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Balancing Supply and Demand in IT. Compuware Corporation August 22, 2007. Agenda. Delivering Business Impact Supply and Demand A Balanced Approach Compuware Changepoint. Delivering Business Impact. Business-centric IT Harnessing technology for maximum business impact.

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Balancing supply and demand in it

Balancing Supply and Demand in IT

Compuware Corporation

August 22, 2007


Agenda
Agenda

  • Delivering Business Impact

  • Supply and Demand

  • A Balanced Approach

  • Compuware Changepoint



Business centric it harnessing technology for maximum business impact
Business-centric ITHarnessing technology for maximum business impact


Supply and demand

Law of Supply and Demand

IT Demand—requests for IT projects and services generated by business units

IT Supply—projects and services IT provides the business

Supply and Demand

Price

Demand

Supply

Equilibrium

P*

Quantity

Q*



Supply and demand through an integrated solution
Supply and Demand Through an Integrated Solution

  • Manage business demand and customer satisfaction using a defined and repeatable approach

  • Collaborate with business counterparts using a transparent decision-making process

  • Obtain visibility into the entire IT portfolio


Portfolio decision making
Portfolio Decision Making

Plan and set expected costs of IT services delivered


It demand management
IT Demand Management

  • Manage and prioritize business-driven requests effectively

    • Strategic demand: Formal evaluation and prioritization of requests

    • Operational demand: Less-formal evaluation of day-to-day requests

  • Communicate IT value in business terms

  • Align with corporate objectives

  • Financial assessment

Demand Management


Business initiative projects strategic demand
Business Initiative ProjectsStrategic demand

Use consistent, defined criteria for investment decision making across business units

Demand Management


Routine work requests operational demand
Routine Work RequestsOperational demand

  • Manage expected demand more effectively

  • Automate business processes for demand fulfillment

Demand Management


It supply management
IT Supply Management

  • Optimize business processes for demand fulfillment

  • Improve efficiency of IT services delivered

    • Complete projects on time

    • Reduce costs

    • Increase client satisfaction

    • Assess the availability and skill sets of resources

Supply Management


Resource management

Obtain visibility into resource availability

Optimize the allocation of resources across all demand

Resource Management

Supply Management


Project portfolio management
Project Portfolio Management

Use defined criteria to measure and assess IT activity and ensure ongoing alignment

Supply Management


Client satisfaction
Client Satisfaction

Increase client

satisfaction through:

  • business alignment

  • increased business value

  • execution excellence

Supply Management


Balance supply and demand

Business Value

Balance Supply and Demand

  • Reliable delivery

  • At risk for poor alignment

  • Resource-driven approach to decision making

  • Business-centric IT management

  • Balanced criteria for decision making

  • Focused on overall IT performance management

Efficiency in Supply Management

  • Inherent conflict

  • Tactical/cost cutting

  • Lack of credibility with business

  • Highly collaborative with business

  • At risk for over-committing

  • Financial approach to decision making

Effectiveness in Demand Management


Balanced supply and demand benefits

More predictable and manageable IT services

IT resources are more strategically allocated

Increased value (from both an IT and business perspective)

Effective decision making

Efficiency of IT services

Increased credibility within the IT organization

Business value realized

IT becomes more strategic and integral to drive competitive advantage and innovation

Balanced Supply and Demand Benefits

“Organizations that are switchingto the demand-supply modelenjoy significant gains inproductivity and prioritizationof investments.”

McKinsey Quarterly, September 2006,“Splitting Demand From Supply in IT” by David Mark and Diogo P. Rau


Changepoint value
Changepoint Value

  • Enables IT executives to take a balanced approach to the efficient management of IT supply and effective management of business demand

  • Delivers business-centric IT management

    • closed-loop demand management

    • portfolio management

    • project and resource management

    • value transparency

  • Maximizes business value

    • enhanced IT performance

    • improved relationship between IT and business leadership

    • closer alignment of resources and activities with the business strategy

    • increased responsiveness to changing business needs

    • more effective life-cycle management of the entire IT portfolio