Oracle Presentation

  • View
    1.450

  • Download
    0

  • Category

    Business

Preview:

DESCRIPTION

 

Citation preview

1www.stki.info972 9 74 444 74 Israel +Zion,BneiMoshavAll Rights Reserved @STKI

Office of the CIOTrends

Galit FeinEVP & Senior Analyst

Strategies for the Web &

Office of the CIO

2www.stki.info972 9 74 444 74 Israel +Zion,BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Two Faces of the CIO

CIO function # 1

• Manager of

internal IT

CIO function # 2

• CEO of external IT

3www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

MEGA IT Trends 2008

IT spend (inc. outsourcing) remained flat

Higher standards dictated by new regulations

Greater demand for IT services but limited resources

Increasing number of small projects & its interaction

4www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT is an Integral Organ of the Business

Contribution to achieving business strategy

29%

Available & accurate info

14%

Business processes

improvement57%

The most important IT responsibility

Source: STKI

5www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT support in the business strategy is less effective

Poor transparency between management & ITO

Lack of IT standardization & methodology

Unproductive use & waste of human resources &

IT assets

Projects failures rate is too high

Org. that lack OTC complain of:

6www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Overwhelming demand for IT services

Projects, requests, CR, maintenance are managed by

out-dated, non-integrated tools

Status of requests is not available in real-time

Unable to detect & expose problems & malfunction in

early stage

IT that lack OTC complain of:

7www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Why do we need Office of the CIO?

OTC ensures that every decision has optimal

strategic value in relation to cost & risk

With OTC, business managers will better understand:

• Strategic impact of investment decision-making

• Cost of IT services

8www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Objectives of the PMO

IT Plan Development

Demand Management

Budget & resource management

Tools

Availability of information

Post-implementation audits:

• Accompany the implementation

• Ensure successful system-use

Continuous improvement

9www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here RO

I

Alig

nm

ent w

ith

Str. O

bje

ctiv

es

Cost

IT Plan Development

StrategicChange

The

Organization

Run

The

Organization

Regulatory

Risk & compliance

Management Competitive

advantage:

New products,

services, new

markets

IT-enabled

business projects:

Cost advantage

customer satisfaction,

productivity

improvements

Running IT

:operations

IT services

catalogue with

costs & SLA

13% 33% 54%

10www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Portfolio Trends

In short term: Run the Org. spend will see some decline

from further efficiencies

In long term: Run the Org. spend will stabilized

Efficiencies in infrastructure & better ITG will enable

firms to reduce the % of IT spend on sustaining the

current systems from 70% to 50%

11www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Demand Management

Screening

• Customer representative, system manager…

Pre-agreed criteria

Evaluation & prioritization:

• Compare “apples to apples”

• Avoid redundancy

Financial awareness

12www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Budget Management

Budget Allocation

IT budget distribution between Business Units according

to their strategic goals:

• Business Unit responsibility

• Operations get their own budget for the maintenance

Resources allocation between Business Units according to

their strategic goals :

• Control of business demands

• Internal loan between LOBs

13www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Budget Allocation - Recommendations

Save part of resources for IT flexibility:

• New regulation

• Unexpected business activity

Unplanned demand will be executed on account of

planned demand

14www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Budget Management & Control

Collecting data to show costs of services

Service catalogs:

• Chargeback

• Alternatives

When IT prices its services, IT can benchmark services

against outsourced alternatives to drive further

efficiencies

15www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Planning vs. Execution – Why?

Planning vs. execution assessment:

• Actual demands’ status

• High maintenance systems

• Business Unit resources exhaustion

16www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Planning vs. Execution – How?

Develop annual plan based on hours spent per task

• Incidents, maintenance, development

Not attendance clock!

Reporting enforcement through executives’

dedication

17www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

How do you define project success?

