1 1 © 2011 Hitachi Data Systems. All rights reserved.
BENEFITS REALIZATION: THE COMPETITIVE ADVANTAGE
PRASHANTH NAIDU AUGUST 1, 2012
2
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
Ranked # 140 for Innovation in 2010
3
Schedule
PHILOSOPHY ON GOALS AND PRIORITIES
Job
Life Example
Work Example
School
ROI
Cost
Corporate Success
4
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
6
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
7
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
Results reported back to executives and stakeholders
8
• 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
ACCURATE &
CONSISTENT
RELIABLE
VALUABLE
9
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
10
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%
The data displayed here is for informational purposes only and does not represent actual business results.
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
The data displayed here is for informational purposes only and does not represent actual business results.
12
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
LEVEL 2: REPEATABLE
14
PRODUCT DELIVERY MATURITY: LEVELS 3 & 4
Efficient
Fairly adaptable to changing needs
LEVEL 3: DEFINED
Creative
Fully adaptable to changing needs
LEVEL 4: MANAGED
15
PRODUCT DELIVERY MATURITY: LEVEL 5
100% On time delivery
100% Customer satisfaction
100% Efficiency in processes
LEVEL 5: OPTIMIZED
16
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