E-FUTURES - THE CHALLENGE OF CHANGE IN MEDIUM SIZED ORGANISATIONS. A Presentation for the SEISN 20th September 2000 Advantek Limited 15 Manor Courtyard, Hughenden Avenue, High Wycombe, BUCKS HP13 5RE Tel Fax

INTRODUCTION AdvanTek Limited SIZE OUR BUSINESS OUR MARKET(S) 5 People “Aligning I.T. with Business Requirements” (Mostly) Medium Sized Companies (£20m to £70M)

INTRODUCTION BASED ON EXPERIENCE NOT “SCIENTIFIC” ‘Front Line’ Working with Clients Have Collected Opinions and Straw” Polls, What This Is About INDUSTRIES Recruitment, Manufacturing, Construction, Professional Services

PROFILES Recruitment Industry Powerful Driver’s for Change I.T. Literate Clients and Candidates Competitors Innovation Powerful Driver’s for Change I.T. Literate Clients and Candidates Competitors Innovation Currently - Major Investments (£1.5M per annum +) Integrating Moving Process to the Web Currently - Major Investments (£1.5M per annum +) Integrating Moving Process to the Web The Future Total Automation ?? Elimination of (Low End) Business?? No ‘Middle Man’ ?? The Future Total Automation ?? Elimination of (Low End) Business?? No ‘Middle Man’ ??

PROFILES Manufacturing Uncertainty Recognise That they Should Do Something Not Sure What ? Uncertainty Recognise That they Should Do Something Not Sure What ? Currently - Have Web Sites (“Brochure Ware”) Disappointed with Web Results To Date Investigating CRM Recognise Supply Chain Opportunities Currently - Have Web Sites (“Brochure Ware”) Disappointed with Web Results To Date Investigating CRM Recognise Supply Chain Opportunities The Future Justifying The Investment ?? Managing The Risk Defining and Executing The Strategy ?? The Future Justifying The Investment ?? Managing The Risk Defining and Executing The Strategy ??

PROFILES Professional Services The Web as a “Threat” Free Access For All To Restricted Knowledge and Information (Free) Automation of ‘Interpretive’ Services The Web as a “Threat” Free Access For All To Restricted Knowledge and Information (Free) Automation of ‘Interpretive’ Services Currently - Defining Strategies and Initiatives BUT Major Concern Over Destroying Their Own Business Currently - Defining Strategies and Initiatives BUT Major Concern Over Destroying Their Own Business The Future Elimination of (Low End) Business?? Need to ‘Lever’ High End Services from the Web The Future Elimination of (Low End) Business?? Need to ‘Lever’ High End Services from the Web

ATTITUDES Currently - A SENSE OF “RELIEF” “MAY NOT NEED TO TAKE ACTION YET” BOO.COM AMAZON DOT.COM SHARE PRICES

“Y2K” HANG OVER ATTITUDES UNCERTAINTY ?? Rarely Understand Their I.T. Set Up. CURRENT WEB SITE RETURNS Often Regard e- Commerce as Only an I.T. Issue Day To Day Pressures Prevent Real Consideration Have to “Balance” The Investment Senior Management Disappointed with ROI on I.T.

THE CURRENT I.T. SET UP CORE APPLICATION Usually In Place For Some Years NETWORK / Rarely Any Integration NETWORK “Green Screens” INTERNET / WEB No Security INTERNET FIREWALL WEB SITE Remotely Hosted No Standard PC Configuration.

THE CURRENT I.T. INFRASRUCTURE Often Related Only To The (Old) Core Applications Invariably - Users are Very Critical of I.T. I.T. Often Lack Business Understanding / Empathy Limited Experience of Change and Understanding of Requirements Often ‘Done Their Own Thing’ Many Local Databases / Islands of Information I.T. / USER INTERFACE TECHNICAL I.T. SKILL DEPARTMENTAL INITIATIVES / LOCAL I.T. CHANGE CAPABILITY

EFFECTING CHANGE SENIOR MANAGEMENT MIDDLE / USER MANAGEMENT USERS THE I.T. DEPARTMENT Doubt Mentors / Advocates SuspicionChampions Fear of Change Enthusiasts Technologists Business Services COMMUNICATIONS STEERING COMMITTEE IMPLEMENTATION TEAM(S) USER GROUP(S) Communications Plan

EFFECTING CHANGE ANALYSIS / REQUIREMENTS / PLANNING Detailed Analysis Business / Process Modelling Business Metrics and Measures Cost / Benefit Analysis - Detailed Financial Returns Results Chains / Linkages Benefits Realisation Planning COMPREHENSIVE BUSINESS CASE Scorecard Techniques Quality Plans

THE PROGRAMME - DEGREE OF DIFFICULTY EFFECTING CHANGE Very Difficult Reasonably Straight Forward Process / Back Office Strategic / Sales / Marketing Strategic CRM Supply Chain Trading Hubs / PRM Etc Web Based Admin / Finance Applications Order Entry

EFFECTING CHANGE THE I.T. FUNCTION. RETRAINING REPLACEMENT ADDITIONAL SUPPORT E-Technologies Business Understanding / Strategy “Soft” Skills Help Desk Technical Support Application(s) Knowledge User Training Maybe “24 x 7”

EFFECTING CHANGE TECHNOLOGY Time Infrastructure / Network Upgrade Security Infrastructure Pilots / Testing Training Implementation Development Detailed Planning (It NEVER goes according to plan).

EFFECTING CHANGE “It Ain’t Cheap”, Capital Costs of £1M + (For a £25M Turnover Company) It Takes Time and Resource Medium Sized Organisations Will Have To Do It To Compete “It Ain’t Easy” “It Ain’t Optional”

OPTIONS FOR MEDIUM SIZED ORGANISATION Full In-House Development Outsourcing / Application Service Providers Obtaining Resources and Skills High Risk Managing Change Loss of Control ? “Lock In” Supplier Dependence Hostages To Fortune?? (“Profit Takers”) High Cost Mixed In Sourcing / ASP / Out Sourcing Probably The Best BUT - Managing Various Suppliers Getting The Right ‘Balance’

SUMMARY / WAYS FORWARD Management MORE KNOWLEDGE MORE TRAINING (IN MAXIMISING I.T. BENEFITS) The I.T. Function BUSINESS FACING / BUSINESS SKILLS ADAPTABILITY KEEPING PACE WITH TECHNOLOGY Delivery ASP / HOSTING “CO-OPERATIVES ?? ATTENTION TO SLA’s / CONTRACTS / SUPPLIER RELATIONSHIPS