Quantify the business value of Information Governance Solutions
In this new age of economic turndown, a key focus for most organizations investing in software to improve business operations is focused on getting the most out of their investments and strategically investing in projects with “business value”. What is this-all-so-important “business value” and how do we quantify it within the context of projects? More importantly how do we reflect the same into the business case meshing the hard benefits with the soft benefits?
To get answers to all this and more, Welcome to the IBM Business Value Assessment Program. The IBM BVA Program engages a team of specialists with industry experience in methodologies used to quantify business value using modeling techniques such as Benefit Analysis and Value Analysis. The benefits are categorized in categories such as Business Operating Efficiency, Business Strategic Advantage and IT Cost Reduction. The Financial Impacts of a BVA focus on areas such as Operating Expenses Reduction, Net Fixed Assets Avoidance and Net Contribution. Benefits depend on organization’s industry, business model and their “current” or “as-is” state as compared to a “future” or “to-be” state. Cost Avoidance is an important element with organizations often struggling to meet regulatory requirements. Often, considerable time and efforts may be expended to pull multiple sources of information together to create a complete picture. The BVA helps capture the cost avoidance aspects for organizations that need to assess the impact of non-compliance and meeting of regulatory requirements.
The BVA team draws its in-depth experiences from multiple industries and functional disciplines. With a worldwide presence in global locations from China to Italy to USA, we identify issues of global interest and develop practical business cases with financial and non-financial impacts based on client requirements. We help organizations identify and quantify benefits that can be achieved using IBM OPTIM solutions.
The BVA blog is dedicated to sharing information related to Business value modeling and associated benefits from the use of IBM OPTIM. On this blog, we will share best practices and provide thought leadership as well as practical insights for Business Executives. Emphasis areas include Data Archiving Financial Impacts; Test Data Management and Data Privacy Risk Analysis as well as Application Decommissioning Financial Impacts.[Read More]
In Today's World, Quantifying business value hard dollar benefits and relating it to applicable business terms is a key driver for most Executive decision making. Here is a a quick snapshot of some of the Business Benefit categories for consideration when calculating these benefits
Business Operating Efficiency is a project benefit used in calculating the benefits of a project or initiative and the ROI. Calculates the impact the project has on the business units and operating expenses. These impacts include helping to increase productivity, reduce the risk of productivity losses, avoid purchases, reduce expenses and reduce overhead. Business Operating Efficiency calculates the project's impact on reducing key corporate operating expense includes including: Cost of Goods Sold (COGS), Sales and Marketing (S&M), General and Administrative (G&A),Research and Development (R&D), Interest Expenses and Depreciation.
Business Strategic Advantage is a project benefit used in calculating the benefits of a project or initiative and the ROI. Calculates the impact the project has on the corporate revenue and sales. These impacts include helping to increase sales productivity, customer acquisition and loyalty, increase sales effectiveness or the launch of a new business. The benefits are reflected as impacts to Revenue on the corporate financials. Thecalculation includes impact on revenue, and a calculation of net margin contribution of the benefit. The net margin contribution of the benefit is what is actually used in the net benefit, TCO and/or ROI calculation.
Here is an interesting study posted recently on cio insight.
The economic decline has changed the way businesses value IT investments, but new data shows that there's still plenty of room for improvement. That's what ISACA (isaca.org) revealed in its Value of IT 2009 study. Here are some of the key findings for U.S. CIOs, as well as findings from across the world. To read more, click here
In his book "Achieving Business Value from Technology", Tony Murphy shares the five pillars of benefit realization as well as the Gartner recommended Risk Management approach. If you are just starting on a journey and need a starting point on business value and related topics, this book is a good place to start .... IMHO
Here is some text from the Inside Flap (Source: amazon.com)
Achieving Business Value from Technology offers the expert guidance, real-world advice, and practical methodology managers need to ensure that their dollars aren’t wasted on IT disasters. It shows them how to assess projects in real time and decide whether to alter, abandon, or continue them with a clear understanding of likely impact on the business.
