PUBLISHERS FORUM 2014 The Role of IT and IT Strategy in the Decentralized Organization of a Publishing House. Harald Greiner 5.

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1 PUBLISHERS FORUM 2014 The Role of IT and IT Strategy in the Decentralized Organization of a Publishing House Harald Greiner 5. Mai 2014 Berlin

2 Table of Contents The Changing IT Role Model Holtzbrinck Publishing Group Structure and Alignment of IT Service Center Organizations Impact of outsourcing and cloud services to the depth of performance of IT 1 Publishers Forum Mai 2014 Berlin

3 Digital Transformation and its challenges Digitization and globalization as an innovation driver in the 21st century earlier today 2 Publishers Forum Mai 2014 Berlin

4 IT role model along the product life cycle Development of new business segments and safe operations Area of conflict technological innovation, drive, agility balance and maturity Intro Growth Maturity Regression Partner Safe Haven Efficient Operations Be Faster Incubator Orchestrator 3 Publishers Forum Mai 2014 Berlin

5 Table of Contents The Changing IT Role Model Holtzbrinck Publishing Group Structure and Alignment of IT Service Center Organizations Impact of outsourcing and cloud services to the depth of performance of IT 4 Publishers Forum Mai 2014 Berlin

6 Die Holtzbrinck Publishing Group is divided into three divisions 5 Publishers Forum Mai 2014 Berlin

7 Holtzbrinck has locations in more than 50 countries Deutschland Russland Großbritannien Polen Mexiko Vereinigte Staaten Kolumbien Spanien Italien Ägypten Vereinigte Arabische Emirate Simbabwe Ukraine Türkei Kasachstan China Indien Thailand Südkorea Taiwan Hongkong Vietnam Japan Peru Brasilien Botswana Mosambik Namibia Argentinien Südafrika Lesotho Swasiland Australien Neuseeland locations Technology centers 6 Publishers Forum Mai 2014 Berlin

8 Table of Contents The Changing IT Role Model Holtzbrinck Publishing Group Structure and Alignment of IT Service Center Organizations Impact of outsourcing and cloud services to the depth of performance of IT 7 Publishers Forum Mai 2014 Berlin

9 (De-) centralized IT- and Sourcing Strategy How important is IT and how do you organize? Infrastructure Business Systems Digital Systems Scale of the Task Design & Build Run Host Systems Dimension 8 Publishers Forum Mai 2014 Berlin

10 IT service organizations as a prerequisite for efficient IT management Industrialization Professionalization Appreciation Use IT commodities Establish standards for services and technologies identify and exploit synergies Introduce and optimize Service Management (ITIL) Manage IT-Customer relationships Enforce technology, - process,- and service standards Consumption and performance based calculation of IT services. Support strategic projects Improve business processes Make strategic potential of (new) technologies available 9 Publishers Forum Mai 2014 Berlin

11 is managed by three divisional Clusters and one cross-divisional Unit Business DEMAND SIDE Macmillan PUBLISHERS HOLTZBRINCK PUBLISHING GROUP Technology Council Macmillan SCIENCE & EDUCATION Holtzbrinck DIGITAL, INFORMTION & SERVICES Technology Services Division MM PUBLISHERS DIVISIONAL TECH TEAMS MM S&E DIVISIONAL TECH TEAMS HB DIS DIVISIONAL TECH TEAMS Infrastructure & comprehensive Applications SUPPLY SIDE hgv* MPS* MDL* devbliss Group Technology Services (GTS) * belong to MM Publishers 10 Publishers Forum Mai 2014 Berlin

12 Complexity vs. standardization Case study 1: From IT to full service provider in the publishing industry 1 Local Centralization 2 Global Centralization 3 Divisional Centralization 11 Publishers Forum Mai 2014 Berlin

13 No Big-Bang gradual installation of regional shared service centers Holding Pure operative Holding-IT Establishment of Group-CIO and installation of CIO-Organization at the Holding Books Founding of Rowohlt-EDV as hgv with focus on IT/ RZ Develop hgv as full service provider for puphlishers within logistics, prozesses and IT Newspapers Positioning VHB Informatik as service provider for central systems (SAP) Founding and developing as service provider for media companies Installation ProServ/ from 2007 Holtzbrinck Online Services as Online service provider for newspapers Digital Incubation / Knowledge exchange CTO-Organization 12 Publishers Forum Mai 2014 Berlin

14 hgv: RZ-provider to a full service provider Content Production Sales& Marketing Distribution Rights Acquisition Programm Planning Editorial Office Author Management Press Rights Sales Pre-Press Production Herstellung Procurement Data-Conversion Advertising Sales Verkauf Customer Care Customer Service Goods receipt Storage Pick&Pack Shipping Accounting IT Consulting IT-Outsourcing Business Process Outsourcing 13 Publishers Forum Mai 2014 Berlin

15 Strong expression of the value chain and synergies within hgv Industrialization Professionalization Appreciation Use IT commodities Establish standards for services and technologies identify and exploit synergies Introduce and optimize Service Management (ITIL) Manage IT-Customer relationships Enforce technology, - process,- and service standards Consumption and performance based calculation of IT services. Support strategic projects Improve business processes Make strategic potential of (new) technologies available 14 Publishers Forum Mai 2014 Berlin

16 Complexity as opposed to standardization Case Study 2: Cross Group standardization and harmonization 1 Local Centralization 2 Global Centralization 3 Divisional Centralization 15 Publishers Forum Mai 2014 Berlin

17 Group Technology Services Motivation for a global IT Commodity Shared Service Provider Synergies Exploit synergies throughout HPG Cost Efficiency Reduction of costs and usage based allocation Operational Excellence We are a service and customer oriented organization Improved Quality Use of best practices (ITIL) Centralized Procurement Global contracts with major vendors Defined Services Description of all services in a service catalogue 16 Publishers Forum Mai 2014 Berlin

