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Get a jump on IT
Intel - Public
Managing IT for Business Value
Ron Miller
IT Portfolio and Operations Manager
Intel IT
June 14, 2007
Get a jump on IT
Intel - Public
This presentation is for informational purposes only. INTEL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
BunnyPeople, Celeron, Celeron Inside, Centrino, Centrino logo, Core Inside, Dialogic, FlashFile, i960, InstantIP, Intel, Intel logo, Intel386, Intel486, Intel740, IntelDX2, IntelDX4, IntelSX2, Intel Core, Intel Inside, Intel Inside logo, Intel. Leap ahead., Intel. Leap ahead. logo, Intel NetBurst, Intel NetMerge, Intel NetStructure, Intel SingleDriver, Intel SpeedStep, Intel StrataFlash, Intel Viiv, Intel vPro, Intel XScale, IPLink, Itanium, Itanium Inside, MCS, MMX, Oplus, OverDrive, PDCharm, Pentium, Pentium Inside, skoool, Sound Mark, The Journey Inside, VTune, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance, cost and total cost of ownership. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing.
*Other names and brands may be claimed as the property of others.
Copyright © 2007, Intel Corporation. All rights reserved.
Intel - Public
Overview
• Intel IT Strategy
• Creating Business Value for Intel
Intel - Public
IT Reality…
Help Enable
Growth!
Help Improve
Margins!
Help Reduce
Fixed &
Variable
Costs!
Demand for
IT Solutions
IT Budget
Growing
Flat
DecliningCompany
Revenue
Intel - Public
Intel IT Strategy
Invest in New …– Provides maximum Biz Value– Innovation for the future– Company growth
Focus On
Cost Savings thru…Reduction in Client TCOInfrastucture Consolidation Standard based Open Architecture
Operational Excellence thru …Standard Processes and IndicatorsSecurity & Risk ManagementCustomer Segmentation
Intel - Public
Managing for IT Business Value
Total Cost of Ownership
No or Ad Hoc Practices
Simple ROI &
IT Business Case Discipline
Options/Portfolio Management
Investment Performance Analysis
Level 1
Level 2
Level 3
Level 4
Level 5
CMMI* Framework for Managing IT Business Value
* Other names and brands may be claimed as the property of others.
Business Value
Intel - Public
Intel IT Business Value Program
Common Language
Anchor for Funding Decisions
Portfolio Approach
Financial value dials•Days of inventory
•Headcount productivity
•Hardware and software cost avoidance
•Capital equipment cost avoidance
•Time to market
•Direct revenue
•Other cost avoidance
Non-financial value dials•Customer satisfaction
•Intellectual property risk reduction
•Product development agility
•Regulatory compliance
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Metrics Linked to Business Performance
These metrics are IT enabled key business benefits measured as
value dial improvements versus a current baseline
What is the current state? What is the desired outcome?
• 28 days of inventory
• 12 hours throughput
• 20 orders handled/head
• 70% of market
Reduce inventory by X days
Reduce throughput by X
Increase productivity by X%
Increase market segment
share by X%
Intel - Public
Result: New Measures of Success
• Not just availability
• Top and bottom line impact & value
Value Created
2002: $423M
2003: $923M
2004: $1.2B
2005: $1.7B
2006: $1.3B – Rigorous finance definition for measuring ROI
– Each program carefully reviewed to validate
– Overall value heavily judged (by formula)
Revenue
28%
Hardware
Avoidance
12%
Headcount
Avoidance
4%HC Productivity
23%
Capital Equipment
Avoidance
3%
Time to Market
12%
Software
Avoidance
11%
Other cost
Avoidance
4%
Risk Avoidance
3%
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+
0
IT Eff
icie
ncy
Business Value+- 0
-Requires
incremental IT
budget
Creates resistance from line
of business and users
Improved business
value with little or no IT
efficiency penalty
Improved IT efficiency with no
business value
penalty
Improved business
value AND IT efficiency
Necessary, but low value
Failure
Failure Failure
Business Value Index
ITA
T070
1P
Invest #2
Invest #4
Invest #1
Invest #3
Invest #5
Invest #6
Invest #7
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Business Value thru …Mobility at Intel
• Mobile computing: Key Intel strategy– 80:20 mobile vs. desktop mix
– 87% of knowledge workers mobile-enabled
• Value proposition is high– Wireless & mobile technologies offer
>5% time-savings in an employee’s work week
www.intel.com/it $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
1995 1998 2002 2003
End-usersupport
Training
Hardware
Software
53% TCO
Reduction
1995 – 1998
Replacing 6,400 notebooks yields 3-year net present value (NPV) of approx. $26 million
Notebook support costs decreasing faster; TCO narrowing
NotebooksNotebooks
Desktops Desktops
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Mobility Aids Business Continuity
• Moving away from disaster– Employees can take the “office” with
them, out of harm’s way
• Flood hits Folsom, CA building– Burst water main floods office space
– Wireless notebooks easy to relocate
– No customer impacts
• Snow shuts down Portland, OR– Roads impassable for three days
– 5,000 Intel employees simply work from home using notebooks
• SARS shuts down HK office– Fast deployment of notebooks to HK
from around the globe, employees work from home
– Minimal impact to operations
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IT@Intel Showcases Intel IT Experiences
• Share IT best practices with industry peers
• Provide IT industry education
• Facilitate IT innovation through industry research
www.intel.com/IT/IPIP
www.intel.com/IT
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