Highlights

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

IBM Strategy and Change Services —Operations Strategy

IBM Business Consulting Services

Drawing on the strength of the full

strategy and change practiceOperations Strategy is one of the four competencies within IBM’s 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-to-day operational improvements.

Our practitioners specialize in identifying the capabilities that are required to execute business strategies and in defi ning how operational models should be confi gured, 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.

Helping clients with critical

business issuesClients look to Operations Strategy for help with these critical business issues:

• Cost effi ciency and performance improvement

• Focus on company’s core business

• Increasing shareholder value

• Continuous process improvement

• Maintaining competitive edge

• Improving customer service quality

• Migration to new technology

• Product innovation management

• Merger synergy realization.

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

• Helping clients formulate operations strategies that align corporate and business strategy with organization, technology and process strategy

• Providing process expertise for business process change, re-engineering 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.

IBM Business Consulting Services

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Utilizing a proven, consistent approachAll Operations Strategy engage-ments incorporate the following key elements:

• 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 – Defi nes strategic options and specifi es strategic initiatives which are designed to create signifi cant value for the client

• Implementation planning– Determines critical success factors and establishes change programs to implement the strategic initiatives

• Learning – Measures and adapts the strategic management process in realtime utilizing key performance indicators.

Providing a full suite of offeringsOperations Strategy has a diverse range of capabilities, including:

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.

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 profi t improvement: • A framework designed to deliver

improved fi 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 fi nd new sources of revenue and value-added differentiation.

Product innovation management:• Supports the business decision-

making component of product development. These engagements are designed to reduce time-to-market and product development costs and they help increase the pace of innovation.

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ABB Ford Motor Company Motorola

Aetna Goodrich Corporation Novell

Alcoa Halliburton Panasonic

America Online Honda Motor Co. Raytheon

Ashland IKON Office Solutions Royal Philips Electronics

Atkins Nutritionals International Truck and Engine Corporation Selectron

Bloomberg Lam Research Siemens

BP Lexmark International Sony

Chevron Texaco MCI Tyco International

Circuit City Stores McKesson United States Department of Agriculture

Dupont Medtronic Verizon Communications

Enterprise focus:• Determines which components of a

business are strategic and critical to success of the enterprise and which are not. Then identifi es 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 offi ce capable of supporting outsourcing initiatives throughout their lifecycle, from qualifi cation and assessment to development and operation.

Demonstrating success at

numerous clientsAt one client, a leading consumer electronics manufacturer, benefi ts of the project included:

• Reduction of overhead costs due to redundant / ineffi cient overhead services and infrastructure in Corporate HQ and fi 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 offi ce for active savings tracking and reinforcement.

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

• 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 signifi cant cost and increase competitive advantage.

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

G510-5059-00

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For more informationTo 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