18 Service-Catalog of GTS IT Management IT Governance & Compliance, Process Mgmt., IT- Controlling, Purchasing, Supplier Mgmt., Service Strategy Risk Mgmt. Application Management For cross divisional applications Program Management Project Guidance and Steering Professional Service Key Account Mgmt., Project Mgmt., Consulting... Collaboration Services Social Business Collaboration, collaborative Webservices Security Services Confidentiality, integrity, availability Service Desk Cross division Communication Services UCS, voice- and video-conferencing, Fixed Line, mobile phone Desktop Services Desktop, Notebooks, MACs, smart phones, tablets, MFD Service Management Service Design, Service Operation, Service Transition, Continual Service Improvement, Asset Mgmt. Data Center Services Managed Server, Managed Storage, Managed Database, File Transfer Services, Managed Web Service Network Services LAN, WAN, Proxy, VPN-Gateway, DMZ, Webfiltering Customer Facing Services with SLA GTS Internal Services 17 Publishers Forum Mai 2014 Berlin

19 Identification und Classifikation of IT Commodity As starting point of Group Technology Services Infrastructure Business Systems Digital Systems Design & Build Run Host 18 Publishers Forum Mai 2014 Berlin

20 Standardization vs.. degrees of freedom How to draw the lines? Infrastructure Business Systems Digital Systems Eclipse Design & Build GTS Network system Delphi nature lovelybooks Run GTS system GTS Vista HR (imanage) Legal Finance (Solomon) Business Support (Sharepoint) Klopotek Angel GTS = regional coverage NYC, Boston, Asia & London missing: GER & RoW Host server GTS File GTS server salesforce.com server imanage tor PX skoobe GTS US Trade Angel, PX, etc. Angel = separate team = outsourced separate team 19 Publishers Forum Mai 2014 Berlin

21 We have achieved a lot but there is more to do GTS 1.0 Transition NYC & UK complete d Single service desk tool in US & UK New roles implemented: PMO Procurement Service Mgmt. Cost saving initiatives identified Introduction of service based pricing SLAs & Service Catalog Onboarding Asia & Boston SCB & MCB Established Holtzbrinck Publishing Group Global Global S&E Trade Software Infrastructure Professional Services GTS Publishers Forum Mai 2014 Berlin

22 Clear Objectives will give us guidance within GTS Customer Service Improvement Flexible Fabric (Standardized, Scalable, Secure Services) Extend Scope (Regional & by Services) Operational Excellence (Set the foundation) 21 Publishers Forum Mai 2014 Berlin

23 We need a transformation of GTS to get to GTS 2.0 Transformation GTS 1.0 CMO Align Objectives Update Service Catalogue Benchmark Prices Benchmark Processes, Organization Asset Management ITSM Start Sourcing Processes Execute defined Projects Change Management GTS 2.0 FMO 22 Publishers Forum Mai 2014 Berlin

24 IT as enabler Case Study 3: Divisional Centralization 1 Local Centralization 2 3 Global Centralization Divisional Centralization 23 Publishers Forum Mai 2014 Berlin

25 The Challlenge within Science & Education Digital Commodity We need to be here! Physical Decreasing Content Services 24 Publishers Forum Mai 2014 Berlin

26 Helping curious minds to achieve great things for scientists, teacher and students Find a job Plan experiments Gain Reputation Find Collaborators Build a career Obtain funds Learn about discoveries Publish discoveries Share results Conduct experiments Make discoveries Evaluate results Grade students Do homework Report to faculty Teacher Assign homework Teach class Student Practice Prepare course Prepare lesson Share work Get help 25 Publishers Forum Mai 2014 Berlin

27 Consolidation of IT within S&E From local optimization to centrally controlled focus Science and scholarly Education Digital businesses Nature Publishing Group Palgrave Macmillan Higher Education Language Learning School Digital Education Digital Science New Ventures Breakthrough innovation Breakthrough innovation CTO Macmillan S&E Science & Scholarly Education Business Systems Digital Systems Technology Management OPERATIONS 26 Publishers Forum Mai 2014 Berlin

28 Technolgy is a key factor for new services within Science & Education Use of Standards Reliable, robust solutions Built global Services Data and Analytics Joy of use Solve critical day to day problems our customers Personalized and mobile solutions 27 Publishers Forum Mai 2014 Berlin

29 Table of Contents The Changing IT Role Model Holtzbrinck Publishing Group Structure and Alignment of IT Service Center Organizations Impact of outsourcing and cloud services to the depth of performance of IT 28 Publishers Forum Mai 2014 Berlin

30 The combination of various sourcing capabilities in response to different objectives and market conditions Value Chain BPO Business Process Outsourcing (BPO) - Business Processes Geographical Dimension BAO Business Application Outsourcing (BAO) - Application Management - Application Service Providing ITO/ Cloud Information Technology Outsourcing (ITO) - IT Infrastruktur Profit Center Shared Service Center Joint Venture Outsourcing Partner Organizational Dimension 29 Publishers Forum Mai 2014 Berlin

31 Service depth and form of organization varies from company to company Value chain Ç ç ç BPO Geographical Dimension BAO ITO/ Cloud Profit Center Shared Service Center Joint Venture Outsourcing Partner Organizational Dimension 30 Publishers Forum Mai 2014 Berlin

32 You need to choose the approbriate governance model... And carefully define the length of the line 31 Publishers Forum Mai 2014 Berlin

33 32 Publishers Forum Mai 2014 Berlin QUESTIONS?

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