 5



100% On time delivery



100% Customer satisfaction



100% Efficiency in processes

IN CLOSING…

Enjoy the journey and have fun Work Smart

Learn from the past,

Set vivid, detailed goals for the future, and live in the only moment of

time over which you have any control …… Now! – Denis Waitley



If you try to please everyone, you will fail!



Keep things simple – the more complicated it gets, the

less adoption we see



Follow the 80/20 rule – realize 80% benefit with 20%

investment