Aligning Business Strategy and IT Strategy Gerhard Barth Now that you have heard so much about the strategies of the different divisions, I want to talk about a subject that concerns all of them: the internet and e-business. There is still a lot of hype around the term „eBusiness“ even though there has been some disillusionment just lately. Nevertheless it is also out of question that the „internet“ will have a dramatic impact on the way people will do business in the future. Gerhard Barth

Outline of Presentation Some Thoughts on Strategy ... Our Approach Major Trends in IT Impact of Trends onto Banking

Most of the following statements have been made before - but not by me

Information Technology Not this way ... Business Unit ... IT is mainly an expense factor ... ... business processes dominate all other processes ... ... the money maker is the decision maker ... Information Technology

Information Technology Not that way ... Information Technology ... nothing can be achieved without IT ... ... we cannot realize each dream of the business units ... ... we are the guys who make your revenues possible Business Unit

Much better ... ... we stay permanently in touch with our customers ... ... we IT folks are selfconfident service providers ... ... we are jointly responsible for profit or loss of our company ...

Vision, Strategy, Structures, Processes ... How does this all fit together ? Vision Business Units Vision Strategy Structures Processes Information Technology Strategy Structures Processes

Vision, Strategy, Structures, Processes ... Business Units Strategy Structures Processes Vision Strategy Information Technology Structures Processes strategies, structures and processes must be tightly coupled visions may differ

Information Technology Dresdner Bank ... Focused European Advisory Bank Information any time any place any form Strategy Structures Processes Business Units Strategy Structures Processes Information Technology

Strategy ... ... is the way ... to achieve a goal ... considering all restrictions 2 3 1 ... goal to be considered ... ... in this order ... restrictions ... way

Alternatives for Structures and Processes in IT Unit 1 Unit 2 Unit 3 Unit 1 Unit 2 Unit 3 New Unit ... symbolizes IT Central Coordination Unit 1 Unit 2 Unit 3 Unit 1 Unit 2 Unit 3 New Company

Alternatives for Structures and Processes in IT Transformation building up competencies cost efficiency Capital budgeting valuation Staff current employees new employees Speed time-to-Market flexibility

Alternatives for Structures and Processes in IT Transformation building up competencies cost efficiency Staff current employees new employees Speed time-to-market flexibility Capital budgeting valuation

Dresdner Bank‘s Solution ......... CIO Executive Board of a Business Unit each Unit CIO is member of the Executive Board CIOs of business units report to the Corporate CIO

Traditional IT Application Development business concept analysis design implementation sequential process gap between business units and IT maintenance application

Modern IT Application Development requirements requirements analysis requirements adjustments iterative process alliance between business units and IT system design prototype assessment prototype building application

Information Technology A Team Play of Partners Business Units Information Technology define strategies and processes define architectures choose tools define software engineering processes model business processes evaluate user interfaces check functionality analyze requirements build prototypes test software do their business develop software

Major Trends in IT... Networks Data Processing Data Mining Knowledge Based Systems

There are Many Buzzwords in Use ... Information Age Data Management Data Bases Information Technology Knowledge Management Knowledge Based Systems Information Management Data Mining Data Warehouses

It All Begins With Data ... product prize, costs, producer, ......... service expert, effects, provider, ......... supplier product, location, contract, ......... customer name, address, purchases, ......... ......... ... more data ...

Information and Data are not the Same Thing ... 5. April 2001 Heidelberg Neue Universität Data in the knowledge lies the power Information Database Conference ???

Knowledge is the ability to assign ??? Data Information Knowledge is the ability to assign information to data

What is Involved in Information Management ? 3 ... a mechanism to interpret data I need information about ... 2 ... access to the data data 1 ... data There must be ...

Todays Standard Situation ... brainware World Wide Web intranet data somewhere in the net browser Navigator, ...

Major Technology Trends ... Networks Data Processing Data Mining Knowledge Based Systems

Networks and Their Impact on Banking Internet Client-Server Extranet Intranet internet banking multi-channel marketing customer relationship management electronic marketplaces .........

Data Mining and Its Impact on Banking Data Warehouses identification of customer profiles planning of marketing activities assessment of risks .........

Knowledge Based Systems and Their Impact on Banking Fuzzy Logic Neural Networks Expert Systems configuration of investment fonds support in consulting customers documentation of expertise assessment of risks .........

Combining the Three Trends ... bank-to-customer contact customer-to-bank contact Customers satisfying customer needs understanding customer needs

Thanks for listening !