Galit STKI 2009 For Summit

Office of the CIO
2009
Your Text here Your Text here
Galit Fein
VP & Senior Analyst
Office of the CIO Strategies
Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 1
IT Trends
Agenda 2009
1 IT trends
IT Trends 2009 2009
2 IT Budget Mngt IT Budget

Mngt
3 Office of the CIO/ ITAM Office of

theText
CIO here
Your Text here Your
4 Sourcing/ Cloud Computing Sourcing
5 Conclusion
Enterprise Risk Mngt ERM
6 Mobile/ Social Networks Mobile
IT Trends
IT in Aggressive Cost-Cutting Times 2009
IT Market
decreasing -12.53% Capex Crisis IT budget mngt
IT Budget cuts
Need for
Your better
Text here IT Your Text here
Increased focus
investments Office of the CIO
on ITG
optimization
Shift to IT Asset Mngt

Technology budget
discretionary
is mostly non- Sourcing Models
cost basis when
discretionary Cloud Computing
possible
IT Trends
IT in Aggressive Cost-Cutting Times 2009
Financial crisis
forced better Increased spend Enterprise Risk
regulations & risk on IT risk mngt Mngt
mngt
Your Text here Your TextMobile;

here
New business
Innovation Social
models
Networking
IT Trends
Actions taken to cut IT costs 2009
09Jan-
Restrict IT travel expenses 61%
Freeze IT hiring 59%
Postpone discretionary IT projects 58%

Renegotiate IT vendor contracts 52%
Freeze or cancel IT capital spending 49%
Reduce spending on IT staff training 46%
Reduce IT headcount 34%
Source: CIO IT Budget & Staffing Survey
Top IT’s Priorities for 2009 IT Trends
2009
in Israel
Consolidation of IT infrastructure 62%
Renegotiation of contract 57%
Selection of IT investments based on ROI 53%

Business Intelligence 42%
Requirement and Portfolio management 31%
Improvement of IT security and compliance 30%
Automation and outsourcing testing 21%
Source: STKI
IT Budget
IT in Aggressive Cost-Cutting Times mngt

IT Budget Cuts Capex crisis IT budget mngt
IT Budget
IT Budget Reduction mngt
• Capex Crisis - cash flow is the KING
• Move from Capex/Opex to Zero-based budgeting

• Trade non-discretionary costs for
discretionary costs
IT Budget
Non-Discretionary Costs mngt
IT budget with previous commitment & no flexibility
Unsure 4%
Discretionary spends 36%
Non-Discretionary spends 60%

Source:
Galit Fein’s work CIO magazine
Copyright "theDoState
2009 @STKI of the CIO"
not remove sourceonline survey 2008
or attribution from any graphic or portion of graphic 9
IT Budget
“Hidden” IT costs mngt
Expenses assigned before the budget year:

ØPeople cost (internal staff)
ØProfessional services based on annually contracts

ØHW & SW maintenance (annual app maintenance fees)
ØMandatory & “must” projects: Data Storage, Networks
Current high non-discretionary costs

prevent business agility
Trade non-discretionary costs IT Budget
mngt
for discretionary costs
Discretionary Non-discretionary
How to Increase IT Budget
mngt
Discretionary Budget?
ITG IT asset IT
management procurement
• Office of the
CIOYour Text here • Software • Sourcing models
Your Text here
• Prof. services
• Agility licenses • Cloud computing
• Portfolio
mngt
Office of
IT in Aggressive Cost-Cutting Times the CIO
IT Your Text here

investments Increased focus Your Text here
Office of the CIO
optimization on ITG
Upcoming STKI Round Table

on Office of the CIO: 10/06/2009
Office of
Taking Advantage of a Downturn the CIO
Reduced IT spending:
Ø Financial crisis has increased the
attention to IT costs mngt

