October 18, 2014 Mansi Bhatt, Lakshmi Chaudhari & Daina Dangerfield

Transcription

1 NGITS: Enabling Value through Service Delivery October 18, 2014 Mansi Bhatt, Lakshmi Chaudhari & Daina Dangerfield

2 Agenda Current Understanding Recommendation Financials Implementation Risks & Mitigations Conclusion & Next Steps Appendix 2

3 NEG Community is looking to deliver value to its customers and employees NGITS Pressures NGITS has been established as a shared IT service provider for 7 agencies Goals: 1. Evolve into an optimized shared service provider 2. Optimize investments 3. Operate and assure the integrity of the NEG enterprise architecture Results needed now High speed network connectivity and significant bandwidth required Increasing IT costs as a percentage of total budgets Avoided investing in the latest technology How can NGITS evolve into an optimized Shared Service Center? 3

4 We have identified key business objectives from our initial analysis to focus our recommendation Each objective was evaluated for its impact to the business and growth to realize value. The objectives which have the highest impact and biggest growth opportunity were selected. High Impact Business Process Redesign Operational Excellence Performance Management Cost Optimization Key Business Objectives Operational Excellence Performance Management Cost Optimization Low Low Growth Opportunity High 4

5 By adopting our recommendation NGITS can create a sustainable IT model The Vision NGITS will become a cost-effective and reliable IT service provider to the NEG community by meeting commodity IT requirements and exceeding customer satisfaction expectations Custom Service Mgmt. Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives Operational Excellence Custom Service Management Framework Implement a Change Management Plan Resource Alignment Performance Management Continuous Improvement for Client Relationships Technology Upgrades and Initiatives Cost Optimization 5

6 NGITS must adopt a customized layered service management framework Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives G o v e r n a n c e L a y e r S S C Management Processes: Customer Relationship Performance People Development Continuous Service Improvement Information Security Process Assessment/Redesign Finance Compliance Incident Taking Incident Routing Source: Accenture Optimizing Shared Service Through Better Service Mgmt. Service Level Agreements: Service Definition Roles & Responsibilities Key Performance Indicators Chargeback Approach Supplier Management Service Portfolio/Level Management Incident Tracking Incident Resolution Customer Contract Layers: Service Taking Service Routing Service Tracking Service Resolution Customers & Partners: Corporate Management Operating Unit Management Employees End Customers Vendors By creating a custom service framework, NGITS can ensure operational excellence in all aspects of service delivery 6

7 NGITS needs a Joint IT operating model & a Service Optimizing delivery model Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives A strong Governance Structure will provide clear lines of accountability for efficient decision-making Source: Effective Governance of Government Shared Services, Gartner(2004) 7

8 A robust organizational change management plan will be needed to support the new governance structure Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives Difficulties & Resistance Cultural Bias New team structure & organizational hierarchy adjustments Distrust due to new organizational structure Realignment of business processes Resistance to relocation Monetary relocation benefits Stay-on perks Education & Training Support programs with individual attention Strong Project Management Means to Overcome Key Factors Communication Motivation Increase stakeholder buy-in Organizational readiness Growth projection & alignment to central strategy Sources: Building a shared services data center IBM, Implementing Shared Services Centers by Institute of Management Accountants 8

9 NGITS can have a competitive advantage by investing in and utilizing new technologies Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives Service Mgmt. Technology *Procured for all groups New Capabilities Infrastructure Optimization MGND Business Process Automation Minimal Customization: Avoid interface conflicts Systems running on BPA: Incident Mgmt., Problem Mgmt., Change Mgmt. Automated Call Distribution Redirect requests to appropriate service desk depending on customer response Collaboration Webpages Run on centralized knowledge management data store Self-Service Automated voice response unit services requests Reduces caller volumes at service desks Business Intelligence Reporting Auditing Performance Management Investigative capabilities Voice Over Internet Adding VoIP capabilities to all service desks Consolidated Data Center 1 main data center & 1 backup center Data integration High availability, redundancy & integrity Network Hardware Setup Wireless and wired network infrastructure set-up using LAN, Cable, WiMax Satellite broadband connections with reserved bandwidth Improved technology suite will enable standardized business process flows leading to Performance Improvement 9

