Stork after leaving the exchange: Quiet before or after the storm!

Transcription

1 CIO Track Session #2 The Future is yours! CIO Track Session #2 Stork after leaving the exchange: Quiet before or after the storm!

2 CIO Track Session #2 The Future is yours! Bas van Werven Anchorman BNR Newsradio MODERATOR

3 CIO Track Session #2 The Future is yours! PANEL MEMBERS Vincent van Geerestein Senior VP Global IT Organon Tijmen Mekel Directeur Business Development & ICT Athlon Car Lease Int.

4 CIO Track Session #2 The Future is yours! André Haket SPEAKER CIO & Program Director WCP, Stork BV

5 Value Creation Stork after leaving the exchange: Quiet before or after the storm!" Andre Haket Program director World Class Performance & CIO

6 Stork Stork Prints Prints Stork Stork Poultry Poultry & Food Food Processing Stork Stork Aerospace Stork Stork Technical Services

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10 Learnings

11 Private Equity: Value Creation

12 Value Engineering First Step : Benchmark! INDICATIVE Stork Food Systems Peer Worst Peer Best Profitability Revenue Growth HK RUOKATALO Rational 2,0% 11.1% 25,2% 29.8% Rational HK RUOKATALO COGS HK RUOKATALO 66,6% 37,5% z% Rational SG&A Elecster 33,2% 27,1% HK RUOKATALO What Moving the Needle Could Mean to ABC Company Every one percent in revenue = $1,71 million in operating earnings Every one percent in reduction in COGS percentage = $1,17 million in operating earnings Every one percent in Inventory in SG&A percentage = $0,3 million in operating earnings Capital Utilization Elecster 0,846 0,395 Rational Fixed Asset Utilization Elecster y 0,323 0,110 Rational

13 Value Engineering Conservative Estimate Potential Annual Benefits 2 $XM $YM Likely Scenario One-time benefit Sales & Customer Service 2 $XM - $YM Supply Chain Mgmt. $XM - $YM Finance & Accounting $XM - $YM Reduce DSO (one-time) $XM $YM Reduced Inventory Levels (One-Time) $XM $YM Finance Function Efficiency $XM $YM Reduced DSO Working Capital Cost $XM $YM Reduced Inventory Carrying Costs $XM $YM Information Technology $XM - $YM Improved Quote Process $XM $YM Improved Planning Productivity $XM $YM Reduce Integration Costs $XM $YM Increased Quote Win Rate $XM $YM Reduced Transportation Costs $XM $YM Reduce Application Development Costs $XM $YM Increase sales staff productivity $XM $YM

14 Strategic Planning Is IT alligned? 1. Mission / vision 2. Current situation External Environment Internal Environment 3. Implications 4. Alternative Strategies 5. Preferred Strategy Key Value Drivers Strategy Formulation Strategy Implementation Strategy Map 6. Roadmap (execution) Platforms Programs / Actions 7. Scorecard (monitoring) KPIs Targets

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16 How will IT contribute? Identify (Improvement) Opportunities Stork NV/ BU Strategies Audit Findings KPI Analysis Staff Ideas Old Regret List Rank by Priority & Theme One Initiative Portfolio Incorporate previous Regrets Committed Work Load Decide on Response Scope Work Charter Initiative Review gate Exercise good Judgment Consider organisational impact JDI Replicate Do Nothing WCP Tools Manage as Projects Be prepared to say No Communicate Decision Mobilise Sufficient Resources Manage the changes Track Progress Results will improve by doing less Measure whether the Initiative is going as planned

17 The value of IT (strategy)

18 Strategy allignment - informationplanning Business Strategy Business Continuity IT infra Roadmap IT Information Plan 3-YR IT Infra plan 3-YR IT Operational Plan 200x IT operational cost IT Investments IT Budget 200x

19 Do we have an issue here? Strategy Allignment Business Value Create Enabler Eliminate Disabler Risk Opex IT cost Cost Cost Cost Cost / investments Dilemma: Focus on cost reduction or value creation?

20 IT business contribution Projecten Business Applications SU/wm Project Status Resultaat Stork01 Project A P G Investment R Net benefits Stork01 Project B O R Investment R Net benefits Stork02 Project C P G Investment G Net benefits Stork03 Project D O G Investment G Net benefits Stork04 Project E P G Investment Y Net benefits Stork05 Project F P G Investment Y Net benefits Stork06 Project G P G Investment G Net benefits Stork06 Project H O R Investment G Net benefits Stork07 Project I P G Investment G Net benefits Stork08 Project J O G Investment R Net benefits Stork08 Project K P R Investment Y Net benefits Stork05 Project L P R Investment G Net benefits Totaal Business Applications Investment Net benefits Cash benefits Net Result

21 What was the barrier?

22 What was the barrier?

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25 Creating a vision - Visions provide direction and motivation for change Why bother? Visions paint a picture that appeals both the head and the heart and answer the question: Why change? Clear statement about the future state helps gain genuine commitment What are we after? A clear statement about the outcome of the change effort A view of the future state that is challenging; Elevator speach Here s what our program is about Here s why it is important to do Here s what succes will look like Here s what we need from you

26 Leadership

27 The change acceleration program Leading Change 1. Creating a shared need 2. Shaping a vision 3. Mobilizing commitment 4. Making change last 5. Monitoring progress Systems and structures

28 Learnings Benchmark (or at least benchmark the business value of IT) Get a clear picture of the strategy and roadmap Get a sound understanding of the Value Drivers and KPI s (scorecard) Allign IT strategy with business objectives / strategy Invest and create business value but no IT investments in unstable business processes Monitor progress and demonstrate succes Hire an IT finance controller (the numbers!) No change without leadership and people

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30 CIO Track Session #2 The Future is yours! QUESTIONS & ANSWERS Please state your questions and/or remarks

31 CIO Track Session #1 The Future is yours! STATEMENT 1 IT moet transformeren van faciliteren (services) naar waardecreatie.

32 CIO Track Session #1 The Future is yours! STATEMENT 2 IT moet focussen op extern en niet alleen op intern.

33 CIO Track Session #1 The Future is yours! STATEMENT 3 IT Transformatie gaat niet over andere technologie, maar over andere communicatie.

34 CIO Track Session #1 The Future is yours! STATEMENT 4 IT transformatie kent geen begin, maar zeker geen einde. Rust en versnelling wisselen elkaar steeds af.

35 CIO Track Session #1 The Future is yours! STATEMENT 5 IT transformatie zorgt voor strijdpunt aan de top: de CIO's hobby de CFO's kostenpost de CEO's nachtmerrie

36 CIO Track Session #1 The Future is yours! STATEMENT 6 IT transformatie staat niet op zich, maar is een onderdeel van business transformatie.

37 CIO Track Session #1 The Future is yours! STATEMENT 7 IT medewerkers zitten niet te wachten op IT Transformation.

38 CIO Track Session #2 The Future is yours! Thank you for participating in the CIO Track Session Stork after leaving the exchange: Quiet before or after the storm! by André Haket, CIO & Program Director WCP Stork BV

39 CIO Track Session #2 The Future is yours! CIO Track Session #2 Stork after leaving the exchange: Quiet before or after the storm!