Ø IT can’t afford bad decisions
Increased focus on Office of the CIO
Need for better PPM
2008 2009 2010
Office of the CIO
25.0 20.00% 30.0 16.67% 35.0
Project Management Office
Top IT’s Priorities for 2009 Office of
the CIO
in Israel
Consolidation of IT infrastructure 62%
Contract renegotiations 57%
Improving the ROI of IT investments 53%

Business Intelligence 42%
Requirement and Portfolio management 31%
Improving IT security and compliance 30%
Automating and outsourcing testing 21%
Source: STKI
Office of
IT Organization Today: the CIO
• ITO directly affects on every business aspect

• Highly embedded for the organization success:
ØIncreasing complexity of org. products/ services
ØMulti-channel customer interaction
Office of
IT Transformation the CIO
Internal External
Internal
Service Service
focused IT
Provider Provider
•Available & accurate info •Align IT to business •Align IT to customers

•IT maintenance •Best solution for •Business partner
•IT staff mngt business needs •Business innovator
•HW availability &uptime •IT portfolio mngt of engine
•Technical support LOBs demands •Transformation initiator
Office of
IT Transformation through ITG the CIO
OTC
To Strategic
conference table
From
Data Center
room
Office of
Business Partnership Office the CIO
What is it?
What is it not?
Office of
Location of Business Referents the CIO
LOB LOB LOB

International Trends:
• BRM is not part of the IT
BRM
• BR manager – business skills
with understanding of IT
IT
IT
Israeli Trends:
• BRM is part of the IT - OTC:
Office of the CIO
v Political issue PMO, QA, KPIs, CSO
• OTC manager – IT manager
with understanding of business Infra Develop. Operation
Partnership between business & IT – Office of
the CIO
2way communication
OTC becoming the IT most important office,

but
Only
Your Text herewith CEOs recognition
Your Text here of
IT contribution to business innovation

& competitive advantage
Office of the CIO Office of
the CIO
Israeli Trends
Advanced - ITG
Ø Innovation ØP
Ø Strategic alignment ØB
Ø Business value / IT cost optimization ØB
Ø Demand / prioritization & mngt ØB You’re
Here
Ø Resource allocation
Your Text here & mngt ØB
Your Text here
Ø Increasing PMO efficiency ØB Basic - EPM
We all do it to certain extent, but

“What got you here, won’t get you there.”
Marshall Goldsmith
Office of
Office of the CIO under New Constraints the CIO
4 Increase IT business value through IT cost optimization
4 Rebalance the IT portfolio to Increase Revenue, Reduce
Costs, Manage Risk, with minor investments for Growing

Revenue & Avoiding Future Costs
4 Target discretionary funds for maximum ROI
Office of
Not ROI but Payback Period the CIO
Payback period - how quickly investments are repaid?
• Shorter payback period :

ØQuick free cash for other investments
ØLower risk - new future regulations, new

software, new business requirements
Office of
OTC/ PMO Staffing Ratio the CIO
• Average size of Israeli OTC/ PMO department: 3-5
Ø~2% of IT department (between 0.5% - 4%*)
Your Text here to ~5-8% in global orgs

ØCompared Your Text here
* in large enterprises, varies according to the

maturity of IT Governance in the organization
Office of
Demand Management the CIO
Initialization process
• Alignment to business
LOB strategic goal
• Pre-agreed categories set OTC
Business
Your Text here
• Business Priority
Your Text here
PMO
Referent • Risk (new tech, # of LOBs
involvement )
• ROI/ NPV
• IT Evaluation
• Approval
Office of
Automized Demand Management the CIO
Initialization process
•Alignment to
business strategic goal
LOB •Pre-agreed
OTC
Your Text here categories set Your Text here
Business
Referent
•Risk (new tech, nu PMO
of LOBs involvement )
•Anything that helps
accurate evaluation
Source: CA PPM
Office of
Prioritization Process the CIO
Prioritization
Small requests IT Plan
Small requests Large Projects
done
By OTC/ BRM,
because they
Your Text here know Your Text here
Strategic, tactical, regulatory
the strategy
of the business Large Projects
Project Evaluation Office of
the CIO
Israeli Trends
• Projects evaluation is based on previous experience only:

Ø No methodology or pricing model!
• Top Down budgeting allocation:

Ø Price tag remains the same during the projects’ lifecycle
• PMOs don’t use Service Catalog:

Ø Requirements variety
Office of
Holistic View - Portfolio Evaluation Matrix the CIO
Projects’ Size, Risk & Value

5 The preferred
project
3
ROI/ Your Text here Your Text here
Payback
The size of each
2 bubble is
proportional to
risk/ IT complexity
1
1 2 3 4 5
Business prioritization/ Strategic alignment
Office of
General Welfare the CIO
• Org. holistic view vs. LOB

• Each requirement is examined by its contribution to the
org.
• Contribution is not necessarily financial:
Ø Innovation
Ø Branding
• Total cost of ownership (TCO) – training, infrastructure
• Requirements integration
Integrated
Project Project Project/
X Y New infra
product
Office of
Resource Allocation & Mngt the CIO
• One DB for resource mngt

• Transparency
• Planning based on
IT
actual data
• Planning vs. Execution
Office of
Real Time Projects’ Dashboard the CIO
Client On On Scope
Project # Satisfaction Risk Budget On Time Quality Gates Total
25
140

32
89
Office of
ITG/ PPM Tools the CIO
Demand
mngt
Portfolio
Reporting
mngt
IT process
Project mngt
mngt
Resource Financial
mngt mngt
ITG/ PPM Tools Office of
the CIO
Israeli Trends
• Most ITOs don’t implement the complete ITG/ PPM solution

• Prefer to acquire only the missing PPM modules:
Ø Demand mngt
Ø Portfolio mngt
• Manage
Yourthe other modules by existing solutions,
Text here Your Text here as:
Ø Project mngt – MS Project, PS Next, etc
Ø Financial mngt – ERP, etc
Ø Resource mngt – SP, MS Project, In-house tools, etc
Ø IT process mngt - SP, In-house tools, etc
Ø Reporting - SP, In-house tools, etc
ITG/ PPM Tools Office of
the CIO
Israeli Trends
• PPM tools are not up-to-date, because of limited budget

ITOs choose in-house developments
• PPM tools are second preference – the real change to the org.
will bring governance procedures & right
methodology
2008 2009 2010
PPM 10.0 -20.00% 8.0 87.50% 15.0
Office of the
Asset Management 15.0 -13.33% 13.0 53.85% 20.0
CIO
Project management 10.0 0.00% 10.0 50.00% 15.0
STKI Israeli Positioning
• Not a technological positioning, refers only to Israeli market
• Focused on enterprise market (not SMB)
Vendor A
• Not an STKI recommendation
t Market Presence (X) Vendor B
ü Market share - existing and new sales (more emphasis)

Local Support
ü Mind share (how user organizations rate vendors)

Your Text here Your Text here Worldwide
t Local Support (Y) – is influenced by (X)
Leader
ü Experience & technical knowledge, localization,
support, number and kind of integrators
t Worldwide leaders marked, based on global positioning
t Vendors to watch: Are only just entering Israeli Market
Vendors to Watch:
so can’t be positioned but should be watched
Vendor C
Market Presence
Office of
ITG/ PPM- Positioning of the Israeli Market the CIO
Vendors to Watch:
Compuware IBM
Worldwide
Leader
CA
Enterprise
Local Support
Local Solution
Your Text here HP Your Text here
Mid-Tier
Microsoft
MSP
PS Next
This analysis should be used with its
supporting documents
Market Presence
Project Mngt - Positioning of the Office of
the CIO
Israeli Market
Vendors to Watch:
Compuware IBM Microsoft
Enterprise
Existing Israeli
Local Support
CA
experience in
Your Text here Your Text here project mng
PS Next Worldwide
HP Leader
Primavera

