The Reality of the Struggle to Align the Business with I.T.

1. The Reality of the Struggle to Align the Business with I.T. Rosana F. Chaidez Large Company Technology Networking Conference June 17th – 18th, 2008

2. Professional Bio • Flooring Industry Since 1987 • FlorStar Sales – Director of Operations and I.T. • J.J. Haines 2002 – Present • CIO 2002 - 2005 • VP of Supply Chain 2005 – Current • Customer Service and Claims Administration • I.T. and Telecommunications • Purchasing and Inventory Control • Wheeler Advisor • Bachelors of Science – Business • Master of Business Administration

3. Where Does it all Begin? • The Role of I.T. Executives and Managers • Planning and Decision Making • Internal Education - Technical Solutions • Knowledge of the Business • Awareness and Communication • Customer Focused • What are the Business Priorities? • How is it aligned with I.T. plans? • Does it direct the I.T. priorities? • Understanding the Culture of the Corporation • Where does technology rank? • Employee Dependency on technology

4. Balanced Scorecard

5. Common Business Priorities“Wholesale” • Increase Operating Revenue • Implement Strategy - Growth • Competitive Advantage Solutions • Reduce Operating Expense • Improve Employee Productivity • Improve Business Efficiencies

6. Corporate Priorities Aligned with I.T. for JJH • Safety First • IWMS, Warehouse Equipment, Wire Solutions • Customer Focus • B2B, HOL, Call Center Solution, Network Infrastructure • Strong Profitable Growth • Flexible and Scalable Telecommunications Network • Invest in our People • Technical Tools, Training, and Education • Implement the Strategy • Maximize synergies with Acquisitions

7. Presenting a Business Case “What do I get back ('return') for the moneyI'm being asked to spend ('investment')?What is it really worth (the "ROI")?

8. Financial Benefits include impacts on the organization's budget and finances: cost reductions or revenue increases Non Financial Benefits include impacts on operations or mission performance and results: improved customer satisfaction, better information, shorter cycle-time. Return on Investment (ROI)

9. Business Case Payback Period: The amount of time required for the benefits to pay back the cost of the project Net Present Value (NPV): The value of future benefits restated in terms of today’s money Internal Rate of Return (IRR): The benefits restated as an interest rate.

10. The aim of TCO analysis is to identify, quantify, and reduce the overall costs associated with ownership of networked assets Hard costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs Soft costs related to management, support, training, hidden costs, and downtime. Total Cost of Ownership

11. Strategic Alignment • Assuring that investments in IT projects and assets are directed toward achieving the organization’s strategic vision and maximizing business value • Alignment requires an IT governance structure that can quickly identify the right ideas, translate them into action, and convert the action into improved performance and results

12. Conclusion • The Reality of the Struggle to Align the Business with IT- is very REAL! • It takes leadership, vision, communication, and most importantly, alignment of business goals and priorities. • What is Standing Between You and Alignment?