Optimization, Innovation & Alignment

Claus Hagen Nielsen, CIO & Senior Vice President, COWI

APRIL 20152 COWI GROUP IT

5,313 MILLION DKK IN TURNOVER

MORE THAN 80 YEARS OF HISTORY

WORKING IN 124 COUNTRIES

OVER 6,250 EMPLOYEES

17,000 ONGOING PROJECTS

COWI

APRIL 2015

› CIO & SVP, COWI, 2010 ->

› VP ERP & Deputy CIO, Danisco (Dupont), 2001 – 2010

› IT Director, Danisco Ingredients, 2000 – 2001

› Group IT Manager, JAI, 1996 – 2000

› IT Manager, Schenker, 1985 – 1996

› Programmer, Schenker, 1984 - 1985

› Significant additional education & training.

› IMD, Breakthrough Program for Senior Executives, 2012 (2 weeks on-site)

› IMD, Mastering Technology Enterprise, General Management, 2007 (6 weeks on-site)

› IT & Law, Diploma Course in Advanced Computer Science

› IT Strategy, Diploma Course in Advanced Computer Science

Short resume – Claus Hagen Nielsen› CLNI@COWI.COM

3 COWI GROUP IT

2015 – 2016New learning:

"Diploma in Business Excellence" CBS &

Columbia University

CIO of the Year 2014, by IDC, Computerworld and Dansk IT

IT Strategy - history

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› 2010:

› Establishment of Group CIO (Marts) and IT cost baseline.

› Identification of services, IT competences and business needs.

› IT Strategy approved by executive board and board of directors. (August)

› Strategy enables establishing of Group IT and links IT with business by means of 'Business Process Management'

› Ensuring local dialogue and services through regional IT Managers (Key Account Managers).

› 2011/2012:

› Outsourcing of business-critical systems to secure cost efficiency, high availability and 24/7.

› -> own resources to focus on development, business interaction and 2-level support.

› Sourcing strategy; enabling of 'low cost' IT competence center in Lithuania with a full organizational structure.

› IT Cost Benchmark shows IT Spending, as % of Revenue and per employee, is in line with industry averages.

› Enabling high stability & user satisfaction through focused KPI follow-up on all major Services and on employee satisfaction.

Organization & Governance Strategy

Sourcing StrategyInfrastructure StrategyBackground and Business

DriversBusiness IT Strategy

4 COWI GROUP IT

IT Demand IT Supply

IT interface closely with COWI business

COWI

Business

Business

Process

Managers

(BPM)

CO

WI’s

custo

mers

Sourc

ing

Partn

ers

Shared IT resources, from all regions/countries, reporting according to competencies/tasks (i.e. not regionally)

CO

WI’s

Partn

ers

CIO office

Portfolio &

Project

Management

Service Desk

Portal &

Engineering

Infrastructure &

Operations

ERP &

Processes

End users

Project

Steering

Committees

BPM Board

Executive

Board

Vendor

Mgmt.

5

Regional

BPM &

MD's

APRIL 2015

KAM

BPM regional

processes

- IT Security - Administration

Enterprise Architecture

SDM

COWI GROUP IT

6

Group IT

COWI GROUP IT

APRIL 2015

› Group IT Facts:

› People: 110 IT skilled people, distributed in 10 countries, with a

majority based in Denmark, Norway, Sweden and Lithuania.

› Services: Deliver shared IT services to 98% of the COWI business, equal to 6285 users located in 75 offices in 16 countries. Services based on 50 specific services.

› IT Budget: IT Spending 5 % of Revenue, in line with industry averages.

› Main systems: ERP (Maconomy, SAP HR & Business Objects), MS SharePoint for Projects, Document Management, Intranets & WEB. Operation for these outsourced, to secure cost efficiency, high availability, include 24/7. Microsoft for basic IT infrastructure as Windows, Office & Lync.

APRIL 2015

Business’ required capabilities for PowerHouse

7 COWI GROUP IT

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Business’ required capabilities – IT Demands

8 COWI GROUP IT

o Collaborate & innovate with customerso Knowledge sharingo Mobilityo Distributed work o Quick integration of ITo 7x24o Efficient on -/off boarding of employeeo IT Flexibilityo Lower IT-costo Business Intelligence / Big Datao Sourcingo Technology opportunity

APRIL 2015

The principles for business IT set out the directions on how we govern and design Business IT solutions

Group IT Strategy – executive summary

Business IT Principles

Flexibility regarding special requirements when

supported by a solid business case

Graded solutions where relevant

Accommodate all relevant user groupings – employees,customers, suppliers, authorities and partners

Cost efficient development and maintenance 24/7 global access to shared applications

