November, 2007

A Partnership for ITSM A Partnership for ITSM ImplementationImplementation

Dave Hileman - UPMC

Ryan Smalley – IBM

AgendaAgenda

IBMIBM--UPMC PartnershipUPMC Partnership

�� What did we set out to What did we set out to

accomplish?accomplish?

�� Where are we now?Where are we now?

ITSM ImplementationITSM Implementation

�� How did we begin?How did we begin?

�� ChallengesChallenges

�� SuccessesSuccesses

Lessons LearnedLessons Learned

At a Glance: At a Glance: University of Pittsburgh Medical CenterUniversity of Pittsburgh Medical Center (UPMC)(UPMC)

�� Serves the health needs of more than 4 million people each yearServes the health needs of more than 4 million people each year�� More than 45,000 employeesMore than 45,000 employees�� 20 hospitals AND a network of other care sites across western Pe20 hospitals AND a network of other care sites across western Pennsylvania nnsylvania

and throughout the world: and throughout the world: doctorsdoctors’’ offices, cancer centers, outpatient treatment offices, cancer centers, outpatient treatment centers, specialized imaging and surgery facilities, incenters, specialized imaging and surgery facilities, in--home care, rehabilitation home care, rehabilitation sites, behavioral health care, and nursing homes. sites, behavioral health care, and nursing homes.

�� One of the countryOne of the country’’s fastest growing health insurance plans, offering an array of s fastest growing health insurance plans, offering an array of commercial, Medicare, and Medicaid products. commercial, Medicare, and Medicaid products.

�� A A passion for innovationpassion for innovation lies at the heart of UPMClies at the heart of UPMC’’s success.s success.

“UPMC’s unique strategy of

combining clinical and research

excellence with business-like

discipline translates into excellent

patient care for western

Pennsylvanians and the promise

of new jobs, new businesses,

and a new biotechnology-based

economy for the region.”

At a Glance: At a Glance: IBMIBM

�� MultinationalMultinational computercomputer technologytechnology and and consultingconsulting corporationcorporation

headquartered in headquartered in Armonk, New YorkArmonk, New York, , USAUSA. .

�� Manufactures and sells computer Manufactures and sells computer hardwarehardware and and softwaresoftware, and offers , and offers

infrastructure services, infrastructure services, hosting serviceshosting services, and , and consulting servicesconsulting services in in

areas ranging from areas ranging from mainframe computersmainframe computers to to nanotechnologynanotechnology..

�� With over 350,000 employees in 170 countries, IBM is the largestWith over 350,000 employees in 170 countries, IBM is the largest

information technologyinformation technology employer in the world. employer in the world.

�� IBM employees have earned three IBM employees have earned three Nobel PrizesNobel Prizes, four , four Turing Turing

AwardsAwards, five , five National Medals of TechnologyNational Medals of Technology, and five , and five National National

Medals of ScienceMedals of Science. .

At a Glance: At a Glance: IT Service Transformation Program (ITSTP)IT Service Transformation Program (ITSTP)

�� 88--year enterprise transformation agreementyear enterprise transformation agreement

�� 33--year transformation of organization, processes, hardware, and year transformation of organization, processes, hardware, and

conversion of systemsconversion of systems

�� UPMC with IBM expertise and resources will design, implement UPMC with IBM expertise and resources will design, implement

and manage the enterprise transformation (no outsourcing)and manage the enterprise transformation (no outsourcing)

�� BuiltBuilt--in growthin growth

�� 7% per year for servers7% per year for servers

�� 25% per year for storage25% per year for storage

�� Continuous technology refresh, 3Continuous technology refresh, 3--year cycleyear cycle

�� Standardized tools for managementStandardized tools for management

�� Enhanced disaster recovery capabilityEnhanced disaster recovery capability

ITSTP GoalsITSTP Goals

�� Transform to Transform to ““World ClassWorld Class”” IT infrastructure and management processesIT infrastructure and management processes

�� Position UPMC as a Position UPMC as a proactive, nimble, adaptableproactive, nimble, adaptable enterprise capable of enterprise capable of

responding quicklyresponding quickly to changing and to changing and expanding needsexpanding needs for information technology for information technology

and new innovationsand new innovations

�� Fulfill the vision of UPMC as a worldFulfill the vision of UPMC as a world--class IT organization with an class IT organization with an infrastructure on infrastructure on

par with leading technical organizationspar with leading technical organizations across all industriesacross all industries

�� Utilize the existing budget Utilize the existing budget and resources and resources more efficientlymore efficiently to completely overhaul to completely overhaul

the technical infrastructure with added valuethe technical infrastructure with added value

�� Showcase the futureShowcase the future of health care information systems and UPMCof health care information systems and UPMC’’s status as the s status as the

leader in the fieldleader in the field

••Reduce IT

infrastructu

re spending

by 15

Reduce IT

infrastructu

re spending

by 15--20%20%

••Consolidat

e the funct

ionality of 7

86 servers

Consolidat

e the funct

ionality of 7

86 servers

and 40 stor

age config

urations on

to 305

and 40 stor

age config

urations on

to 305

servers and

2 storage c

onfiguratio

ns

servers and

2 storage c

onfiguratio

ns

••Whittle down

the number o

f operating

Whittle down

the number o

f operating

systems sup

ported from

9 to 4

systems sup

ported from

9 to 4

“We saw increasing demand all around us while at the same time

systems had to be more reliable and run faster. We didn’t see any

light at the end of the tunnel for additional funding or staffing, so it

became a question of how do we do more with what we have.”

– Paul Sikora, VP for IT Transformation, UPMC

Where are we now?Where are we now?