Market Presence
Office of
Another opinion – not all is Bleak! the CIO
• ITG is mostly suitable for large enterprises

• There is great sense of control in SMBs
• Expensive technology & methodology that require
additional resources would bring the desired
transparency which will also lead to interventions & high
evolvement in IT budgets
IT in Aggressive Cost-Cutting Times ITAM
Shift to IT Asset Mngt

Technology
Your Text budget
here Your Text here
discretionary
is mostly non- Sourcing Models
cost basis when
discretionary Cloud Computing
possible
IT Asset Management ITAM
Some IT assets are still being managed like this
Software Licenses Mngt - Cost savings ITAM
• Multiple purchasing options review –

NOT automatic SW renewals!
• Monitor the actual demand for SW licenses:
Ø Inventory of all desktops & what is installed on each
Ø AppsYour
haveTextbeen
here abandoned, but the vendor is stillYour
receiving
Text here
licensing revenue
Ø Overpayment for licenses that aren't being used
(result of volume discount) à “ Shelf applications”

Good contract is not about getting a good price –
it’s about assuring value!
IT Application Portfolio Mngt ITAM
Israeli Trends
• High variety between the ITOs

Ø from having no idea where IT assets are – to ITAM with full SW usage
metering with integration to ERP & HD
• Major challenges:
Ø SW Usage metering
Ø Type of usage (change performance/ read only)
• The tougher the formal procedures are - the easier ITAM

• Lack of ITAM tools maturity
• ITAM tools often viewed as an extension of ERP & PPM tools
Service
Service Desk Desk
HD is amongst the primary targets for cost cutting
Service
Israeli Trends of Service Desk Desk
• Although a lot have been done to improve HD staff

productivity:
Ø Best practices (ITIL) widespread acceptance among large
& more complex ITOs
Ø Desktop configurations standardization
Ø Sophisticated HD tools - web-based user self-service,
automated email response SW, incident tracking systems
Ø Remote access
Upcoming STKI RT
Ø Outsourcing
on SD: 31/05/2009
Vendors Trends of Service
Desk
Service Desk Tools
• Vendors have followed with tools that assist in the

implementation of ITIL processes
• Major vendors have expanded their offerings:

Ø Asset mngt portfolio
Ø SaaS model
Ø CMDB
• Service desk mngt tool is a mature market
IT Service Desk – Service
Desk
Positioning of the Israeli Market
Vendors to Watch: Microsoft
IBM
CA
SAP Worldwide
Local Support
Leader
HP BMC
Enterprise
Siebel
MID-Tier
Pivotal SysAid IT HD
PeopleSoft
Modules

Market Presence
Sourcing
IT in Aggressive Cost-Cutting Times Models
Shift to
Your Text is
Technology here
not a discretionary Your Text here
Sourcing Models
discretionary asset cost basis when
possible
Sourcing
Cost Cutting Outsourcing Models
Sourcing
Global Trends of Outsourcing Models
• Outsourcing landscape changing due to:

ØGlobalization
ØCloud Computing
ØProviders will turn to SaaS during
the financial crisis
Sourcing
Global Trends of Outsourcing Models
• ITOs will turn to outsourcing for cost cutting

Ø Non-discretionary expenditure reduction
Ø Avoidance of capital investment

• Growing outsourcing segments:
Ø QA
Ø BPO - greater variety of offerings
• Crowdsourcing – e.g: Amazon.com's Mechanical Turk

(http://www.mturk.com/mturk/welcome)
Sourcing
Israeli Trends of Outsourcing Models
• Steady & mature market growth of 3% (from 405 to $417 M)

