Jason Molfetas Chief Information Officer

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Jason Molfetas Chief Information Officer
November 16th, 2006
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Agenda

• Introduction
• Westcon Group
• Who Are We?
• Our Historical IT Organization
• The Burning Platform question!
• My roadmap to IT is the Business
• Vision
• Organizational Change
• The Strategic Alignment
• Measurement (Scorecards)
• The Results

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• Worlds largest networking and telephony only
  channel provider
• We are a distributor of networking, security, and
  convergence (video, voice data) solutions
• Industry leader of branded, value-added services
  and support programs

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Financial Overview

• FY 2006 Sales will exceed 2.5B
• All three regions increase over FY 2005
• Americas 13
• Europe 7
• Asia Pacific 17

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Pre 2006 - Shared Services Model

• Relationship Management
• Business Analyst
• Business Liaison
• Project Management
• Communication
• Implementation
• Training

• Project Office
• PMO
• Quality Assurance
• Auditing
• Compliance
• Documentation
• Data Integrity
• Security

• Production Management
• Core Infrastructure
• Data Center
• Help Desk
• System Support
• Infrastructure Support

• Apps Development
• Core Applications Development
• eCommerce Development
• Technical Design
• B2B
• Business Intelligence

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Shared services model challenges
Common Business Complaints
Common Technology Complaints
IT is not delivering and they are clueless about
my business needs
The business doesnt understand that they need
to work with us in defining requirements they
think we are mind readers
You cost too much and your priorities are
backwards
The business wants a Cadillac but they are only
willing to pay for a Hundai
I cant rely on the estimates I get from IT
usually it ends up being double what I am
originally told
The business just doesnt understand what it
takes to get things done
Nothing gets done by the IT Team unless I scream
and yell
We do not have the resources or bandwidth to
support all requests
There is no sense of accountability in the
technology organization
Source IBM Customer Interviews
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The Burning Platform Question
Are You Aligned with Your Business?
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Over the past several years, the press has been
filled with articles stressing the need for
greater business/IT alignment
Framing the issues
Why Were Still Talking About Alignment Since the
age of the vacuum tubes, dot-matrix printers and
green-screen monitors, IT executives have been
obsessed with the concept of alignment, meaning
how closely an organizations IT strategy is
interwoven with and driving its overall business
strategy. Just look at any survey of CIOs taken
during the past decade, and youll see that the
role of IT within the companys business strategy
is almost always among their top five concerns .
. .
The Alignment Enigma Ask CIOs what the number one
issue facing them is, and chances are excellent
they will respond Aligning IT with the business
strategy. That answer will come as no surprise
to anyone familiar with the IT terrain. The
April CIO Insight CIO research survey identified
this as the number one issue. But similar polls
conducted during the past two decades drew the
same conclusion . . .
Aligning business and technology As business and
technology have become increasingly intertwined,
the strategic alignment of the two has emerged as
a major corporate issue. Not that this is a new
subject. In fact, the strategic relationship
between business and information technology has
been chronicled as far back as the 1970s, when
Harvard Business School Prof. Richard L. Nolan
expounded his stages theory of the business/IT
relationship . . .
Source CIO.com, ITworld.com cioinsight.com
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Gartners 2006 CIO Agenda
To what extent is each of the following CIO
actions a priority for you in 2005?
Rank 2006
Rank 2005
Rank 2004
Delivering projects that enable business growth
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18
1
Linking business and IT strategies and plans
2
4
2
Building business skills in the IT organization
3
9
1
Demonstrating the business value of IT
4
3
2
Attracting, developing and retaining IT personnel
5


Applying metrics to IT organization and services
6
4
14
Improving the quality of IT service delivery
7
3
7
Having flexible technology infrastructure
8


Improving IT governance
9
11
10
Consolidating the IT organization and operations
10
8

Selected change in ranking compared with
2005 New question for 2006 New question
in 2005
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How are we doing.
Framing the issues

• However, despite all of these efforts to achieve
  alignment, the truth is that many IT
  organizations still are not meeting user
  expectations

Last Year I felt like the Bear!
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Are YOU aligned?
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IT Vision

• Move IT into a significant driver role of
  corporate strategy
• Clear IT strategy linked to the Business
• Measurable value add
• Generate revenue
• Change the perception of IT from isolated to
  integrated
• Federalize the team
• Local to local contact
• Refine the scope of Group IT
• divest control / responsibility
• focus IT resources at group wide strategic
  initiatives
• Evolve IT from cost structure to investment model
• ROI signed off by GM RCFO
• Savings tracked in 8 qtr model
• metrics for expense control
• We will have fun

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Roadmap
Organizational Change
The Strategic Alignment
Measurement
Results
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Hybrid Model
The Federal Model leverages positive qualities of
both centralized and decentralized organizations
to deliver value to business partners

• Aligned with Business

Decentralized
Centralized

• Common systems support
• Consistent standards control
• Economies of scale
• Critical mass of skills

• Business Units maintain control of decisions
• Recognition of local priorities
• Responsive to client needs

• Unresponsive
• No business unit control of central overhead
  costs
• Inflexible to business unit needs
• Remote from business

• Higher costs
• Variable standards
• Different control
• environment
• Duplication of effort

