showcase – impact analysis restructuring services to...

Showcase – Impact Analysis Restructuring services to specific customers Use Case based on a fictional example Asset Management Corp.

SMART 360°

© 2012 iteratec GmbH & smart 360, Co.

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Background and Approach

l Senior management needs to understand the impact of a strategic decision regarding restructuring products for high-wealth individuals.

l Requires understanding the business viewpoint, information viewpoint, technology viewpoint, and solution viewpoint.

l Actors include CEO, Sr. Management Team, Chief Architect, CIO, Enterprise Architect, Risk & Compliance Mgmt

l Goal: Product mix for specific high-wealth individuals is known and impact (cost, level of effort, etc.) is fully known across EA viewpoints and stakeholders.

Impact Analysis of Strategic Decision


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Scenario Walkthrough

l  1. CEO and Sr. Mgmt are being presented with an impact analysis of the strategic decision.

l  2. Chief Architect uses the system to demonstrate how the strategic decision is linked with the current business strategy.

l  3. Any discrepancies in the linkage are noted and explained.

l  4. Overall impact of strategic decision and specifically costs and level of effort (time and resources required).

l  5. Specific impacts: è  How is the current state architecture impacted? è  How is the future state architecture impacted? è  What is required to make the changes to the future state architecture?

l  6. Three potential scenarios for a future state architecture with comparison.

l  7. Stakeholder concerns are addressed.

l  8. There is enough information to make the strategic business decision.


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As-Is Situation at ABC Asset Management Landscape Diagram: Business Support Map – Process & Org 2012

Unlike Risk Management’s enterprise approach, Customers and Products are managed and serviced separately within each country, resulting in different product offerings -> Contrast to new global strategy

CEO/CIO

Risk & Compliance Mgmt

ü ü

Information Architecture

Solution Architecture

ü ü

How do the new business, information, and technology requirements influence the need for new solutions?


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Scenario










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As-Is Situation at ABC Asset Management Portfolio Analysis: IS Portfolio – 2012 – Strategic Assessment

•  Conclusion à There is a need for action with regard to the country- specific Customer and Product Management solutions!

CRM and product management systems are highly critical for business and have poor business and regulatory alignment, although three of them are SOX relevant

CEO/CIO


ü ü


Solution Architecture ü


How does this impact the global IT strategy?


7

As-Is Situation at ABC Asset Management Information Flow Diagram: Information Flow 2012 à Need for Action

•  As the different countries have different Customer strategies, Customer information flows run separately within each country.

•  CRM and Product Management systems are not integrated at all. •  à Recommendation: Consider a consolidation measure

CEO/CIO


ü



ü ü



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Scenario










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Link Discrepancies New Capabilities required in new Org-Unit

What business changes are required globally and locally?

What new processes and organization is required?

Are all the skills in place to enable this restructuring or will there need to be retraining or new skills acquired?


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Link Discrepancies Easy access to new strategy via Fulltext-Search


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Scenario










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Strategy Impact – Realign High Value Individuals Cluster Diagram: Information Systems – Planned/Target

•  Information Objects “Customer” and “Portfolios” must be redesigned •  Functionality to ensure the consistency of portfolios across entire

organization must be implemented

CEO/CIO


ü



ü ü

What new information is required?

What new information will be needed in support of which business processes?

How is the future state architecture impacted?


13

Scenario Evaluation Master Plan Diagram: Roadmap – Initiatives and IS 2012-2015

Master Plan with estimated •  Roadmap •  Costs •  Benefits •  Risks

Already scheduled initiatives à interdependencies to manage

IT initiative “Realign High Value Individuals” with affected “current” solutions

Solution scenarios with directly affected “planned” and “target” solutions

CEO/CIO


ü ü



What solutions will now need to be retired and what is the cost and the level of effort involved to retire them?

What is required to make the changes to the future state architecture?


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Scenario










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Strategy Impact – Realign High Value Individuals Information and BusinessProcess

What new information will be needed in support of which business processes?

•  This diagram visualizes which information is required in which business process (based on solutions in place)

CEO/CIO

Business Mgmt


Business Architecture

ü ü ü ü


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Strategy Impact – Realign High Value Individuals Information Flow Diagram: Information Flow 2012 – Strategy Impact

•  This diagram visualizes the directly affected systems and those, with which the relevant systems have interfaces

CEO/CIO


ü



ü ü

How is the current state architecture impacted?