10 Leveraging Business Intelligence will bring more value to service delivery Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives Auditing and Reporting Capabilities Audit trails increase accountability Multiple levels of granularity supported Supports Incident Management and Problem Management Records, Tracks, Reports Solutions Investigative capabilities help in disaster recovery Assists Management of Shared Service Model Capability analysis detects performance of service desks Analyze chargeback model and utilization of resources Business Intelligence will allow for increased performance management capabilities Source: Business Intelligence as a Shared Service, Oracle (March 2010) 10

11 Continual Service Improvement focusing on user feedback will help exceed customer expectations Continual Service Manager CSI Team Service Framework CI for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades & Initiatives Inputs: Vision KPIs/CSFs Baselines Quality assurance Act Implement improvements Inputs decisions to PDCA Assign next set of resources Plan Scope, goals, objectives Processes, roles, tools Measurement techniques Lifecycle Interfaces Check Monitor, measure, review Report, document Assess, Audit Recommend improvements Do Implement improvements, monitoring, metrics Assign roles, responsibilities Communicate, train Customer Feedback through surveys Service Reporting Continual Service Improvement Register Continuous Improvement Communication to both internal and external customers and employees Source: ITIL Foundations Handbook 11

12 The approximate cost of our recommendations will be $411 Million with potential benefits of $608 Million Potential Benefits $8 M $17 M $23 M Data Integration Savings Shared Service Desk Savings Data Center Consolidation Savings Potential Benefits based on Previous Case Studies of SSC Implementations: $108 M $48.5 M $24 M $13 M $1.3 M $1.2 M $560 M Technology Costs Internal Staffing New Hires Relocation Costs Training Costs Consulting Fees Legacy System Savings Pfizer incorporated data integration into its SSC National Business Center decommissioned legacy systems and shared service desk savings Microsoft implemented data center consolidation Costs See Appendices for additional information on these case studies 12

13 The implementation of our recommendation will span 14 months Governance Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Create R&R Skills Implement Internal Hiring Ext Hiring Support Training End User Training Change Management Counseling / Support Programs Service Desk Strategy Facilities Service Desk Reorg Relocation CSI Technology DC Consolidation Plan Implement DC Implement Config. Service Mgmt. Tech Testing Maintenance Deployment 13

14 Risk & Mitigation Strategy Risk Assessment Mitigation Process maturity may decrease initially (going from local to shared service models) Probability Impact Provide appropriate training and resources to ensure smooth operations Service Management processes are not adopted by business and IT stakeholders Probability Impact Senior Leadership must communicate the importance of the process in order to create buy in Confusion in the ownership of responsibilities with the extensive relocation and reorganization Probability Impact Place great initial emphasis on process redesign, identify the process ownership, and set up service agreements between SSC and agencies Existence of many poorly integrated IT systems across agencies Probability Impact Ensure consistency and integration of data and technology during data center consolidation process 14

15 Our recommendation will enable NGITS to evolve into an optimized Shared Service Center Operational Excellence Performance Management Custom Service Management Framework Continuous Improvement for Client Relationships Implement a Change Mgmt. Plan Technology Upgrades and Initiatives Resource Alignment Cost Optimization Next Steps: Manage ongoing operations to achieve the Shared Service Center s business case targets: Scope, volume, cost, quality Use incremental demonstrations of results to move from Commodity IT to Support IT & Mission IT Use standardized and predictable estimation models for more accurate budget forecasting Improve the scalability of the existing model by evaluating cloud computing 15

