a financial perspective on improving ict service delivery a case at the belgian railways

A FINANCIAL PERSPECTIVE ON IMPROVING ICT SERVICE DELIVERY: A CASE AT THE BELGIAN RAILWAYS.

LUC LUTIN - VLERICK BUSINESS SCHOOLCO-AUTHORS: STIJN VIAENE (VLERICK BUSINESS SCHOOL & KULEUVEN), NATHALIE DEMEERE (DELOITTE CONSULTING) & OLIVIER JOLYON (DELOITTE CONSULTING)

3 © Vlerick Business School & Deloitte Consulting

AMBITION

Experience reports describe real-life experiences with EIS that authors wish to share with fellow practitioners and EIS researchers.

They focus on specific problems and solutions in specific contexts. Their aim may be to help other practitioners facing similar problems or to solicit

help and possible solutions from other practitioners (or EIS researchers).

(CONFENIS 2012)


AGENDA

Introduction

Challenges and strategic intent

Transforming ICTRA

Finance Transformation Establish Commitment

Gain Credibility

Prove Competence

Blueprint for practitioners


INTRODUCTION: CORE ACTIVITIES


CHALLENGES… A CALL FOR CHANGE

External Challenges Internal Challenges ICTRA

Liberalisation and privatisation of Europe’s railway system

Growing dissatisfaction with ICTRA’s services

Need for a clear strategy and competitive positioning

Increased pressure to demonstrate value for a competitive price

Need for quick and accurate response to changing market demands

Lack of transparency on the costs charged to the business

“Change”


FINANCIAL MANAGEMENT @ ICTRA

Increased attention for cost management

Lack of serious stakeholder alignment – lack of constructive dialogue

Simplistic, non-transparent pricing for services

Costs pushed down, imposed to the business

Lack of basic financial knowledge / awareness


ICTRA’S STRATEGIC INTENT

“ICTRA’s vision is built on two pillars. First, becoming a true

partner to the business. Second, delivering total solutions.”

Customer-focused

ProfitabilityE2E Expertise

+ Service Quality


TRANSFORMING ICTRA

Target Operating Model

Finance Transformation

“Change”

Establish Commitment

Gain Credibility

Prove Competence


TRANSFORMING ICTRA



“Change”


Gain Credibility

Prove Competence


TRANSFORMING ICTRA

Adopting a new ICT Operating Model SUPPLY – SERVICE PROVISIONING – cost efficiency and quality focus

DEMAND – SERVICE VALUE – increased customer satisfaction


FINANCE TRANSFORMATION PROJECT



“Change”


Gain Credibility

Prove Competence





“Change”


Gain Credibility

Prove Competence


COST CHARGEBACK MODEL





“Change”


Gain Credibility

Prove Competence


BENEFITS

ICTRA’s Head of Finance, Sammie Courtens, concluded as follows

“With the help of this finance transformation ICTRA is now better prepared for the liberalized market. Our service catalogue has enabled us to map and understand our offering to the business. Managers at ICTRA’s demand and supply units have changed their mind-set completely. Not only do they now understand the real business requirements for ICT, they also focus more on cost effectiveness and operational efficiency.”


BLUEPRINT FOR PRACTITIONERS

Three-step approach

1. Establish Commitment

2. Gain Credibility

3. Prove Competence

Balancing supply and demand

Supporting change management

THANK YOU

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