With the increasing importance of technology in a business world redefined by globalization, high-octane competition, and the shift from mass production to mass customization, it’s more important than ever that your IT dollars are well spent in pursuit of efficiency, adaptability, and market mobility. Knowing which initiatives offer real business value can be the competitive advantage your business needs to thrive. Simply put, no matter what your business is, IT is your business.
Achieving Business Value from Technology offers proven techniques, methodologies, governance mechanisms, and best practice guidelines to guarantee your money is transforming your current IT setup from potential value to real value. The approach offered in this book–and developed by the experts in Gartner’s Consulting and Measurement practices–has been proven to help managers make the right IT decisions every time.
Author Tony Murphy outlines a systematic process managers can use to identify, track, and realize benefits and value from their IT investments. This methodology helps management bridge the traditional gap between the business and IT sides of the organization and incorporates IT value metrics into conventional management reporting systems.
Managers will learn to monitor opportunities, risks, and impediments at all stages of the investment cycle and rest assured that the money they invest in IT will bring long-lasting and measurable benefits to the organization.
The author also provides guidelines for undertaking post-implementation benefit audits and IT sourcing, as well as tips and techniques for optimizing asset management and minimizing ongoing total cost of ownership.
The Fully Burdened cost of storage is an all-consuming topic especially important for business owners trying to get clarity on the Total Cost of Ownership for storage. Here is a link to a slide that articulates the industry average fully burdened IT infrastructure cost percentages to support data growth. Categories include disk storage with tape, software costs, infrastructure costs such as telecom, power, floor and staffing costs.
I also wanted to share a comment about the carbon footprint of a GB. Ever thought about that ? I am sure all of us are so focused on being green (or is blue the new green!) that we have at some point in time thought about this. Here is a snapshot of a comment from Matt (Source http://www.vertatique.com/?q=storage-costs-average-25gbmonth#comment-1993)
dcarli asks, "What's the carbon footprint per megabyte stored per month?"
GB is the new MB, so let's look at those.
I have a .5TB NAS device on the office network, rated at 5.6W. I ran the numbers and got ~11 grams of carbon per GB per month, with an electricity cost of 1/10 of a cent.
Of course, I don't know how representative my storage is of the global storage energy profile and a detailed analysis is more complicated.
Our device has a automatic sleep mode, rated at 0.6W. The drive is probably asleep or completely off 12 hours/day, which would cut the footprint almost in half. On the upside, I'm not counting the carbon footprint of the backups, which in a data center might happen at least once a day. Or the data center AC. Or redundant storage, if required. Or the carbon footprint involved in the manufacture and ultimate disposal of the device, backup media, etc.
11 grams does not sound like much; its all those GBs in the aggregate that generates a lot of carbon. This is the materiality problem, which we saw clearly in the motivational analysis for digital delivery.
According to IDC, the amount of data created and replicated globally in 2008 was 486 exabytes (486 billion GB). At 11 grams per GB per month, that is a monthly storage footprint of ~5 million metric tons of carbon, or ~60 million tons/year. ICT is said to account for ~600 million metric tons, which would put storage at ~10%. These are all rough estimates, but give us an order-of-magnitude perspective. **
Going Green is the new way of life. Corporate Responsibility is driving corporations and organizations to be creative and make an effort to contribute to a greener future for the next generations. John Madden, Research Director, Ovum Summit tackles this topic with a focus on data centers in a short report. Citing companies such as IBM with the Big Green project, John madden provides insights into a Strategy that can be a good starting point. Starting with the Assess phase and moving on to Plan, Evaluate/Invest and finally the Educate/Involve, the report is a good introduction for a Green data Center Initiative. Here is a link to John Madden's Biography and associated research links, http://www.itoamerica.com/index.php?section=bio&id=662&name=John+Madden
A recent study by the Business Value Assessment team focused on identifying key trends amongst the 200+ customers we touched with Business Value Assessments for deploying OPTIM solutions such as Data Growth, Test Data Management, Data Privacy and Decommissioning. Some of the key quantifiable findings were the Average ROI 199%, Average IRR 127.5%, Average Burdened Storage Cost per GB per year $60 and the Average payback period was under 8 months. The analysis spanned multiple geographies and customers from various verticals including Insurance, Financial, Telecommunications, Pharmaceutical, Transport, Retail, Aerospace, Healthcare, Manufacturing and the Government. These research findings will be used as a guiding reference for IBM customers and a foundation for future engagements.
