SESSION 109 Monday, November 2, 10:15am - 11:15am Track: Strategic View
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1 SESSION 109 Monday, November 2, 10:15am - 11:15am Track: Strategic View It's All About the Services: Implementing a Service Portfolio Nelli Serifovski Senior Process Manager, NNIT A/S nser@nnit.com Session Description Standardization, scalability, and transparency are critical success factors for any company experiencing rapid growth. This was the situation for NNIT in 2010, when new customers, services, and technologies were being regularly introduced into the business. This session explains how NNIT implemented a service portfolio to provide an essential overview of all services provided, focusing on the key benefits and lessons learned. (Experience Level: Intermediate) Speaker Background Nelli Serifovski has more than ten years of experience working with different IT service management processes. Her career as an ITSM professional and her interest in ITIL best practices began in 2003 when she was given the responsibility of preparing service level agreements and service catalogs for a major client at NNIT. In 2010, Nelli joined NNIT s new service management office. She is currently involved in the implementation of service request catalogues, including the introduction of a new service request management process.
2 It s all about the services! Implementing a Service Portfolio Nelli Serifovski NNIT A/S NNIT in brief NNIT was born as the internal IT department of Novo Nordisk, but has now grown to become one of Denmark s leading IT service providers and consultancies, providing a wide range of IT services to customers using fully integrated international delivery capabilities. Our vision By 2020, our quality and value adding IT services will make us: Denmark s preferred IT outsourcing partner A leading international IT partner dedicated to life sciences 2
3 ,600 employees. 15th consecutive year with double digit growth New offices in the US (Princeton) and Czech Republic (Prague). NNIT is listed on NASDAQ OMX Copenhagen A/S % of the employees works on sourcing destinations NNIT builds new data center and reaches 1,500 employees 3rd office in Denmark (Aarhus) New offices in Philippines (Manila) and Czech Republic (Olomouc) 10th consecutive year with double digit growth NNIT employee no starts work New offices in Switzerland (Zurich) and China (Tianjin) First large customer outside Denmark First large customer outside the Novo Nordisk Group NNIT - Milestones & key figures The situation: a fast growing business Time for scalability and standardization! We wanted to Create one central overview of services Minimize variation in services and agreements Anchor ownership and responsibility Clarify the relations between services Create a transparent cost model Ensure strategic development of services 4 so how do we do this?
4 It all starts with the mindset From an organization of computer geeks.. A former internal IT department with friends in the business areas Focus on technologies and IT components not IT services and outcomes Reactive and unstructured development of services to a professional IT service partner IT professionals with knowledge of what their service does for the customer(s) Development of services aligned with customer needs and challenges and at the same time maintain our values and flexibility 5 Must-win-battle Project Charter; September 2009 The purpose of the Service Portfolio and Catalogue project is to establish a Service Portfolio and Catalogue framework that serves as the spinal cord of NNIT Operations. The framework is expected to cover a Service Portfolio and a number of Service Catalogues supported by tools, processes and governance. The portfolio will contain all existing NNIT Operation standard services as well as the cost of a number of these. Expected go-live June 2010
5 Establishment of the framework - based on ITIL best practices Track 1: Design of the Service Portfolio Track 2: Identify, structure, and describe services Track 3: Define governance and processes Track 4: On-going workshops, training and awareness campaign Organizational change management - Workshops, workshops and more workshops. Purpose: create one common language! Service Portfolio vs. Service Catalogue Service Portfolio Manager Service Level Objectives
6 Design of the Service Portfolio The Service Portfolio Service (Name, ID, owner, functional area) The service lifecycle structure (Idea, Analyse, Design, Realise, Retire) The data model (Business Service/Infrastructure services, Service Package, Supporting services, Enhancing services) The Service Catalogue templates The Service Plan template Tool decision: A simple repository in SharePoint
7 Identify and structure services - An inside-out approach Identify Workshops with every team in the organisation Listing of all services delivered NB: services vs. service activities Structure Definition of the Lines of Service Categorize according to the data model Relate services (supported by, enabling, dependent of, etc.) Describe Describe services into the Service Portfolio Identify what is relevant to the Service Catalogue Publish Service Catalogue Clarify the relations between services Agreements (OLAs) between departments
8 Service relations - A time-consuming activity.. Call center (SPOC) Database service request fulfillment Database health check MS-SQL Single DB health check Database regulatory compliancy MS-SQL GxP compliancy Component monitoring MS-SQL monitoring Directory services DNS AD MS-SQL Database MS-SQL Database Pool Service Package MS-SQL Server hotel Windows server operation MS Windows Virtual Server Storage non-mirrored / mirrored Midrange Shared MS-SQL backup Core network Hosting Service Delivery Management Reporting Service reporting User administration User administration User access review Vulnerability assessment Patch monitoring Vulnerability scan Security Incident management and monitoring License management The Service Catalogue structure (phase 1) - time for the outside-in approach One Service Catalogue Business Services Infrastructure services (service packages) Enhancing services Requestable services Result: Impressive but too comprehensive and difficult to work with! Originally designed to meet the requirements of several target groups A re-structuring was needed!
