Creating Your Information Agenda: A Strategy for Success

Will ReillyDirector of Information Management, IBM

The challenge with selling trusted informationinside your company

• The business just expects it

• Many people think they already have it

• You start talking metadata and probabilistic matching, and people stop listening

• Data is subservient to conversations about business applications and processes

How do you elevate the conversation and put in place an ongoing approach?How do you elevate the conversation

and put in place an ongoing approach?

Consider my home telephone service. What does my service provider know about me?

Show the business that trusted information iskey to improving performance

HighDemand

Opportunity

Dissatisfaction

HighValue

•Bought a house in April 2007

•Established three telephone lines

•Spend over $200 a month on phone service

•Did not sign up for broadband, mobile phone or satellite TV

•Reduced phone service from threeto two lines after ten months

•Bought a house in April 2007

•Established three telephone lines

•Spend over $200 a month on phone service

•Did not sign up for broadband, mobile phone or satellite TV

•Reduced phone service from threeto two lines after ten months

Jobs becoming:

• more interactive

• less rules-based

• more information intensive

Jobs becoming:

• more interactive

• less rules-based

• more information intensive

More Jobs Require Tacit Interactions

44

41

34

25

15

19

31

33

37

38

44

36

25

26

29

37

41

45

0% 20% 40% 60% 80% 100%

China

India

Russia

Germany

US

UK

Transformational

Transactional

Tacit

Source: McKinsey Quarterly

Jobs are changing and we need informationto do them well

There is great variability in performance across companies that perform ‘tacit’ work

‘Raising the productivity of employees whose jobs can’t be automated is the next great performance challenge – and the stakes are high.’

– McKinsey Quarterly

• Mining• Textiles

• Real estate• Transportation

• Securities• Hospitals

Transformational0.9 variability

Transactional5.5 variability

Tacit9.4 variability

Source: McKinsey Quarterly, 2006

Less EBITDAper employee

More EBITDAper employee

7

Which is why we created the Information Agenda approach

Establish end-to-end vision & business-driven

value

Align people, process, & information

Accelerateprojects for short& long-term ROI

Architect an extensible information infrastructure

Strategy: The link to the business

Collaboration between the CIO and line-of-business managers is a critical success factor

FirstProject

Business Priorities

Vision and Value

• Establishes guiding principles

• Provides an end-to-end vision for all components

• Aligns information needs with business strategy and operating framework

• Is created by stakeholders from across the organization

• Determines where to focus and a starting point

Strategy

Prove the value on the first project

Optimal For Cost Optimal For Service

Savings: $6 millionService: 40% next day

Savings: $3 millionService: 80% next day

Which is better?

Would you leave it to intuition?

Over $5m inventory savingsand 2% decline in growth of transport miles

Over $5m inventory savingsand 2% decline in growth of transport miles

Proof of Concept with two

business units

Proof of Concept with two

business units

Annual plan with all five business

units

Annual plan with all five business

units

Quarterly plan with all five

business units

Quarterly plan with all five

business units

Leading US soft drinksdistributorLeading US soft drinksdistributor

The Roadmap: Create your own Information Agenda approach

34

IBM Strategic Business Solutions

© Copyright IBM Corporation 2007BI Trends in Insurance and IBM's BI Roadmap/Value Case Methodology | IBM Confidential | March 2007

BI Project Summary BI Program Office

Business Services Affected

Capabilities Affected

Value Drivers Affected

Create a BI Program Office that is responsible for managing the planning and execution of BI solutions. This organization is responsible for end-to-end management of BI solutions including scope definition/validation, project estimation/scheduling, resource management, issue resolution/escalation, and communication of progress/status. The BI Program Office is also a forum for LOB executives to collaborate and gain consensus on BI delivery.

Project Description

Process

Organization

Technology

Project TypeBI Program Office (All)Project Name

TBDTechnology Projects Overlap

TBDAssumptions

Estimated Total Costs

Estimated Duration (Months)

BI Program Office

BI Steering Committee

BI Mandate

BI Roadmap

BI Program Project Plan

BI Budget Plan

BI Communication Plan

BI Resource Deployment Plan

BI Competency Plans

Project Output Define and Develop the BI Program Office Establish BI Steering Committee comprised of 6 executives to provide direction

for the BI program, ensure alignment with other initiatives, and assist with issue resolution

Establish BI Mandate to state goals and objectives of BI program Maintain BI Roadmap Prepare Annual BI budget Develop Communication Plan Conduct Resource Forecasting and Deployment Plans Manage and process any changes to BI program Determine core BI competency areas

Project Scope

X

X

34

IBM Strategic Business Solutions

© Copyright IBM Corporation 2007BI Trends in Insurance and IBM's BI Roadmap/Value Case Methodology | IBM Confidential | March 2007

BI Project Summary BI Program Office

Business Services Affected

Capabilities Affected

Value Drivers Affected

Create a BI Program Office that is responsible for managing the planning and execution of BI solutions. This organization is responsible for end-to-end management of BI solutions including scope definition/validation, project estimation/scheduling, resource management, issue resolution/escalation, and communication of progress/status. The BI Program Office is also a forum for LOB executives to collaborate and gain consensus on BI delivery.

