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DHL Supply Chain IT Strategy & Planning

Business & IT Alignment – Driving Value from IT
Brian Nixon, VP Global IT Planning & Strategic Initiatives

eyefortransport 12th Supply Chain Technology Forum Amsterdam, 22 & 23 February 2011

What’s the big deal with IT?
• We run warehouse management systems for more than 2,000 operations worldwide, maintaining and transporting goods worth over €100billion • We support more than 5,000,000 business transactions per day globally through DHL LINK, 24 hours a day, 7 days a week

What we do

• We connect 130,000 colleagues worldwide with latest video conferencing, voice and data technologies • We execute more than 350 supply chain projects at any point in time, delivering more than 30 projects per month • We support 58,000 email accounts holdingaround 11 Terabytes of information

What we aspire to

• Deliver tangible value for our customers through innovative, industrialized and market leading IT solutions across the supply chain

What the business gains

• Improved operational cost effectiveness and efficiency provided by market-leading IT solutions • Scalable strategic platforms that enable profitable business growth • Customer-centricsector solutions that help tap new revenue potential • Reliable and industrialized solution delivery based on standardized building blocks that remove investment risks and reduce time-to-market

IT underpins everything we do in the supply chain business!
eyefortransport 12th Supply Chain Technology Forum | Amsterdam | 22 & 23 February 2011 Deutsche Post DHL | Page 2

Why should we worry aboutbusiness & IT alignment?
“IT, on its own, delivers no value”
“As business executives and managers develop into expert customers of IT, the CIO’s destiny is to emerge as the executive director of investments in change”

Investors & Customers
Money Value

“Business”

Corporate Strategy Business Strategies Business Operations

Start with the right mindset

IT core competencies
Internal IT supply

“IT”

ITMoney

IT Products & Services

IT Supply Market
Source: © Copyright 1999-2008 Dominic Barrow Services Limited

eyefortransport 12th Supply Chain Technology Forum | Amsterdam | 22 & 23 February 2011

Deutsche Post DHL | Page

3

Why is there often a disconnect between business and IT regarding what constitutes “value”? An IT Value Pyramid1 can help to explain…
Desired Business Value

4 Low 4 ITPerformance Improvement 2 IT Efficiency Improvement 1 IT Products & Services Delivery

6 Very High 6 Market Performance Improvement

2 Minimum to Zero 1 Zero to Negative

5 Medium to High 3 Low to Negative

5 Business Performance Improvement 3 IT Application Delivery

IT Service Delivery
Source: Corporate Executive Board; 1) Trademark Prestige Ideas Pty Ltd

IT Solution Delivery

eyefortransport12th Supply Chain Technology Forum | Amsterdam | 22 & 23 February 2011

Deutsche Post DHL | Page

4

DHL Supply Chain – alignment of IT Strategy with Corporate & Business Strategies

DP DHL Strategy

Supply Chain Strategy Provider of Choice
• Become Loyalty leader • “Simplifying Services & Sustainable Solutions”

Translation into IT Strategy
• Provide clear IT product strategies • Simplify ITproduct & service portfolio • Industrialize approach & solution sets • Accelerate implementations • Ongoing IT cost reduction • Enhance Business Value of IT by contributing to margin improvements • Increase operational efficiency through IT • Improve employee engagement by providing clear strategy • Enhance Business skills • Define clear roles and responsibilities for maintaining and executing ITStrategy

Score card KPI

Investment of Choice

• Outperform market growth • Achieve top quartile profitability

KPI

Employer of Choice

• Leadership “Respect & Results” principle • Increase Employee Engagement

KPI

eyefortransport 12th Supply Chain Technology Forum | Amsterdam | 22 & 23 February 2011

Deutsche Post DHL | Page

5

Business and IT alignment - the DSC Supply Chain business has been...
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