Case Study - European division of US PC Manufacturer

Our client was the European IT division of a major US owned PC manufacturer. This division was seeing its budgets being squeezed year on year and required a way to articulate the overall value to the corporation to flow from IT investment in Europe.

Before Existing Arrangements

• Our client was under pressure both from reducing budgets and increasing expectation of delivery performance by user departments
• IT performance was articulated in the conventional availability, time and budget performance metrics
• Huge change agenda was underway within the wider division(not just IT) and though sympathetic, user department managers had little insight of their dependence on IT and the IT change agenda

After...Lucidus Intervention

• In 4 weeks, using Lucidus value modelling techniques, the value of IT to each user department was modelled over the estimated 5 year life of the current change agenda
• Value was articulated as direct, indirect and non financial value
• Dependence on IT of each user department change project was modelled together with cross project and inter- department project/programme dependencies

Outcome...

• The revenue consequences dependent on IT change agenda for success became apparent for the first time
• Monthly meetings became more about value progress than minutia of availability metrics
• Corporate bosses rated departmental management performance each month. IT historically came in the bottom 3 and following the change of emphasis from cost to value, IT were regularly in the top two.
• Because of the clarity of picture IT had over the overall company change agenda, IT was able to provide guidance to departmental managers and was therefore perceived as "supportive" rather than the "burden" it had been previously.