IBM Business Consulting Services

IBM Strategy and Change Services Operations Strategy

Helping clients with critical business issues Clients look to Operations Strategy for help with these critical business issues:

Cost efciency and performance improvement Focus on companys core business Increasing shareholder value Continuous process improvement Maintaining competitive edge Improving customer service quality
Drawing on the strength of the full Highlights strategy and change practice Operations Strategy is one of the four competencies within IBMs larger Strategy and Change team. The three parallel competencies are Business Strategy, Organization Change Strategy and Technology Strategy. Operations Strategy helps clients resolve a variety of critical issues from strategy and planning to day-today operational improvements. Our practitioners specialize in identifying the capabilities that are required to execute business strategies and in dening how operational models should be congured, implemented, and continuously improved. With deep experience in operations strategy, we provide clients with the support needed to address the operational issues that are crucial to success.

Migration to new technology Product innovation management Merger synergy realization.

Our experience in successfully formulating and implementing operations strategies lies in three main areas:

Helps clients address critical business issues Utilizes a proven approach to Operations Strategy projects Provides a breadth and depth of offerings Helps provide significant value to a wide range of clients

Helping clients formulate operations strategies that align corporate and business strategy with organization, technology and process strategy Providing process expertise for business process change, reengineering and operational improvement, cost reduction, Six Sigma, innovation management, and post-merger integration Assisting clients with outsourcing strategies and their execution, including make/buy/partner decision strategies, domestic and global outsourcing, and creating scalable operations.

Six Sigma/Lean Sigma: Strives to create both operational excellence and a strategic change in the culture of a corporation, division or business unit. These engagements are designed to increase customer satisfaction and drive out costs by helping to improve processes linked to company strategy and key performance indicators. Six Sigma also helps build an enduring capability within the organization that can create and sustain competitive advantage over the long term. Design for Six Sigma: Extends Six Sigma principles to the development of new products, services, processes, and plants that are designed to precisely meet client current and future needs. Strategic prot improvement: A framework designed to deliver improved nancial performance, including: increasing revenues and margin, reducing costs and assets, strengthening infrastructure, and positioning for future growth. Service after the sale: Helps clients lower their customer service costs and nd new sources of revenue and value-added differentiation. Product innovation management: Supports the business decisionmaking component of product development. These engagements are designed to reduce time-tomarket and product development costs and they help increase the pace of innovation.

Utilizing a proven, consistent approach All Operations Strategy engagements incorporate the following key elements:

Learning Measures and adapts the strategic management process in realtime utilizing key performance indicators.
Providing a full suite of offerings Operations Strategy has a diverse range of capabilities, including:

Mobilization Utilizes preparation and planning to help increase the odds of successful and timely project completion Situation assessment Establishes a shared assessment of the current and future situation with senior client management Strategy development Denes strategic options and species strategic initiatives which are designed to create signicant value for the client Implementation planning Determines critical success factors and establishes change programs to implement the strategic initiatives

Rapid process change: A solution for rapidly identifying and delivering a step change in process, organizational and systems performance. Rapid process change focuses on achieving tangible operating improvement results in an accelerated time frame.

Enterprise focus: Determines which components of a business are strategic and critical to success of the enterprise and which are not. Then identies opportunities for improvement and transformation by comparing critical business requirements and operational capabilities. Shared services implementation: Our team builds a business case for the transition to a shared services operational model, designs a custom shared services solution, and then works with the client to successfully implement the change. Outsourcing governance: Helps organizations establish a program management ofce capable of supporting outsourcing initiatives throughout their lifecycle, from qualication and assessment to development and operation.

Demonstrating success at numerous clients At one client, a leading consumer electronics manufacturer, benets of the project included:

At a large manufacturer of aluminum products, we developed and implemented a new operating model. The scope and results included:

Reduction of overhead costs due to redundant / inefcient overhead services and infrastructure in Corporate HQ and ve worldwide product divisions Annual savings of over $400 million, including: agreements in infrastructure sharing and governance, shared services and elimination of cost drivers and redundant resources, and establishment of a project management ofce for active savings tracking and reinforcement.

Analyzed operations for 15 business units in 10 countries Creation of global process models Over $300 million in annual savings, including improved processes, continued focus on cost controls, and adoption of best practices across business units.
Finally, we developed an outsourcing strategy for a leading manufacturer of semiconductor equipment. The scope included:

Working with client executive team to develop a vision and operating model Implemented the model, focusing new investment in core business processes and developing and implementing the roadmap to outsource all non-core processes to save client signicant cost and increase competitive advantage.

Our Clients: A small sample of our clients includes leaders of every industry and all levels of Government:

ABB Aetna Alcoa America Online Ashland Atkins Nutritionals Bloomberg BP Chevron Texaco Circuit City Stores Dupont

Ford Motor Company Goodrich Corporation Halliburton Honda Motor Co. IKON Office Solutions International Truck and Engine Corporation Lam Research Lexmark International MCI McKesson Medtronic

Motorola Novell Panasonic Raytheon Royal Philips Electronics Selectron Siemens Sony Tyco International United States Department of Agriculture Verizon Communications

For more information To learn more about IBM Business Consulting Services contact your IBM sales representative, or visit: ibm.com/bcs For more about IBM Strategy and Change Services please visit: ibm.com/bcs/strategy
Copyright IBM Corporation 2004 IBM Global Services Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America 10-04 All Rights Reserved IBM and the IBM logo are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

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