texas a&m presentation 2011 suit showdown

8/6/2019 Texas A&M Presentation 2011 SUIT Showdown

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Leisure Destinations International

SUIT Ca se Competition – Antaeus Consulting (Team: C3)

Subhankar Banerjee , Efesa Origb o, Ma rtin Knaac k



Case Background

Issues Analysis

Candidate Solutions and Analysis

Our Solution

Questions

Agenda



Case Background

Analysis of Current State



SWOT Analysis: LDI

STRENGTHS

•Regional structure promoting knowledge

sharing

•Strong growth in resort club and

operations .•High customer satisfaction.

•Economies of scale

WEAKNESSES

•Decline in real estate business revenues

• Lack of synergy between corporate and

regional initiatives

OPPORTUNITIES

• Post-recession period marked with

increased willingness to spend by

customers.

• Cross selling and up selling opportunities

to the loyal customer base.

THREATS

• Real estate markets continues to remain

weak.

• Global warming and low snowfall posing

threats to some segments of the

company.



Strategic Issues Impact

1 Lack of standardized processesMultiple applications, security profiles and platforms built overtime

2 Role of Regional Information Officers unclear Responsibilities missed due to role absence

3Conflicting priorities between business and IT

IT strategy misaligned with business needs

4Lack of synergy between corporate andregional initiatives

Inability to derive value from IT

Operational Issues Impact

1 SLAs not defined for many applications Inability to manage user expectations and risk of downtime

2 Old and custom applications Availability and Scalability issues

3 Lack of proper documentation practices Issues in knowledge management

4 Ownership of incidents not clearly defined Creates confusion and accountability issues

5 Distributed and unconsolidated landscape Scalability issues

6 Lack of proper security model Multiple security profiles, Access management issues

Issues Identified



People

Lack of synergy between corporate and regional initiatives

Conflicting priorities between business and IT

Role of Regional Information Officers unclear

Process

Non-standardized processes

Absence of proper security model

Lack of SLAs for some applications

Lack of proper knowledge management processes

Ownership of incidents not clearly defined

Technology

Distributed and unconsolidated landscape

Old and Custom applications

Network issues

Root Cause Analysis



Implied Risks

1 Downtime

Old applications posing risks of availability

2 Security IncidentsIn absence of proper security methods, probability of security incidents is high

3 Inefficient processes

Significant loss of time and money

4 Non-Scalability

Lack of standardization is posing risk to scalability of IT

5 Decreased service level

Availability, reliability, maintainability and capacity risks

6 Expectation Management

Absence of proper metrics and SLAs causing issues in Managing expectation

H

H

H

M

H

L

Risks Imposed by Current Situation



“March Madness” Reflects Top 3 Risks

LDI cannot afford another “March Madness”!

DowntimeOne hour downtime on

major internal and externalsystems

SecurityIncident

Possible security breach

(Denial of Service Attack?)

Possible loss of customer dataintegrity

InefficientProcesses

Poor crisis managementprocedures



Analysis of Potential Solutions



Options Available



AlternativesCurrent

State

Centralized

Architecture

Distributed

Architecture

Hybrid

(Centralized/Distributed)

Architecture

Standardization

Data

Consolidation

Server

Consolidation

IT Service

Management

Web 2.0

Cloud

Computing

Outsourcing

Potential Solutions



Eva lua tion Matrix

Evaluation Criteria Weight Status Quo Centralized Distributed HybridAddresses Current Issues