Israel

Clients Satisfaction

19%ROI11%

Cost29%

Schedule30%

Other 11%

Usage, Bugs in production, Reusability

Source: STKI

18www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Software Tools

IT managed either manually, through spreadsheets, or

through an array of standalone tools

ITG tools help the organization:

• Visualize the demand for IT services & new initiatives

• Prioritize financial investment & human resources

ITG automation helps to enforce standards & practices

• Access is limited to permitted users only

• Efficient demand workflow confirmation

19www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ITG Tools Evolution

ERP for IT

Standalone

tools

Text

Demand mngt

Project & portfolio mngt

Financial mngt

Resource mngt

IT process mngt

Reporting

Individual

project mngt

20www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

STKI Israeli PositioningL

oc

al S

up

po

rt

Market Presence

Not a technological positioning

Refers only to Israeli market

Focused on enterprise market (not SMB)

Not an STKI recommendation

Market Presence (X)

• Market share - existing and new sales (more emphasis)

• Mind share (how user organizations perceive vendors)

Local Support (Y) – is influenced by (X)

• Experience & technical knowledge, localization, support, number and kind of integrators

Vendor A

Vendor B

21www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

PPM- Positioning of the Israeli MarketL

oc

al S

up

po

rt

Market Presence

Enterprise

MID-Tier

This analysis should be used with its

supporting documents

Vendors to Watch:

PS Next

CA

HP

Compuware IBM

Microsoft Primavera

22www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

PPM Tools & Integrators in Israel

22

IntegratorsNew Clients 07’Clients

CA, Proceed (Calanit

Carmon)

Ministry of Tourism,

Clalit, Leumi Card,

SunDisk

Clarity (CA)

HP, TaldorPartner, Motorola,

MatafProject & Portfolio

Center (HP)

MatrixCompuware

Changepoint (Matrix)

IBMBAW,EPM, RAM, RD

Composer (IBM Q4 08)

AvivMercava, IDFPrimavera (Aviv)

MSPIAIMenoraRequirement &

Release mngt (MSP)

Xioma, MSP, Eshed

Signifer

Visa CalBank Discount,

Menora, TevaPS Next (Xioma)

Matan, Orantech

Tefen, Proceed

MalanPPS (Microsoft)

Matan, Orantech, Tefen,

Neway, Pnina Zinger,

Proceed

Orbotech, Bank Leumi,

Coca-Cola, Tnuva,

Strauss-Elite, IAA

M-system, Leumit, IAI,

Lotem, Bezeq,

Mekorot, Tel Aviv

Municipality

EPM (Microsoft)

23www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

PPM Tools & Integrators in Israel

SAP RPM (resource & portfolio mngt) – IAI, Bank Hapoalim,

Maaz, DSW, Cellcom, Bezeq, Bazan, Navy, Taas, Amdocs, Barom, Merkava

TimeMaker (time & task mngt)– Mirs

ERG Timesheet (time estimation mngt) - Cellcom

24www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

PMO Israeli Trends

From standard project mngt to ITG processes

ITOs are currently increasing its PMO

Majority of organizations examine ITG tools

ITOs are looking for:

• Ultimate ITG tool

• Process automation using existing tools

• Improving budget control by integrating work plan to ERP

PMO staffing ratio depends on organization maturity:

25www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

:OTC Process ImplementationRecommendations

Receive recognition from executive mngt:

• Decision-making, budget & resources

Standardization of processes

Drawing conclusions:

• Project mngt, alignment with business strategy

Use of consultants:

• Less resistance toward external involvement

26www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

:ITG Tools ImplementationRecommendations

The process should be simple as it involves only a few

users

Focus on 2-3 critical KPIs

Choose user friendly system

Short term ROI

Implement module by module

27www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Office of the CIO pays off

Even though establishment of the OTC takes 2-3 years, it

has a valid business justification

OTC helps firms to achieve:

• Greater return on IT investments

• Higher customer satisfaction from IT

28www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Service Desk

Highly competitive & mature market

Continually growing staff & number of transactions

IT SD as full-service provider:

• Cost mngt - call-reduction strategies, automation

efforts, service delivery alignment with defined

service levels)