In a recent study by the Business Value Assessment team focused on identifying key trends amongst the 200+ customers we touched with Business Value Assessments for deploying OPTIM solutions such as Data Growth, Test Data Management, Data Privacy and Decommissioning. Some of the key quantifiable findings were the Average ROI 199%, Average IRR 127.5%, Average Burdened Storage Cost per GB per year $60 and the Average payback period was under 8 months. The analysis spanned multiple geographies and customers from various verticals including Insurance, Financial, Telecommunications, Pharmaceutical, Transport, Retail, Aerospace, Healthcare, Manufacturing and the Government. These research findings will be used as a guiding reference for IBM customers and a foundation for future engagements.
Per dictionary.com in·no·va·tion
1.something new or different introduced
2.the act of innovating; introduction of new things or methods
In our strive for continuous excellence, many of us are innovating at an everyday level. Per current thinking, Innovation can be incremental and emergent or may refer to radical and revolutionary changes in thinking, products, processes, or organizations. IBM encourages each and every one of its employees to innovate and introduce new methods and thinking to influence and impact our work and clients continuously. This deinitely adds a dimension and challenge to everyday routines and makes working at IBM an absolute joy. I recently came across this video of Umair Haque speaking at the BRITE '09 Conference. Umair Haque is the director of the Havas Media Lab and he discusses why firms looking to innovate should start by reconceiving the costs and benefits that shape the behavior of their consumers.
Very interesting ... well worth the 20 minutes if you can spare.
Here is an interesting article on the rising costs of data breaches published in January 2010.
"The cost of a data breach increased last year to $204 per compromised customer record, according to the Ponemon Institute's annual study. The average total cost of a data breach rose from $6.65 million in 2008 to $6.75 million in 2009 ..." Read more at http://www.pcworld.com/businesscenter/article/187611/data_breaches_get_costlier.html
Dr Larry Ponemon, Chair and Founder of the Ponemon Institute notes the main causes for a data breach based on the results from 45 companies that shared their stories for the "Fifth Annual U.S. Cost of Data Breach Study," sponsored by PGP - "As part of our analysis, we try to get at the root cause of the data breach," Ponemon says. "There's negligence, where people make mistakes, such as lost laptops, accounting for 40% of the data breach cases. There are system glitches, such as a third-party sending out statements they shouldn't, which was 36%. And there are malicious and criminal attacks, at 24%."
Here is an informational article on the Massachusetts Data Privacy law, effective March 1, 2010. Source: CIO Magazine. "all businesses that collect personal data from or about Massachusetts residents will need to adopt a comprehensive written security program. Unlike most state-based data privacy laws, which focus primarily on public disclosure once a breach occurs, the new Massachusetts law prescribes that more stringent protective measures be taken to prevent breaches from occurring in the first place. "
Interesting to note the following insightul comments about this law being more actionable and posing certain challenges as a result. "The Massachusetts law is more actionable than most data security regulations as it prescribes specific technical measures that must be taken to protect Personally Identifiable Information (PII), hence it forces businesses to become proactive in securing technology. Many of the measures outlined in the bill are actions that companies should already be taking, such as ensuring that the enterprise is adequately protecting PII. While this initiative seems intuitive and straight-forward, it has proven to be challenging for many organizations.
