CFOs are from Mars; CIOs are from Venus
Enhancing Returns from Technology Investments – Delivering Better Cashflow
Martin Heath Managing Director, ATOS KPMG Consulting
martin.heath@atoskpmgconsulting.co.uk
© Atos KPMG Consulting 2003
CFOs are from Mars; CIOs are from Venus
June 2003
L11294– 2
CFOs are from Mars; CIOs are from Venus
June 2003
What do I want to cover in the next 40 mins . . .
1. Mars according to the CFO/CEO
2. Venus according to the CIO/CTO
3. Achieving Marital Bliss
4. Some Happy Marriages
NTL
Glasgow Housing Corporation
5. Living Happily Ever After
L11294– 3
CFOs are from Mars; CIOs are from Venus
June 2003
CFOs are very clear on what they want . . .
1. So what is it that they want more than
anything else?
 Technology?
 Hardware?
 New process?
 Consultants?
CASH
L11294– 4
CFOs are from Mars; CIOs are from Venus
June 2003
CFOs are a very clear on their attitude to new technology
spending
“they are not buying
anything that does not
reduce their expenditure or
increase their revenues”
No more funding until
1. Legacy systems are shown to deliver business benefit
2. New systems have a robust business case that is shown to deliver
positive cashflow
L11294– 5
CFOs are from Mars; CIOs are from Venus
June 2003
Business Integration is about reducing costs, increasing
revenues and delivering earnings growth. Its about rapid
RoI . . .
Increase gradient and delay fall-off by:
 Increased ARPU
 Increased subscriber base
 Reduce churn
 Reduce running costs
Go Live
Time
Old World Self Build
New World Share Risk
Design,build and implemement includes Software, H/w and fees
L11294– 6
CFOs are from Mars; CIOs are from Venus
June 2003
But it not just about new systems . . .
Client “as-is” legacy
AKC solution “to-be”
+ve
Alternative supplier “to-be”?
Time
-ve
to provide clear cash benefits . . .
L11294– 7
CFOs are from Mars; CIOs are from Venus
June 2003
Building the case for change
The Future

Business transformation as a by product of
systems replacement activities to address systems
“burning platforms”

Investment decisions focus on delivering value to
the business, decision maker is the CFO

The implementation objectives focused on certainty
of delivery to the IT community

Incorporating business objectivity, industry data and
a strong change management culture to the proven
implementation certainty provides an unrivalled
service to deliver business benefit and ensure the
benefit continues to be realised
Milestone
Baseline
Plan
Forecast
Actual
When the rollout project has started
0204/2001
0204/2001
0204/2001
0204/2001
When the detailed project planning
has completed
27/04/2001
03/05/2001 09/05/2001
When the configuration has been
installed into a suitable CRP
environment
13/04/2001
13/04/2001 13/04/2001
13/04/2001
When CRP1 has started
30/04/2001
07/05/2001 14/05/2001
14/05/2001
When CRP1 has completed
18/05/2001
25/05/2001 08/06/2001
When the localisation requirements
have been agreed
25/05/2001
01/06/2001 15/06/2001
Cashflow
The Past
Time
L11294– 8
CFOs are from Mars; CIOs are from Venus
June 2003
Technology is a means to and end, not an end in itself
. . . business led, technology enabled
 CFO require
solutions to
business issues
Project Management
Customer Relationship Management
 They want
business
integrators not
system integrators
Supply Chain Optimisation
 This requires an
integrated
approach to
process,
technology,
organisational and
strategic issues
Finance Transformation
Human Resource Management
Change Management
Enabling Technology
L11294– 9
 The overarching
business issue in
today’s
environment is
generating more
cash through
greater revenues
and/or lower cost
CFOs are from Mars; CIOs are from Venus
June 2003
1. Mars according to the CFO/CEO
2. Venus
Venus according
according to
to the
the CIO/CTO
CIO/CTO
3. Achieving Marital Bliss
4. Some Happy Marriages
NTL
Glasgow Housing Corporation
5. Living Happily Ever After
L11294– 10
CFOs are from Mars; CIOs are from Venus
June 2003
Research findings . . .
 Atos KPMG Consulting conducted an independent survey of the Oracle user base to
establish how satisfied companies were with their Oracle Applications and whether they
had achieved all the benefits defined in the business case, key findings were
 Like any other IT programme, implementing applications should be seen as a business change
programme impacting the entire organisation;
 High level business sponsorship is required to drive through the implementation, keeping the focus
on the business objectives, as well as business involvement in the implementation project;
 Detailed planning ensures that IT benefits are linked to the strategic objectives of the business,
including preparation of a business case which identifies all the business benefits, both financial and
non-financial;
 Benefits must be tracked and measured both during and after implementation and that realistic
consideration should be given to a full range of options, such as managed services or process
outsourcing;
. . . these findings reinforce the investment activity in creating
our next generation business transformation methodology. . .
L11294– 11
CFOs are from Mars; CIOs are from Venus
June 2003
2.2 Level of satisfaction with the ROI on Oracle eBusiness
Suite implementations
While successful completion of a project
is one element of satisfaction, the
measure of a company's satisfaction with
ROI is arguably more important.

