Creating Value From Conflict – The IT Challenge Carrier Logistics User Group Denis Goulet Vice President, Information Technology Progress Software Corporation April 2007

© 2007 Progress Software Corporation2

3 Agenda  The inherent conflict  Technology, how do you invest?  Security and compliance, adding value  Applications and infrastructure, turning the Queen Mary  Bringing it together

© 2007 Progress Software Corporation4 The inherent conflict  Business wants IT to help drive business innovation IT needs to be efficient and flexible  IT budgets Are growing slowly at best Are being spent mostly on keeping the trains running

© 2007 Progress Software Corporation5 Technology, for business sake  Your choices will have a profound effect on your business success  But, there are more considerations than ever

© 2007 Progress Software Corporation6 Technology, Considerations  Accelerating pace of change  Innovation through acquisition  Build vs. buy  Time to value

© 2007 Progress Software Corporation7 Current Technology Trends Virtualization of servers & storage VoIP Proliferation of hand held devices SaaS (software as a service) Security and compliance products around every corner

© 2007 Progress Software Corporation8 Technology, Where innovation comes from Case 1 – Wireless network at HQ  The Conflict: Management directive to implement wireless as early adopters in headquarters location IT didn’t believe in the value  The Results: Improved flexibility and productivity in surprising ways Led to global deployment in all locations

© 2007 Progress Software Corporation9 Technology, where innovation comes from Case 2 – Wide area network performance  The Conflict: Remote sites were suffering slow network performance that was negatively affecting productivity Existing tools did not help  The Result: Improved productivity by orders of magnitude IT viewed as problem solvers

© 2007 Progress Software Corporation10 Security and Compliance, will it ever end? Sarbanes-Oxley HIPPA Patriot Act Basel II C I S P FISMA Gramm-Leach Bliley CIPA Bank Secrecy Act QSR Part 606 COBIT E-Sign Act F A C T A GISRA SEC Rule 17a California Information Practices Act N I S T PCI OMB A-123 EU Data Privacy Directive ISO 1799

© 2007 Progress Software Corporation11 Security and Compliance, manage the complexity  Adopt a practical approach to compliance Deal with them one at a time But take a generic approach Don’t over commit Self documenting, self enforcing is best  Build security and compliance into your IT and business projects to keep ahead of the curve  Beware of the “Microsoft® effect”

© 2007 Progress Software Corporation12 Security and Compliance, a practical example  Case 1 – Global HR implementation & European data privacy laws What went well: Lots of the work we had done for Sarbanes - Oxley made this easier What could have gone better: Security and compliance dealt with late in the project

© 2007 Progress Software Corporation13 Applications and Infrastructure, Turning the Queen Mary

© 2007 Progress Software Corporation14 Applications and Infrastructure, It just keeps growing  “I had to go into three different systems to get the information I needed” – middle manager trying to prepare a report for the boss  “No one ever retires a server” – harried system administrator  “Ugh, that company we acquired has a whole different set of applications” – integration team lead

© 2007 Progress Software Corporation15 Applications and Infrastructure, It just keeps growing -- Normal Human Being when asked to change “But I’ve always done it that way!”

© 2007 Progress Software Corporation16 Applications and Infrastructure, The straw that broke the camel’s back  “What’s the big deal? It’s a simple system. It won’t take long to implement!”  “Why don’t we just put up another server for that? It’s just one more server.”

© 2007 Progress Software Corporation17 Applications and Infrastructure, So… Legacy Systems, Infrastructure, & Processes Acquired Systems, Infrastructure, & Processes Unique Systems, Infrastructure, & Processes + For business enhancement +

© 2007 Progress Software Corporation18 Applications and Infrastructure, We want the same thing !  Application portfolio management Consolidation of like systems Elimination of non-critical & redundant apps SaaS  Enterprise infrastructure management Consolidation Standardization Optimizing contracts

© 2007 Progress Software Corporation19 Applications and Infrastructure, We want the same thing !  Governance Make sure the new things you do are truly business-enhancing  Business Process Improve business operations to… Simply IT requirements

© 2007 Progress Software Corporation20 Applications and Infrastructure, It will not happen overnight  Develop plans and relentlessly manage to them over time

© 2007 Progress Software Corporation21 Bringing it together, Leadership is the key!  Take a positive approach If it is going to happen, you will be the ones who do it Neither IT nor the business leaders can do it alone  Turn the inherent conflict into business advantage !

© 2007 Progress Software Corporation22 Questions?

© 2007 Progress Software Corporation23