The new regulations require companies to limit the amount of data they collect, maintain a written security policy and keep a detailed inventory of all personal data and where it is stored. The regulations also require any business that handles sensitive personal information on citizens of the Commonwealth of Massachusetts to encrypt that data as it is transmitted via the Internet or stored on external mobile devices such as laptops, USB drives and other mobile storage equipment. "
Read the Full article here http://www.cio.com/article/591051/Privacy_in_a_Mobile_World_Massachusetts_Data_Privacy_Law?source=rss_news
*** Credits and source: CIO Magazine
Ever wondered which country in the world is the most expensive for data breaches ? A recent article in the channelinsider looks at the Ponemon Institute's first-ever attempt to offer a worldwide snapshot of data breaches. Read the full aticle by Ericka Chickowski here
*** Source: channelinsider.com
Last week was a fantastic week ... Starting with the Spectacular Third IBM EMEA IOD Conference in Rome and ending with the Blackhawks making it to the Stanley Cup Finals (Go HAWKS !!). Here are some of the highlights from opening sessions, keynotes, stories and networking event from this past week. This post will be at a higher level, summarizing the overall strategy, vision and key messages with additional detailed posts on specific sessions to be covered in the coming weeks.....
First, the venue - Roma ! Says it all .... More than 2,800 clients, business partners, press and analysts gathered in Rome to discuss and share IBM's Smarter Planet vision. Essential ingredients to this are the business analytics and information components that help transform businesses and governments. You can view the Grand Opening video here
At the General Keynote session on May 19, Arvind Krishna, IBM, General Manager, Information Management discussed our latest innovations in information management and business analytics solutions. Ron Ercanbrack, IBM, Vice President of Enterprise Content Management highlighted IBM business analytics customer success stories during this session. We announced new analytics software and services to help clients manage the challenge of data deluge and gain faster insight into critical business information. We also announced client wins including Avis Europe, FujiFilm Imaging and Hildebrand on their use of business analytics focused on outcomes. Rob Ashe, IBM, General Manager, Business Analytics detailed IBM's business Analytics strategy. John Troy, Zurich Financial Services, Global Enterprise Architect provided great insights into a real case study Zurich Financial with a human element and touch that was absolutely great to hear/watch. Excellent content with a view to the future with insights devoured by audience in TOTAL AWE !! Magnus Lindkvist facilitated the session. Magnus is a trendspotter and futurist based in Stockholm, Sweden. Author of the book "Everything we know is Wrong - The Trendspotter's Handbook" with a mission to help companies make sense and money out of potential future opportunities.He was elected Sweden's Business Speaker of the Year in 2009. Magnus was available at IOD to sign copies of his book The event was widely covered by press and analysts as well as attendees. There were over 3,500 tweets on the news !! Wow, talk about social media !!
Phenomenal content and delivery by Nancy Pearson, Vice President, IBM BPM, SOA & WebSphere Marketing on "The Decade of Smart is Changing the World - Are you keeping pace ?". We
are living in the Decade of Smart. Our work environments are adapting
to take advantage of today's smarter capabilities and keep up with the
pace of change. To outperform the industry, we must make our processes
more dynamic, our people more collaborative and our organizations more
connected. During this session, we heard how our business peers
have redefined the way they work to succeed in today's smarter planet. Demonstrated insights into how the business environment is
changing and how we can get started working smarter. Session also focused on the fundamental capabilities that will help drive agility into our
organizations and enable our companies to outperform. I am trying to find a public link to the presentation and will share that with everyone soon ...
If you are looking for smarter ways to manage the volume, variety and velocity of information growth, then look no further. The IBM Smart Archive Strategy is a smarter approach to archiving with a unified, integrated and information-aware approach to not only take control of data growth, understand what is valued, what needs to be collected and archived based on its relevance but also Support information retention needs with simplicity and flexibility as well as Protect and produce trusted information to reduce risks and legal costs IBM can help. The session led by Aliye Ergulen, IBM Smart Archive Team Lead demonstrated why many of the industry's leading analysts are stating that the IBM Smart Archive vision is "strategically compelling" and is "the most comprehensive archiving vision that a vendor has yet demonstrated". Great insights shared by Aliye Ergulen.