16 Questions? 16

17 Appendix Table of Contents Shared Services Center Current State to Target State Roles & Responsibilities Key Performance Indicators Location Rationale Financial Support Chargeback Model Service Desk Custom Model Tier Description of Model Organizational Chart Operating Model Comparison of different IT Operating models Benefits of Joint IT Operating model Relationship between IT Operating model and delivery IT delivery model maturation framework Technology Data Center Consolidation Data Center Consolidation Financials Self service Collaboration Webpages MGND: Incident and Problem Reporting process in MGND Service Management Service Portfolio Information Security Supplier SKMS Miscellaneous Government Guidelines & Compliance Cost Optimization Model Organizational Change Management Best Practices Additional Risk & Mitigations Process Redesign Process Assessment Current State of Process Maturity As-Is to To-Be CMMI assessment Case Studies Service Desk Redesign Pfizer National Business Center 17

18 Transformation to NGITS: Current State to Target State Current State: Target State: Unpredictable Costs Lack of visibility into service performance Lack of access to high speed network connectivity & bandwidth Poor investment in cutting edge technologies Leading edge tools & technologies to improve service performance tracking Cost Savings through integrated shared service desk & data integration Increased access to high speed network connectivity to improve worker productivity 18

19 Roles & Responsibilities of Shared Service Office Role Responsibility Director Provide overall leadership for the SSC Steering Committee Service Delivery Strategy Scope Expansion Significant Issue Resolution Funding Review Director Staff Assist the Director Resource Management Plan for the Human Resource Changes Procurement Management Provide Sourcing Support Execute Contract Implementation Execute Spot Buy-ins Customer Relationship Management Tasked with ensuring that the agencies are satisfied with IT across all the services to which that individual agency subscribes Product Management Own the IT organization's service portfolio and service catalog User Committee Provide feedback on service delivery to identify improvement areas 19

20 Roles & Responsibilities of Shared Service Office Role Responsibility Support Service Desk Knowledge Management Problem Management Access Management Service Catalog Management IT Directorate Responsible for hosting, desktop management and service-desk-related services and/or processes. Responsible for application development, integration, maintenance, enhancement and support. Corporate Directorate Responsible for corporate services such as Finance, Audit, Payroll, Human Resources Data Delivery Directorate Serve as a competency center model: the focal point for data integration and reporting capabilities within NGITS Quality Directorate Monitors process outcomes to provide early warning indicators that an SLA is in jeopardy. Work with delivery managers to diagnose and fix problems before they compound, while also consulting on opportunities for continuous improvement. Project Management Office Lead the project management activities for the Shared Service Center Implementation Track project progress along with risks & issues Continual Service Improvement Service Performance Issues Continuous Improvement Feedback New Requirements 20

21 Key Performance Indicators relating to Custom Service Management Framework Name Value to Business KPIs Help Desk Staffing Decrease call wait and call abandonment time Improve Incident Mgmt. Service Mgmt. Tools Rationalization Reduces inefficiency Improves Help Desk productivity Decrease in call wait time Decrease in call abandonment rate Decrease in time spent in resolving tickets First call resolution of tickets Incident and Knowledge Mgmt. Updates KMS Reduces time spent in resolving tickets manually Promotes user adoption of self-service portal Change Mgmt. Control over changes and management of risks it introduces Reduction in change related service failures Configuration Mgmt. Centralized view of configuration information Improves impact and root-cause analysis Optimizes use of IT service assets Access, Request and Continuity Mgmt. Authorization and rights to users to ensure access as well as security of services Single entry point for all types of requests Assurance that services will be resumed within required and agreed business timescale Increase in percentage of incidents resolved through self-service Improves first call resolution rate Reduction in number of changes that cause incidents Reduction in time to perform root-cause analysis Improved change success rate Decrease in variance between projected time and actual time for sustaining activities Decrease in the number of requests logged by service desk Time required to bring services back online 21