Global and shared information solutions built ona shared platform for processes

Business Drivers

Key IT strategic themes

Drive down IT cost, whilst maintaining IT’s strong foundation and quality

Help COWI be a truly efficient global organization

Link into our clients and collaborate and innovate with them

Deliver innovation & new ideas; communicate their benefits

Enable new and effective ways of working

Balance local needs with global solutions

Engage beyond implementation to help the business get full lifecycle value

9 COWI GROUP IT

Group IT Mission

APRIL 2015

Group IT Strategy

COWI Group IT provides cost efficient global IT solutions and services, supports business projects and enables COWI’s Business IT innovation› Continuous working to consolidate and standardize

IT solutions based on standardized business processes in order to support global collaboration, knowledge- and resource sharing

› Engaging with Business in all stages in Business Project

› Providing IT services 7x24 anywhere through shared IT service centre or provided by global sourcing partners

› Providing insights and foresights on Business Technology opportunities delivered through the BPM Governance Organisation

10 COWI GROUP IT

Group Business Process Management (BPM) in COWI

The purpose is to organise optimisation in COWI in a more

professional way

Group Business Process Management (BPM)

A complex business like COWI requires a clear governance for identification, prioritization, execution and benefit realization on initiatives to be able to handle interests from diverse business units and supporting staff functions

BPM is here to ensure:

efficiency based on standardised processesand templates.

sufficient, clear andrelevant informationfor decision makers.

a systemised approachto selecting potential projects based on the COWI Group strategy.

a transparent BPM process with clearly defined roles and decision-making process.

systemised follow-upon processes and projects handled by BPM.

!APRIL 2015

12 COWI GROUP IT

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An organisational overview of COWI’s BPM governance model

COWI GROUP IT13

The BPM governance organisation will support botha global and regional process governance

Legend:BPM – Business Process ManagerPPM – Project Portfolio Manager

14APRIL 2015

COWI GROUP IT

The BPM governance organisation assigns clear Business Process Ownership across key processes and across regions.

14

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Development budget

15

Input from

Strategic projects according to business strategy plan, including IT strategy (all projects in this category are Group projects)

Business Process Developmentprojects (Group and local)

Only total budget decided. Specific projects approved during the year by EB/GMB

Budget is itemized on specific projects

Total budget decided

by EB

PPM

EB, CIO

BPM

Continuation of on-going projects

COWI GROUP IT

APRIL 2015

Focus on good service and quality

In order to secure the good foundation and

high quality, we have build up a service culture

with a lot of focus on attitude, behaviour and culture.

We have implemented dedicated targets with KPIs,

to assist management in the deliverables, striving

to deliver Best in Class.

We can see that since we introduced a more

performance and target oriented approach,

we have been able to deliver better service

for less money.

16 COWI GROUP IT

APRIL 2015

Drive down IT cost, whilst maintaining IT’s strong foundation and quality

Fulfilment of 1 of the 7 IT Strategic themes

"Drive down IT cost, whilst maintaining IT’s strong

foundation and quality" has the inbuilt

dilemma, that "strong foundation" and "high quality"

is rather costly.

In order to succeed, we have centralized and

standardized our organization with focus on optimizing

our deliverables, including the quality and the cost

of service. To further support this, we have utilized

a number of potentials within outsourcing and sourcing.

(Close to 50% of our services delivered through outsourcing and internal

sourcing from low-cost country).

TDKK

Numbers from 2012-2014 adjusted by 2% inflation

IT cost per user

17 COWI GROUP IT

APRIL 2015

COWI GROUP IT18

The sourcing principles guides the decisions on the sourcing model

Group IT Strategy – Sourcing

> Source operation of main shared and business-critical system to free specialized skills to development

> Management services is not object for sourcing

> Demand services is crucial for Business and IT alignment and kept in house

> End Users fronting services are is the most important interface and kept in house

> Operation services are sourced as much as possible

> Off-shore resources will be used where applicable

> Consolidate to as few sourcing partners as possible

IT Sourcing Model PrinciplesBusiness Drivers Governance Model

Key IT strategic themes

Drive down IT cost, whilst maintaining IT’s strong foundation and quality

Help COWI be a truly efficientglobal organization

Link into our clients and collaborate and innovate with them

Deliver innovation & new ideas; communicate their benefits

Enable new and effective ways of working

Balance local needs with global solutions

Engage beyond implementation to help the business get full lifecycle value

Network

Back Office Services

End User Services

Security

Application Management

IT Service Management

IT Demand IT Supply

IT interface closely with COWI business

COWI

Business

Business

Process

Managers

(BPM)

CO

WI’s

custo

mers

Sourc

ing

Partn

ers

Shared IT resources, from all regions/countries, reporting according to competencies/tasks (i.e. not regionally)

CO

WI’s

Partn

ers

CIO office

Portfolio &

Project

Management

Service Desk

Portal &

Engineering

Infrastructure &

Operations

ERP &

Processes

End users

Project

Steering

Committees

BPM Board

Executive

Board

Vendor

Mgmt.