9 The Service Catalogue structure (phase 2) - One year after go-live Standard Service Catalogue Strategic level (What can we provide) Target group: NNIT Presales and Client Management Purpose: input to bids and contracts Customer requirements Customer Service Catalogue Service Request Catalogue Operational level (What have we agreed to provide) Target group: Customer Executives / IT departments Purpose: alignment of expectations on live services, KPI reporting (What have we agreed to provide upon request) Target group: Users IT or end-users Purpose: To support daily Service Request and Change Management Service Governance - Dedicated roles and functions is a prerequisite! Service Owner Accountable for a Service throughout its lifecycle: design, operation, and development of the service adequately allocated resources and capabilities profit & loss Service Architect Responsible for design of services Assisting the Service Owner in preparing Service Plan and Business Cases Service Portfolio Management Ensures consistency and quality in the Portfolio and Catalogue Gatekeeper for the Service Portfolio phases Management reporting through Service Portfolio reviews
10 Service Portfolio Management process - transparency throughout the service lifecycle Idea Analyse Design Realize Retire Idea Every development initiative, input from Account Plans, Market research, corporate strategy, etc. Analyse Estimation, planning, business cases, Investment Management Design Service Design, requirement specification, procedures, instructions, test, service descriptions for the Service Catalogue Realize Live Services, operation, continual service improvement (CSI), costing/budgeting Retire Services being phased out The Service Plan - A tool to support strategic development of services Service Owner Define roadmap for the service / Line of Service Include input from Account Plans and market trends Create a Value Proposition Plan for development resources capabilities Create Business Case Apply for funding Division Management Single overview of proposed investments Prioritise investments Grant Funding Budgeting Innovative and customer focused services
11 Transparent costing - through the ABC model (Activity Based Costing) Cost per service activity Cost-drivers per service activity Identify and define cost of all services into one single cost base The same cost model was introduced for all services Finance department facilitated the process (ensured consistency) More accurate costing of services and improved transparency across the organization easier estimation for new proposals Improved budgeting/planning The yearly Service Portfolio review cycle Service Plan Follow-up on initiatives Sourcing Plan Minor update (input to business plans) ITOSMan SPM Review Service Catalogue Minor update Service Plan Major update (input to Business Plans) NOV DEC JAN FEB Service Plan Follow-up + ABC (Service review) OCT MAR ITOSMan SPM Review SEP APR ITOSMan SPM Review Service Plan Service Catalogue Sourcing Plan Management Review Service Plan Follow-up on initiatives AUG Service Catalogue Major update JUL JUN MAY ITOSMan SPM Review Service Plan Major update (input to AB, service roadmap) Sourcing Plan Major update (input to service plans and AB)
12 Our Service Portfolio portal The spinal cord of operations - knowledge is power ERP system Time Mgt. KPI reporting CRM system Customer Portfolio Project Portfolio CSI initiatives CMDB Resource Mgt. system Yoda: Value to you it will provide
13 Key learning points Make sure that you have Management commitment!! Get dedicated resources allocated!! Create a common understanding and a common language across the organization (make people think services!!) Key learning points Start with simple data models (do not expect the same maturity level across every team) Involve stakeholders (also outside the organisation!) Be prepared for several service catalogues (one-size never fits all!) Start with the design the portfolio, the catalogue, and the processes then look for tools to support it. Don t expect to find one single tool to meet all your requirements. Start with ITIL best-practise then adapt to your organization. Accept that service Portfolio Management is not implemented overnight! 24
14 Thank you for attending this session. Please don t forget to complete an evaluation form!
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