22 Key Performance Indicators relating to Custom Service Management Framework Name Value to Business KPIs Financial Mgmt. Costs and billing by customer group Increase transparency of the cost of IT services Decrease in variance between budgeted and actual costs Service Catalogue Mgmt. Service Level Mgmt. Catalogue of services offered by IT and their business value Ensures that an agreed level of services is provided to the business for current and future needs Establishes contracts and agreements on quality and cost of services provided to customer Increase percentage of services captured in the catalogue Number of contract or agreement breaches Scale of penalties incurred due to breaches Customer satisfaction index Event Mgmt. Determination and initiation of response Entry point for execution of service operation processes Continuous Improvement Increased standardization and compliance with processes Continual improvement and standardization of processes Number of events logged in timely manner Percentage success in initiating appropriate response Increase in the compliance with ITSM processes Increase in the number of changes as a result of continual improvement initiatives 22

23 Location Rationale for SSC and Data Centers Locate Shared Services Center and Main Data Center in the National Capital Region Locate Shared Services Center and Main Data Center near ALRN base The majority of the agencies will be located in the NCR The majority of the Shared Services will come from ALRN employees Assumption: ALRN s biggest office is located in the Midwest 23

24 Finance Appendix Costs & Benefits Costs Consulting Fees $1,234,000 New Hires to support Service Desk Internal Staffing CSI,PMO,Support Desk $23,994,000 $48,541,860 Relocation Costs $13,085,200 Training $1,321,695 Technology $108,243,854 Total Cost $411,997,038 Cost Savings from Data Center Consolidation Decommissioning of Legacy Systems Cost Savings from Shared Service Desk Cost Savings from Data Integration Benefits $23,200,000 $560,000,000 $17,000,000 $8,217,647 Total Cost Savings $608,417,647 24

25 Finance Appendix - Assumptions Assumptions based on case studies Source: The National Business Center Reduced Costs and Improved Services in Multitower Shared Services, Gartner(2009) Pfizer Delivers Effective Data Integration Capabilities via a Shared Services Model, Gartner(2008) Federal Data Center Consolidation Initiative Savings from decommisioning of 5 legacy HR systems $ 4,000, Savings from decommisioning of 5 legacy Finance systems $ 4,000, Savings from decommisioning of 5 legacy Audit systems $ 4,000, Savings from decommisioning of 5 Payroll systems $ 4,000, Cost Savings from Shared Service Desk (from ) $ 17,000, Cost Savings from Data Integration (Pfizer case Study) $ 5,000, Size of Pfizer Size of NEG Community Benefits Multiplication Factor 1.64 Cost Savings from Data Center Consolidation for Microsoft $ 23,200,

26 NGITS Shared Service Center Chargeback Model Roadmap Harmonize Budgets (Year 1) Excellent Customer Relationships Superb Delivery Capability Surplus available to invest in resources over time Focus on quick wins to set vital benchmarks Service Based Costing (Year 2) Usage patterns to derive potential future charges Refine Governance concerning SLAs Encourage customers to accept standardization across services Demand Based Pricing (Year 3) Continual Improvement Generate Investment Funds for future innovation Manage operations flexibly to grow or contract Grow Customer base Source: How to Create a Public-Sector Shared-Services Road Map for Charging, Gartner(2014) 26

27 Multi-channel, Multi-tier Model for Service Delivery LEVEL 0 SELF HELP LEVEL 1-NGITS LEVEL 2-LOCAL SUPPORT LEVEL 3-ESCALATION Customer Facing Service Desk Service Specific Service Desk Specialized Support Vendor Support Tier1 Tier1 Tier2 Tier3 Tier2 Tier1 Tier2 Tier3 Web Based Services, Automated Call Distribution ITIL, Databases, Knowledge Bases, Call Monitoring In-person support for hardware issues Specialized Systems & Support Source: 27

