optimising the use of it

- 1 - Optimising the use of IT in an economic downturnInformation Age Seminar - December 2008

Copyright 2008 Freeform Dynamics Ltd www.freeformdynamics.com

Optimising the use of IT in an economic downturn

Martin AthertonResearch Director

Freeform Dynamics Ltd

+44 208 943 5324

[email protected]



Topics

► Review of recent research

► IT imperatives in a tight economy

► 3 ways optimise the IT infrastructure and operations

► 3 ways to optimise the way IT is used in the business

► 3 ways to enable the business to be more efficient

► Helping the business drive the top line

► Q&A



Has the ‘credit crunch’ had a specific impact on IT investment in your company or do you expect it to?

0% 10% 20% 30% 40% 50%

It has already impacted our IT spendingsignificantly this year

We expect it to impact our spending nextyear (2009)

We are not predicting an impact, but weare well aware it might happen

We do not think we will be affected

1125 Respondents




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

UK

USA

Rest ofEurope

Rest ofWorld

It has already impacted our IT spending significantly this yearWe expect it to impact our spending next year (2009)We are not predicting an impact, but we are well aware it might happenWe do not think we will be affected

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

Corporate(5000 plus

emps)

Mid-Sized(250-5000

emps)

SMB (Lessthan 250emps)




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

Financial servicesTravel and Transportation

Media/Entertainment/PublishingRetail and WholesaleIT products/services

ServicesTelecommunications

Manufacturing/construction/engineeringEnergy and Utilities

Central/Local GovernmentEducation

HealthcareOther

It has already impacted our IT spending significantly this yearWe expect it to impact our spending next year (2009)We are not predicting an impact, but we are well aware it might happenWe do not think we will be affected



If you are expecting an impact in 2009, how great do you think it will be?

0% 10% 20% 30% 40%

Devastating

Significant cut backs across the board

Cut backs in selected areas (e.g. noncritical)

No more than a bit of general belttightening

N/A - Don't expect an effect



Summing it up

► Few have yet been hit by the downturn

● But the majority in IT are preparing themselves

► View seems to be consistent across segments

● Little difference between geographies

● Little difference by company size

● Everyone ultimately likely to be affected

► However, we are from widespread panic

● Most anticipating a selective/limited impact on IT

► So how can we maintain this controlled view?



Maintaining control

► Not just about cost cutting within IT

► Need for a more balanced approach

Economic pressure

Economic pressure

IT DEPT RESPONSE



3 ways of optimising IT

► Server virtualisation● Underutilisation = excessive overhead & power consumption● Solutions now mature, costs coming down (e.g. MS option)

► Desktop management● Desktops account for significant IT related costs and overhead● Asset and licence management can have a quick ROI● Challenge/qualify proposed upgrades very hard● Consider desktop virtualisation

► Systems management● Prevention is cheaper than cure● Integration is cheaper than fragmentation● Efficiencies reduce costs and free up resource



3 ways of optimising the way IT is used

► Application training● From office tools to core business systems● Make users more self sufficient (and productive)● Reduce support costs● Defer investments (learn to use what you have!)

► Power and waste management● Configuration/user behaviour re desktop PCs, printers, etc● Define and implement end user policies

► Implement basic IT governance● Make all IT related activity count in business terms● Review of existing systems and projects (and shoot the dogs!)● Prioritise proposed projects via objective cost/value criteria



3 ways of enabling business efficiency

► Get people better connected● Mobile access: hand-held devices, data cards, etc● Unified communications: telephony, conferencing, messaging● Remote access: home working, branch office working● Reduce travel costs, reduce dead time, boost productivity

► Make smarter use of the Web● End user driven content management/maintenance● Extranets and collaboration portals

► Unlock the value in your information assets● Most businesses capture lots of data but don’t use it● Business intelligence is no longer a black art● Work with users to understand what drives performance



Help the business drive the top line

► Generating income is fundamental

● Nothing happens without it

● Looking after the top line is even important in a downturn

● Need to improve, just to stand still

► Sales and marketing activity is:

● Information intensive

● Communication intensive

● Time sensitive

● Repetitive and formula driven

► IT can make big difference



Time to marketTime to market

Focus on business objectives

► Enable maximum individual productivity► Get people working together as effectively as possible► Present the best possible image to the market► Operate in an intelligent, informed and joined up manner

Time to competitive response

Time to competitive response

Lead generation efficiency

Lead generation efficiency Sales

conversion rates

Sales conversion

ratesLevel of repeat

business

Level of repeat

business Overall cost of sales

Overall cost of sales



1. Make smarter use of office tools

► Templates and process● Re-use of content● Re-use of formatting● Lever talent/experience

► End user training● Tools● Processes

► Basic collaboration● Document shares● Team sites● Simple workflow● Search

Individual productivity Effective team working

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Intelligent execution


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2. Get your people better connected

► Mobile access● Hand-held devices● Notebook data cards● Email, diary, contacts● Other apps via browser

► Unified communications● Telephony integration● Messaging integration● Multi-media conferencing

► Remote access● Home working● Branch office working


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3. Make smarter use of the Web

► Revisit your Website● Image, clarity, accessibility● Use of rich media● Interactivity, rich interfaces● User generated content

► Consider and extranet● Partner/channel● Customers

► Investigate social media● Blogs, wikis, networking● Your own and others● Sales, marketing and competitive


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4. Unlock your data and put it to work

► Improve business understanding● Customer segmentation● Performance analysis● Affinity analysis

► Focus development● Market gaps/opportunities

► Optimise marketing● More effective messaging● Smarter targeting

► Optimise sales● Better qualification● Propagate best practice


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5. Close the loop with integrated CRM

► Support CRM holistically● Business planning● Product development● Marketing campaigns● Sales force automation● Transaction execution● Customer service

► Integrated BI● Sales perspective● Financial perspective● Operational perspective

► Exploit single view of customer


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Maintaining control

QUESTIONS?

Economic pressure

Economic pressure

IT DEPT RESPONSE

optimising the use of it

Technology

business drive

credit crunch

top line

make smarter

specific impact

3 ways

people

data