• Outsourcing market grew this year due to increasing
scope of existing client & a few new deals
• Both largest deals of this year were comprehensive
Your Text here Your Text here IT
outsourcing in Public sector
• Rest of deals – small selective outsourcing
• Decline in number of deals
• NO backsourcing deals
Current Provider Landscape Sourcing
Models
Israeli Trends
ØHP-EDS, Ness, Malam-Team, IBM
ØNew global player: TCS (TATA)

• Number of vendors went up in 2008 due to entrance of
many specialized players:
ØBynet, Taldor, Yael, El-AD, etc
Sourcing
Israeli Nearshore Models
• Acknowledging the advantage & cost saving (up to

50%) by outsourcing: the transition
from PS
Your to outsourcing
Text here
Matrix Global
Your Text here
• Existing clients have Malam (Ma’alot); Ness

(EDC); Aman (Tehila)
broaden their scope
Offshore: NTS
Israeli Trends Sourcing
Models
of Professional Services
• Professional services market has dropped

• Mostly due to price & PS working hours reduction
Ø PS provided, as promised, flexibility to org, which
had to decrease their activity
2008 2009 2010

temps 72.0 -30.56% 50.0 50.00% 75.0
Israeli Trends Sourcing
Models
of Professional Services
4Cheapest “Cost Plus” model à
buying PS instead of the capacity
4Failure of the business model à
NO premium for flexibility & providers’ financing:
(overtime hours, sick pay, miluim, training, support, interest, etc)
IT in Aggressive Cost-Cutting Times
Shift to
Your Text is
Technology here
not a discretionary Your Text here
Cloud Computing
discretionary asset cost basis where
possible
Cloud Computing Cloud
Computing
Definition
• Cloud computing refers to highly scalable IT

resources—SW, CPUs, storage capacity—that are
housed outside of company data centers, available on
demand over the Internet, & whose usage is
measured
Your Text&
herebilled incrementally. Your Text here
• In-house clouds mimic those characteristics inside

the company firewall but lack the economies of scale
of public clouds.
Source: Informationweek
Cloud
Cloud Computing Benefits Computing
• No Capital Expenditure but pay-per-use
• Device & location independence

• Performance is monitored 24x7
• Scalability
• Innovation
Cloud
Cloud Computing Challenges Computing
• Mngt & monitoring ability of cloud companies

• Credit dilemma
• Reliability of cloud service providers (ISO, SAS70 -?)
• Quality of informational security - Regulations issues
• Job Security
• TCO – Total Cost of Ownership – Will it become lower?
Types of Cloud Services Cloud
Computing
Cloud SW
Multi tenancy/Platform-Centric/
User controls the data/ERP-CRM-HR
Desktop as a Service
Your Text here PAAS
Your Text here
Desktop apps via the Internet Platform as a Service

Write your own application/
Development tools
IAAS
Infrastructure as a Service
Servers / Storage / Networks
Cloud Computing Examples Cloud
Computing
Desktop as a Service PAAS

Platform as a Service
Docs & spreadsheets
IAAS SAAS
Infrastructure as a Service Software as a Service
Cloud
Cloud Computing Trends Computing
• Cloud computing not widely accepted yet

Ø Reluctance to lose control

• Main areas of increase:
Ø Especially in IaaS area
Ø In some markets SaaS is highly Source: Insight Research Corporation
popular
Cloud
The necessity to evaluate the new model Computing
• Hot new area with great potential

• ITOs are already starting to evaluate:
Ø During companies acquisition
Ø Shortage of cash, servers - while testing Amazon EC2
platform
• During today’s economic crisis even the most conservative

of people will have to evaluate the new model
Cloud
STKI Recommendation Computing
For Users:
Ø to experience in the establishment of Amazon EC 2 servers
Ø to use
Your SaaS
Text hereapps for marginal org. needs Your
(pilot)
Text here
For Vendors:
Ø to evaluate which service/ product is appropriate for cloud
work environment - to proceed the new players
Pricing Cloud
Computing
• Use- based charge:

Infrastructure • S3 –$0.15c/month per a gig
Cloud • EC2–pay per use via on demand VMs-$0.10 VM
instance/hour. (Amazon)
Desktop Cloud • Free to $10 per user per month
• Pay per use:

Platform Cloud • $15 per light license per month
• Pay per seat:

Cloud Application • CRM: $40-$140 per user per month
High costs due to being a monopoly.