28 Service Desk Design Tier Description SUPPORT LEVEL TIER LEVEL DESCRIPTION Level 0(Self-Service) Tier 1 Level 0, Tier 1 is the first stage of the service delivery model. Tier 1 is a component of digital channel which aggregates self-help materials produced by the SD and the ACD Channel that offer escalation paths to Level 1 support where necessary. Tier 1 provides customer support without staff intervention. This approach has cost benefits to IS through improving the ROI on resources and support, and freeing NGITS staff to apply their time & expertise to more sophisticated queries. Level 1(NGITS) Tier 1 Within Level 1, Tier 1 provides initial support either through telephone or live web collaboration. Level 1(NGITS) Tier 2 Within Level 1, Tier 2 provides an advanced level of support when Tier 1 needs additional assistance. Level 1(NGITS) Tier 3 Within Level 1, Tier 3 provides an advanced level of support when Tier 2 needs additional assistance. Level 2(Local Support) Tier 1 Within Level 2, Tier 1 provides in person assistance for issues that cannot be resolved remotely via NGITS. Level 3 (Vendor Support) Tier 1 Within Level 3, Tier 1 the vendor provides initial support for issues that cannot be resolved by NGITS & Local Support. Level 3(Vendor Support) Tier 2 Within Level 3, Tier 2 the vendor provides advanced support when Tier 1 needs additional assistance. Level 3(Vendor Support) Tier 3 Within Level 3, Tier 3 the vendor provides advanced support when Tier 2 needs additional assistance. 28

29 Organization Chart for Support Service Desk Support Service Desk Organization Chart: 921 On site Support: 138 IT Directorate: 554 Corporate Directorate: 130 Data Delivery: 69 Quality Directorate: 30 Desktop Support: 67 Network Mgmt.: 67 Server Hosting: 48 Storage Mgmt.: 59 Backup / Restore Mgmt.: 63 Internet Telephony Services: 73 Printer Mgmt.: 61 Audit Payroll Finance HR Data warehousing & BI: 65 Report Distribution: 4 Database Mgmt.: 58 Procurement Support: 58 29

30 Comparison of different IT Operating Models Operating Model Type Centralized Hierarchical Peer to Peer Fully Jointed Strategic Objectives Standardization to drive economies of scale Enabling agencies at a lower level to leverage existing investments Leveraging competitive advantages of an agency Balance cost optimization with local responsiveness & collaboration Budget Authority Single channel controlled by a single individual Higher level of government has a degree of oversight Decentralized Decentralized Variance of stakeholder domains Organizational Culture Tightly aligned Moderately aligned Discrete alignments Moderately aligned Centralized command must be fostered by strong top down sponsorship Willingness to relinquish control of selected services to higher levels of authority Willingness to relinquish control of selected services to peers Bottom up collaboration Distribution of Capabilities Mature skills and processes scattered across users but can be easily consolidated Mature skills and processes are concentrated in the hub organization Mature skills and processes are limited and concentrated across government agencies Equally spread across all users Capacity for Change Internal adjustments are made through executive leadership Localities accept headquarters with little authority Ability to implement deep expertise in workforce Change can be achieved through consensus of majority rule Source: Get Your IT Service Model Right by Optimizing IT's Operations and Outcomes 30

31 Benefits of the Joint Operating Model Leverage Existing Expertise Minimize Union Issues & Workforce Disagreements Centralized Procurement & Vendor Management Long Term Value Creation Source: Four Types of Government Shared-Service Initiatives, Gartner (2013) 31

32 Relationships between Operating Model & Delivery Model Operating Model Type Asset Optimization Delivery Model Process Optimization Delivery Model Service Optimization Delivery Model Value Optimization Delivery Model Centralized Maximizes Corporate Assets Best Fit Optimizes Process Coordination & Integration Optimizes corporate services Optimizes value of integrated value chain Shared Optimizes assets in the shared environment Optimizes key corporate processes Optimizes shared services Best fit for high level of service commonality among business units Optimizes value of what is shared Decentralized Optimizes Business Unit Assets Optimizes business unit processes Optimizes business unit s unique services Optimizes independent value chains Source: Get Your IT Service Model Right by Optimizing IT's Operations and Outcomes 32