1. Non-standardized IT Infrastructure and processes

30%

√ √ √

2. Lack of synergy between regions and headquarters √

3. Absence of enterprise-wide solutions √ √

Score 0 2 1 3

Resolves Symptoms

1. Strategic Level

20%

√

2. Operational level √ √ √

Score 0 1 1 2

Respects Restrictions

1. Rapid business growth10%

√ √ √

2. Cautious post-recession IT investments √

Score 2 0 1 1

Accomplishes Goals

1. Improve IT service levels

20%

√ √ √

2. Improve collaboration and knowledge utilizationto drive future growth√ √

3. Economies of scale for applications and data √

Score 0 3 1 2

Provides Long-term Benefits

Benefits: Scalability, Availability, Performance 20% √ √

Score 0 1 0 1

Ranking 100% 0.2 1.6 0.8 2.0



Hybrid System Architecture



Current Architecture



Target Architecture

Database



Implementation Plan

Timeline Measures Results

Short

•Consolidation•Applications•Databases

•Email• Improve Network capacity

•Consolidated IT landscape•Better availability and security forapplications like RESERVE

•Faster communication to remote sites

Medium

• Enterprise solutions• Knowledge portal (web 2.0)•Mobile Apps•Video Conferencing

•Improved collaboration and knowledgeutilization•Economies of scale.

Long

•Green-IT initiatives•Evaluate

•Cloud Computing•Outsourcing (HR, Finance)

•Reduced cost for IT operations•Focus on value providing services.



IT Service Management



IT Service Management

Severa l proc ess issues c anbe solved using ITSM

Identified 12 ITIL p roc essesto be imp lemented

Phased ap proa c h

0

1

2

3

4

5

IncidentManagement

ProblemManagement

Service Desk

ChangeManagement

ReleaseManagement

AccessManagement

Service AssetsService LevelManagement

AvailabilityManagement

CapacityManagement

IT SecurityManagement

KnowledgeManagement

Service Continuity

0- None 1- Weak 2- Fair 3- Capable 4- Mature 5- World Class Current State

Target State



ITSM - Roadmap

Baselineassessment

Identifyingkey painpoints

Prioritizationdepending onbusinesscriticality

ITIL proc esses toeradicate painpoints

Identify ke yme trics ,po lic ies ,proc ess ownersand resources

Redesignidentifiedprocesses toeliminate gap s

Identifying k eyme trics, proc essowne rs andresources

Implementide ntified ITILprocess

Track key me tricsto evaluateproc ess efficienc y

Businessdriven ITvision

SetupInitiative

Current StateAnalysis

StrategyDevelopment

Process

Re-Design

Implement &Measure

Continuous Business Process Improvement Cycle



Prioritizing ITSM processes

Process Criticality Vulnerability Score

IT Security Management 5 4 20

Service ContinuityManagement

4 4 16

Problem Management 4 4 16

Service Level Mgmt 4 4 16

Incident Management 5 3 15

Availability Management 3 4 12

Capacity Management 3 4 12

Access Management 3 4 12

Asset Management 5 2 10

Release Management 3 3 9

Knowledge Management 3 3 9

Change Management 2 4 8



Implementation Timeline

Timeline Measures Results

Short

•Centralize service desks• Implement ITIL processes:

•Incident

•Problem•IT Security•Service Level and•Service Continuity

•Disaster recovery plan• Ownership of incidents• Centralized help desk

• SLAs clearly defined for all applications• Strong security procedures and policies

Medium

• Review and test all implementedprocesses• Implement ITIL processes:

•Availability•Capacity and•Access management

• Mature IT Service Management processes• Optimized capacity plan and high availability• Proper management of user profiles

Long

•Implement Release, Change andKnowledge Management• Evaluate other ITIL processes

•Proper developing and testing procedures.• Optimized and flexible IT services.



Timeline

1 year 3 years 5 years

Medium Term

Short Term

Long Term

Current



Financial Analysis: Costs

Type of Investment Values*

Initial Investment

Hardware / Software $0.2 million

Consulting / Application

Development

$1.2million

Project Management $0.2 million

IT Service Management $0.7 million

TOTAL $2.3 million

Annual Operating Costs

Hardware/Software $0.9million

IT Service Management $0.07 million

TOTAL (NPV 5 Years) $4.8 million

* For detailed calculations see Exhibits



Financial Analysis: Benefits

Annual Gains Values*

Technology Benefits

Operations $0.09 million

Data Consolidation $0.25 millionAvailability $0.62 million

Scalability $0.05 million

Security $0.10 million

Business Benefits

Applicationdevelopment

$0.10 million

IT ServiceManagement

$0.94 million

TOTAL ANNUAL GAINS $2.15 million

* For detailed calculations see Exhibits



Financial Analysis: Costs / Benefits

$(2.00)

