2006 Enterprise Value Awards - The Winners Guide

GRAND WINNER

General Motors Corp.

INDUSTRY: Manufacturing

LOCATION: Detroit

REVENUE: $193 billion

EMPLOYEES: 375,000

www.gm.com

WINNING SYSTEM: OnStar uses wireless technology and the global positioning system satellite network to deliver 24-hour emergency assistance, telecommunications services and vehicle diagnostic information to 3 million subscribers who own GM vehicles. OnStar provides services such as automatic notification to emergency responders when a vehicle’s air bag deploys, stolen vehicle location assistance and remote door unlocking. Three small buttons placed along the dashboard or on the vehicle’s rearview mirror allow instant access to an OnStar call center representative, to 911 emergency call centers or hands-free wireless calling.

BUSINESS VALUE: OnStar contributes to driver safety and security and, as a result, provides GM with an additional selling point for its vehicles. OnStar’s call center staff responds monthly to 450 reports of stolen vehicles, 950 air bag deployments and 85,000 roadside assistance calls. Emergency personnel can be contacted through three OnStar call centers, which are connected to more than 9,000 emergency response centers in the United States and Canada. General Motors says 80% more customers have become repeat customers since OnStar was introduced, and GM’s dealers report OnStar helps them sell more automobiles. In addition, GM says that data collected from vehicles through OnStar is used to make improvements to vehicle performance, helping the company avoid product recalls.

SUCCESS STRATEGY: GM kept the user interface simple. In addition, after initial marketing missteps, the company focused OnStar services on features related to

the safety and performance of its vehicles.

INVESTMENT: Unavailable

KEY TECHNOLOGIES: GPS satellite network; IBM, Sun Microsystems and Hewlett-Packard client/server systems (for hosting call center, voice response systems, website and data delivery applications); Avaya switches for voice and data calls, as well as Cisco for pure data services; Verizon wireless telecommunication services

I.T. EXECUTIVE: Ralph Szygenda, group VP and CIO, General Motors

BUSINESS SPONSOR: Chet Huber, president, OnStar

WHAT WE LIKED: Created a public service that helps to save lives and

simultaneously benefits the core business of manufacturing and selling cars.

ADP Dealer Services Group

INDUSTRY: High-tech

LOCATION: Hoffman Estates, Ill.

REVENUE: $1 billion

EMPLOYEES: Unavailable

www.dealersuite.com

WINNING SYSTEM: ADP Dealer Services provides technology and data services such as business intelligence and CRM to nearly 20,000 vehicle dealers in the United States, Canada and Europe. Over four years, ADP Dealer Services combined a dozen call centers into one virtual support organization, which the company runs using its support virtualization and automation system.

The system provides several functions: It monitors customer applications, alerting the help desk to problems and enabling many of them to be fixed before clients are aware of them; it delivers patches and software upgrades to customers automatically; and when clients do call with a problem, the system routes them to the first available agent (in the past, clients were sent to regional support centers, based on their location).

BUSINESS VALUE: ADP Dealer Services’ customer support satisfaction rating reached an industry high of 91.2% in 2005, according to third-party research. The system enabled the company to reduce operating costs by $21.7 million over five

years and, ADP says, contributed to $14 million in additional

sales.

SUCCESS STRATEGY: The company crafted business rules so that customer calls were routed to the most qualified personnel, and it designed the system to make it easier for customers to use. Meanwhile, a global workforce provides customers with quicker, more efficient service.

INVESTMENT: $2,761,283 over three years

KEY TECHNOLOGIES: Blue Pumpkin resource planning and management tools; Smart Desktop Agent software for automated customer support; internally developed applications

I.T. EXECUTIVE: James Foote, senior director, field technology and technical services

BUSINESS SPONSOR: William Heffern, VP, ADP division

client relations

WHAT WE LIKED: Improved efficiency and customer

satisfaction at the same time.

BellSouth Corp.