33 IT Delivery Model Maturation Framework 50% Acts like a cost center Best practice model depends on business expectations Approximate Adoption Rates 25% Asset Process Acts like ESP Acts like profit center 0% Service Value IT-Focused Internal Customer - Focused External Market - Focused Source: Running IT Like a Business 2.0: The Service-Optimizing IT Delivery Model Maturation Rates 33

34 Consolidation of Data Centers & Benefits Reasoning for Consolidating Data centers Computing demands vary resulting in capacity deficit or surplus Varying resource levels Require frequent maintenance and are energy inefficient Require multiple service teams & service contracts Agility of service delivery will be improved, resulting in lesser service outages and greater acceptance of service calls All groups require data warehousing support which can be fulfilled using a centralized repository Availability and Disaster Recovery regions are implemented here with groups falling into either buckets Leverages standardization and consistency amongst all organizations which reduce system interface complexity Enables service deployment innovatively, reallocating underutilized or over utilized resources Data centers will be zoned and security mechanisms will be set up. This ensures confidentiality and integrity of all data Source: IBM Building a shared services data center 34

35 Data Center Consolidation: Financial Benefits Examples Hewlett Packard is cutting its 85 global data centers down to six--three of which will be mirrored disaster recovery sites. HP expects this move to save the company $1 billion annually. IBM is consolidating 3,900 servers into 30 virtualized mainframes running under Linux. The company anticipates an 80% reduction in energy usage while significantly shrinking its current 8 million square feet of data center space. Microsoft is well along in its data center consolidation efforts, producing a savings of $23.2 million--a 40% cut in its pre-consolidation spending levels. Williams-Sonoma, Inc. is moving 100 stand-alone servers onto five IBM Regatta Unix servers. This effort eliminated the need to add 50 more stand-alone servers next year to handle increased processing demands. Source: Federal Data Center Consolidation Initiative 35

36 Self Service Collaboration Webpages Allows users to create and resolve their own incident requests Reduces call volumes to service desks Pre-configured service requests reduce service desk response time Features: FAQs to refer basic functionalities Knowledge Articles Alerts to let all organizations know of any ongoing maintenance Automated approval management Chat rooms to enable quick response to requests Source: 36

37 MGND BPA: Incident Management Systems & Problem Management Incident Management System An organized reporting standards assists Director and other top officials in management reporting Problem Management This functionality allows service desk employees to analyze incidents to prevent them from reoccurring Assists service desk staff Record, Track, Resolve incidents Minimize system downtime by faster incident resolution Provides Audit trails to assist internal audit teams in maintaining accountability It performs a root cause analysis to link incidents and their causes to the business impacts It is a mitigation tool, which is used to reduce business impact on the individual organization participating in the shared services model Investigative capabilities add an additional layer of security for disaster recovery Sources: BMC.com Incident Mgmt. & BMC.com Problem Mgmt. 37

38 Reporting Process in the MGND BPA Suite Export Edit CSV Formats XLS Formats Client Category View Reports Generated Analyze capability Analyze productivity Analyze Time spent in system SLAs Filtered Report Source: 38

39 Process Assessment & Redesign External Environment Customers Products Business Process Operation View Behavioral View Best Practice Definition 1. Task Elimination Eliminate unnecessary tasks from a business process 2. Task Composition Combine small tasks into composite tasks and divide large tasks into workable smaller tasks 3. Integral Technology Try to elevate physical constraints in a business process by applying new technology 4. Empower Give workers most of the decision-making authority and reduce middle mgmt. 5. Order assignment Let workers perform as many steps as possible for single orders 6. Resourcing Move tasks to more appropriate places Organization Structure Population Technology Information 7. Specialist-generalist Consider to make resources more specialized or more generalist 8. Integration Consider the integration with a business process of the customer or a supplier 9. Parallelism Consider whether tasks may be executed in parallel 10. Numerical Involvement Minimize the number of departments, groups and persons involved in a business process Source: 39