Galit Fein’s work Copyright 2009 @STKI
Cost may go down when new comers arrive
Do not remove source or attribution from any graphic or portion of graphic 67
IT in Aggressive Cost-Cutting Times ERM
Financial global
Your Text herecrisis YourEnterprise
Text here Risk
Increase spend
forced better
on IT risk mngt Mngt
regulations & risk mng
Enterprise Risk Mngt ERM
Bernard Madoff
IT Enterprise Risk Mngt ERM
Global Trends 2009
• Global financial crises & increasing number of recent
frauds exposed the need for new regulations

& better enforcement
• General dissatisfaction with poor corporate

governance, regulatory oversight & risk mngt
• Increased org. budget for regulation & risk mngt

2008 2009 2010
Governance & Risk
ManagementGalit
(also BCP)
Fein’s work Copyright 2009 @STKI35.0
Do not remove42.86% 50.0
source or attribution from any graphic or50.00%
portion of graphic 75.0 70
IT Enterprise Risk Mngt ERM
Global Trends 2009
• Risk mngt based on set of approved standards raises the

In-house
level of customers confidence methodology
ITIL, CobiT, ISO
• Increased standards of regulation & risks mngt

requires more automation

• ITOs seek for solutions that meet regulations at
reasonable cost & with minimal disruption
Enterprise Risk Management ERM
• CEO must know what are the risks associated with IT

investments just as he aware of risks associated with
finance - Doubtful Debt / or other important risk
• IT investment
Your Text here / project: Your Text here
aROI
aBudget
aSchedule
？ Risk factors
Prepare to the Unpredictable ERM
Satyam,
Madoff Admits
Who Can? 50 Billion $ Fraud
Wipro,
Comverse, IBM,
Oracle,
Amdocs,
Infosys,
Cognizant,
HP firing 9/11
Banking crisis:
Lehman Brothers bankruptcy Wall Street crisis
Top Pressures Driving ERM
Enterprise Risk Mngt
Top Pressers Driving ERM
New/ changing regulations 46%
YourBetter
Text here
risk mngt Your Text here
38%
Protect the organization 31%
Improve operational efficiencies 24%
Source: Aberdeen Group 2008
GRC – Governance, Risk & Compliance ERM
unify compliance with risk mngt
Process Balanced risk

development & portfolio, examination
procedures of real, quantifiable
establishment based costs associated with
on set of different types of IT
measurements risks
SOX / Sector
regulations
compliance
Current Situation in Israel ERM
• Quick fix one-time, often outsourced, regulation projects
• “SOX is the must have - it will not have strategic impact on

the organization”
• Fragmented approach to GRC is inefficient & becoming a
huge cost driver
• “Existing tools handle only documentation of SOX compliance

procedures -they don’t check the level of enforcement!”
Governance, Risk & Compliance! ERM
• Need for ongoing effort to comply with regulation
• Firms can no longer afford to approach compliance as

tactical project like meeting the SOX deadline
• GRC technologies move from niche specialist vendors

towards the large systems
The Growing Interest of SW vendors ERM
• GRC acquisitions
Ø 2006: SAP acquired Virsa, ERM SW provider, to bolster SAP’s SW
compliance skills
Ø 2007: Sun reached for startup Vaau
Ø 2008: Oracle picked up longtime partner LogicalApps
• Israeli new enforcement Start-ups:
Ø Xpandion – Risk mngt & behavioral analyzing SW solution
Ø SPATIQ – provides an automatic tool for Entitlement mngt
• GRC often viewed as an extension of ERP & BPM tools
• Tools cannot provide a complete solution without actual process change
IT in Aggressive Cost-Cutting Times Mobile
Mobile;
Your Text here New business Your Text here
Innovation Social
models Networking
Upcoming STKI Round Table

