1. 60% of IT spending is keeping the lights on
2. IT org inertia -- SLOW
2.1. IT spending remains flat in 2009
2.2. Legacy systems inhibit change
2.3. Vendors are slow to change
2.4. 1919 - Boston Molasses Flood
3. two faces of lean
3.1. strategy
3.1.1. Flextronics
3.1.1.1. just enough
3.1.1.2. customer first
3.1.1.3. use before buy
3.1.1.4. maximize asset utilization
3.1.1.5. empahsize consolidation
3.1.1.6. enable global collaboration
3.1.2. Dell
3.1.2.1. standarization
3.1.2.1.1. less variability
3.1.2.2. consolidation
3.1.2.2.1. fewer moving parts
3.1.2.3. automation
3.1.2.3.1. self service is a big part
3.1.2.4. Dell re-architecting IT to simplify and automate management, imporve agility, and support startegic initiatives
3.2. operational
3.2.1. 5Ss
3.2.1.1. Set in order
3.2.1.2. Sort
3.2.1.3. Standardize
3.2.1.4. Sustain
3.2.1.5. Shine
3.2.2. Dell
3.2.2.1. simplified ops improves agility and support innovation
3.2.2.2. 10K virtualized servers by years end.
3.2.2.3. standardized on three corporate images
3.2.2.4. time to patch 72 - 80,000 users!
3.2.2.5. re-image system in 1 hr
3.2.2.6. consolidation ratios 15:1 or 10:1
3.2.2.7. 2% of revenue versus 8%
3.2.2.8. 1400 internal IT project to 31 focus on strategic initiatives/infrasturcture
3.2.2.9. reduced internal applications by 45%, enabled infrastructure consolidation
3.2.3. Flextronics
3.2.3.1. project prior based on ROI justification
3.2.3.2. business alignment through multiple IT councils
3.2.3.3. continual improvement
3.2.3.4. use of open source
3.2.3.5. clear cost center
3.2.3.6. avoid single source when possible
3.2.3.7. Got to be willing to right off an asset
3.2.3.7.1. "But we made a big investment in ABC"
3.2.3.8. bottoms up/zero cost justification of opex and capex quarterly
3.2.3.9. rolling quarterly focus
3.2.3.10. avoid single source to keep everyone engaged
3.2.3.11. innovation is critical to the keep the lights on tasks - allows IT spend to be 1% of revenue
4. Panelists
4.1. Dave West (Sr Analyst)
4.2. David Smoley
4.2.1. SVP and CIO, Flextronics
4.2.1.1. currently run IT 1% of revenue all in
4.2.1.2. don't do a lot things; only focus on the things that add value
4.2.1.3. 60 data centers to 2 while refreshing hardware
4.2.1.4. IT spend reduced by 36%
4.3. Kevin Hanes
4.3.1. Director of Dell ProConsult, Dell
4.3.1.1. Dell roots in mfg so Lean built in DNA
4.3.1.2. do more w less but safely (don't break something in process)
4.3.1.3. reduced timeline to show ROI
4.3.1.4. keeping lights on vs innovation
4.3.1.5. knowing what to tackle first
4.3.1.6. receive 40 million emails per day; 7 million inbound calls per day; send 2 million emails per day
5. Wave of change
5.1. new sw dev has risen 9%
5.2. 4 of 5 dev using open source in deployed apps
5.2.1. fastest way to get things out