40 Current Process Maturity Levels based on Service Line Release & Deployment Mgmt. Problem Mgmt. Knowledge Mgmt. **Average of all 7 agencies processes Change Evaluation Transition Planning & Support Service Validation & Testing Event Mgmt. Access Mgmt. Change Mgmt. Incident Mgmt. Service Asset & Configuration Mgmt. Request Fulfillment Level 0: Incomplete Level 1: Performed Level 2: Managed Level 3: Established Level 4: Predictable Level 5: Optimizing Source: 40

41 As-Is CMMI Structure to To-Be CMMI Structure Currently at high level 1 and goal should be high level 2 Level 1 Performed Process unpredictable, poorly controlled and reactive Level 2 Managed Process characterized for projects and is often reactive Level 3 Defined Process characterized for the organization and is proactive Level 4 Quantitatively Managed Process measured and controlled Level 5 Optimizing Focus on Process Improvement Source: 41

42 Service Portfolio Management Manages SM investment Service Portfolio Pipeline Listing of services currently under consideration or development but not yet available Represents the service providers growth and strategic view for the future Realize not all services in the pipeline will be built or released Catalog Business/Customer Service Catalog Technical/Support Service Catalog Database or structured document detailing live IT services (those available for deployment and operations) Represents only part of portfolio details service that provides incomes (recovers costs) Supports sale and delivery of IT services Retired Services Phased out or retire services Source: ITIL Foundation Handbook 42

43 Information Security Management IT Security Policy meets organization s security policy and corporate governance requirements Confidentiality: information is used or disclosed only to those who have a right to know Integrity: information is complete, accurate and protected against unauthorized modification Maintain Plan 3. Availability: information is available and usable when required; systems providing the information can resist attacks and recover from or prevent failures Control Appropriateness: services used in an appropriate manners Trustworthiness: business transactions and information exchanges can be trusted Evaluation Implement Source: ITIL Framework 43

44 Supplier Management Critical Success Factors Supplier Categorization Communication Include end users and have recurring and standing meetings with suppliers Performance Mgmt. Establishing expected level of service including staffing, security, disaster recovery and satisfaction Roles Definition Define the difference between what the company does and what the vendor does High Low Value & Importance Operational Suppliers Operational Suppliers Commodity Suppliers Tactical Suppliers Tactical Suppliers Operational Suppliers Strategic Suppliers Tactical Suppliers Operational Suppliers Low Risk & Impact High Source: ITIL Handbook and TBI Central.com Vendor Mgmt. Best Practices 44

45 Service Knowledge Management systems function as repositories for faster issue resolution Lifecycle of Data within the SKMS Data Key Factors to consider Organizational fit and culture affects successful implementation of SKMS Knowledge retention is affected by employee status and privacy can become a major concern Information Knowledge Continual use of SKMS systems reduces request turnaround times and simplifies incident & service requests CMS & CMDS feed data into the SKMS which helps in making decisions and service delivery Source: ITIL Foundations Handbook 45

46 Government Guidelines & Compliance M-11-29: Memorandum to Agency CIOS Federal Information Technology Shared Services Strategy Federal Government Approach to Enterprise Architecture Federal Transition Framework (FTF) Service Catalog OMB Memorandum M : IPv6 Four main focus areas: Governance Commodity IT Program Management Information Security Portfolio Stat Process Future-First Architecture Future-Ready Digital Government Centralize architecture Minimize duplication of resources Increase shared services Promote engagement Used for interagency information transfer Improves effectiveness & efficiency of IT investments Perform inventory check of network infrastructure Switch to IPv6 compliant devices Additional security Sources: BMC Incident Problem Mgmt., CIO.gov 25 Point Implementation Plan to Reform Federal, Public Law , Division E, Clinger-Cohen Act of 1996, White House Shared Services Strategy, White House OMB Memoranda 46

47 Cost-Optimization Model Business Restructuring and Innovation Process improvement, reorganization, new methods Joint Business and IT Cost Savings Implement cost-saving technologies with the business Cost Savings Within IT Identify opportunities to reduce IT costs IT Procurement Get the best pricing and terms for your IT purchases Difficulty Different types of cost optimization involve different parts of the organization and varying IT department decision rights Value Source: Gartner (October 2011) 47