25% of companies 'Very satisfied’;

52% opting again for the middle ground of
'Satisfied'.

Perhaps more interestingly, 10% of respondents
claimed that they did not know whether the
expected ROI had been achieved. Within this, a
further 5% admitted that no original business case
was even prepared.

While a high percentage of respondents stated they
were 'Satisfied' with the product and the ROI
achieved, there are clearly two levels of satisfaction
developing in the installed base: those which are
fully achieving their expectations (Very or Extremely
satisfied) and those companies (the ‘satisfied’
majority) which fail, in part, to attain the same level
of success and ROI.

It is therefore incumbent on existing and future
users of Oracle eBusiness Suite to understand why
companies fall into the 'two tiers' when it comes to
satisfaction and ROI. More importantly, they need
to understand what corrective or preventative
actions need to be taken to move up to the 'top
tier'.
Extremely dissatisfied
2%
Dissatisfied
11%
Very satisfied
25%
Don’t know
5%
Satisfied
52%
No business
case
5%
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CFOs are from Mars; CIOs are from Venus
June 2003
3. What were the main objectives for implementing
Oracle eBusiness Suite?
3.1 Companies have focused on internal improvements
Respondents were asked to rank their objectives for Oracle implementations.
The most commonly selected were:
Surprisingly, the survey showed that
very few respondents placed a high
priority on strategic or
value-driven objectives, such as
increased revenue/profits or
increased collaboration with partners
in the supply chain. This suggests
that companies are focusing on
internal business processes or
technical issues and are failing to
consider the full range of
opportunities and benefits available.
FIGURE 3: OBJECTIVES FOR THE IMPLEMENTATION OF ORACLE EBUSINESS SUITE
BASE: PERCENTAGE OF RESPONDENTS INTERVIEWED BY
ATOS KPMG CONSULTING
L11294– 13
CFOs are from Mars; CIOs are from Venus
June 2003
4. What generates higher satisfaction and ROI?
4.2 Do longer projects deliver better ROI?
Key to understanding what generates a higher
level of satisfaction or ROI is the need to
determine how companies approached their
projects.
Longer projects do not necessarily deliver better ROI.
The majority of benefits delivered in a short period
following implementation. Thereafter the law of
diminishing returns shows significant further effort fails
to deliver proportional benefits.
4.1 Factors that drive satisfaction and ROI
4.3 Do larger projects deliver better ROI?
There is a correlation between size of project and
satisfaction with ROI.
 Project spend over £5m: 17% of respondents
were 'Very satisfied' with ROI; and
 Project spend between £1m and £5m: 54% of
respondents were 'Very satisfied' with ROI.
Size, complexity and time to benefit added significant
barriers to success in a number of cases. Size in itself
doesn't mean worse results.
The key difference from those who performed less well
was the approach adopted. This suggests that since a
large proportion of benefits (better ROI) are delivered in
a relatively short period of time, an approach which
seeks to deliver benefits rapidly in small sizeable
chunks can lead to greater satisfaction and more
immediate returns.
FIGURE 5: REASONS FOR SATISFACTION/DISSATISFACTION DURING
IMPLEMENTATION
BASE: PERCENTAGE OF RESPONDENTS INTERVIEWED BY
ATOS KPMG CONSULTING
L11294– 14
CFOs are from Mars; CIOs are from Venus
June 2003
5. What, with hindsight, would companies do differently?
The areas which respondents said they would improve
in their Oracle implementation were:
5.1 More focus on the business rather than the
technology
The areas organisations would do differently are all
business, rather than technology related factors. This
suggests that increased involvement from the business
might have helped to deliver an increased ROI.
5.2 Modify the software less.