INDUSTRY: Telecommunications

LOCATION: Atlanta

REVENUE: $20.3 billion

EMPLOYEES: 62,654

www.bellsouth.com

WINNING SYSTEM: BellSouth provides local telecommunications services for nine states in the Southeast. Project Rodeo

is a set of integrated applications that enable consumers to customize the package of products and services they order,

such as telephone service, Internet access or digital TV.

The system, comprising 14 preexisting internal applications integrated with internally developed middleware, can calculate prices and apply discounts for bundles of services as the

customer mixes and matches product choices.

BUSINESS VALUE: The system helps BellSouth compete with cable and telecommunications operators. Since 2003, the company has gained 26,000 new subscribers, earning an additional $15 million in annual revenue. BellSouth execs see bundled services as the key to customer retention in an era when consumers can choose among telecommunications providers.

SUCCESS STRATEGY: The marketing department identified the business need to offer consumers more flexibility and demonstrated to IT the business case for providing bundled services.

INVESTMENT: $17.5 million for development; $1.1 million for annual maintenance

KEY TECHNOLOGIES: Oracle database; internally developed middleware

I.T. EXECUTIVE: Francis A. Dramis Jr., chief information,

e-commerce and security officer

BUSINESS SPONSOR: Ron Frieson, VP, transition and strategy, consumer services

WHAT WE LIKED: Redesigned and integrated existing

applications to respond more quickly to customer demands.

Fairfax County Public Schools

INDUSTRY: Nonprofit

LOCATION: Fairfax, Va.

BUDGET: $1.8 billion

EMPLOYEES: 21,500

www.fcps.edu

WINNING SYSTEM: The Education Decision Support Library (EDSL) is a centralized data warehouse containing student

grades, test scores, disciplinary actions and other school data.

A Web interface allows administrators, school board members, principals, teachers and community leaders to create customized reports about student achievement, program participation and departmental operations. The data is used to assess student performance, make decisions about students’ needs and allocate educational resources.

BUSINESS VALUE: By making it possible for individuals to generate reports, EDSL has reduced administrative costs by more than 20%. The time it takes to distribute students’ achievement test results has been slashed from two or three months down to

24 hours, enabling students to retake exams that they don’t

pass. The school department says that better information about student—and staff—performance has led to increased passing

rates for minority students in reading and math, and helped

bump up overall standardized test pass rates by at least 5%.

SUCCESS STRATEGY: The IT department obtained continual feedback throughout the software development process from its application user group as well as subject-specific focus groups.

It also created the role of data steward to manage data centrally, ensuring information published to the system is accurate.

INVESTMENT: $276,000 for development; $184,000 for annual maintenance

KEY TECHNOLOGIES: Oracle database; Informatica PowerMart to cleanse and validate data; Business Objects’ Crystal Enterprise for generating reports

I.T. EXECUTIVE: Maribeth Luftglass, CIO and assistant superintendent

BUSINESS SPONSOR: Betsy Fenske, assistant superintendent and leadership team member

WHAT WE LIKED: Distributed performance data in a timely and useful manner, enabling more effective decision making.

The Hartford Financial Services Group Inc.

INDUSTRY: Insurance

LOCATION: Hartford, Conn.

REVENUE: $22.7 billion

EMPLOYEES: 30,000

www.thehartford.com

WINNING SYSTEM: The Hartford sells personal and commercial property and casualty insurance. Icon 2.0 is a proprietary, Web-based system that makes it easier for agents to sell the company’s policies to small businesses. The system integrates and simplifies several legacy applications for quoting premiums and for submitting and underwriting policies. Authorized agents can access these applications through a single interface called the Electronic Business Center.

BUSINESS VALUE: Icon 2.0 has enabled The Hartford to capture 30% more qualified business, resulting in a 21% sales growth in

its small-business segment in 2004 (competitors showed single-digit growth during the same period). The company says that because the system is easy to use, it has increased the number

of agents selling its policies from 18,000 to 26,000.

SUCCESS STRATEGY: The Icon 2.0 team understood that the key to getting independent agents to sell more of The Hartford’s policies was to make them more productive. By enhancing usability and making applications, such as quoting or submissions, readily available on the Web, The Hartford enabled remote agents to gain quick and easy access to the company’s products.

