Development of IT Strategy Progress

1. Development of IT Strategy Progress Vladimir RAZUVAEV Head of Department of Business Consulting VladimirR@softline.ru +7 903 564 49 75

2. Our Approach to Problem Solution • Understandingtheproblem • Analysis of where we are • Path selection • Descriptionofwherewewanttocome

3. Business goals –> IT objectives Implementation of new technologies for achievementof business goals • Informational businesssystems • IT management • IT-infrastructure • Information security • PCS etc. = The business strategy: • Expansion • Roll-out • Stabilization ROI Aspects of activity (now, in a year, in 5 years) TCO • What is the market share? • What are the activities? • What about territorial presence? • Is there general centralization of management? • Who are the main customers? • Who are the main partners? • What is the partner policy? IT strategy: • Availability • Scalability • Fault tolerance • Centralization

4. Our services 1 Survey (assessment of maturity of IT processes), audit for compliance 2 Survey + concept development Survey + concept development + plan of activities (list of projects and necessary resources) Strategy – survey + concept development + risk assessment + development of pessimistic and optimistic scenarios + development of plans of activities for each scenario (list of projects, time and necessary resources) 3 4

5. Description of the project according to the survey results Presentation of the results to the management Phases Development of the report according to the survey results Analysis of the key requirements of the business Project initiation Analysis of the IT current state

6. Description of the project according to the survey results Results • Analysis of the main strategic business goals • Analysis of the staff list, job roles, qualification and load of the personnel of the IT divisions • Analysis of the IT divisions activities, determination of all IT-services • Analysis of the server infrastructure • Analysis of the communication channels • Analysis and assessment of the data flows at the enterprise • Analysis and evaluation of requirements for availability of the IT-services • Analysis and evaluation of requirements to ensure continuity of the IT-services • Analysis and evaluation of requirements of information security Service #2 Report on the results of the survey Service #3 Service #4

7. IT conception • Composition of the relevant list of the regulatory and legal acts • Composition of the list of missing regulatory and legal acts for the project implementation and drafts of these documents • Determination of the IT main objectives • Selection and description of the main IT areas • Determination of the IT main tasks • Development of the generalized description of the situation • Development of a goal tree and indices describing these goals achievement • Development of the IT target model description Service #3 IT conception Service #4

8. The IT conception and the work schedule Coordination of the IT-projects according to deadlines, tasks, data and necessary resources Management of the IT-projects in special planning programs as well as management of tasks and resources IT conception Historical collection of the projects

9. IT strategy IT conception Risk analysis Development options History of IT IT strategy + = = Various budgeting of the various development scenarios

10. Softline advantages in the IT-strategies • Mathematical tools of economic modeling that form the basement for selection of the behavioral strategy ("game theory"). Signs of the game: • Presence of several participants • Uncertainty of participants' behavior because of existence of a few options of activity for each of them • Difference (mismatch) of interests of the participants • Interconnection of the participants' behavior, as the result obtained by each of them depends on their behavior • Existence of the behavioral rules known to all participants • Feasibility studies of the projects

11. State model Scenarios System states Events

12. Risk treatment plan Risk assessment • Harmonization of the risk assessment method, scales • Inventorying and categorization of the assets • Analysis of the measures according to the Customer's IB • Execution of the IB risk analysis • IT risk assessment • Report documentation rendering • Presentation of the results of the work • Determination of the procedure of interaction in a case of a risk reassessment according to infrastructure changes

13. Risk assessment. Approach R = Pthreat x Ithreat Pthreat – probability Ithreat – damage R – risk assessment Pthreat – probability Digital denomination Description Frequency of the event Probability Very low Once per 6 years 0,15 1 2 Low Once per 4 years 0,22 3 Medium Once per 2 years 0,39 0,63 High Once per year 4 Ithreat – damage 5 Very high 2.5 times per year 0,92 R – risk assessment Digital value Name Name Risk value 1 Extremely low Less than 3 2 Low Area of low risk From 4 to 9 Area of medium risk 3 Medium Area of high risk From 10 to 12 4 High Area of critical risk More than 12 5 Very high

14. Risk assessment. Approach Risk value Graphicdenomination Name Less than 3 Area of low risk Area of medium risk From 4 to 9 Area of high risk From 10 to 12 Area of very high risk More than 12

15. Preparation of the IT-strategy Basic scenario of the IT development Optimistic scenario of the IT development Description of the main characteristics of scenario # 1 of IT-development Description of the main characteristics of scenario # 1 of IT-development

16. Development of the IT strategy of the Energetic Holding • The largest supplier of electricity and heat in Russia. • The company operates at one third of the territory of Russia • 6-th place in the world in production of thermal energy • > 50 thous. employees Customer • Project duration – 6 months • 10 energy companies (DZO), 25 branches Organizational framework • Strategic objectives of the IT development compliant to the Holding strategy are formalized • The target model of the Holding IT is developed • The portfolio of projects is formed • Probable scenarios of implementation of the project portfolio are determined Result Online - Increase of management efficiency and speed of decision making 35% - Reduce of efforts for formation of static and analytical reporting 30% - Reduce of costs of operation of information systems and IT-infrastructure 40% Benefits - Improved compliance of the IT-services to business requirements (business-user satisfaction)

17. Development of the strategy of the IT-operator producing universal electronic cards • Operator for production, issue and service of the universal electronic cards and organization of multifunctional centers for state and municipal services at the Khabarovsk Territory. • 22 multifunctional centers servicing the population in 16 settlements of the Khabarovsk Territory • More than 3 000 issued universal electronic cards Customer • Project duration – 3 months • Area of activity – all processes related to UEC issuance at the Khabarovsk Territory Organizational framework • Strategic objectives of the IT development compliant to the strategy of the enterprise are formalized. • The current state of the IT in the enterprise is evaluated. • The target IT state is formed. • The system classes for automation of the processes of the IT-management are proposed. • The schedule and the indicative budget for implementation of the projects of the IT management processes are designed. Result Online - Increase of management efficiency and speed of decision making - Increase of economic efficiency of operation of the IT infrastructure (including its scaling) due to regulation of the IT management processes and implementation of the automated system controlling the IT assets 40% Online Benefits - Ensure of scaling of the IT services within the required time with opening of new points for receiving applications and issuing of UEC while providing compliance with requirements of security and fault tolerance

18. Development of strategy of use of cloud services, virtualization and thin clients • Most efficient company in the sector of thermal power generation. • The main area of activity – production and sale of electricity and heat Customer • Project duration – 3 months • Area of activity – all information processes of the company. • 6 branches in the western part of Russia Organizational framework • The current state of the IT in the enterprise is evaluated. • An economic model is developed. It allows to estimate the cost of ownership and return on investment (ROI) in implementation of new technologies. • The concept of use of the cloud services, virtualization and thin clients in the organization is developed. • The portfolio of projects is formed Result Online - Increase of management efficiency and speed of decision making - Increase of economic efficiency of operation of the IT infrastructure (including its scaling) 30% Benefits - More efficient use of resources (energy, human, etc.) 40%

19. Questions Vladimir RAZUVAEV Head of Department of Business Consulting +7 903 564 49 75 VladimirR@softline.ru We are trusted Customers cooperate with us on a long-term basis We are recommended