Global IT System Strategy

WHAT CAN WE HELP Y0U ACHIEVE?

Strategic IT Module Deployment Delivers $200 Million  in Added Value

Executive Summary

K Carpenter Associates (KCA) developed a strategic plan for prioritizing and deploying IT modules across a global organization. This approach not only accelerated adoption but also generated over $200 million in additional value beyond the initial project assumptions.

The Challenge

The client aimed to implement a large-scale, multi-module IT system across their global commercial operations. The challenge was to determine which features to deploy in specific locations and at what times, as the system's value varied significantly based on these factors. Deploying all features to all locations was not feasible due to cost constraints.

Historically, new system rollouts within the organization had encountered significant roadblocks and delays, as employees were resistant to changing their established workflows. Based on previous experiences, the team anticipated a multi-year deployment and adoption timeline, which would delay the realization of the system's full value.

Our Approach

  • Accelerated Feature Adoption: We expedited the adoption of key features and increased system usage.

  • Strategic Prioritization: We prioritized the deployment of feature sets by geography and business area to maximize value.

  • Value-Capture Metrics: We established key metrics to ensure the anticipated value was realized upon deployment.

How We Did It

  • IDM Process: KCA led the project team through our Integrated Decision-Making (IDM) process to assess alternatives, evaluate uncertainties and risks, and identify opportunities to control or influence key factors.

  • Value of Control Workshop: We conducted a workshop to identify the critical drivers that would determine the range of value generated by the deployment.

  • Targeted Investment: We identified opportunities to invest additional resources to ensure the successful adoption and use of key features, which was crucial in capturing substantial upside potential.

The Solution

KCA worked with the client to clarify both the short-term and long-term objectives of the IT system and to assess the value it could deliver to the commercial organization. By optimizing the deployment strategy—tailoring features and business areas against uncertain costs—we developed a best-case approach.

Had the traditional deployment approach been used, the system was projected to provide a $50 million Net Present Value (NPV). However, KCA’s accelerated deployment strategy increased the NPV to $280 million and shortened the adoption timeline by two years.

A crucial component of the enhanced strategy involved allocating additional training resources to co-locate with teams during and after the rollout. Although this increased the project’s cost, the incremental benefits far outweighed the expenses. The company’s CFO remarked, "We always knew training had value, but nobody ever put a number to it before."

To capture the full value of the system, KCA also helped the client establish a metric to track and monitor system adoption and usage. This metric became so vital that when budget cuts were proposed, the training program remained untouched, recognized as a key driver of the additional value.

The client successfully implemented the hybrid solution, achieving the expected adoption and usage rates. As a result, the full estimated value was realized and acknowledged by senior management.