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

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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

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PORTFOLIO MANAGEMENT IS PROCESS

1. New

Request

4. Investments

In Flight

2. Proposal

6. Closed

3. Council Approval

5. Steering

Committee Review

Collect

Metrics

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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

Results reported back to executives and stakeholders

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• 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

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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

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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.

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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.

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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

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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

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PRODUCT DELIVERY MATURITY: LEVELS 3 & 4

Efficient

Fairly adaptable to changing needs

LEVEL 3: DEFINED

Creative

Fully adaptable to changing needs

LEVEL 4: MANAGED

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PRODUCT DELIVERY MATURITY: LEVEL 5

100% On time delivery

100% Customer satisfaction

100% Efficiency in processes

LEVEL 5: OPTIMIZED

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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