Published on January 7, 2008
Slide1: Jason Molfetas – Chief Information Officer November 16th, 2006 Slide2: Introduction Westcon Group Who Are We? Our Historical IT Organization The “Burning Platform” question! My roadmap to “IT is the Business” Vision Organizational Change The Strategic Alignment Measurement (Scorecards) The Results Agenda Slide3: World’s largest “networking and telephony only” channel provider We are a distributor of networking, security, and convergence (video, voice & data) solutions Industry leader of branded, value-added services and support programs Financial Overview : Financial Overview FY 2006 Sales will exceed $2.5B All three regions increase over FY 2005 Americas – 13% Europe – 7% Asia Pacific – 17% Slide5: Project Office PMO Quality Assurance Auditing Compliance Documentation Data Integrity Security Production Management Core Infrastructure Data Center Help Desk System Support Infrastructure Support Apps Development Core Applications Development eCommerce Development Technical Design B2B Business Intelligence Pre 2006 - Shared Services Model Relationship Management Business Analyst Business Liaison Project Management Communication Implementation Training Slide6: Shared services model challenges Source: IBM Customer Interviews Common Business Complaints Common Technology Complaints “IT is not delivering and they are clueless about my business needs” “You cost too much and your priorities are backwards ” “I can’t rely on the estimates I get from IT – usually it ends up being double what I am originally told” “The business doesn’t understand that they need to work with us in defining requirements – they think we are mind readers” “Nothing gets done by the IT Team unless I scream and yell” “There is no sense of accountability in the technology organization” “The business just doesn’t understand what it takes to get things done” “We do not have the resources or bandwidth to support all requests” “The business wants a Cadillac but they are only willing to pay for a Hundai” Slide7: The Burning Platform Question “Are You Aligned with Your Business?” Over the past several years, the press has been filled with articles stressing the need for greater business/IT alignment : Over the past several years, the press has been filled with articles stressing the need for greater business/IT alignment Source: CIO.com, ITworld.com; cioinsight.com Why We’re Still Talking About Alignment Since the age of the vacuum tubes, dot-matrix printers and green-screen monitors, IT executives have been obsessed with the concept of alignment, meaning how closely an organization’s IT strategy is interwoven with and driving its overall business strategy. Just look at any survey of CIOs taken during the past decade, and you’ll see that the role of IT within the company’s business strategy is almost always among their top five concerns . . . Framing the issues Aligning business and technology As business and technology have become increasingly intertwined, the strategic alignment of the two has emerged as a major corporate issue. Not that this is a new subject. In fact, the strategic relationship between business and information technology has been chronicled as far back as the 1970s, when Harvard Business School Prof. Richard L. Nolan expounded his “stages theory” of the business/IT relationship . . . The Alignment Enigma Ask CIOs what the number one issue facing them is, and chances are excellent they will respond “Aligning IT with the business strategy”. That answer will come as no surprise to anyone familiar with the IT terrain. The April CIO Insight CIO research survey identified this as the number one issue. But similar polls conducted during the past two decades drew the same conclusion . . . Slide9: Gartner’s “2006 CIO Agenda”: To what extent is each of the following CIO actions a priority for you in 2005? Rank 2006 Selected change in ranking compared with 2005 * New question for 2006 ** New question in 2005 Rank 2005 Rank 2004 Delivering projects that enable business growth Linking business and IT strategies and plans Building business skills in the IT organization Demonstrating the business value of IT Attracting, developing and retaining IT personnel Applying metrics to IT organization and services Improving the quality of IT service delivery Having flexible technology infrastructure Improving IT governance Consolidating the IT organization and operations 4 5 6 7 8 9 10 1 2 3 * 4 * 8 4 * 18 11 2 14 3 * 1 2 3 9 7 10 1 ** Slide10: However, despite all of these efforts to achieve alignment, the truth is that many IT organizations still are not meeting user expectations Framing the issues How are we doing…. Last Year – “I felt like the Bear!” Slide11: Are YOU aligned? IT Vision: Move IT into a significant driver role of corporate strategy Clear IT strategy linked to the Business Measurable value add Generate revenue Change the perception of IT from ‘isolated’ to ‘integrated’ Federalize the team Local to local contact Refine the scope of Group IT divest control / responsibility focus IT resources at group wide strategic initiatives Evolve IT from cost structure to investment model ROI signed off by GM & RCFO Savings tracked in 8 qtr model metrics for expense control We will have fun … IT Vision Slide13: Roadmap Slide14: Hybrid Model Higher costs Variable standards Different control environment Duplication of effort Business Units maintain control of decisions Recognition of local priorities Responsive to client needs Aligned with Business Common systems & support Consistent standards & control Economies of scale Critical mass of skills Unresponsive No business unit control of central overhead costs