INVESTMENT: $21 million for development during two years;

$1.8 million for annual maintenance

KEY TECHNOLOGIES: J2EE architecture; Jacada Interface Server for mainframe interface

I.T. EXECUTIVE: John Chu, senior VP, P&C e-business and technology

BUSINESS SPONSOR: James M. Reul, senior VP, select customer

WHAT WE LIKED: Increased yield from agents by making legacy applications easier and less time-consuming to use.

Hilton Hotels Corp.

INDUSTRY: Travel and leisure

LOCATION: Beverly Hills, Calif.

REVENUE: $4.1 billion

EMPLOYEES: 67,660

www.hiltonworldwide.com

WINNING SYSTEM: OnQ, Hilton Hotel’s customer-management system, allows hotel managers at any Hilton-branded property to access centralized information about customers, their preferences and their use of hotel facilities in order to provide customers with an individualized experience. Hotel staff members can manage property level operations, like maid and room-catering services, as well as sell rooms and services across brands, based on customer data in OnQ. The system also delivers real-time business intelligence reports to hotel operators, franchisees and owners.

BUSINESS VALUE: Between the initial deployment of OnQ in 2000 and last year, the system has generated $204.5 million in cost and productivity savings. In 2004, the company identified

$4 million in annual savings due to greater operating efficiency

in its 20 hotels that produce the most revenue.

SUCCESS STRATEGY: OnQ was conceived when Hilton acquired Promus Hotel (including the Doubletree, Embassy Suites, Hampton Inn and Homewood Suites brands) in 1999. Hilton’s IT team didn’t assume that their technology infrastructure was superior to that

of Promus’s. Instead, Hilton combined the best features of each company’s legacy systems. Next, the company convinced its franchisees to adopt OnQ by reimbursing them for any investments they had made in previous software applications.

INVESTMENT: $40 million for software; $53.5 million for hardware and infrastructure; $60 million annual maintenance

KEY TECHNOLOGIES: Service-oriented architecture employing Microsoft .Net for employee-facing property operations applications; J2EE for consumer self-service transaction needs; Unix

with open-source standards

I.T. EXECUTIVE: James T. Harvey, senior VP and CIO

BUSINESS SPONSOR: Tom Keltner, executive VP and president, brand performance and franchise development group

WHAT WE LIKED: Used the acquisition of a competitor as an opportunity to improve functionality of legacy applications and make business operations more efficient.

PHH Arval

INDUSTRY: Management services

LOCATION: Sparks, Md.

REVENUE: $1.3 billion

EMPLOYEES: 1,400

www.phharval.com

WINNING SYSTEM: PHH Arval provides fleet management services for corporate customers, managing about 1 million vehicles for clients ranging from small businesses to companies in the Fortune 500. After changing its business model from managing companies’ in-house fleets to providing business-process outsourcing services, the company built its Notification Service in order to more efficiently manage communications with both corporate fleet managers and more than 100,000 drivers who serve them. The system routes some 60,000 messages concerning scheduling and account information to end users every month in multiple formats, including e-mail, fax and postal mail. Users can specify in which format they would like to receive messages based on message content.

BUSINESS VALUE: The Notification Service has reduced the cost of sending a single communication by as much as 96%. In addition, company surveys have found that driver satisfaction has increased seven percentage points, from 84% to 91%, because

the system helps them to be more efficient. Drivers no longer have to call PHH Arval or log onto a website to get information about their customers or vehicles.

SUCCESS STRATEGY: PHH Arval took the time to rethink the business processes it used to communicate with customers and suppliers before building a new system.

INVESTMENT: $295,000 for development; $25,000 annual maintenance

KEY TECHNOLOGIES: SeeBeyond eGate for enterprise application integration; WebSphere MQ and Java Messaging Service to transport XML messages; Sybase ASE 12.0 database; Enterprise Java Beans; Macromedia Cold Fusion

I.T. EXECUTIVE: Timothy Talbot, senior VP and CIO

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