48 Organizational Change Management Best Practices Change Strategy and Planning Audience Analysis and Impact Assessment Sponsorship and Communication Plan 4. Role Design and Mapping Training Design and Development Training Deployment Support Training: Consultants train Support Desk End User Training: Train the Trainer aka Super Users 8. Start up Support 7. Readiness Assessments Source: Motorola Case 48

49 Additional Risk & Mitigation Strategy Risk Assessment Mitigation Unexpected Implementation Cost Escalation Probability Impact Perform project performance monitoring to keep expenses in check Service not being used because of less local support Probability Impact Secure User Buy in through knowledge transfer & intense training sessions Multi-Party Shared Service model can often lead to slow decisions, including on minor matters. Probability Impact Agreeing early on that majority decisions are the rule, instead of unanimous decisions. Legal, Regulatory barriers Probability Impact Investigate the regulatory and other barriers thoroughly 49

50 Case Study: Service Desk Redesign Results Situation 2 nd Tier Technical Engineer spent lot of time replying to easy questions No centralized method to manage and update knowledge Service Desk did not have knowledge to be involved in Problem/Change Management Actions Redefined Responsibilities Service Desk was designed to be involved in more ITIL process such as Problem Management Change Management Event Management Service Level Management KPI Customer Satisfaction 71% 81% VIP satisfaction 60% 90% Avg. handle time 15 min 12 min Call abandon rate 10% 3% SD help revolve rate N/A 60% Staff attrition rate 20% 8% Problem identify 4 7 Knowledge base usage 30% 80% Change execute time 8 days 5 days With about 6 months effort, restructuring was completed successfully. Within 2 years KPIs showed significant improvements Source: A Study of Service Desk Setup in Implementing IT Service Management in Enterprises Xiaojun Tang1, Yuki Todo2 50

51 Case Study: National Business Center Reduced Costs & Improved Services in Multi tower Shared Services Situation Provides Financial Mgmt., HR, & IT Infrastructure/information security services to more than 40 U.S. federal agencies FBD: Offers services for three applications: Oracle E-Business Suite (EBS) SAP CGI Momentum. HRD: Brought together multiple legacy applications and commercial-off-the-shelf systems. Completing an infrastructure consolidation program to migrate mainframe to run Linux and to virtualize distributed servers. Actions Investigate opportunities to harness economies of scope across multiple lines of services Establish programs to benchmark against industry standards Redesign processes and increase productivity to foster customer service excellence. Hire, train and reward staff by aligning every employee's role with the service delivery excellence strategy. Action Decommissioned 5 legacy systems Shared investment among 50 agencies Result Reduced annual IT costs by $4 million NBC could investment additional $5 million Other agencies could investment additional $10 million Source: The National Business Center Reduced Costs and Improved Services in Multitower Shared Services, Gartner(2009) 51

52 Case Study: Pfizer delivers effective data integration capabilities via a Shared Services Model Situation 85,000 employees and operations in 150 countries, Complex in how it discovers, develops, manufactures, sells and delivers its products to the global marketplace. Huge disparity in approaches and tools across the organization Led to inconsistency in quality, timeliness and manageability of the data integration solutions and architectures being delivered. Each project team was making redundant investments in tools, processing capacity and skills, with no reuse of these capabilities across projects Actions Established a vision for shared data delivery services which was founded on a set of core principles: One of the most critical and impactful approaches create a set of reference architectures, referred to by Pfizer as its "playbook." Team has established a portfolio of standard data integration, data quality, metadata management and BI tools. Action Dozens of redundant project-specific environments Additional benefits Result Lead to millions of dollars in savings on annual basis Other parts of IT benefit from standardization Source: Pfizer Delivers Effective Data Integration Capabilities via a Shared Services Model, Gartner(2008) 52