Technologie Management Gruppe Global Resourcing GmbH

Germany

Paul.Gromball@tmg-muenchen.de

www.tmg-muenchen.de

Lecture 5

How to Manage the Cloud ORGANIZATIONAL CLOUD CONNECTIVITY

Jan 2012

Organizational Cloud Connectivity: Leveraging the Cloud Potential for Strategic Advantage

2

Strategic Cloud Connectivity Organizational Cloud Connectivity

Logical Cloud Connectivity

Physical Cloud Connectivity

Service & Software for scalable Pull Platforms

Cloud Computing

Modular Design & Security of flexible Knowledge Access/Creation

Manager Workplace Management Process

Management of Knowledge Flows

Business Ecosystem

New Value Creation

Forces of Change: • Computing • Digital Storage • Bandwidth • Cloud Users • Wireless

Subscriptions

Forces of Change: • Internet Activity • Wireless Activity • Social Media Activity • Worker Passion

Forces of Change: • Inter Firm knowledge Flow • Decision Cycle Time • Executive Turnover • Returns to Talent • Labor Productivity

Forces of Change: • Competitive Intensity • Stock Price Volatility • Asset Profitability • Firm Topple Rate • Shareholder Value

Gap • Consumer power • Brand Disloyalty • Economic Freedom

Cloud Management Framework

Past IT Technologie driven Value-Creation: ENTERPRISE RESOURCE PLANNING SYSTEM

3

4

ERP Introduction: OBSTACLES AND SUCCESS FACTORS

4

5

The “Big Shift” in IT & Organization

The Big Shift in Organizations

Enterprise Systems (ERP) focus on “Tightly-Coupled” Organization and Transaction Processes Cloud Computing favors- Loosely-Coupled” Organizations to support: + Project –based Management + Bottom-up/Inside Out Knowledge Streams

+ Electronic Markets & Eco-Systems

5

TMG/Microsoft Strategy Example: Interlinked Value Chains in the

Consulting Industry

6

TMG/Microsoft Consulting Firm Client

INTERDEPENDENCE OF ACTIVITIES BETWEEN VALUE CHAINS – New “Cloud” Strategy View between Consulting Firm and Client

Consulting Firm Value Chain

Clie

nt

Val

ue

Ch

ain

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

7

IaaS

PaaS

SaaS

Provider

Joint IT

Infrastructure

Joint Project

Management

Joint Software

Development

Joint Cloud

Provider

INTERDEPENDENCE OF ACTIVITIES BETWEEN VALUE CHAINS – New “Cloud” Strategy View between Consulting Firm and TMG/Microsoft

Consulting Firm Value Chain

TMG

/Mic

roso

ft

Val

ue

Ch

ain

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

8

IaaS

PaaS

SaaS

Secure IT

Infrastructure

Project Management

Concept

Tailored Software

Development

INTERDEPENDENCE OF ACTIVITIES BETWEEN VALUE CHAINS – New “Cloud” Strategy View between Microsoft/TMG and Client

Client Value Chain

TMG

/Mic

roso

ft

Val

ue

Ch

ain

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

9

IaaS

PaaS

eMarket

SaaS

Secure IT

Infrastructure

Project Management

Software

Tailored Software

Development

Web Apps On Demand

Consulting Engagement(1): Project Organization for Solving multi-dimensional Problems

10

Operational projects

Management Board

CEO CFO

Steering

CommitteePMO

….

Project 1 Project 2 Project 3 Project 4

Project … Project … Project …

▲ Reporting of implementation level and status of

categories

▲ Summarize progress and raise/ resolve issues not

resolved directly

▲ Provide visibility of key decisions

▲ Overall program design

▲ Direct day to day work (program status and issues)

▲ Derive financial impact (EBIT-bridges)

▲ Regular re-forecasting based on actuals and learning

▲ Drive communications

▲ Daily work on activities and measures to realize results

▲ Regular review and resolution of issues where possible

▲ Creation and development of additional measures

▲ Bottom up evaluation of financial impact per measure

▲ Weekly team meetings

▲ Project teams working daily on measures

Social Project Environment Social Enterprise Activities

Consulting Engagement (2): Project and Sub-Projects -Example

11

Consulting Engagement(3): Innovative Problem-Solving with inter-firm Work

Streams and Knowledge Flows

Top-down target

defined

Entry included in

tracking tool

Target date for

IL 2 defined

Idea evaluated

and ready for

presentation

(decision to be

taken)