The majority of respondents who stated they would
modify the software less were also 'Dissatisfied' with
the ease of upgrade. As previously noted, one of the
major areas of dissatisfaction following implementation
is the ease of upgrade. In our experience,
customisation can make upgrading more complex and
therefore more costly.
5.3 Select the right delivery partner
In our experience, the choice of delivery partner is as
important as the technology selection. The choice of
partner can have a significant impact on both the
delivery process and the delivery of benefits to the
business. The key to success is the ability to blend the
business and technology streams in partnership.
FIGURE 9: WHAT COMPANIES WOULD DO DIFFERENTLY ABOUT THEIR ORACLE
IMPLEMENTATION WITH HINDSIGHT
BASE: PERCENTAGE OF RESPONDENTS INTERVIEWED BY
ATOS KPMG CONSULTING
L11294– 15
CFOs are from Mars; CIOs are from Venus
June 2003
6.Total Cost of Ownership is one of the largest causes of
dissatisfaction
4.8 Post implementation factors driving satisfaction and ROI
FIGURE 8: REASONS FOR SATISFACTION/DISSATISFACTION FOLLOWING
IMPLEMENTATION
BASE: PERCENTAGE OF RESPONDENTS INTERVIEWED BY
ATOS KPMG CONSULTING
L11294– 16
CFOs are from Mars; CIOs are from Venus
June 2003
7. CIOs’ agenda for the future
The agenda of today's CIO has become more complex, with the primary focus being 'how to do more with
less'.
From an IT perspective, the CIO’s challenge is how to reduce the operational cost of IT, whilst improving
overall value to the business.
From a business perspective, the CIO’s challenge is ensuring that future IT investments enable the business
to advance its objectives more rapidly.
An acceptable payback period for IT investments used to be three to five years. Now, this can be reduced to
as low as twelvemonths.
Here we present the key topics that should be on the
CIO’s agenda:
 Business involvement – higher levels of involvement and commitment from the business
 Business transformation – view implementation as part of a business transformation programme
with clear business objectives
 Choose a single vendor – the value to the business of an integrated suite of applications provided
by a single vendor is considerable
 Business case – a well defined business case that considers all the options and clearly identifies the
benefits
 Benefits tracking – more benefits tracking during and after the implementation
L11294– 17
CFOs are from Mars; CIOs are from Venus
June 2003
1. Mars according to the CFO/CEO
2. Venus according to the CIO/CTO
3. Achieving
Achieving Marital
Marital Bliss
Bliss
4. Some Happy Marriages
NTL
Glasgow Housing Corporation
5. Living Happily Ever After
L11294– 18
CFOs are from Mars; CIOs are from Venus
June 2003
Taking the business integrator approach – Achieving RoI
 To provide a structured approach which increases
the likelihood that desired benefits will be realised
 To highlight achievements of projects against an
agreed target
 To support decision making through an
understanding of interdependencies
 To optimise the allocation of resources
(investment and people) and prioritisation of
projects
 To report benefits realised as a visible measure of
success
L11294– 19
CFOs are from Mars; CIOs are from Venus
June 2003
ROI benefits framework
. . . Business Benefits Driven
Simulate
& Design
Prepare
Deploy
Benefits Delivery Framework
Identify
Confirm
Business
Case
Templates
KPI
Confirmed
Business
Case
Bench Mark
Industry
Benefit
Client
Target
£ C-T
L11294– 20
Deliver
Benefits Tracking
Framework
G o L i v e K e y D a te s
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Pl a n fo r G o L i v e
B e g in D u a l E n t ry o f M a t e ria ls P O 's
F in is h E n t e rin g C h a rt o f A c c o u n t s
F in is h R e vis io n s
F re e z e C o n t ro l a n d C o p y fo r n e w C R P 3
F in is h E n t e rin g E m p lo y e e s
F in is h E n t e rin g Jo b s a n d p o s it io n s
C la rify P a g in g b y U n it #
