【正文】 IT Strategy Finance Directors 2 Introduction ? Why do we need a Group IT Strategy ? ? What will a Group IT Strategy deliver ? ? How will we develop it ? ? How much will it cost ? ? What value will we get from it ? ? What happens next ? 3 Pre1960 Back Office/ Cost Control Front Office/ Value Creation “ DP” “ IS/IT” “ IT/IM” ? 1999 Mission Criticality Punch card puting (Finance/HR) Mainframe midrange puting (Manufacturing/Supply) Client/server puting (Service) Inter/work puting (Consumer) Ubiquitous puting (Home) IT is now at the heart of the CEO’s agenda ? Year 2023 wakeup call ? Large scale puting is now mission critical ? Pervasive IT now gnawing at the heart of the executive agenda 4 1997 A gap existed in Business/IT alignment before Y2K ? Business/IT alignment the CIO?s highest priority ? Business and IT didn?t often connect ? Business frustration with IT Requirements/Delivery 5 ? IT focus finances deflected to pliance ? ?Makedoandmend? delivers zero business value ? Increasing gap between IT and business alignment 1997 Y2K Requirements/Delivery 2023 Y2K has made the gap wider 6 ? IT focus finances deflected to pliance ? Makedoandmend delivers zero business value ? Increasing gap between IT and business alignment ? How to ensure that IT is delivering business value The challenge looking forward 1997 Requirements/Delivery 2023 2023 Convergence? or Business as usual? 7 Implications for South African Breweries Listed on LSE XXXXXXXXX is on a journey from national brewer to major global player ... …the challenge is in defining the route Top 5 Brewery 1993 Dreher 1994 China 1996 Ursus 1999 Pilsner Urquell 1999 Listed LSE Integrated Global Beverage Business 8 ? Globalisation ? Growth through Acquisition ? Customer Trends ? EBusiness ? Competitive environment PLUS ? Technology development leading to … ? Longterm Shareholder Value Buyers Suppliers Competitors Substitutes New Entrants You There are 7 key areas where IT can address the “value gap” in XXXXXXXXX 9 Efficiency ? Speed of delivery to global customers (35%) Competition ? Response to petitors global initiatives (34%) Customers ? Meeting demands of foreign customers (46%) ? Supporting current customer?s international operations (34%) Labour Markets ? Access to skilled labour (22%) ? Access to lower cost labour (8%) Regulations ? Avoiding domestic regulations (17%) Drivers of Globalisation Of the many reasons for globalisation: customers, petitors efficiency are likely to be highest on XXXXXXXXX?s agenda 10 The positive impact of globalization on stock price: Food Manufacturers 100 150 200 250 1991 1992 1993 1994 1995 1996 1997 Stock Price Index Indices of the 8 most global and 8 least global: Food Manufactures industry Least Global Most global FT/SP World In some industries, there are markets for both more global and least global, but more global players still perform best Source: Mason, P and Moore, K. The impact of globalization on pany performance: an analysis of the AutoComponents, Chemicals, Pharmaceuticals Food Industries. Templeton/Citibank study,. Global panies are more successful 11 Globalisation involves plex and sometimes seemingly contradictory challenges : Visibility Competing with other global panies... Trying to maintain global control... Mindset Instilling a global anization culture ... Promoting technical skills required for globalization... Capability Trying to be globally efficient Centralizing certain value chain activities... Standardisation of product/service... Utilising personnel on a worldwide basis ... Leveraging opportunities in new markets... Developing people to consider global issues... ...while maintaining a partnership to share certain resources ...while containing new costs/risks ...while allowing for the subsidiary contribution ...while ensuring that the local relationships are not ignored ...while being aware of national cultures ...while ensuring that soft cultural sensitivity skills are developed ...while being locally responsive ...while decentralizing others ...while reflecting unique sociocultural issues ...while considering the limitations of national regulations Challenges of Globalisation 12 Globalisation : IT implications Multilocal Global Information Applications Infrastructure Organisation Governance ? Locally held, inpatible ? Diverse range of transaction processing systems ? Managed at a country level ? All roles exist in all business units ? Local autonomy funded by Business Unit profitability ? Consistent data standards at appropriate levels ? Some knowledgesharing, centres of excellence, business templates ? Some regional/ global systems enabling regional/ global processes ? Standards based infrastructure designed globally, implemented supported locally ? Some global/ regional teams, more virtual teams, knowledgesharing works ? Some global/ regional funding/ decisionmaking depending on where benefits realised 13 Growth through Acquisition Time The Accelerated Transition prolonged Value Creation in the transition period Completion Shareholder value gap } Four key factors contribute to postacquisition success... … of which the most important is speed Merger Success Prioritisation 76% cited clarity of purpose Speed 76% cited speed of implementing integration plans Culture 59% cited good cultural fit Cooperation