• Proactive management

• Appropriate performance metrics

ITIL

29www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Service Desk –

Positioning of the Israeli MarketL

oc

al S

up

po

rt

Market Presence

Enterprise

MID-Tier

This analysis should be used with its

supporting documents

IBMVendors to Watch:

CA

HP

SysAid

Microsoft

BMC

Pivotal

SAP

PeopleSoft

Siebel

IT HD

Modules

30www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Service Desk Tools

Selected Installations in Israel

IntegratorsNew ClientsClients

CA, Ness, Malam,

MSP, Cabao

Shabas, Rafael, IsracardComverse, IAI, Discount, Elta, ECI, HOT,

Motorola, Teva, Elbit, Mekorot, Osem,

Phoenix, DSW, Bezeq Int, Beit Berl, Israel

Police, Tnuva, Central Bureau of Statistics,

EL-AL, Tamas, TASE, Ministry of Health, Tel-

Aviv Municipality

CA*

Matrix , Xor

-

Zim, Malan, IGS, MED Nautilus, Malam,

Kneset, NDS, Social Insurance, Uniliver,

Creo, Intel, Motorola, Summit Design,

Polycom, Cellcom- eng. HOT-eng. Partner -

eng

BMC*

HP, Xor-

IDF, Netafim, Shaam, Open University,

Orbotech, Tower Semiconductors, Haaretz*HP

ConsistAfrica Israel, Mei-Eden, AIG,

Electra, McCann Erickson,

Diesenhaus unitours, Flash

Opal Networsks, Liveperson,

Hertz, Psagot Ofek,

Rav-Bariach, Marvell, Dan, Jonson &

Jonson, Highway 6, Omrix, Wintegra, Sami

Shimon College, Minicom, Litcom

*SysAid

*ITIL compliant

31www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Help Desk Modules from CRM packages

IntegratorsNew ClientsClients

20 Partners, including:

Matrix-Effect, SIT,

Advantech, Team,

Malam, Eyron, We!,

Netwise, Bynet SW,

Yael, Avaya….

Visa, Cellcom, Eldan,

Ministry of Education

Ministry of Finance, Malan, Israeli

Navy, Intel, Prime MinisterMicrosoft

CRM*

(*ITIL complaint)

ONE1Tadiran, Negev Ceramics,Orad

Super-Pharm, Bat-Yam Municipality, Exlibris, Systematics, Panorama, Telmap,

Ericom,FGG Radvision, Gilat, Maccabi,

Shahal, Ritalix, Globs

Pivotal

Ness, IBM, EDS, Advantech

BazanCoca Cola, Paz, Isr. GovernmentSAP

Matrix-

Ministry of Foreign Affairs, Mamram,

BezeqPeopleSoft

Taldor, IBM

-

Tnuva, Visa, Golden Pages, Bank

LeumiSiebel*

32www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Executives are enforced to accurate & verified financial

info

Periodical review of the processes used to ensure

compliance with regulatory

Internal controls are regularly assessed for effectiveness

The Sarbanes-Oxley Act (SOX)

33www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

What is the SOX for IT?

SOX implications have huge impact on the ITO

The role of CIO & ITOs will evolve under SOX

IT departments can expect much closer scrutiny

Need for enterprise risk management & governance

Timely & accurate info enabled & sustained by a blend of

process, quality, & governance

34www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Process:

Developing process to improve

efficiency & IT service delivery

Quality control:

Build metrics to follow up

performance & improvement

Governance:

Establishing oversight measures

Consultants: HMS, One, SecOz,

Spider, Taldor, Tulip

Process

ITIL

Maturity models

– CMM , PMM

Quality control

ISO 9001

Total Quality

Management (TQM)

Six Sigma

Governance

COBIT

:FrameworksCommon

Enterprise Risk Mngt

35www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Best Practices vs. Innovation

STRATEGIC IT

• Strategic functions drive

the company’s dollar, stock

value, & competitive

advantage

Office of the CIO

Portfolio mngt…

TACTICAL IT

• Tactical functions simply

keep the business up &

running on a day-to-day

basis:

COBIT

CMMI

ISO

ITIL

Six Sigma…

Best

Practices

Innovation

36www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

No single process/governance

framework will effectively

represent every organization

No single framework covers the

complete territory

Leverage & aggregate best practices

The combination of process

methodologies will provide a more

complete view of IT’s operational/

support processes

ITIL COBIT

ISOCMMI

Six Sigma

What’s the Best Practice Framework?