O p e n C R P 3 fo r t e s t in g
F in is h C u s t o m e r E n t ry
F in is h P ro d u c t io n a n d S p a re s P ric e L is t E n t ry
F in is h B O M 's E n t ry
F re e z e P ro g ra m m in g c h a n g e s
F in is h e n t e rin g C u s t o m e r C re d it In fo
F in is h M ig ra t io n o f C u s t o m C o d e t o C o n t ro l
B u ild s c rip t s t o c o n ve rt s it e c o n fig u ra t io n s in t o d a t a im p o rt file
G o / N o G o live d e c is io n
C o m p le t e S o lu t io n o r W o rk a ro u n d fo r a ll P rio rit y 1 TP R 's
C la rify P a g in g C S R N o t ific a t io n
R e vis e S q l N e t L o g in TN S N a m e s
F re e z e C o n t ro l
B a c k u p C o n t ro l D a t a b a s e t o t a p e
C o p y C o n t ro l D B t o P ro d / O p e n P ro d u c t io n o n C ro u p ie r
C la rify C lo s e C o n t ro l fo r D a t a E n t ry
F in is h C o n fig u rin g S it e s in C la rify
C re a t e C la rify P ro d D B in s t a n c e fro m C D E V D B o n C ro u p ie r
Im p o rt P ro d u c t S it e C o n fig u ra t io n s in t o C P R O D
Im p o rt C u s t d a t a in t o C la rify P ro d D B fro m O ra c le o n C ro u p ie r
B e g in B a c c a ra t H a rd w a re U p g ra d e w h e n H W a rrive s
B e g in In p u t o f s e e d P ro d D B in fo in t o C la rify o n C ro u p ie r
B e g in M o vin g p ro d u c t s fro m S G IC w a re h o u s e in t o C la rify
C u s t o m e r S it e s
F in is h e n t e rin g O n -h a n d q u a n t it ie s fo r N e v in P ro d o n C ro u p ie r
F in is h O p e n a n d H is t o ry S a le s O rd e r E n t ry o n C ro u p ie r
B e g in p o p u la t io n o f S o lu t io n s & Tra ve le rs in t o C la rify d a t a b a s e
F in is h C R P 3
F in a l P e a c h t re e C k R u n 2 w e e k s fo rw a rd
F in is h V e n d o r E n t ry
C o m p le t e In p u t o f s e e d P ro d D B in fo
C o m p le t e m o vin g p ro d u c t s fro m S G IC w a re h o u s e t o C la rify
c u s t o m e r s it e s
C o m p le t e in vo ic e e n t ry fo r M a y in P e a c h t re e
F re e z e A lllia n c e fo r n e w t ra n s a c t io n s
R u n A llia n c e o p e n P O a n d q u a n t it y R e p o rt s
R u n M R P in A llia n c e
S h ip p in g / R e c e ivin g / M a t e ria ls S h u t d o w n
U n m a t c h e d R e c e ive r a c c ru a l
F in is h e n t e rin g in v it e m s o n c ro u p ie r
Te s t H a rd w a re u p g ra d e o n B a c c a ra t w / c t rl d b w h e n s y s a va il
C la rify S t re s s Te s t (4 h o u rs )
F in is h e n t e rin g O p e n E C O 's o n C ro u p ie r
F in is h e n t e rin g O n -h a n d q u a n t it ie s in C a lifo rn ia o n C ro u p ie r
C o m p le t e B a c c a ra t H a rd w a re U p g ra d e
S y n c h in ve n t o ry it e m s in O ra c le o n C ro u p ie r a n d A llia n c e
F in is h c lo s in g P O lin e it e m s in O ra c le a n d A llia n c e
C o m p le t e e n t e rin g O p e n P O 's c u rre n t w e e k o n C ro u p ie r
B e g in M o ve P ro d fro m C ro u p ie r t o B a c c a ra t -N o t ify U s e rs
C re a t e C le a n C la rify P ro d D B S n a p s h o t o n B a c c a ra t
F in a liz e fo r P ro d u c t io n S q l N e t L o g in TN S N a m e s
D a t a c le a n s in g & va lid a t io n
R u n C o s t R o ll-u p
C o m p a re A llia n c e a n d O ra c le fo r O p e n P O 's a n d W IP
C o m p a re A llia n c e / O ra c le fo r In v a u d it re s t ric t e d m t ls
E n t e rin g O p e n W IP , It e m B a la n c e s
K e e p e n t e rin g O p e n P O 's
K e y in Q t y 's t o F in is h G o o d s
F in is h E n t e rin g O p e n C u s t o m e r S u p p o rt C a s e s
F in is h E n t e rin g Tra ve le rs
F in is h E n t e rin g P O 's / C le a n u p in ve n t o ry
R u n O ra c le S u b In ve n t o ry V a lu a t io n R e p o rt fo r M a y B a la n c e s
W ho
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CFOs are from Mars; CIOs are from Venus
June 2003
ROI delivers the end-to-end solution . . .
Build
Design
Strategy and transformational
change