Inflexible to business unit needs Remote from business Decentralized Centralized The Federal Model leverages positive qualities of both centralized and decentralized organizations to deliver value to business partners Federal Model: Federal Model Group IT objectives: Greater impact on global business: Increase margin Decrease operational costs Competitive advantage Focus Group IT on group wide initiatives Enterprise projects run at group level with PMO oversight Exploit selective sourcing opportunities for cost efficiencies Regional IT objectives: Create greater business alignment & accountability Local projects run at regional level using PMO standards The Regions own IT investment and project priority decisions Greater ability to impact IT costs Improve IT responsiveness Slide16: ITS Business Alignment Strategy Delivery Infrastructure and Support Strategy Planning System Architecture Corporate Infra Data Centers Corporate Help Desk Process Security Quality Assurance Project Services Program Management Office New Federal Structure Group IT ERP BI Group IT E-Business Group IT BI Business Unit Analysis Local Apps Infrastructure Local DR Communication Training First Line Support Super Users Slide17: Roadmap Business Strategies : Business Strategies Enhance Partner Experience Deliver Consistent Growth Leverage Core Distribution Capability Emphasize Continuous Improvement Executive Summary Strategic Goals Cascade: Strategic Goals Cascade Executive Summary Achieve 15+% EBITDA growth annually Improve productivity, performance, stability and deployment of business processes supported by JDE Compass Provide a stable infrastructure supporting current requirements and future acquisitions, mergers, green field and business growth Leverage our current and acquired specialty distribution businesses focused on new services, cost efficiencies, margin growth Improve E-Business solutions to exceed our business partner’s expectation Increase productivity, performance and stability Enhance core distribution competencies across Finance, IT, Operations & Marketing Drive efficiencies in the core to control costs Corporate Goal Business Objectives IT Goals Deliver consistent growth Enhance partner experience Emphasize continuous improvement Leverage core distribution capability Provide Westcon Group with timely and relevant information to be used for strategic management, measurement and continuous improvement of the business and its processes Slide20: Executive Summary IT Goal IT Strategies IT Tasks E-Business Improve E-Business solutions to exceed our business partner’s expectations Significantly increase the number of transactions through E-Business Continuously increase the services, features and functionality available through E-Business channels Partner with Foundation Vendors to expand upon integrated business processes Develop an Offshore Global IT Center to support productivity Create Dashboard reports to deliver key business and performance metrics eCommerce transactions and trends B2B transactions and trends Baseline performance metrics Develop Web Services to institute self-service B2B model Availability Quote SBA Price RMA On-line Credit Card Fulfillment Business process re-engineering CC fulfillment gateway on eCommerce websites B2B Transactions SMS3 Vendor invoicing Point of Sale (POS) Fujitsu Lightfoot BT Order Gateway Slide21: Execute Deliver Measure! Slide22: E-business monthly tracker E-Commerce vs. ERP orders taken: E-Commerce vs. ERP orders taken Slide24: Roadmap Slide25: Scorecard Slide26: Financial Performance: Tracking of ROI Slide27: Scorecard Project Metrics: Sales Vision : Project Metrics: Sales Vision Golden vendor recruitment tool Drives pro-active sales engagement Continue to drive rollout #’s Presentation data available Project: Lead Vision: Project: Lead Vision GEO 792 entered .9% closed GNA 4223 entered 5.2% closed Churn the base (POS) Renewals Slide30: Roadmap Westcon GroupCustomer ForumSeptember 2006: Westcon Group Customer Forum September 2006 Slide32: World’s largest “networking and telephony only” channel provider We are a distributor of networking, security, and convergence (video, voice & data) solutions Industry leader of branded, value-added services and support programs Supporting the indirect sales channel with logistics and services designed to make our customers more competitive Worldwide headquarters in Tarrytown, NY, U.S. Slide33: Westcon Group Global Reach Westcon Group is a Multinational Organization Presence on every continent 1500+ Employees Worldwide 25 Engineers across Americas 50 More across the World Locations: United States Canada South America United Kingdom France Sweden Australia Singapore Germany And More… Unified Support Team through the use of our unified Global Ticketing System 8 Logistics/Integration Centers Worldwide Common program and marketing sales infrastructure/services worldwide Slide34: Customer-driven focus on convergence, networking and security solutions Commitment to developing new market opportunities Relationship-building with vendors and resellers Unsurpassed breadth of support services Extraordinary expertise in all area of convergence Technical support State-of-the-art logistical, operational and financial systems Financial strength and global reach The Westcon Advantage Slide35: Place and track orders on-line View product availability View pricing Multiple price schedules allowed Customized by Account Manager Deal specific/competitive pricing available Obtain proof of delivery information Obtain serial numbers Print detailed copies of their invoices On-line customer RMA request’s Custom Store Fronts and E-commerce Slide36: Thank you Questions?