Project Description

Process

Organization

Technology

Project TypeBI Program Office (All)Project Name

TBDTechnology Projects Overlap

TBDAssumptions

Estimated Total Costs

Estimated Duration (Months)

BI Program Office

BI Steering Committee

BI Mandate

BI Roadmap

BI Program Project Plan

BI Budget Plan

BI Communication Plan

BI Resource Deployment Plan

BI Competency Plans

Project Output Define and Develop the BI Program Office Establish BI Steering Committee comprised of 6 executives to provide direction

for the BI program, ensure alignment with other initiatives, and assist with issue resolution

Establish BI Mandate to state goals and objectives of BI program Maintain BI Roadmap Prepare Annual BI budget Develop Communication Plan Conduct Resource Forecasting and Deployment Plans Manage and process any changes to BI program Determine core BI competency areas

Project Scope

X

X

34

IBM Strategic Business Solutions

© Copyright IBM Corporation 2007BI Trends in Insurance and IBM's BI Roadmap/Value Case Methodology | IBM Confidential | March 2007

BI Project Summary BI Program Office

Business Services Affected

Capabilities Affected

Value Drivers Affected

Create a BI Program Office that is responsible for managing the planning and execution of BI solutions. This organization is responsible for end-to-end management of BI solutions including scope definition/validation, project estimation/scheduling, resource management, issue resolution/escalation, and communication of progress/status. The BI Program Office is also a forum for LOB executives to collaborate and gain consensus on BI delivery.

Project Description

Process

Organization

Technology

Project TypeBI Program Office (All)Project Name

TBDTechnology Projects Overlap

TBDAssumptions

Estimated Total Costs

Estimated Duration (Months)

BI Program Office

BI Steering Committee

BI Mandate

BI Roadmap

BI Program Project Plan

BI Budget Plan

BI Communication Plan

BI Resource Deployment Plan

BI Competency Plans

Project Output Define and Develop the BI Program Office Establish BI Steering Committee comprised of 6 executives to provide direction

for the BI program, ensure alignment with other initiatives, and assist with issue resolution

Establish BI Mandate to state goals and objectives of BI program Maintain BI Roadmap Prepare Annual BI budget Develop Communication Plan Conduct Resource Forecasting and Deployment Plans Manage and process any changes to BI program Determine core BI competency areas

Project Scope

X

X

ROI Models

Project Summaries &

Roadmap

Industry Solutions and Guides

• Industry specific solutions to accelerate time to value

• ROI models and tools to help justify the approach

• Architects, consultants and analysts to customise an Information Agenda approach for your organisation

• IBM Information Agenda Industry Guides

RoadmapOverall Analytic Solutions Value CaseBenefits Total

1H 2H 3H 4H 5H 6H 7HImprove Performance Management 11,850,000$ 30,000,000$ 30,000,000$ 30,000,000$ 30,000,000$ 30,000,000$ 30,000,000$ 191,850,000$ Reduce HW/SW Costs 5,000,000$ 13,000,000$ 18,000,000$ 20,500,000$ 25,000,000$ 28,000,000$ 32,000,000$ 141,500,000$ Reduce Data Processing Costs 100,000$ 700,000$ 2,000,000$ 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 16,800,000$ Reduce Technical Support Costs 200,000$ 4,000,000$ 4,500,000$ 5,000,000$ 5,000,000$ 5,000,000$ 5,000,000$ 28,700,000$

Total Benefit 17,150,000$ 47,700,000$ 54,500,000$ 59,000,000$ 63,500,000$ 66,500,000$ 70,500,000$ 378,850,000$

Total Investment (18,000,000)$ (15,000,000)$ (12,000,000)$ (8,000,000)$ -$ -$ -$ (53,000,000)$ * Capitalized over 5 years

Net Cash Flows w/out Business Benefits (850,000)$ 32,700,000$ 42,500,000$ 51,000,000$ 63,500,000$ 66,500,000$ 70,500,000$ 325,850,000$

Business Benefits 25,000,000$ 50,000,000$ 50,000,000$ 75,000,000$ 75,000,000$ 75,000,000$ 75,000,000$ 425,000,000$

Net Cash Flows w/ Business Benefits 24,150,000$ 82,700,000$ 92,500,000$ 126,000,000$ 138,500,000$ 141,500,000$ 145,500,000$ 750,850,000$

Operational Costs Business Value

Improve Visibility

Across theBusiness

Optimise Planning

One of the World’s Leading Mail Courier, Logistics & Shipping Providers evolved an Information Agenda approach