Identify
transformation
agenda
Plan quick wins
Develop
business cases
for investment
Operate
Management of
process and change

 Roll out process
change to ensure
benefits realisation
 Employ change
management
techniques to support
organisational change

Design, build and
transition to
Oracle solution
Full managed operations
service including Business
Process Outsourcing
Utilise our Oracle
Rapid Return on
Investment sm
methodology to
implement Oracle
templates for key
processes

Rapid go live and
transition
Migrate to managed
operations
ICT
People
Business
Process
Outsourcing
(BPO)
Proven benefits tracking methodology, aiming, to reduce Total Cost of Ownership – TCO
Business case
Savings
Implement
Managed operations
Build self-financing
business cases
Track benefits
and savings
Finance implementation
from savings
Extend savings through
managed operations
Finance Options such as… Risk/Reward, Outcome Based Pricing, legacy systems buy-out
. . . a comprehensive and unique service from strategy to
business process outsourcing along with financing options
L11294– 21
CFOs are from Mars; CIOs are from Venus
June 2003
ROI delivers business benefit
Needs to build on
1. Revenue effects – lower churn, greater loyalty, faster repairs, more volume per
customer (eg cross selling) faster order to cash cycles, higher prices, faster
product innovation cycles etc etc
2. Cost reduction – fewer systems/applications, lower maintenance, faster
process, slimmer more streamlined organisations, better forecasting, lower
transaction costs, higher quality, more efficient field sales and engineering, faster
more accurate delivery, better information, fewer bottlenecks, automated
processes, reduced inventory, lower infrastructure costs (eg fewer data centres,
cheaper storage etc etc
L11294– 22
CFOs are from Mars; CIOs are from Venus
June 2003
What is benefits management?
1. All investments should be driven by the benefits they will deliver to the
business
2. Many companies identify these benefits in order to justify expenditure
3. Some companies measure whether or not the benefits have been delivered
4. Benefits are not achieved automatic
5. Continuous and active management of benefits is required
6. Moves the focus of investments away from project-level results to businesslevel impacts
7. It insists on a holistic view of business change
8. Benefit Management is relevant, flexible, and business-focused
L11294– 23
CFOs are from Mars; CIOs are from Venus
June 2003
Benefits of benefits management
The approach increases success by
fostering:
 Widespread commitment to change for business
improvement
 Alignment of systems, business processes and
objectives
 Identification and quantification of financial and
non-financial benefits
 Clear accountability for process change and
benefit delivery
 Systematic tracking and realisation of benefits
L11294– 24
CFOs are from Mars; CIOs are from Venus
June 2003
Key principles
 Demonstrably linked to business strategy
 Projects should be valued and prioritised
against benefits yielded
 Expectations are clearly and explicitly
defined
 Project delivery should be benefits driven
 Manage and review
 Defined responsibility and accountability
 Benefits management embedded
 Less is more
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CFOs are from Mars; CIOs are from Venus
June 2003
Best practice – Dead Squib Test
 Define scope and key assumptions
 Establish baseline figures
 Agree accountability
 Detailed Business Case
 Signed off
 Quantifiable and non-quantifiable targets
 Use appropriate tools
 Identify “size of the prize”
 Benefits Management is a core project
deliverable
 Track benefits
 Establish measures and targets
 Successful benefits management is a “social
science”
 Track performance
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CFOs are from Mars; CIOs are from Venus
June 2003
ROI delivers . . .
 The Issues
The UK leading cable operator was not gaining the full benefits from its
systems investments. Rapid growth and restructuring had led to a business
unit (rather than group-wide) approach to finance and supply chain functions
 The approach
Atos KPMG Consulting led ntl through a major finance and supply chain
transformation to streamline processes, embed consistency across business
units and optimise systems.across business units to deliver sustainable
change
 The benefits
ntl achieved sustainable cost savings in excess of £20m from more efficient
processes and systems, better controls and finance staff headcount
reductions
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CFOs are from Mars; CIOs are from Venus
June 2003
1. Mars according to the CFO/CEO
2. Venus according to the CIO/CTO
3. Achieving Marital Bliss
4. Some Happy Marriages
 NTL
NTL
 Glasgow
Housing
Corporation
Glasgow
Housing
Corporation
5. Living Happily Ever After
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CFOs are from Mars; CIOs are from Venus
June 2003
Glasgow Housing Corp needed to increase customer
visits by 20%
Business challenge
The Solution