37www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

COBIT

Developed by the Information

Systems Audit and Control

Association (ISACA): A set of

identified control objectives

4 high-level domains (e.g.,

planning & organization)

34 sub domains (e.g., manage

human resources)

318 control points designed to

provide assurance that certain

objectives will be achieved

Israeli ISACA is translating

COBIT to Hebrew

High-level governance & control

framework

COBIT align with the COSO finan.

framework - recommended for

compliance with SOX

Checklists for assessing IT controls

& effectiveness

Ensures that controls & security

are in place

Control Objectives for Information & Related Technology (COBIT)

38www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ITIL

Initiated by the UK government’s

(CCTA) Central Computing &

Telecommunication Agency

Provides best practices for

delivering IT services

ITIL v.3 (5 books) refines the

notion of IT service

ITIL v.2 core tenants were divided

between service support &

service delivery; these are now

combined

IT Infrastructure Library (ITIL)

Process is the linchpin to

delivering consistent services at

a reliable level of quality

ITIL primarily focuses on IT

operations where 80% of IT

budgets are spent

39www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ITIL v.3 - 5 Books

Service Strategy

Service Design

Service Transition

Service Operation

Continual Service

Improvement

40www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ITIL Israeli Trends

Business started to realize the importance of the ITIL

Customers started to demand vendors ITIL compliance

in RFP (especially HD & outsourcing vendors)

Main reasons to enter ITIL:

• IT services improvement

• Regulations:

Companies which incorporated ITIL processes reported

better compliance with SOX, BazelII…

Bottom-up demand

41www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ITIL Adoption Trends

About 10 enterprises has already implemented some ITIL

processes

Industries with highest % of usage:

• Finance, Telecom & High-Tech

Increasing interest, but no actual investment

ITIL courses & training: HP, John Bryce

ITIL lead consultants (alphabetical) & selective examples: • CA: Ministry of Foreign Affairs

• EMC: Amdocs, Cellcom

• GalanTech- ITIL training; Amdocs; IEC; Petah-Tikva municipality

• HP- Pelephone, Ministry of Justice

• I-til consulting - Bank Leumi, Zim

• XOR - Bank Hapoalim; Bank Leumi

42www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

COBIT tells you what to

monitor & control

Higher-level business

value framework

ITIL describes how to

implement

Lower-level service

performance

framework

The ideal configuration - a combination of both frameworks:

• ITIL measures internal technology efficiencies

• COBIT interprets them in the context of business value

The latest versions of these frameworks integrate

with each other

COBIT & ITIL

Do they affect each other? Yes!

43www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

ISO

ISO- framework for information

security management

ISO/IEC17799:2000 lays out a

process for securing those

services & addressing legal

requirements

Developed by the

International Organization for

Standardization & the

International Electrotechnical

Commission

ISO specifies best practices for

security in 12 areas & offers

guidance on such topics as

protecting personal data,

internal information, &

intellectual property

International Organization

for Standardization (ISO)

44www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Importance of:

Unified Framework Responsibility

Frameworks are tied to each other

Different frameworks handled by various orgs roles:

• Accountants, CIO, CTO, QA managers, CISO, etc.