$-

$2.00

$4.00

0 1 2 3 4 5

M i l l i o n s

Break-Even Analysis

Summary

Initial Investment $2.30 million

Annual Savings $1.18 million

Total Net PresentValue (NPV)

$1.51 million

Assumed InternalRate of Return(IRR): 14.6%*

5 years time horizon

ROI: 31.26%

* NSAA Research Highlights Ski Resort Industry Return on Equity, 2005/2006

Year



Risk Analysis

Risk Impact Probability Mitigation

Insufficient user

involvement

Gather user requirements

Hold information sessions

Provide required trainings

Constantly communicate benefits

Lack of Management

Support

Assign project champion

Define clear transformation responsibilities and

roles

Align management goals to success of project

Technical

implementation

difficulties

Hire experts from inside or outside the company,

Follow proper testing procedures

Undermining of defined

processes

Have clear escalation procedures in place

Motivate employees with ‘Carrot and stick’

approach.

Regular processes and systems audit

Unable to fully exploit

benefits of

standardized IT

architecture and

systems

Transformation strategy, with rigorous cost-benefit

analysis

Tracking of transformation progress

Focus on reusability, scalability and performance in

architecture and service design

M

H

M

M

M

L

L

L

M

M



Change Management

IT steering c ommittee

Inc lude business and ITleaders

Prioritize p rojec ts andalloc ate budgets

More stra teg ic role for

RIOs Inc lude in the steering

committee

Restruc turing IT to

ac commod ate c hanges

Measures Results

Better business ITalignment

Struc tured IT Organiza tion

IT Budget a ligned toBusiness stra tegy



Current Organization Chart

Other VPs,Engineering &Technology

SVP, FinancialPlanning & Systems

SVP, Project &Corporate Finance

SVP,Technology & CIO

VP,InformationTechnology

VP,InformationTechnology

Director,IT Solutions

Director,Infrastructure

Director,IT Operations

Director,Strategy & Planning

RetailApplications

LegacyApplications

Team

Oracle Design andSupport

Microsoft Designand Support

Web Design andE-commerce

Internet/IntranetSolutions

Data & AssuranceServices

TechnicalArchitecture

RegionalPlanning and

Support

DesktopManagement

ServerCapacityManagement

NetworkManagement

DatabaseManagement

InfrastructureMonitoring and

Control

MainframeOperations

OperationShift Teams

CentralHelp Desk

Server/ DesktopOperations

DesktopService Desk

IT ServiceManagement

QualityAssurance

Testing

QualityAssurance

Testing

Budgets

ServiceContinuity

Strategic Planning andInvestment Analysis

TechnologyRefreshment



Wrap-Up

ITSM raises IT Service Level

Architecture transformation ensures highersecurity

Standardization exploits economies of scale

Proper change management reduces risks

Opportunity to scale IT with business growth



Thank you very much for your attention!

Questions?



Appendix



Exhibit I: Investment Costs



Exhibit II: Investment Benefits



Exhibit III: Summary Investment

$(2.00)$(1.50)$(1.00)$(0.50)

$-$0.50$1.00$1.50

0 1 2 3 4 5

M i l l i o n s

Cash Flows

Cash Flows

Year



People

Synergistic opportunities from collaboration between corporate and regional initiatives

Business/IT Organization alignment

Regional Information officers acting as regional project champions

Process

Standardized processes and systems

Robust and scalable security model

Appropriate SLAs to ensure high system availability

Transparent and accountable project ownership

TechnologyEconomies of scale from enterprise solutions

Efficient, flexible, and high-performing systems

Exhibit IV: Mapping Solution to Problems

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