Reduce IT Cost

Bu

sin

es

s V

alu

e

Information-centric Projects

Content Archive Services & Paperless Processing

Content Archive & Process Efficiency

Reduced Admin & Operations Cost 80% and Added New Revenue Source

2001 2008

Enterprise Information Integration & Consolidation

Establish Single Version of Truth

Multi Billion Euro Savings

Business Planning & Performance Management

Enterprise Planning & Performance

Optimized planning & performance

Information Infrastructure: Build unified information management infrastructure

Reference Architecture

WebEnterprise

Portals

Composite &CollaborativeApplications

MobileDevices &

Disconnected

LOB Applications

ProductivityApplications

Info

rmat

ion

Ser

vice

s

Tra

nsp

ort

, D

eliv

ery

Data Sources

Analytical MetadataData

Domains

InformationDelivery

ChannelsEnterprise

Search

UnstructuredData

Master DataOperational Sec

uri

ty,

Pri

vac

y an

d C

om

plia

nce

InfrastructureNetwork & Middleware

Systems Management & Administration Systems

Query &Reporting

BI & Performance Management

Dashboards& Visualization

Exploration &Analysis

OperationalIntelligence

Metrics &Scorecards

Planning, Budgeting, Forecasting

Information Integrity

Managed Trusted

Information

Information LifecycleManagement

HierarchyManagement

EventManagement

RecordsManagement

Content-centricBPM

Information Integration Balance & Controls

Data ManagementEnterprise

InformationFoundation

Metadata Management Content Management

Industry Models, Solution Templates, Analytical Applications

Mining

Orc

hes

trat

ion

, C

olla

bo

rati

on

Storage

TrustedInformation

WebEnterprise

Portals

Composite &CollaborativeApplications

MobileDevices &

Disconnected

LOB Applications

ProductivityApplications

Info

rmat

ion

Ser

vice

s

Tra

nsp

ort

, D

eliv

ery

Data Sources

Analytical MetadataData

Domains

InformationDelivery

ChannelsEnterprise

Search

UnstructuredData

Master DataOperational Sec

uri

ty,

Pri

vac

y an

d C

om

plia

nce

InfrastructureNetwork & Middleware

Systems Management & Administration Systems

Query &Reporting

BI & Performance Management

Dashboards& Visualization

Exploration &Analysis

OperationalIntelligence

Metrics &Scorecards

Planning, Budgeting, Forecasting

Information Integrity

Managed Trusted

Information

Information LifecycleManagement

HierarchyManagement

EventManagement

RecordsManagement

Content-centricBPM

Information Integration Balance & Controls

Data ManagementEnterprise

InformationFoundation

Metadata Management Content Management

Industry Models, Solution Templates, Analytical Applications

Mining

Orc

hes

trat

ion

, C

olla

bo

rati

on

Storage

TrustedInformation

UnifiedProduct Portfolio

An enterprise-level information infrastructure can help you:

• Manage information over its lifetime

• Use information as part of business processes

• Establish and maintain an accurate, trusted view of information

• Plan, understand and optimize business performance

Information Infrastructure

Governance: Sustaining Information Agenda success

Foundation ToolsFoundation Tools

• Requires a mission-specific, cross-enterprise corporate organization for collaborative policymaking

• Defines policies and practices for managing critical information assets

• Develops architecture practices and standards

• Monitors data quality

• Ensures training and enabling of all affected staff

• Establishes Competency Centers

Information Governance

Competency CentresCompetency Centres

Information Architecture

DataPrivacy

Data QualityManagement

Information Security

Records Management

DGOOperations

Core technical domains(Subject Matter Experts)

DGO Operational Functions

Absa Group Risk Director

Absa Data Governance Operating Model

Data Governance Organisation

Data Governance Operational Components reside in various Business Areas

Data Governance Council

IBM Information Agenda Workshops

Briefing

1

2 Roadmap Workshop

3Solution Workshop

IntroductionIntroduction

Begin Developing Your Agenda

Begin Developing Your Agenda

Architect and Plan Your First ProjectArchitect and Plan Your First Project

• Review Information Agenda• Understand key business

initiatives, strategic priorities, challenges, etc

• 3-hour to 1 day workshop

• Build vision and high level roadmap for IOD journey

• Interviews with key stakeholders from business and IT

• 1-5 day workshop; 2-4 weeks offsite

• Defines and scopes an IA project

• Interviews with key project stakeholders from business and IT

• 1-4 week workshop

Broad adoption will create profound change

What if we could actually and accurately forecast the weather?

What if you could trace food straight through from the farm to your fork?

What if insurance claim data could be make people healthier and

reduce their costs?

What if a medicine’s speed to market saved a life? Or a million lives?

Follow us @ioduk and use our hashtag #ioduk

Simply search for the Information on Demand UK group

Subscribe to the IOD UK blog at iodukblog.com