SOEs Standard Operating Environments

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1 Cnsulting SOEs Standard Operating Envirnments The SOE cncept explained in business terms Authred by Alan Pickering, Tech Partners Cnsulting September, 2003 Intrductin The use f Infrmatin and Cmmunicatins Technlgy (ICT) in rganisatins has gne well past the stage f being unique, nvel and even technically difficult. Nwadays, the technlgy is readily available, thanks t the vlume demand frm cmmercial and residential market segments. Even s, there are benefits frm adpting a Standards based apprach t chsing and deplying ICT assets; and ffering technlgy based IT services t custmers. This white paper will prvide a brief intrductin t the philsphy f Standard Operating Envirnments, and will explain the likely benefits, csts and planning factrs that relate t adpting an SOE apprach. Backgrund When desktp cmputing and Lcal Area Netwrks appeared in rganisatins in the 1980 s, they were small scale and f little immediate cnsequence. Being smewhat cmplex, and requiring sme hands n technical skills, they were acquired in small quantities. The lw cash csts meant they were ften purchased under the radar f senir management and IT teams. The practical use and ppularity f PCs and LANs grew, t the pint that sme rganisatins recgnized the need t accunt fr the cst f assets and peple s time spent n supprt. Since then, industry analysts have studied the real csts using Ttal Cst f Ownership (TCO) techniques and fund that the ttal csts ver the technlgy lifetime have been arund 6-7 times the initial purchase price. Sme rganisatins that permitted disparate purchasing nw have many types, brands and mdels f cmputing devices. This leads t a serius IT Service challenge, since end-t-end service can seldm be assured if the devices are nt knwn and understd. This is at a time when rganisatins have becme reliant n technlgy and cnsistent levels fr IT service. What is an SOE A Standard Operating Envirnment (SOE) is a declared standard regarding a type f technlgy. Whilst mst cmmnly, used t describe the ubiquitus Desktp PC, the term SOE, can als be used t declare a standard fr almst any type f technlgy, frm PC right thrugh t mainframe. It may als declare a standard fr sftware, a chsen service, prcess r supplier. Cpyright Tech Partners Cnsulting Perth, 2003.

2 Cnsulting The main principle is that when several chices exist, and that ccurs ften in the ICT wrld, the mst suitable ne fr the rganisatin is chsen and declared as the standard item. This allws the rganisatin t fcus its effrts n fewer technlgy device types, and this leads t better service, supprt and prices. In sme cases, multiple standards can be chsen, fr example 2 r 3 standard PCs, where it makes sense t guarantee cntinuity f supply, r t use cmpetitin t achieve lwer prices r btain better service. The extent t which an SOE is defined is gverned by the rganisatins chice at a strategy level. SOE Hw deep? One f the strategic questins fr an rganisatin, is - Hw deep r intensive shuld an SOE be defined? Fr example in a Desktp PC SOE, an rganisatin may specify Architecture (is it Intel r Mac); Vendr (Brand A r Brand B); Technlgy prduct (specific make and mdel, r sftware set); Technical standard (prcessr, screen, disk and RAM size) ; Cnfiguratin (specific physical and sftware ptins); At each subsequent level, the specificatin becmes mre detailed. There is n abslutely crrect answer. It all depends n what the rganisatin wishes t achieve; the degree f cntrl pssible ver changes; what it is prepared t pay; and what risks are invlved if this is nt dne. It is quite valid fr an rganisatin t select a manufacturer (r reseller) and sub-cntract the rest f the wrry t them. Sme rganisatins chse t specify right dwn t the lwest hardware and sftware cnfiguratin item. In these instances there might be missin critical r military specificatins t be bserved. Certainly the deeper the SOE definitin, the mre hands n effrt is required t test, select and maintain the standard. SOE - What breadth? The secnd brad questin is - T what breadth r width shuld an SOE be defined? Fr example, in a medium t large rganisatin, where a number a technlgy dmains may be used, the rganisatin may need t decide if standards apply t sme r all f the fllwing categries: Cpyright Tech Partners Cnsulting Perth, 2003.

