Cost Savings Through IT Efficiency William F. Clark VP, Public

Cost Savings Through IT Efficiency William F. Clark VP, Public Sector CTO CA, Inc. nd, 2009 November 2nd

Problem - Inward Focus and Technology Silos The Business of Government “How do we compare against our industry?” “How can we quickly enable new services?” “Where can we cut costs without compromising services?” The CIO Dilemma Demonstrating and Managing Value No Services Context “Last month’s network availability exceeded 99.25%” Networks “This quarter you consumed X MIPS and the charge is.” Systems “A terabyte of storage will cost you X Dollars” Storage The IT Black Box Cost Center 2 “Our help desk staff answered Y issues within 30 minutes” Applications

Use a management system to align and integrate the organization and IT for increased efficiency on IT spend Demand Management Process Management Portfolio Management Project Management Request 15: New budget report Request 215: Security fix Request 803: Application modificatio n 3 Copyright 2009 CA Resource Planning

IT Effiency Gains with Effective PPM Demand Prioritize requests Align projects with business goals 87%* of the time Programs Increase the quality of projects & programs delivered Drop project failures by 59%* Portfolio Improve investment decision-making Increase the number of projects delivered by 35%* Financials Lower the TCO of each investment Reduce costs per project by 37%* Resources *How Project and Portfolio Management Solutions are Delivering Value to Organizations, IDC Research, September 2008 4 Improve resource utilization Reduce staff costs by 18,600 per 100 employees* Copyright 2009 CA

Two examples where PPM is used to create IT Efficiency and Cost Savings: A Northeastern State Departments request IT services through a service catalog. The asset management system is checked for available software and hardware assets to fulfill the request. Project is initiated and resources are assigned based on prebuilt templates and best practices. Status is monitored and reported back to the business in real time. A Mid West County 5 Reduced fixed labor costs by 8% in 1 year. Increase in customer confidence by doing a better job of managing expectations. Cut millions of dollars in costs by more effectively managing vendors and enabling selective outsourcing. Copyright 2009

Services with IT Alignment and Metrics

Service Portfolio Management Benefits Provides the means for IT organizations to dynamically align IT resources to business value . Determines what the business values, where to invest and divest Demonstrates the value of IT in clear, unambiguous business language Captures and prioritizes both operational and strategic demand Provides complete cost/price transparency to shape behavior and make better financial decisions Makes service delivery more repeatable, efficient .and help you become the service provider of choice to the business 7

Thank You 8 Copyright 2009 CAA