19

Regional

BPM &

MD's

Group IT Strategy

APRIL 2015

KAM

BPM regional

processes

- IT Security - Administration

Enterprise Architecture

SDM

COWI GROUP IT

To-beDigital

Agile & fast

Digital Innovation Lab

APRIL 2015

COWI GROUP IT20

Innovation – how to grab the good ideas and turn them into business value

› Technologies are developing exponentially at an accelerated speed, creating new ways of working for customers, competitors and even more interesting it means threats and opportunities from new sources that we haven’t seen in the past. The future will explode in e.g. cross border communication, co-creation, crowd-sourcing, crowd-design, new production possibilities and brand new ways of dealing with stakeholders leaving traditional customer-supplier relationship and delivery methods a thing of the past

› Examples are already numerous and they shake existing businesses and introduce new ways of generating wealth in organizations and in society at large. Just think of how AirBnB shake the legacy Hotel industry and how Uber is about to shake the Taxi industry. But also in our business segment we see examples. The first grand-looking, three story mansion has already been 3D printed in China, and in California a new tube based railway-like project has been engineered without the traditional engineering company, but instead by using a crowd-based design

Digital Innovation Lab

21

Innovation – how to grab the good ideas and turn them into business value

› We can choose to view this development as a threat to existing business or we may treat it as an opportunity to concur new business and get ahead of competitors in creating new value propositions to existing and new customers alike

› We seek a dialogue that will clarify our options and broaden our perspective. The actions decided should grow our capabilities to successfully exploit this future through agile execution.

› How can we in Group IT be a role model and an enabler of Digital Innovation in COWI?

APRIL 2015

COWI GROUP IT

APRIL 2015

COWI GROUP IT22

Group Strategy Camp, Top 50, 14-16 April

- New COWI Business Strategy 2020 to be ready from 2016.- In the development of this strategy, and a parallel to the "Ordinary" business strategy development, and new team has been assigned:- Digital Business Innovation Lab – lead by CIO.

APRIL 2015

COWI GROUP IT23

Digital Innovation - How

SMALL DIGITAL FACILITATOR TEAM

DIGITAL CHANGE AGENT

Idea

Facilitate

Inject

Monitor trends

DIGITAL CHANGE AGENT

DIGITAL CHANGE AGENT

DIGITAL CHANGE AGENT

DIGITAL CHANGE AGENT

Optimizing Group Development – a recipe

APRIL 2015

› Governance & PPM – part of IT Service Level (budget)

› BPM Innovation – part of IT Service Level (budget )

› Enterprise architects and solutions architects – Interface with business

› Development budget – centralized and managed by BPM in dialogue with Executive Board

› Approval process: Gate stage model – business case oriented

› Outsourcing in IT secures IT developers time for dedicated development (no operations)

› SDM & KAM structure in IT ensures services, deliverables and the dialogue with business

› Close cooperation with our technology partners ensures high usage of new technology -

> a parameter to ensure competitiveness

COWI GROUP IT24

APRIL 2015

COWI GROUP IT25

› Moving even closer to business management

› Digital innovation – inspire and leading

› Mastering business processes across the enterprise

› Establishing "fast development capabilities"

› Focus on : Mobility & Big Data…and more Cloud as it mature

› Business Support – IT leading shared process optimization and best practice from IT:

› Service Management: Incident, Service request and change handling (ITIL)

› User satisfaction: monitor & focus

› Outsourcing, Sourcing & Distributed Work

› Vendor Management

CIO focus 2015 ->

Technology Partners/Vendors

APRIL 201526

› Outsourcing in IT secures IT developers time for dedicated development (no operations)

› Close cooperation with our technology partners ensures high usage of new technology -

> a parameter to ensure competitiveness

› Consolidation of Vendors (e.g. audits, management ad-on, integration, interface,

overhead)

› Alignment across our IT-services – one vendor for several services

› Partners/Vendors need to be Solid, Agile and trustful

› Reduce cost – Increase service & quality, and this is not just an empty phrase

› Digital innovation capabilities

COWI GROUP IT

Business Performance – IT is part of this…

APRIL 201527 COWI GROUP IT I'm sure, that our strong service oriented IT Deliverables is a bearing rock of

this result and of COWI / "Technology inside"/ Claus Hagen Nielsen

Questions

APRIL 2015

COWI GROUP IT28

….can also be sent by mail to CLNI@COWI.COM

Many ThanksClaus