How to Seize Control of Technology Costs and Drive
Digital Transformation
Peter Dunn
Director – UK Public Sector
Rimini Street
London – January 26 th 2017
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90%
of CEO #1 Priority for 2017
Customer
Experience
Transformation
Source: 2016 CEO Survey, Price Waterhouse Coopers
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Customer Experience Is At The Heart Of Digital Transformation
“Key drivers of digital
transformation are
efficiency savings,
customer satisfaction,
and increased digital
adoption.”
Source: “Digital Transformation In The Age Of The Customer “
A Forrester Consulting Thought Leadership Paper Commissioned By Accenture, October 2015
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“Public sector suffers lack of digital vision…
…UK public sector organisations are
struggling to innovate, with only 16%
significantly focusing on innovation”.
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Source: “Public sector suffers lack of digital vision, says survey” – Government Computing, 2016
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The Big Problem – ‘MOOSE’
~75%
BUSINESS RUNNING
IT SPENDING
CATEGORIES
MOOSE = Maintain and Operate
the tech Organisation, Systems,
and Equipment
~25%
BUSINESS
TRANSFORMATION
PROJECTS
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5-10 yrs
87% Budget Ops
65% Not Covered
189% Over Budget
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Empower
Innovation Agility
5-10 yrs
87% Budget Ops
65% Not Covered
189% Over Budget
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Realignment with your plans
+ What is their
satisfaction today?
+ Pain points
How is this
strategy effecting
your plans?
Can you
relate?
Curious
about your
experience?
+ Good Old Days
+ SAP 400 Million
Lines of Code
+ Oracle Converging
3 Products
+ Huge Project
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CHANGE
TO TRANSFORM
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22%
ANNUAL MAINTENANCE
FOR SOFTWARE UPGRADES AND SUPPORT
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Disruptive Strategies to Tame the ‘MOOSE’
UPGRADE
MANAGEMENT
APPLICATION
RATIONALISATION
ERP VENDORS
BEST OF BREED
SOLUTIONS
ERP VENDORS
SPECIALISED
ERP
VENDORS
ERP VENDORS
CONSULTANTS
ERP VENDORS
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~75%
ONGOING OPERATIONS
AND ENHANCEMENTS
DIGITAL
TRANSFORMATION
~25%
BUSINESS
TRANSFORMATION
INITIATIVES
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Average Savings with Independent Support
1.5 x
1.5x
SAVINGS
Annual Vendor Maintenance Fees
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Paying £2,000,000 Annual Maintenance Fees
50% savings on £2,000,000
£1,000,000
ANNUAL MAINTENANCE FEES:
UPGRADES:
Annualised savings by avoiding
2 upgrades over 10 years
27
50%%
£800,000
CUSTOMISATION SUPPORT:
~4 FTEs
22%
£600,000
MAINTENANCE RESOURCES:
~4 FTEs
Total savings of 1.5x £2,000,000
18%
£600,000
£3,000,000
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Funding Innovation Agility with Independent Support
Customer Experience Management
Human Capital Management
Enterprise Mobility
Financial Services
ERP
Business Intelligence
Supplier Services
Source 2015, 2015 - DSAG, Gartner, Forrester, Aberdeen Consulting
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‘A Practical and Pragmatic Approach’: Martin Jannssen,
CIO, Incitec Pivot Ltd.
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Strategy, Service, & Value Drive Change
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Questions
?
?
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Peter Dunn
Director, UK Public Sector
[email protected]
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