Value AND Metrics

Basis of my ontology !

Business

ImproveAgility

Achieve High

Performance

Maximize Value

Achieve Competitive Advantage

IT

CIO Advisory & Transformation Services

DisclaimerThis presentation is the author’s personal opinion and do not

represent the views of TechMahindra

What is common between Pilots and CXO s

But

30 of 34 measure DID NOT*

are measurements serving their purpose ?

* Representative case ..based on company experience

The new holy grail of service measurement

VALUE

What is value to a client ?

Service delivered as promised (SLA met)

Improvements suggested

Improvements delivered

End user delighted

Business outcome delivered (Owned)

Business outcome influenced

Service provider deliver value ?

Infrastructure layer

Platform layer

Business process layer

Point of service integration

Software or application layer

This is where ‘BUSINESS’ value gets created

This is where I am

Example Value Delivered ( Value Register)Reusable artefacts in Performance Testing - Planning

Start Date End Date Effort (pdays) Category

28-Jul-2009 10-Sep-2009 12 $ 70,000 savings per year

Srno Goal Description Targets Actuals

1 Test effort reduction on planning From 5 To 3 days Average: 2 days of effort reduction in planning

2 Test effort reduction on performance test setup

From 4 To 2 days From 4 To 2 days

SIP was undertaken to make Test Planning less time consuming and cost effective and thus bringing down the overall testing costs to the project. Also the SIP was executed to capture and develop certain documents that will help speed up the activities of test setup.

Assets Considered: Internet Banking, XXXXXX

Benefits of these artefacts are derived in almost all projects. The performance planning effort is reduced by 2 days and performance test team has to spend very less time to do the test set-up leading to reduced dependency on project team

Srno Projects Benefits

1 All Projects (27 projects) after this SIP has been implemented

Performance Test Plan effort had been reduced by 2 days resulting in savings of (32X2000) - $64,000

Evolving approach

Finding out what is value ?

Define Strategic

Value Drivers & Priorities

Identify Metrics & Targets

Capture & Report

Establish Continuous

Improvement

DICE Methodology

Example Airline

Performance Category –Business Outcomes• Contribution to Delay/ inaccurate Crew allocations

• Contribution to reduction in “Look to book ratio” – How many people visiting the site (xxxyt.com) and making a booking ( i.e. creating a PNR).

• Contribution to Number of complains about Frequent Flyer point accrual /redemption.

• Contribution to increase in aircraft turnaround time (MRO)

• Contribution to reduction aircraft maintenance schedule (MRO)

• Contribution to reduction in MRO inventory count accuracy

• Contribution to reduction in on-time delivery of operational plan components

• Contribution to reduction in Crew productivity

• Contribution to reduction in Crew Costs optimization

• Contribution to increase in delay/loss of cargo

• Contribution to increase in cargo billing issues

• Contribution to decrease in Revenue tonnes per kilometer (RTK)

• Contribution to reduction in number of bookings (through direct sales)

• Contribution to number of disputed booking made ( i.e. booking with wrong pricing, wrong destination and or pricing )

Measures aligned to strategic priorities

$ - Business Quality; $ - Optimization; $ - Avoidance

Measurement Metric/ KPI

Customer Satisfaction • NPS (Net Promoter Score)

Business Partnership

• No of PoC’s per quarter - business take up • Value Adds per year

• Number of forums with business participation enabled by provider• Business SLAs met

Technology Leadership

• Technology Superiority• Innovation Index • Agility Index • Collaboration Index• Community cloud solution offered for XXYT take up

Operational Excellence

• Exceeding Minimum Service Levels• Achieving Expected Service Levels• Projects (ADE + Transformation + Transition) executed on time/ on budget

• Portfolio Simplicity index

Engaged Organization• eCDI Survey results • # of hours of learning provided/ Quarter• # of XXYT staff rotation to ODC /half yearly

BIS is a Business

• AMS (IT Run) spend reduction YoY• ADE Spend reduction YoY• Percentage of variable costs in Total IT Run costs • Savings realized & reinvested• NPV/ROI• # of proactive proposals submitted• % of work delivered from offshore

In conclusion

Value is tied to context Perception of the recipient Her personal context

New measures may not be required

Required Processes and Capabilities to understand context Approach to link services to context and need Deliver to need

The Future - Millennia Dash Board

Technology Metrics

Methodology Metrics

Dollar PowerSustainability Human

ExcellenceSocial Media

Green meetings (Quarterly)

45CSR Hours

300Women in Top Management

10%

GHG (Green House Gas) Reduction

15%% Alternative Energy

12%

Green Data Centres

15Cost Reduction

18%Paper Recycling

Per Capita Energy Reduction

34%

60%

Disclaimer

Tech Mahindra Limited, herein referred to as TechM provide a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute an offer to buy or sell any securities mentioned therein. They do not purport to be a complete description of the markets conditions or developments referred to in the material. While utmost care has been taken in preparing the above, we claim no responsibility for their accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use the information contained herein at their own risk. These presentations and reports should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of TechM or its subsidiaries. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. Unless specifically noted, TechM is not responsible for the content of these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may not repackage or sell the presentation. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by TechM. Information contained in a presentation hosted or promoted by TechM is provided “as is” without warranty of any kind, either expressed or implied, including any warranty of merchantability or fitness for a particular purpose. TechM assumes no liability or responsibility for the contents of a presentation or the opinions expressed by the presenters. All expressions of opinion are subject to change without notice.

Thank youVisit us at www.techmahindra.com