Responsibility of all frameworks MUST be unified:

This translates itself

to greater efficiency &

resource saving

45www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Risk & Compliance Mngt

Information TechnologyInfrastructure Library

Framework for informationsecurity management

Control Objectives for Information & Related Technology

CobiT

ITIL

ISO

Reference

framework for

governing IT &

compliant with

SOX

46www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Source: Bain & Company (Mng. Tools 2007)

Outsourcing: one of the top 10 most used mngt tools,

however, below average satisfaction

Management Tools - Ranking

47www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Outsourcing WW Trends

Outsourcing will continue to be recession-proof

Recent turmoil in credit markets will selectively slow

outsourcing in the financial services sector

Global multi-shore & multi-provider outsourcing will

become more the norm than the exception

Capital expenditure avoidance will become a key driver

for increased demand for outsourcing & BPO

48www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Outsourcing Model

Evolution or Equilibrium?

Outsourcing model has been changed

1/3 of deals were total IT function, especially with SMBs

Rest of deals were of transferring processes & specific

fields to outsourcer:

• Infrastructure

• Help Desk support

• Application Mngt

Selective outsourcing

67%

Comprehensive

outsourcing 33%

Source: STKI

49www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Selective Outsourcing

Israeli Trends

Comprehensive outsourcing

• Loss of Flexibility

• Increased Risk

• Loss of Internal Expertise

Selective examples:

EDS: Kneset

HP: Tower

Malam – Team: Dan

Ness: Tadiran Appliances

Selective outsourcing

• Vendor Competition

• Shared Objectives

• Core Competencies

Selective examples:

EDS: Alvarion, Ports & Railways Authority

HP: Navy, Telrad

Malam-Team: Shlomo Group, Phoneix

Ness: Teledata, Applied Materials, UTI

50www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Outsourcing Israeli Trends

Outsourcing market will continue on steady mature

growth

Net increase in the outsourcing market

Public sector demand will continue to grow

Decline in mega-deals (number & volume)

Most of the activity will be happening in SMBs

51www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Pace of new contract has slowed during 2007

More sophisticated customers who conduct thorough

feasibility study

End of vendors’ “suicidal prices”

A few major WW outsourcing contracts are being brought

back in house:

Prudential, Selfridges, Sainsbury…

Advertisement of disagreements & problems

in contract between Mey-Eden, Mataf, Harel…

52www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Outsourcing Israeli Trends

Customers

Most orgs. succeed in achieving their objectives, but in

general they feel indifferent about the results

Companies generally have difficulty to evaluate vendor

capabilities & outsourcing outcomes

Companies are choosing vendors with proven abilities to

deliver services according to SLA

Clients changing preference: smaller contracts~1-5 years

Re-biding vs. renewals: resulting in less stability

since the contract & checks take time to accomplish

53www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Multisourcing

Multisourcing still hasn’t passed the reality test

Multisourcing demands the complete mngt of operation &

providers

Mngt of operation & providers requires large

managerial mechanism

Managerial boundaries must be specified

Multisourcing demands a critical mass since providers

have lesser profit margins when it comes to

smaller contract

54www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Outsourcing Israeli Trends

Vendors

Highly competitive market with increasing no. of

vendors

Main players:

• Ness, EDS, Malam-Team, IBM, HP

New players are entering the IT sector:

• Bynet , Taldor

55www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Main Factors for Failure of Outsourcing

Management lack experience of outsourcing

Management lack skill of writing & negotiating

outsourcing contracts

The outsourced work is difficult to standardize

Quality did not meet expectations:

• “80:20” bubble burst

56www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Major obstacle for successful outsourcing

ITOs are dissatisfied with the methods used for

measuring vendors’ performance

ITOs still struggle with metrics design & implementation

ITOs mostly rely on the vendor's estimation

The problem of measurement pertains not only to

outsourcing but also to the overall operation of a firm

57www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

For what reasons have you considered

insourcing?

5%

18%

16%

26%

26%

28%

51%

3%

13%

12%

13%

21%

24%

61%

Other

Communication problems

Change in strategy about outsourcing

Customer dissatisfaction

Service levels not met

Cost saving not realized

Have not considered insourcing

2008 2007Source: Cutter

58www.stki.info972 9 74 444 74 Israel +Zion,BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

What kinds of tasks are you currently outsourcing or planning to outsource?