3 Cnsulting The User device; User Applicatin Sftware; LAN media and servers; Wide Area Netwrk and Telc Services; Midrange and Mainframe servers; Netwrk & Systems Management tls; r The ttal cllectin f cnnected technlgy, End-t-End. Once again, there is n abslutely crrect answer. The chice depends upn hw dependent the rganisatin is n the technlgy and their desires t manage these inter cnnected assets. Similarly, the brader the extent f the SOE, the mre effrt is required. Where have they been used? The fllwing brief case studies prvide sme cntext fr the SOE chices: Case A A hme imprvement manufacturer prvides an in-hme measure and qutatin service. Mbile sales peple attend custmer s hmes and businesses t sell them windw blinds, screens, security drs and related lifestyle prducts. Each sales persn is equipped with a ntebk cmputer and a prtable plain paper printer. This allws them t enter measurements against prduct line items and prduce a printed qutatin. The details are synchrnized with the cmpany server later in the day, as part f rder prcessing and recrd keeping. These facilities ensure that measurement takes place nly nce; there are n mistakes frm illegible handwriting; and there is n need fr a secnd (repeat) visit. The custmer receives a prfessinal and uniquely numbered qutatin, frm which they can rder immediately r at a later date. Behind the scenes the rad warrirs PC SOE is: Planned by the IT crdinatr with the help f an external cnsultant; Assembled and delivered by the chsen reseller f the PC Ntebk and Printer; and Maintained by the same reseller n a Service Level Agreement. The SOE ensures all sales staff are equally equipped; that spare equipment can be readily used; and dwntime fr technlgy maintenance is minimised. Case B A large internatinal rganisatin perates 45,000 desktps fr the use f persnnel in their daily business prcesses. They have technlgy standards in place fr mst technlgy dmains t ensure cnsistency fr users. Cpyright Tech Partners Cnsulting Perth, 2003.

4 Cnsulting This is particularly imprtant fr custmer cntact persnnel, wh are lcated in call centres and use the desktp technlgy t access several lcal, midrange and mainframe based applicatin systems cncurrently. These peple may be fulfilling rders r answering service and billing enquiries, whilst the custmer is n the phne. Behind the scenes the ICT infrastructure standards and assets are: Planned and defined by a single architecture setting grup, plus ne f a number f natinal engineering fcused teams, cnsisting f trained specialists; Assembled and delivered by a number f cntracted vendrs wh pre cnfigure mst items t the standards befre delivery; and Maintained by reginal peratinal grups wh manage the infrastructure and ensure service delivery. The SOE ensures the rganisatin can ptimize its IT Service availability and realise financial savings by establishing large vlume cntracts. Benefits Mst f the benefits f an SOE are derived frm achieving a high degree f unifrmity in the technlgy. These benefits may include: Mre cnsistent IT service, since the technlgy is either unifrm r at least up t a minimum revisin level; Pr quality is eliminated up-frnt. Service quality is imprved since nly knwn gd prducts that pass specific tests are added t supply cntracts and thereby allwed int service ; Technical incidents and prblems are quicker t diagnse and repair since the technlgy is part f a knwn set f prducts. Unique items r cnfiguratins tend t stand ut because they are different, and they can be quickly identified; The management f the assets fleet can be simplified. All asset categries and types are knwn, as they have been assessed thrugh an apprval prcesses. Additinally, the use f Lease Finance may help t better maintain asset recrds; Sftware deplyment can be achieved at a faster rate and with greater cnfidence. The knwledge abut items in the fleet allws the use f sftware distributin technlgy (tls); Leveraging the vendr wrkfrce and facilities. Since a small number f standards have been defined, the rganisatin can arrange fr the vendr t pre-lad sftware, frm a standard image r template; Imprved user perceptins. Since mst users will understand the intentin t prvide them with a knwn and similar level f IT Service; Better use f peple and skills. End user persnnel are n lnger needed t prvide a significant level f lcal IT expertise, and these peple will be able t fcus n cre business rather than IT Supprt; Cpyright Tech Partners Cnsulting Perth, 2003.

5 Cnsulting Reduced purchase csts. When hardware and sftware purchases are structured under larger cmmn cntracts, the rganisatin can use the vlume purchase level t negtiate better prices. Additinal services such as stck hlding levels, free delivery, extended warranty, technical supprt and s n, may als be pssible; Simpler transitin t an utsurce (r insurce) prvider mdel, since the assets are knwn and service quality can be mre readily measured; and The pprtunity t reduce the Ttal Cst f Ownership (TCO). Csts and Issues The csts assciated with implementing an SOE may include: Peple, t plan and implement the prgram, as well as thse t manage it as a regular nging functin; Test facilities and technically skilled peple t cnduct prduct testing; Netwrk Management Tls such as sftware distributin technlgy; Time and skills t better manage the vendr, althugh this will mst likely be ffset by better service levels frm the vendrs; Change management effrt t negtiate and bring the change int effect. Sme relcatin f persnnel may be required; and Cmmunicatins and Educatin. Particularly fr the nging prvisin f infrmatin abut the technical standards and standard prducts. Organisatins are encuraged t examine where the mst value is t be gained based upn their present activities and knwledge abut csts. Basic Business Case The business case fr implementing an SOE maybe based n ne f the fllwing: T ensure cnsistent r stable service; T allw faster deplyment f new technlgy; r T reduce csts. Stability If business cntinuity is the prime area f interest, an SOE can imprve service reliability and extend available service times. Organisatins are encuraged t seek funding ffsets in aspects such as the preventin f dwntime; mre cnsistent service quality; reduced stress fr users; and ultimately better end service t custmers. An rganisatins risk management plicy and plans may ffer a means t quantify these further. Cpyright Tech Partners Cnsulting Perth, 2003.

