Get a jump on IT

Managing IT for Business Value

Ron Miller IT Portfolio and Operations Manager Intel IT June 14, 2007

Intel - Public Get a jump on IT

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Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance, cost and total cost of ownership. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing.

*Other names and brands may be claimed as the property of others. Copyright © 2007, Intel Corporation. All rights reserved.

Intel - Public Overview

• Intel IT Strategy

• Creating Business Value for Intel

Intel - Public IT Reality…

Help Reduce Help Improve Fixed & Demand for Margins! Variable IT Solutions Help Enable Costs! Growth!

IT Budget

Flat Company Revenue Growing Declining

Intel - Public Intel IT Strategy Focus On Cost Savings thru… Operational Excellence thru … Reduction in Client TCO Standard Processes and Indicators Infrastucture Consolidation Security & Risk Management Standard based Open Architecture Customer Segmentation Invest in New … – Provides maximum Biz Value – Innovation for the future – Company growth

Intel - Public Business Value Managing for IT Business Value

Level 5 Investment Performance Analysis

Level 4 Options/Portfolio Management

Simple ROI & Level 3 IT Business Case Discipline

Level 2 Total Cost of Ownership

Level 1 No or Ad Hoc Practices

CMMI* Framework for Managing IT Business Value

* Other names and brands may be claimed as the property of others. Intel - Public Intel IT Business Value Program

Financial value dials •Days of inventory •Headcount productivity •Hardware and software cost avoidance •Capital equipment cost avoidance •Time to market •Direct revenue •Other cost avoidance

Non-financial value dials •Customer satisfaction •Intellectual property risk reduction •Product development agility Common Language •Regulatory compliance Anchor for Funding Decisions Portfolio Approach

Intel - Public Metrics Linked to Business Performance

What is the current state? What is the desired outcome?

• 28 days of inventory  Reduce inventory by X days • 12 hours throughput  Reduce throughput by X • 20 orders handled/head  Increase productivity by X% • 70% of market  Increase market segment share by X%

These metrics are IT enabled key business benefits measured as value dial improvements versus a current baseline

Intel - Public Result: New Measures of Success Value Created 2002: $423M • Not just availability 2003: $923M • Top and bottom line 2004: $1.2B impact & value 2005: $1.7B – Rigorous finance 2006: $1.3B definition for measuring ROI Other cost Headcount Avoidance Avoidance – Each program 4% 4% Revenue HC Productivity 28% carefully reviewed to 23% validate – Overall value Risk Avoidance 3% heavily judged (by Hardware Software Avoidance Avoidance Capital Equipment formula) 12% Time to Market 11% Avoidance 12% 3%

Intel - Public Business Value Index

Creates Improved IT efficiency Improved resistance business + with no Invest #2 from line value AND of business value IT efficiency businessInvest #1 penalty and users Invest #4 Improved Necessary, business Invest #3 0 Failure but low value with value little or no IT Invest #5 efficiency

penalty IT Efficiency IT

RequiresInvest #6 - Failure FailureInvest #7 increment al IT

budget ITAT0701P - 0 + Business Value

Intel - Public Business Value thru … Mobility at Intel • Mobile computing: Key Intel strategy – 80:20 mobile vs. desktop mix – 87% of knowledge workers mobile-enabled

• Value proposition is high – Wireless & mobile technologies offer >5% time-savings in an employee’s work week

$10,000 53% TCO End-user $9,000 Reduction $8,000 1995 – 1998 support $7,000 Training Replacing 6,400 $6,000 notebooks yields $5,000 3-year net present Notebooks value (NPV) of $4,000 Hardware approx. $26 Notebooks million $3,000 Desktops Desktops $2,000 Software $1,000 www.intel.com/it $0 1995 1998 2002 2003 Notebook support costs decreasing faster; TCO narrowing

Intel - Public Mobility Aids Business Continuity

• Moving away from disaster – Employees can take the “office” with them, out of harm’s way • Flood hits Folsom, CA building – Burst water main floods office space – Wireless notebooks easy to relocate – No customer impacts • Snow shuts down Portland, OR – Roads impassable for three days – 5,000 Intel employees simply work from home using notebooks • SARS shuts down HK office – Fast deployment of notebooks to HK from around the globe, employees work from home – Minimal impact to operations

Intel - Public IT@Intel Showcases Intel IT Experiences

• Share IT best practices with industry peers

• Provide IT industry education

• Facilitate IT innovation through industry research

www.intel.com/IT/IPIP www.intel.com/IT

Intel - Public Intel - Public