60 building repairs and maintenance managers carry out site visits to assess work
required, managers return to City Council's service centers to file report, order
materials and check the availability of trades people. Only then can the tenant be
given a date for the work to be carried out.

Improved customer service

Faster repairs and maintenance

Reduced administration costs

Oracle9iAS Wireless Edition
Will Enable Glasgow's
Operational Managers to
Increase Customer Visits by
20% Faster repairs and
maintenance
Benefits delivered
Delivering Customer Service and Competitive Edge

"Getting it right first time and improving customer service by speeding up repairs and delivering on time is our top priority,"
said Jane Alexander, communications and marketing manager. Building Services will have to compete with other contractors
for the business. Our aim is to deliver higher levels of customer service to ensure we continue to win contracts, but without
increasing staff numbers and overheads."

Online Scheduling of Repairs Reduces Wait Times and Enables More Customer Visits

Operational managers report from customer's site and send to service center via mobile device with a Web browser. Online
details of stock levels and availability of people. Operational manager to know immediately when job can be carried out.

"We are able to schedule a date for repairs and maintenance at the time of the visit, and at the customer's convenience,"
said Jane Alexander. "At the moment, the manager needs to visit a service center to check stock levels and to book the
relevant trades, ie, plumbers, builders, electricians, etc. It can take several days before the customer is offered a date."

Reduced administration costs
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CFOs are from Mars; CIOs are from Venus
June 2003
NTL wanted to transform its Finance function and make
substantial savings
Business challenge
The Solution
The objectives of the project were to:

Establish an effective finance function following period of rapid growth by
acquisition

Ensure Oracle configured to obtain full benefits after recent implementation

Deliver cost savings, including substantial headcount reductions

Migrate subsidiary from SAP onto Oracle platform

Interface finance systems with PeopleSoft HR software
The key steps taken to deliver the solution
were:

Analysis and re engineering of the
core finance processes eg Eenablement of purchase to pay,
introduction of purchase cards, online
requisitioning and invoice scanning

Review and redesign of
- the
organisation structure -including
transfer of responsibilities, reallocation of resources and re-skilling

Optimisation of Oracle Financials and
migration of subsidiary from SAP to
Oracle

Tailored change management and
transition programmes to ensure that
key tasks don’t get ‘dropped’

Programme management introduction
to drive deployment and track benefits
realisation
Benefits delivered
 The headcount in the finance function was reduced by 35%
 The finance systems were integrated onto a single platform
across the whole organisation
 The number of locations in which finance operates was
reduced from 6 to 3
 The level of outstanding debtors by 20%
 The management reporting process was streamlined
 The number of cost centres was reduced from1793 to 78
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CFOs are from Mars; CIOs are from Venus
June 2003
1. Mars according to the CFO/CEO
2. Venus according to the CIO/CTO
3. Achieving Marital Bliss
4. Some Happy Marriages
NTL
Glasgow Housing Corporation
5. Living
5.
Living Happily
Happily Ever
Ever after
After
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CFOs are from Mars; CIOs are from Venus
June 2003
Business Integration is about reducing costs, increasing
revenues and delivering earnings growth. Its about
rapid RoI
Increase gradient and delay
fall-off by:
 increased ARPU
 increased subscriber base
 reduce churn
 reduce running costs
Go Live
Time
Old No real business case
New World Shared Risk
Design,build and implemement includes Software, H/w and fees
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