18%

38%

61%

79%

18%

49%

64%

78%

Other

Help Desk Support

Maintanance

Development

2008 2007 Source: Cutter

59www.stki.info972 9 74 444 74 Israel +Zion,BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Tactical IT vs. Strategic IT

STRATEGIC IT

• Strategic functions drive the

company’s dollar, stock value

& competitive advantage:

Business development

New system development

Product marketing support

Sales force automation

Business & IT alignment

R&D

TACTICAL IT

• Tactical functions simply keep

the business up & running on

a day-to-day basis:

Infrastructure maintenance

Service Desk

QA/Testing

Printing

BPO

Security

ERP

Outsourcing In-House

60www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Highly competitive & mature market

Most of the activity will occur in SMBs

Service packages including HD tools:

• The focus should be on service instead of tools

Main players & Selective Examples:

Calanit-Carmon: Isracard;

Malam-Team: Tel-Aviv municipality; EDS: Alvarion;

Taldor: “Computer for Every Teacher” project;

Yael: Tyco

IT Service Desk Trends

61www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

QA/Testing Management

Rapidly growing field

Acknowledging the advantage & cost saving by

outsourcing: the transition from PS to outsourcing

Israeli near shore:

• Main Player: Matrix (Talpiot)

• Malam (Ma’alot)

• Ness (EDC)

• Aman (Tehila)

Offshore: Eastern Europe, Far East, Palestinian authority

Main Players: Ness & Tescom, Malam-Team, Matrix, Tesnet,

Tact Computer System

62www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Security Outsourcing

Security outsourcing is a growing trend

Increasingly regulated, intensive & expensive field

From firewalls to setup & maintenance of most security

systems

Expert service providers:

• Economies of scale: quality security staff

• Cost saving: No longer have to pay high-level

technical staff to monitor security around the clock

63www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Professional Services / Temps Israeli Trends

Professional services growth has narrowed

In-sourcing trend as part of management perception,

despite being cost saving

Opposite trends in private versus public sectors

Need for flexibility & specific proficiency:

• Demand on professional niche experts (BI, SQL, Security,

Oracle Applications, etc)

64www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT Staffing Metrics

Insourcing45%

Greater Use23%

Unchanged32%

PS as Percentage of IT Staff

Source: STKI

65www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Professional Services / Temps Israeli Trends

ITOs prefer fixed prices (overtime hours, sick pay, miluim)

Transparency with suppliers to prevent paradoxical situations

(where employee earns more than his/her employer)

PS Advantages

Employee’s preservation (training, professional support,

excursions, pay increase, high mobility)

FTE Advantages

Employee’s sense of belonging

Cost saving

66www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

IT roles % expecting to increase hiring:

WW Trends

24%

28%

40%

Project management

Help Desk

Programming/system development

Source: CIO Insight

67www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

20%

31%

31%

45%

55%

Help Desk

Architecture & planning

Security

Project management

Programming/system development

2008

IT roles % expecting to increase hiring:

Israeli Trends

Source: STKI

68www.stki.info972 9 74 444 74 Israel +Zion,BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Training Management

Recession will narrow the training & implementation market

growth

The investment of 5-10 training days of employees

Increasing need for management & service skills courses

Main topics: .NET, MF, J2EE, security

Gathering momentum: ITIL, PMI, SOX, virtual communities

Main Players:

Matrix, Ness, Sela Group, Emet, Malam-Team, YANA Group

69www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Increased28%

Decreased22%

Unchanged50%

Annual Training Allocation per IT Employee

Source: STKI

70www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Web Evolution

71www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Web 2008 – an “Enterprise” Issue!

Web 08’ tools, technologies, & concepts help business find:

• New customers

• Retain existing customers more effectively

• Provide products & services at higher profit margin

Strategic IT

Web 2.0

Business

72www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Where is your company stands with regards

to Web 2.0 technologies?