Some other interesting sessions focused on Information Management: State of the Industry and the fact that All Clouds are not created equal ..... !!!
Wayne Wilczynski, IBM, Vice President, SWG Industry Sales led the the Information Agenda for Banking & Financial Services session. IA for Banking/Financial Services is built upon common industry imperatives and identifies projects that can move an information strategy forward to meet your business objectives. This session provided an overview of the information agenda in the context of major industry trends and highlighted success stories and key sessions of interest for the Banking & Financial Services attendee.
I also had the opportunity to attend the session on "Solution Selling - The Information Agenda Approach" by Andrew Warzecha, IBM, Vice President, IM & BAPA Strategy. As purchasing power continues to shift to business from IT, it has become increasingly important to position offerings and services that resonate with all decision makers in terminology they are used to communicating with and with a business value proposition that differentiates. Andrew discussed how to differentiate your sales approach by becoming a trusted advisor to your prospects and help them apply information and analytics to reduce their costs and drive smarter business outcomes.
Social Media being one of the intriguing topics today, I attended the Social media session by Graham Hadingham, IBM, ECM Brand Leader UK and George Parapadakis, IBM, ECM Business Executive titled "Twitter, Facebook, Generation Y and Social media - how do they impact ECM ?" It was mind-boggling to hear how the user stats are changing everyday on platforms such as facebook, twitter and more and where all this is headed ! Social
media, Web 2.0 and Enterprise 2.0 are terms used to describe a new wave
of social interaction, which is dramatically changing the behavior of
a new generation ("generation Y") that is growing in the show of
ubiquitous internet access. The session focused on the impact this will have to our business
models as well as the opportunities it creates and the new risks
introduced. More importantly it helped think about the affect of social media on our ECM strategy over the next 2-5
And, here is a picture of the IBM BVA DREAM Team at IOD
Still tons more to cover .... including the Spectacular venue/Networking event at Villa Miani on May 20th. Watch this space for the next update ... until then, Enjoy !
The Technology Priority Survey CIO Magazine believes that Enterprise Data Management a key priority. Here is an executive summary of this article from CIO magazine.
Cloud, BI and Business Process Management Top of Mind for IT Professionals
Cloud computing services (48 percent) top the list of technology priorities on the radar or among the technologies
technology decision-makers are actively researching in the coming year, according to an exclusive survey
conducted by CIO magazine in January 2010. The survey, conducted among 405 IT professionals involved in
buying technology products and services for their organizations, also finds business intelligence applications
(35 percent), business process management (35 percent), enterprise data management (32 percent), and
enterprise architecture/SOA among the top technologies of interest.
Source: CIO magazine
The basic things that we take for granted are sometimes not so basic .... we are just fortunate, An example is Water !
" I can think of few endeavors more important than making sure people across the globe have ready access to clean water," said Stanley S. Litow, IBM Vice President of Corporate Citizenship & Corporate Affairs, and President of IBM's Foundation. "I would even suggest that it's a basic human right, and a hallmark of sophisticated and compassionate societies everywhere. That's why IBM is so incredibly proud to help scientists harness the resources of World Community Grid to make strides in this vital arena."
In the last 100 years, global water usage has increased at twice the rate of population growth. The United Nations predicts that nearly half the world’s population will experience critical water shortages by the year 2025."**
"Researchers will now seek to identify human protein targets for possible new drug treatments. They will use the World Community Grid to screen up to 13 million compounds found in the zinc.docking.org database against 180 protein structures involved with the parasite. While this may not lead to new drugs immediately, it will greatly augment the study of this disease by scientists around the world.
IBM donated the server hardware, software, technical services and expertise to build the infrastructure for World Community Grid and provides free hosting, maintenance and support." **
Read the full article here http://www-03.ibm.com/press/us/en/pressrelease/32422.wss