Business Success with Information Technology Thomas P. Maiero

My Success Story Chicago boy B.S. Marketing 1967 MBA Finance 1968 NIU Instructor University of Colorado Doctoral Candidate and Accounting Instructor Joined Arthur Andersen 1971 Promoted to Partner 1981 Retired from Accenture 2001 after 30 exciting years

Accenture Success Story – the Beginnings Founded in 1913 as Andersen Delaney & CO Focused on M&A, auditing and “systems” Worked in 1950 with inventor of ENIAC at IIT Developed a vision for computers in business In 1953 started work on the first computer system for GE using the UNIVAC l Developed the first billing system for Commonwealth Edison in 1956

Accenture Success Story – Growth partner and about 25 staff in Chicago 2008 – approx 180,000 employees and $23 billion in revenue – 52 countries A global management consulting, technology services and outsourcing company Progressed form systems building to systems integration to business integration -- aligning organizations' technologies, processes and people with their strategies

Accenture Success Story – Systems Building

Location Buildings Property Support Systems Vision and Mission Desired Market Position Target Customers and Markets Delivery Channels Products, Services, Pricing Required Capabilities Operating Guidelines and Structures Sourcing Approach Strategy Strategic Financial Operational Stakeholder Human Performance Core Competencies Competency Cluster Aptitude Skills Knowledge Competency Suite Subsystem/ Component Modules/Classes Data Application Facilities and Layout Activities Tasks Workflow Policy Exceptions Information Equipment Category Client Hardware Machinery Tools Equipment Delivery Vehicle Development Services Execution Services Operations Services Physical Network & Computing Behavior Values Culture Norms Motivation Business Portfolio Structures Teams Jobs Roles Organization Process Accenture Success Story – Business Integration (I.T is the Enabler)

Forrest Gump Stories (I.T. can be more than just I.T.)

Pacific Utility Company (How a small utility became famous (infamous) for a day) Client description Project Description--to design and implement new Billing system Project team – 25 people for 20 months Technical challenges Business design complexity Conversion – (turning the new system on)

Westwood, Ca Our Two Weeks of Fame

The Sultanate of Oman 2 Years in The Last Corner of Arabia

The Sultanate of Oman

The Client – Sultan Qaboos

The Dress Code Picture

Sultanate of Oman (2 years in the last corner in Arabia) Implementing the system –a few highlights – Manual system – Determining the budget (how to spend ½ Billion) – Printing the forms – Rolling out the system

Some Big Projects (Lessons Learned and their business impact) Large Airline (A large very successful project) Savings and Loan ( A project which is relevant today) Large State Payroll (A failed project) Telecom Billing System ( A project that went around the world) A current Project ( Some important lessons reinforced)

Large Airline ( A large very successful project)

Large Airline The Business Problem – Better Information for cost control and productivity improvement Project Scope and Size – Responsibility/productivity reporting, flight profitability – 2 ½ years, 80 people – Costs and productivity tracked against budget – Every flight segment profitability reported

Large Airline Business Benefits – Better cost performance – Productivity improved – Better flight segment planning Key Takeaways – Significant business management change – Top management sponsorship required – Managing the implementation took 25% of the effort

Savings and Loan ( A project which is relevant today)

Business Problem – New capabilities needed to stay competitive Project Scope and Size – Loan origination,servicing, and secondary marketing – 2 years, 60 people – Conversion was 6 months late Business Benefits – More consistent loan approvals – New mortgage products enabled – Secondary marketing enabled Key Takeaways – More top management involvement needed – System enabled risky business practices – Most difficult part was capturing business rules

Large State Payroll (A failed project) Business Problem – Old system needed replacement, more”flexibility” needed Project Scope and Size – 6 months, 10 people – Payroll processing for the entire state Business Benefits – Reduced clerical effort – Enhanced ability to implement changes Key Takeaways – Scope too large – Key steps in the systems development were skipped – Package software imposes constraints – Fundamental management failure– what was it?

Telecom Customer Care System (A project that went around the world) Business Problem – new customer care and billing systems needed for new products Project Scope and Size – 2 years, avg. 200 people – Billing and customer care for over 8 million customers – Phased implementation over 2.5 years Business Benefits – Enabled new products and services – Lowered cost of implementing changes – Software sales to other Telco's Key Takeaways – New business model required new infrastructure – Change in large organizationa can take a long time – Software can be shared without compromising competitive advantage

A Current Project

A Current Project (Some important lessons reinforced) Business Problem – Existing System needed replacement Project Scope and Size – 1-2 people 2 years – Financial management system for non profit Business Benefits – Ability to manage grants – Proper accounting for gifts and pledges – Better support for federal auditors Key Takeaways – Ad hock project took double the effort – Narrow IT view alienated users – Project management is necessary for success

Lessons Learned Technology is necessary but not sufficient for success Project Management is very important Methodology enables economies of scale and reduces risk Business knowledge is required Most difficult issue is CHANGE