Get a jump on IT

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Managing IT for Business Value

Ron Miller

IT Portfolio and Operations Manager

Intel IT

June 14, 2007

Get a jump on IT

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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.

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Overview

• Intel IT Strategy

• Creating Business Value for Intel

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IT Reality…

Help Enable

Growth!

Help Improve

Margins!

Help Reduce

Fixed &

Variable

Costs!

Demand for

IT Solutions

IT Budget

Growing

Flat

DecliningCompany

Revenue

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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

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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

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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%

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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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