6 Cnsulting Deplyment Rate If an rganisatin needs t achieve infrastructure changes quickly, the adptin f knwn standards can speed up planning and implementatin times fr deplyment prjects. Organisatins shuld find there are savings thrugh the shrtening f prject executin times and thereby receiving benefits earlier. Additinally, external help can be engaged Csts An SOE requires sme up frnt csts which are recuped thrugh efficiencies and ecnmies f scale. The financial case can be mdeled, fr an rganisatin accrding t its requirements. A discunted cash flw analysis technique is recmmended since the implementatin ptins are likely t extent ver varius time perids. The mst cnvincing financial case exists when there are few standards and many deplyed sites. In this case, which is illustrated belw, the investment in the R&D test lab, technical specialists and the change prgram, can be recvered early in the prject. Fr rganisatins with many sites, the net benefit is strnger and is realised earlier. Return Mre sites Early wins Annual Value Fewer sites Net Benefit (Min) Set Up Operatins Time Csts Planning factrs and Challenges Factrs t cnsider when planning an SOE implementatin are as fllws: 1. Availability f funds and expertise t frm the shared functin; 2. Availability f funds ver a perid f time, t prgressively replace assets with standard items; 3. Acceptance by peple in the rganisatin. This includes the culture in the rganisatin, regarding the acceptance f IT prducts selected by thers; as well as the attitude f ptentially displaced persnnel; 4. Senir management supprt, t engender fllwer-ship and t realise the benefits; 5. Capabilities in the IT team, t deliver and manage the standards. This includes the culture and readiness f IT persnnel t accept and perfrm a leadership rle; and 6. Lessns learned frm past plicy, gvernance and standardizatin initiatives. Cpyright Tech Partners Cnsulting Perth, 2003.

7 Cnsulting The adptin f an SOE is an initiative which requires cnsideratin frm the perspectives f: Change Management frm a business viewpint; Cmpetence in the management f technlgy; Internal Marketing; and Effective IT Service Delivery. In many rganisatins, the IT team is nt fully skilled in these aspects. Management may need t prvide nging supprt and directin fr a perid f time. Cnsideratin shuld be given t the likely reactin frm peple in the business units f the rganisatin. Attentin may als be required in the nging cmmunicatins f what the standard prducts and services are. Skills may need t be develped in the area f dcumenting and describing the services and their characteristics, in an internal applicatin f services marketing. Supprt Frtunately, supprt is available t assist rganisatins in planning and implementing a Standard Operating Envirnment. The prcesses required t design and maintain an SOE prgram, are cntained in the Release Management prcess, f the IT Infrastructure Library (ITIL). Netwrk management tls, such as thse t prduce and maintain sftware images, have been available fr sme years. Tls are als available t autmate netwrk inventry, versin management, and sftware distributin tasks. Vendrs are als a useful resurce, having gained expertise frm dealing with their ther custmers. They will ften prvide help n a minimal fee basis, prviding rder quantities are sufficient. Finally there are als a small number f rganisatins which ffer services such as cnsulting assistance, planning advice and mentring. Cnclusin SOEs have been arund fr abut a decade, and sme rganisatins have achieved effective management f their ICT investments as well as stabilized their IT Services. There appears t be pprtunities fr ther IT Managers t als cnsider this initiative. References Useful references links include: ITIL (Release Management and ther prcesses) Other white papers frm Tech Partners Cnsulting Cpyright Tech Partners Cnsulting Perth, 2003.

8 Cnsulting Usage permissin ntice The material within this whitepaper is published free fr yur nn cmmercial use. All we ask is that the surce (Tech Partners Cnsulting at ) be acknwledged. If yu are using the material t derive a cnsulting incme r prfessinal fees, we ask that yu cntact us befrehand. Authr prfile Alan Pickering is the Principal f Tech Partners Cnsulting, which is based in Perth, Western Australia. Alan ffers 20 years experience in the management and implementatin f technlgy and technlgy based services. He hlds tertiary qualificatins in Cmmunicatins Engineering and additinally has pursued pst graduate studies in Business and Marketing. He als hlds the Service Manager certificatin in IT Service Management. His experience is gained frm time in the Telecmmunicatins industry, IT Services Management, Prject Management and ICT Cnsulting. His prfessinal interests include change via the intrductin f technlgy; and the marketing and delivery f ICT services within and between rganisatins. Web: [email protected] Cpyright Tech Partners Cnsulting Perth, 2003.