IS Governance & Project Portfolio. Testimony

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1 IS Governance & Project Portfolio Testimony Thierry THOURON Corporate IS IS Governance Director

2 A world leader in its 3 dynamic activities No.1 for Fresh Dairy Products No.1 for Packaged Water* No.2 for Biscuits and Cereal Products *no.1 in terms of volume

3 World no. 1 for Fresh Dairy Products Market share: 18% in 2002 Market estimated at 22 million tonnes Sales 2002 FDP: 6,295 million Euros Organic growth in sales:+9.4% (1) 46% Of Group sales in 2002 (1) constant coverage and exchange rate

4 World no.1 for packaged water* Market share: 12% in 2002 Market estimated at 121 billion litres Sales 2002 Beverages: 3,691 million Euros Organic growth in sales: +4.3% (1) vs % Of Group sales in 2002 *in terms of volumes (1) constant coverage and exchange rate

5 World no.2 for Biscuits and Cereal Products Market share: 11% in 2002 Market estimated at 12.6 million tonnes Sales 2002: 3,232 million Euros Organic growth: +2.4% (1) vs % of Group sales in 2002 (1) constant coverage and exchange rate

6 Powerful and Dynamic brands.... DANONE brand sales represent 39% of the Group's sales Danone is the biggest brand worldwide for Fresh Dairy Products Sales 2002: 5.4 billion Euros 39% of the Group's sales 4 of the Group's brands represent approximately 60% of sales

7 : an international reference Sales Net income No. of employees Key figures ,555 M 828 M 92,209

8 Employees worldwide.... France Employees : 12,236 i.e. 13,5% North & South America Employees: 16,894 i.e. 18% Rest of Western Europe Employees: 11,621 i.e. 12.5% World Employees : 92,209 Central Europe Employees: 9,497 i.e. 10% Asia Pacific Employees: 41,961 i.e. 46%

9 .... Aquapenn Lifeway Mac Kesson Stonyfield Canada Colombia Galletas Noel UK Benham Naya United Patrimoine des Eaux du Québec Biscuits Sparkling Spring Water Shape USA Mexico Pureza Aga Argentina Logistica Serenissima Fresh Dairy Products Water Biscuits and Cereal Products Asia-Pacific Algeria Danone Djurdjura Brazil Campineira Aymore Paulista Uruguay Salus Morocco Bimo Leader Food Sotherma International: well-targetted acquisitions Italy United- Biscuits France Châteaud eau United-Biscuits Fazer Turkey Hayat Tikvesl i Birtat Flora Su Egypt Tunisia Stial Delice Sotubi Scandinavia JV Biscuits Groupe Rachid South Africa Clover Czech Rep. Opavia LU Hungary Györi Keks JV San Benedetto Saudi-Arabia Al Safi The Group's acquisitions since 1997 Poland Delicja-Wedel Bakoma JV San Benedetto United-Biscuits Zywiec Zdroj China Health Robust Aquarius Malaysia United-Biscuits Indonesia Aqua New Zeland / Australia Frucor Japan Calpis Ajinomoto JV Kirin Alkali Lon

10 IS Governance? NOT NOT

11 IS Governance? NO NO

12 Why IS Governance? To take right decisions in our IS International Organization IS Organization G15 CBU IS Committee Copil IS Business needs Domain Operation Domain Council Marketin IS Regional Committee Domain Council Finance IS Resources Committee Domain Council HR

13 Why IS Governance?

14 What is IS Governance in? IS Governance is a system of decision-making rights roles and processes IS Organization IS Organization IS Roles IS Strategic Plan Business needs IS Budget IS Project Portfolio IS Missions IS Project Management IS Committees IS Guiding Principles IS Communication

15 Whom does IS Governance concern? All IS people and our internal clients

16 IS Project Porfolio goals & objectives A networking tool for the Regional Director, the CBU IS Directors and IS people. The reference tool for the CBU IS Committee A must for Re-use and synergies cross CBUs Input for the IS master plan

17 Whom does IS Project Portfolio concern? 1-1 At CBU level : For every one : Active network between CBU : sharing ideas, re-using good solutions, For IS Project Leader : Use the same tool to follow up and report the projects For CBU IS Director : for managing IS teams and for preparing IS Committee. 1-2 At Region level : AT THE END For Regional Director and CBU IS Directors : Facilitate vision of all projects of the region, by CBU, by application, by domain,... Facilitate opportunities to reuse or to group projects Help to coordinate project priority. 1-3 at Corporate level : For Application Domain Directors : Reinforce vision of the needs by domain Assure alignment between standards and projects Improve IS project risk vision Reinforce the use of the IS Project Management Method

18 What is IS Project Porfolio? First an Intranet for our Team

19 Where to find our IS Operating Processes? INTRANET News / Topic IS Governance

20 What does it cover? IS Governance : Organization Project portfolio Financial controlling Project management Communication IS Roles, Committee, DAN IS Guiding Principles This is a cultural leap for our IS Organization and for our internal clients

21 Why DAN IS Guiding principles? Clear and concise communication to all management layers Our Internal Visibility We are IS professionals DAN IS Guiding principles describe our core IS Operating Processes of DANONE s IS function : DAN IS

22 What does it look like? 10 IS Performance Management IS Planning (Strategic Plan & CBU Master Plan) IS / Business Alignment (permanent) IS Budgeting IS Project Portfolio Management IS Project Management IS Service Delivery IS Risk Management IS Human Resource Management IS Communication

23 Process # 4 : IS Project Portfolio Management 4. IS Project Portfolio Management Description of process scope: A common approach to tracking and monitoring all IS ideas and projects on a world-wide scale Guiding principles: Project Portfolio Management is an ongoing process to ensure that our human and financial resources are being directed towards the right projects Project portfolio decisions are to be made within the context of the CBU IS Committee (link to IS / Business Alignment process) and within the framework of the Master Planning process The Regional IS Director is accountable for all projects (including infrastructure ) being entered into the PPM database in accordance with a defined set of (Bagheera-compliant) guidelines The CBU IS Director is responsible for the quality, accuracy and timeliness of this information Regular analysis of portfolio contents are used to make operational decisions at a number of levels outside the CBU, notably for Domain Management and Risk Management Requirements to implement: Detailed process map, Defined roles and responsibilities, PPM database guidelines (updated)

24 Why IS Project Portfolio? IS Project Portfolio Management done by all actors assures that we work on right targets answering to the famous question : Do I put my IS money/talent on projects which create sustainable, significant competitive advantages for the business?

25 Recall : one IS Project Portfolio Guiding principle 4 IS Project Portfolio Management Project portfolio decisions are to be made within the context of the CBU IS Committee (link to IS / Business Alignment process) and within the framework of the Master Planning process

26 Key take away IS Governance in Groupe Danone CBU IS Committee CBU IS Project Portfolio CBU IS Master Plan

27 Question & Answer

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