on Mobile: 06/05/2009
Mobile Phones 2009 Mobile
Mobile EVERYWHERE
The Mobile Revolution is just Begun Mobile
• Mobile phones
• Smart phones
• Pocket PCs
• PDAs
Mobile Phone - MEGA Trends 2009 Mobile
Private Sector
M
O
• Primary interface for Internet & Social Networks
B
• Personalization I
L
• Consumers will watch more TV on mobiles E
• Dominant platform for listening to music T

• Mobile Wallet R
E
N
D
S
Time Allocation per Mobile
Smartphone Application
Productivity Utility
Games 1% 4%
4%
Browsing
8%
Voice
Your Text here Voice Messaging Your Text here
only 13%! 13% 39%
PIM
15%
Multimedia
17%
Source: Smartphone 360 study Nokia

Business Use
M
O
• Greater variety of platforms & apps
B
• Increasing complexity & capacity I
L
• Employees use their private mobile devices for work so E
expect org. technical support
T
Ø Therefore , outsourcing for R
E
technical support
N
D
S
Business & Private Use
M
O
• ‘Real’ smart phone –blurring lines between B
business & personal use I

L
• Constant internet connection
E
• Digitalized ID
T
• Video conference through online accounts R
E
N
You won’t need your laptop anymore?! D
S
When you’re NOT in front of the Computer Mobile
Now you can:

• purchase a product or service
• conduct financial transactions
• mobile ticketing
• send/ receive digital pictures
• download entertainment content
Many org. haven't yet fully understood the

opportunities offered by mobility
New–generation Mobile Apps: Mobile
Remote monitoring
Mobile Enterprise Mobile Commerce
& control
Location-based,
Your Text here Multiplayer, mobile Your Text here
context-aware
gaming services
Mobile ID/key
services (GPS)
Voice over
Wireless IP
Mobile Enterprise – Field Force Mobile
• Mobile workers –additional products/services offering

to field customers
• Access to/ update of enterprise info - guidance for fixing

malfunctions, dynamic scheduling
• Remote monitoring & control - Real-time field data analyzing
(what, when, how much?)
Selective Examples: Matrix (CallDinator)– Bezeq, HOT, Ort
One (ONE1Mobile) – Bank Hapoalim, Hospitals
Taldor – IDF, USPostal
Mobile Banking Mobile
The use of a mobile phone for

financial transactions
Mobile Banking Mobile
• Bank transactions from any location in real-time:

Ø Account activity, deposits/withdrawals,
money transfer
• Stock trading:
Ø Real-time data, news & updates alerts,
virtual
Yourstock portfolio, buying & selling of stocks
Text here Your Text here
• Credit cards:
Ø Credit card charges
Ø Real-time data of checking account balance, rapid loans
Ø Location-based, context-aware services – relevant real-time
discounts (mall parking, in-shop sale, etc)
Selective Examples: Matrix (Bank2go) – Bank Leumi; Netwise – Mizrahi Live
Mobile Commerce Mobile
• Online shopping
Ø Purchasing retail items through scanning - mobile wallet
• Advertising :
Ø Mobile ROI measurement & analytics use to better deliver
mobile
Your campaigns
Text here & understanding consumer needs
Your Text here
• Appointments reminders & scheduling,

Martix
medical results receiving:
• Travel reservations & ticketing

• Shorten business process - e.g. car acquisition – real time check on
mobile - who is the owner, legal owner/stolen, does it have a test?
Mobile Players in Israel Mobile
Partial List (alphabetical)
• Bynet (Paybox)
• IBM (Lotus mobile)
• Matrix (MMIS)
• Ness (Sybase)
• Netwise (Mintbox)
Your Text here – browsing solution Your Text here
(Cellerium) – client solution