Timeline for IL 3-5

defined

All required

actions taken for

implementation of

measureIL 1

IL 2

IL 3

IL 4

Decision

regarding further

implementation

(steering

committee /

board)

Complete

implementation

planning with

timeline,

responsibilities

and effects in

alignment with

action controller

First € of savings

has been

achieved

Implementation

and effect

achievement

validated by

controller

IL 5

P&L effectImplementedDecision takenTarget Evaluated

12

Project Work Stream & Knowledge Flows

Projects as a Service: Integration of five Levels of Social Value-Creation to build

agile, transparent, people-centered, and collaborative project teams

Cloud Project Service Concept

Multi-

Tenant

Projects

Sub-

Projects

Work

Streams

Activities

& Tasks

Link to Sub-Projects

Link to Workstream

Link to Tasks of the Workstream

13

Top-down and Inside-out

Bottom-up

and

Outside-in

Building/Integrating the

Social Project

Organization Portal

Projects

Workstream

Achieve a cultural change to get the whole company working together by organizing

better Knowledge flows for faster and more accurate decisions

Project

Sub-Project

Sub-Project

Sub-Project

Sub-Project

Sub-Project

Sub-Project

Sub-Project

Sub-Project

Workstream

Workstream

Workstream

Activity

Activity

Organizing the Social Project Relationships :

Linking Top-Down/inside-out with Bottom up/outside-in

Aggregation I

Input

Aggregation II

The Project Space:

Defining Project and Sub-

Project Master Data

Top-down and inside-out for

multi-dimensional Problem

solving

The Workstream Link:

Follow Sub-Projects with

self-organized

Workstreams and

Activities bottom-up and

outside in for innovative

solutions

Projects

Workstream

14

2. Input von externen Experten und

Beratern

3. Management der

Projektarbeit durch ein

Projekt Portal

4. Online Erstellung der Projekt

Entscheidungsunterlagen

1. Input von internen

Teammitglieder des Projekt

Netzwerks strategicfrontend.com

15

1)Projekt

Manager/PMO

Monthly tracking of cost savings program (target vs. forecast)

[in Mio. €] Bud. Act. Plan FC* Δ Plan IL2 IL3 Impl. P&L ∑ Δ 2011 2012

1 Processes / structures 0,3 0,5 5,5 6,7 1,2 5,6 0,0 0,0 2,7 4,2 6,9 1,3 6,7 6,9

2 Procurement 3,5 1,6 3,5 3,8 0,3 3,8 0,0 0,0 3,9 2,0 5,8 2,0 3,8 5,8

3 Design-to-Cost 0,0 0,0 3,2 2,9 -0,2 14,0 0,0 6,2 8,0 0,0 14,2 0,2 14,2

4 Production/Lean 2,3 1,2 10,0 3,3 -6,7 10,1 0,0 0,0 0,9 2,8 3,7 -6,5 3,3 3,7

5 Indirect costs 2,6 3,5 3,1 5,9 2,8 3,1 0,0 0,0 1,1 5,1 6,1 3,1 5,9 6,1

Subtotal recurring measures 8,7 6,8 25,2 22,6 -2,6 36,6 0,0 6,2 16,5 14,1 36,7 0,1 22,6 36,7

6 One-time 18,5 24,3 5,5 12,6 7,1 4,8 0,7 0,0 6,8 0,0 7,5 2,7 12,6 7,5

Total 27,2 31,1 30,7 35,2 4,5 41,4 0,7 6,2 23,3 14,1 44,2 2,9 35,2 44,2

[in Mio. €] Bud. Act. Plan FC* Δ Plan IL2 IL3 Impl. P&L ∑ Δ 2010 2011

7 Working Capital 5,0 36,0 14,3 35,4 21,2 14,3 0,0 0,0 -0,5 36,0 35,4 21,2 35,4 35,4

Status

2011 kum

2010 2011 kum

2010Categories

Inventory

2012 kum Status

2012 kum

RampUp 2010

Reporting Date: Entity:

Plan:

IL2 - IL5 28,9 28,9 29,5 28,4 28,4 28,4 28,4 28,4 28,4 28,4 28,4 28,4

2,5

5,4

8,2

11,1

13,815,6

17,519,4

21,723,9

26,0

28,423,3

20,1

18,6

17,3

14,512,3

10,38,4

6,34,2

2,2

0,02,8 3,0

2,3 0,0 0,00,0 0,0 0,0 0,0 0,0 0,0 0,00,3 0,4

0,40,0 0,0 0,5 0,5 0,5 0,4 0,3 0,1 0,0

0,0 0,00,0

0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Target

Jan. 10 Feb. 10 Mrz. 10 Apr. 10 Mai. 10 Jun. 10 Jul. 10 Aug. 10 Sep. 10 Okt. 10 Nov. 10 Dez. 10

Target (100%) = 23,89 million €in million €

IL3: Decided Oper. implementedIL2: Evaluated P&L ef fectiveIL1: Target

Monthly ramp up of measures (by implementation level)

GuV3,3

GuV8,9

19,3

21,7

0,0

6,2

0,0

0,0

3,51,6

3,5 3,80,0

0,00,0

12,6

0,0

7,5

Plan 2009 Ist 2009 Plan 2010 FC 2010 Plan 2011 FC 2011

One-Time Continuous DI2 DI3 Umg. GuV

Split of effects by year (actuals, plan and forecast)

Subproject 1

Project 1

Multiproject

Project 2

Project 3

Subproject 2

Work Stream 1

Activity 1

Activity 2

Activity 3

Work Stream 2

Search:

dd/mm/yyyyWS Start (orig.):

Location:

Status:

End: dd/mm/yyyy

Traffic Light: YELLOW

dd/mm/yyyyWS Start (rev.): End: dd/mm/yyyy

Entity:

Implement. Level:

In Progress

Alvarez & Marsal Implementation Tool (AMIT)

Welcome to AMIT, Mr. John Doe

Log Out

DE EN

Work Stream 1Work Stream Name:

Responsible 1:

Responsible 2:

Create New Activity# Company Name User Type Date Added

X

X

Add User

# Comment By Comment Attachment Date

X

X

Add Comment

Booking of Effects

Comments & Attachments:

Users: Functions:

P&L:

Cash:

FTE:

Target Actual

0,0

0,0

0,0

0,0

0,0

0,0

Traffic Light Overview:

(# Activities)

100 200 50

YTD FY

0,0

0,0

0,0

0,0

0,0

0,0

YTD FY

PrintReports DeleteSave

50%Completion:

Cloud-centric Plattform Architektur

Consulting Projekt Implementation powered by Windows Azure

Mobility as Service: Enabling mobile Projects Work with 16 Standard Web-Apps

16

Electronic Markets for Management Apps: Example Google Ecosystem

“Business Process Utility” : More than 900 global Clients in 60 Countries using the Google/TMG Solution

17

With the strategicfrontend.com cloud service, you can: •Personalize Workspaces •Authorize User

•Create Communities

•Proactively monitor Content

•Provide remote assistance •Set security policies

Integration of unified communication and collaboration with strategic management apps

Mobility as a Service: Manager can select, implement and manage Projects by using the smart

interface of strategicfrontend.com which is accessible anywhere

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End State of Client Organization: Distributed enterprise networks with more efficient/flatter

structure and standardized Management Apps and Data Structure

Enabling Global Strategy and Organization

in cross-border business

Report Analytics Master Data

1. Business Success Planning

1. Business Success Planning

2. Develop Market Strategy

2. Develop Market Strategy

3. Translate Market Strategy

3. Translate Market Strategy

4. Plan Market Execution

4. Plan Market Execution

7. Test and Adapt Strategy

7. Test and Adapt Strategy

6. Monitor and Learn

6. Monitor and Learn

5. Execute Market Initiatives

5. Execute Market Initiatives

BusinessPortfolio

BusinessPortfolio

BusinessPortfolio

BusinessPortfolio

Business Plan MarketBusiness

Plan MarketBusiness Plan Market

Business Plan Market

Business Plan MarketBusiness

Plan MarketBusiness

Plan MarketBusiness Plan Market

Fulfillment

Market /Business

Developer

Customer

Manager Operations

Management

Corporate

Management

BU Management/

Innovation Management

Country Level

Business

Intelligence Manager

Strategic Controlling

Market Level

Customer Level

Order Transaction Level

Country Manager

Central

Management

Regional

Management

More efficient and flatter structure/hierarchy and a highly variable management and consulting expertise

Client Example

19

Cloud Impact on Organization: SHIFT FROM HIERARCHIES TOWARDS MARKETS

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