Social Networks

RSS

Wikis

Video over the Web

Deployed

Testing

Not on radar screen

45% 24% 32%

20% 40% 40%

26% 21% 53%

9% 25% 66%

73www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

My company considers consumer technology for

potential business uses

Agree27%

Waiting 68%

Disagree5%

Consumer technology (social networking, video games, iPod)

74www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Self-Service Israeli Trends

Not an innovative concept

Most orgs. are planning to invest into customer self-

service improvement:

• Cost saving

• Improved customer satisfaction

Disadvantage: lack of customer sense of belonging

Start Self-Service

Build product simpler

version

Effective Internet

search engine

75www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual Worlds

76www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Questions that must be examined:

What is a virtual world? / Second Life?

Why are millions of people joining VW?

What value does a VW provide?

What are its real potentials & risks?

How can one make money in a VW?

Will VW affects & influences our personal, social, &

professional life, like today’s Web?

77www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual Worlds

Examples (over 200 worlds): Second Life – Microtransactions, subscription ($9.95 per month)

World of Warcraft - Software, subscription,

microtransaction ($14.99 per month)

Club Penguin – Subscription ($5.95 per month)

Barbie Girls - Product sales

ActiveWorlds – Subscription ($69.95 per year)

Google Lively

There - Subscription

MultiVerse

Vast Park

Metaplace

Entropia Universe

78www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Economy

Reuters

Banking and credit

Stock markets

• SL Capital Exchange (US, 20 listings)

• World Stock Exchange (Australia, 15 listings)

• VSTEX (Italy, 7 listings)

• Ancapex (US, 3 listings)

79www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Second Life

40,000 concurrency (at any time)

450,000 active users (last 7 days)

1.4 m active users (last 2 months)

10.6 m total accounts

2 m assets created per day

35 TB of user-created data

800,000 unique items sold or traded

per month

500 events per day

Land of SL 2 Million M^

Total User Hours (millions)

Source: Linden Lab

80www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Currency: Linden$

LindeX exchange operated by

Linden Lab

• Buy: USD $.30 transaction fee

• Sell: 3.5% transaction fee

• 270 L$ =$1 USD

Monetary policy

US$ Spent by Users (in Millions)

US $ Exchanged on Lindex (in Millions)

81www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual World, Real Money

SL’s First Millionaire:

Anshe Chung (Ailin Graef) -

the virtual land baroness

• In period of 2.5 years

• Initial investment 9.95$

82www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual World, Real Business

Information points – interactive & dynamic online

resource or brochure

Front offices or HD - customer service

“Shop fronts” & online sales - customer product

experience

Meeting venues - meetings & collaborative activities

Seminars & conferences

Advertising - products /services promotion

Product demonstrations - potential customers

Recruiting

83www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual World, Real Business

IBM

Cisco

SUN

PreenIntel

Adidas Store

84www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Virtual World, Real Business

Scion, Toyota's youth-oriented brand, has sold (2H07)

about 200 computer-generated cars in Second Life

85www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Museum & Art

International Spaceflight Museum Computer History Museum

Art Gallery

86www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Tourism

Images of Sweden

Interactive Dublin map

Tourism destinations promotion - real places & activities virtual experience

87www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Education & Training

Education – interactive courses with students

Training - simulation, role-play games

Princeton Science Friday American Cancer Society Relay for Life

88www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Advisory/Analyst firms

H&R Block Island

BDO Stoy Hayward

KAWG&F (Baltimore MD CPA firm), CPA Island

Accenture

STKI

89www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text hereUS Congress European

Community

Campaign HQs Davos protest

Government, politics & collective action

Sweden Embassy

90www.stki.info972 9 74 444 74 Zion, Israel +BneiMoshavAll Rights Reserved @STKI

Your Text hereYour Text here

Galit FeinEVP & Senior Analyst

Strategies for the Web &

Office of the CIO