• One (One1Mobile)
• Taldor
Social
Social Networking Networking
Social
Why is Social Networking Important? Networking
• ~500 million social network members

• Be where consumers are & where future consumers will be
• The largest & fastest growing application in the history
of the web
• Social networking extends the marketing reach of

traditional methods :
Ø Communication, Hiring, KM, Public relations, R & D
Social
STKI Group in LinkedIn Networking
During a 2 month period: 483 members

In
from all of the world, tens of
online discussions, summit participation approvals
Social
My Blog Networking
Galit Fein’s World
Current Country Totals

From 15 Oct 2008 to 16 Feb 2009
Israel (IL) 2,203

Summary
• Increased focus on Office of the CIO à Advanced IT Gov.:

Ø Business value / IT cost optimization
Ø Innovation
Ø Strategic alignment
• Alternative Sourcing Models – Cloud Computing
• GRC-Need for ongoing effort backed by mngt frameworks
• New business models – Mobile, Social Networks
Galit Fein
VP & Senior Analyst
galit@stki.info
IT Budget
Capex - Capital Expenditure mngt
Allowed company to
increase their profit
in the yearly report by

to depreciating
the investment
over several years
IT Budget
What is Capex ? mngt
Company‘s physical assets:
Capex can include everything

from repairing a roof to building a brand new factory
IT Budget
Zero-Based Budgeting mngt
• Bottom Up Budgeting - justification of

all expenses must be done every year

• Zero-Based Budgeting is built based on
what is needed for the upcoming period
Instead of History Based Budgeting

Definition: Investopedia

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Office of the CIO

2 IT Budget Mngt IT Budget

3 Office of the CIO/ ITAM Office of

4 Sourcing/ Cloud Computing Sourcing

6 Mobile/ Social Networks Mobile

Shift to IT Asset Mngt

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Restrict IT travel expenses 61%

Freeze IT hiring 59%

Postpone discretionary IT projects 58%

Freeze or cancel IT capital spending 49%

Reduce spending on IT staff training 46%

Reduce IT headcount 34%

Source: CIO IT Budget & Staffing Survey

Consolidation of IT infrastructure 62%

Renegotiation of contract 57%

Selection of IT investments based on ROI 53%

Requirement and Portfolio management 31%

Improvement of IT security and compliance 30%

Automation and outsourcing testing 21%

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• Capex Crisis - cash flow is the KING

• Move from Capex/Opex to Zero-based budgeting

• Trade non-discretionary costs for

IT budget with previous commitment & no flexibility

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Discretionary spends 36%

Non-Discretionary spends 60%

Expenses assigned before the budget year:

ØProfessional services based on annually contracts

ØMandatory & “must” projects: Data Storage, Networks

Current high non-discretionary costs

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IT Your Text here

Upcoming STKI Round Table

Ø Financial crisis has increased the

attention to IT costs mngt

Consolidation of IT infrastructure 62%

Contract renegotiations 57%

Improving the ROI of IT investments 53%

Requirement and Portfolio management 31%

Improving IT security and compliance 30%

Automating and outsourcing testing 21%

• ITO directly affects on every business aspect

ØMulti-channel customer interaction

•Available & accurate info •Align IT to business •Align IT to customers

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LOB LOB LOB

OTC becoming the IT most important office,

IT contribution to business innovation

Ø Increasing PMO efficiency ØB Basic - EPM

We all do it to certain extent, but

4 Increase IT business value through IT cost optimization

4 Rebalance the IT portfolio to Increase Revenue, Reduce

Costs, Manage Risk, with minor investments for Growing

4 Target discretionary funds for maximum ROI

Payback period - how quickly investments are repaid?

• Shorter payback period :

ØLower risk - new future regulations, new

• Average size of Israeli OTC/ PMO department: 3-5

Ø~2% of IT department (between 0.5% - 4%*)

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