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Strategy Impact – Realign High Value Individuals Business Support Map – Process & Org 2012 – Strategy Impact

•  In the first step, the information systems relevant for current strategies have been identified

•  Blue colored systems are relevant for “Realign High Value individuals strategy

CEO/CIO


ü ü





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Strategy Impact – Realign High Value Individuals Information Flow Diagram: Information Flow 2012 – SOX Relevance

•  This diagram visualizes information systems that are relevant for legal and regulatory compliance (SOX)

•  It is important to consider all the identified relevant systems while estimating skills and efforts necessary for different project scenarios

CEO/CIO

Risk & Compliance Mgmt ü Information Architecture


ü ü



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Strategy Impact – Realign High Value Individuals Cluster Diagram: Information Systems – Current/Planned

•  Affected information systems •  Affected business processes •  Affected business units •  Affected information objects

CEO/CIO


ü



ü ü


What information currently exists and can be leveraged?


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CEO/CIO

IT Management

ü

Technology Architecture


Strategy Impact – Realign High Value Individuals Current/Planned Technologies – Required Skills

Are the IT skills required to implement the solutions in place? If not, what new skills will be required?

Technologies already in place or scheduled

Technologies to be used in the planned or target solutions

What is the impact to technology roadmaps?

Understanding what business and information changes are required, what are the new technologies which must be acquired?

ü ü


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Strategy Impact – Realign High Value Individuals Affected Information Systems

CEO/CIO

IT Management

ü

Business Architecture

ü

•  IT initiative Realign High Value Individuals has been configured •  All identified affected systems have been allocated •  Strategic Importance and Business Criticality is known




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Scenario










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The following solution scenarios have been defined

l  S1 Consolidate CRM and Product Management Systems

l  S2 Consolidate CRM Only

l  S3 Consolidate Product Management Only

l  S4 Improve AS-IS

IT Response to the New Business Strategy IT initiative – Realign High Value Individuals

CEO/CIO


ü ü



What new solutions are required to meet the strategic decision?


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IT Response to the New Business Strategy S1 Consolidate Customer and Product Management Systems

•  In this scenario, country specific CRM and Product Management systems are consolidated to CRM Salesforce and ProdCore information systems

•  The diagram also shows systems that will remain (Murex) and those, which are already scheduled to be replaced (FIZ VaR)

CEO/CIO


ü




What solutions will now need to be retired?



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•  In this scenario, country specific CRM and Product Management systems are consolidated to CRM Salesforce and ProdCore information systems


CEO/CIO


ü

Technology Architecture





ü


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IT Response to the New Business Strategy S2 Consolidate Customer Management Systems Only

•  In this scenario, only the country specific CRM systems are consolidated to the new CRM Salesforce information system

•  Country specific Product Management systems are only improved and migrated to the target releases


CEO/CIO


ü







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IT Response to the New Business Strategy S3 Consolidate Product Management Systems Only

•  In this scenario, only the country specific Product Management systems are consolidated to the new ProdCore system

•  Country specific CRM systems are only improved and migrated to the target releases


CEO/CIO


ü







28

IT Response to the New Business Strategy S4 Improve AS-IS

•  In this scenario, the country specific information systems are improved and migrated to the target releases


CEO/CIO


ü







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Scenario Evaluation Spreadsheet Report (Projects): Resource Demand [PD]

SOX expertise must be acquired as it is not in place in the current IT organization

CEO/CIO


ü ü



Are the IT skills required to implement the solutions in place? If not, what new skills will be required?


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Scenario










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Status based

SOX relevance based

•  Skills are necessary and efforts must be scheduled to ensure the legal and regulatory compliance (SOX)

CEO/CIO


ü ü



ü ü




What is to consider to meet legal and regulatory requirements?


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IT Response to the New Business Strategy S2 Consolidate Customer Management Systems Only

Status based

SOX relevance based


CEO/CIO


ü ü



ü ü






33

IT Response to the New Business Strategy S3 Consolidate Product Management Systems Only

Status based

SOX relevance based


CEO/CIO


ü ü



ü ü






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IT Response to the New Business Strategy S4 Improve AS-IS

Status based


SOX relevance based

CEO/CIO


ü ü



ü ü






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Scenario










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Scenario Evaluation to make business decision Portfolio: Scenarios with Benefits, Costs and Risk (Color)

Our champion to recommend: Scenario 3: “Consolidate Product Management Only”

CEO/CIO

Senior Business Mgmt

ü

Scenarios below this line have negative Cost/Benefit ratio

Scenario 3: although, benefits not that high,

costs are lower and first of all risks are much lower.

Scenario 1: the highest benefits but also considerable

costs and high risks ü


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Capability Mapping

l Based on stacked Bar-Chart, enable effort and skill comparison

Compare Scenarios based on skills required


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Contact us to improve your business today!

Karsten Voges smart 360° Co 1 Broadway Cambridge, MA 02142

[email protected] www.smart360.biz 1-617-800-6024 Twitter: @smart360biz

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