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Federal Model

• Group IT objectives
• Greater impact on global business
• Increase margin
• Decrease operational costs
• Competitive advantage
• Focus Group IT on group wide initiatives
• Enterprise projects run at group level with PMO
  oversight
• Exploit selective sourcing opportunities for cost
  efficiencies

• Regional IT objectives
• Create greater business alignment
  accountability
• Local projects run at regional level using PMO
  standards
• The Regions own IT investment and project
  priority decisions
• Greater ability to impact IT costs
• Improve IT responsiveness

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New Federal Structure
ITS Business Alignment
BI
Business Unit Analysis Local
Apps Infrastructure Local DR Communication
Training First Line Support Super Users
Project Services
Group IT ERP
Group IT BI
Group IT E-Business
Strategy Planning
Strategy Delivery
Program Management Office
System Architecture
Process Security Quality Assurance
Corporate Infra Data Centers
Infrastructure and Support
Corporate Help Desk
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Roadmap
Organizational Change
The Strategic Alignment
Measurement
Results
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Business Strategies
Executive Summary
Enhance Partner Experience

• Deliver
• Consistent
• Growth

Leverage Core Distribution Capability
Emphasize Continuous Improvement
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Strategic Goals Cascade
Executive Summary
Corporate Goal
Business Objectives
IT Goals

• Leverage our current and acquired specialty
  distribution businesses focused on new services,
  cost efficiencies, margin growth

• Improve E-Business solutions to exceed our
  business partners expectation

Enhance partner experience

• Enhance core distribution competencies across
  Finance, IT, Operations Marketing
• Drive efficiencies in the core to control costs

• Improve productivity, performance, stability and
  deployment of business processes supported by JDE
  Compass

Leverage core distribution capability
Emphasize continuous improvement

• Increase productivity, performance and stability

• Provide Westcon Group with timely and relevant
  information to be used for strategic management,
  measurement and continuous improvement of the
  business and its processes

• Provide a stable infrastructure supporting
  current requirements and future acquisitions,
  mergers, green field and business growth

Deliver consistent growth

• Achieve 15 EBITDA growth annually

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Executive Summary
IT Goal
IT Strategies
IT Tasks

• Create Dashboard reports to deliver key business
  and performance metrics
• eCommerce transactions and trends
• B2B transactions and trends
• Baseline performance metrics
• Develop Web Services to institute self-service
  B2B model
• Availability
• Quote
• SBA Price
• RMA
• On-line Credit Card Fulfillment
• Business process re-engineering
• CC fulfillment gateway on eCommerce websites
• B2B Transactions
• SMS3
• Vendor invoicing
• Point of Sale (POS)

Significantly increase the number of
transactions through E-Business Continuously
increase the services, features and functionality
available through E-Business channels Partner
with Foundation Vendors to expand upon
integrated business processes Develop an
Offshore Global IT Center to support productivity

E-Business Improve E-Business solutions to
exceed our business partners expectations
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Execute Deliver
Measure!
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E-business monthly tracker
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E-Commerce vs. ERP orders taken
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Roadmap
Organizational Change
The Strategic Alignment
Measurement
Results
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Scorecard
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Financial Performance Tracking of ROI
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Scorecard
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Project Metrics Sales Vision

• Golden vendor recruitment tool
• Drives pro-active sales engagement
• Continue to drive rollout s
• Presentation data available

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Project Lead Vision

• GEO
• 792 entered
• .9 closed
• GNA
• 4223 entered
• 5.2 closed
• Churn the base (POS)
• Renewals

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Roadmap
Organizational Change
The Strategic Alignment
Measurement
Results
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Westcon GroupCustomer ForumSeptember 2006
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• Worlds largest networking and telephony only
  channel provider
• We are a distributor of networking, security, and
  convergence (video, voice data) solutions
• Industry leader of branded, value-added services
  and support programs
• Supporting the indirect sales channel with
  logistics and services designed to make our
  customers more competitive
• Worldwide headquarters in Tarrytown, NY, U.S.

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Westcon Group Global Reach

• Westcon Group is a Multinational Organization
• Presence on every continent
• 1500 Employees Worldwide
• 25 Engineers across Americas
• 50 More across the World
• Locations
• United States
• Canada
• South America
• United Kingdom
• France
• Sweden
• Australia
• Singapore
• Germany
• And More
• Unified Support Team through the use of our
  unified Global Ticketing System
• 8 Logistics/Integration Centers Worldwide
• Common program and marketing sales
  infrastructure/services worldwide

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The Westcon Advantage

• Customer-driven focus on convergence, networking
  and security solutions
• Commitment to developing new market opportunities
  
• Relationship-building with vendors and resellers
  
• Unsurpassed breadth of support services
• Extraordinary expertise in all area of
  convergence
• Technical support
• State-of-the-art logistical, operational and
  financial systems
• Financial strength and global reach

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Custom Store Fronts and E-commerce

• Place and track orders on-line
• View product availability
• View pricing
• Multiple price schedules allowed
• Customized by Account Manager
• Deal specific/competitive pricing available
• Obtain proof of delivery information
• Obtain serial numbers
• Print detailed copies of their invoices
• On-line customer RMA requests

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Thank you
Questions?