�� 2.5 years into 32.5 years into 3--year transformation (8year transformation (8--year program total)year program total)

�� Infrastructure spending has been cut by approximately 13%Infrastructure spending has been cut by approximately 13%

�� OnOn--Demand Environment has absorbed double the Demand Environment has absorbed double the

expected growth in new systemsexpected growth in new systems

�� Infrastructure implementation of IT Service Management Infrastructure implementation of IT Service Management

disciplinesdisciplines•• Change ManagementChange Management

•• Incident ManagementIncident Management

•• Service Level ManagementService Level Management

•• Event ManagementEvent Management

•• Configuration ManagementConfiguration Management

November, 2007

ITSM ImplementationITSM ImplementationHow we did things thenHow we did things then……

and how we do things now.and how we do things now.

How did we begin?How did we begin?

�� One One ““ProgramProgram”” SOW and 18 SOW and 18 ““ProjectProject”” SOWSSOWS

�� SMESME--driven leadership model driven leadership model --> IBM PM leadership> IBM PM leadership

�� Teams focused on multiple project components simultaneouslyTeams focused on multiple project components simultaneously

�� Included a Transition Environment within technical frameworkIncluded a Transition Environment within technical framework

�� Innovative, Uncharted, UniqueInnovative, Uncharted, Unique

�� Progressive ElaborationProgressive Elaboration

““No one else is doing thisNo one else is doing this…”…”

The foundational framework was based upon ITILThe foundational framework was based upon ITIL

Where did we start the ITSM Transformation?Where did we start the ITSM Transformation?

�� Began with wide (notBegan with wide (not--deep) deep)

approach across frameworkapproach across framework

�� ““Teach to fishTeach to fish”” mentalitymentality

�� Maintain legacy tools while adding Maintain legacy tools while adding

new toolsnew tools

�� From a technical standpoint, From a technical standpoint,

concentrated on concentrated on ““ability toability to”” do do

certain activitiescertain activities

�� Look at organizational change, Look at organizational change,

training, and communications training, and communications

related to overall transformationrelated to overall transformation

�� Initially divided transformation Initially divided transformation program into four phasesprogram into four phases

�� Each phase introduced a new Each phase introduced a new process or processes, and/orprocess or processes, and/or

�� Matured existing processesMatured existing processes�� Process documentation based Process documentation based

largely on largely on ““AcceleratorAccelerator”” baselinesbaselines�� With each phase:With each phase:

�� Process AssessmentProcess Assessment

�� WorkshopsWorkshops

�� Tool and documentation Tool and documentation modificationsmodifications

�� TrainingTraining

�� Move tool into ProductionMove tool into Production�� Initial process focus on Incident Initial process focus on Incident

Management, Event Management, Management, Event Management, and Change Managementand Change Management

Within the Service Management Transformation portion of ITSTP:Within the Service Management Transformation portion of ITSTP:

Decision to use ITIL Decision to use ITIL andand PRMPRM--ITIT

�� Decided to use a Process Reference Model based upon ITIL and Decided to use a Process Reference Model based upon ITIL and

helped to fill some gaps of ITIL v2helped to fill some gaps of ITIL v2

�� Used IBMUsed IBM’’s Process Reference Model for IT (PRMs Process Reference Model for IT (PRM--IT) which included IT) which included

Event Management, Architecture Management, etc.Event Management, Architecture Management, etc.

�� Why PRMWhy PRM--IT?IT?

�� Provide an integrated collection of the processes involved in usProvide an integrated collection of the processes involved in using ing

IT to help businesses carry out many or all of their fundamentalIT to help businesses carry out many or all of their fundamental

purposespurposes

�� Be the basis for process assessment, design and implementationBe the basis for process assessment, design and implementation

�� Provides a greater breadth of process activities for service Provides a greater breadth of process activities for service

mappingmapping

PRMPRM--IT MODEL: Processes IT MODEL: Processes –– core ITIL alignmentcore ITIL alignment

PRM-IT V2

IT Governance and Management System

IT Governance and Management System

Framework

IT Governance and Management Capabilities

IT Management System Operation

IT Governance and Management System

Evaluation

IT Governance and Management System

Framework

IT Governance and Management Capabilities

IT Management System Operation

IT Governance and Management System

Evaluation

IT Customer Relationships

Stakeholder Requirements Management

IT Customer Transformation Management

Service Marketing and Sales

�Service Level Management

Customer Satisfaction Management

Stakeholder Requirements Management

IT Customer Transformation Management

Service Marketing and Sales

�Service Level Management

Customer Satisfaction Management

IT Administration

�Financial Management

Asset Management

Supplier Relationship Management

Service Pricing and

Contract Administration

Workforce Management

Knowledge Management

�Financial Management

Asset Management

Supplier Relationship Management

Service Pricing and

Contract Administration

Workforce Management

Knowledge Management

IT Resilience

Compliance Management

Security Management

�Availability Management

�Capacity Management

Facility Management

� IT Service Continuity

Management

Compliance Management

Security Management

�Availability Management

�Capacity Management

Facility Management

� IT Service Continuity

Management

IT Operational Services

Service Execution

Data Management

Event Management

User Contact Management

� Incident Management

�Problem Management

Service Execution

Data Management

Event Management

User Contact Management

� Incident Management

�Problem Management

Solution Deployment

�Change Management

�Release Management

�Configuration Management

�Change Management

�Release Management

�Configuration Management

IT Direction

IT Strategy

IT Research and Innovation

Architecture Management

Risk Management

IT Portfolio Management

Program and Project Management

IT Strategy

IT Research and Innovation

Architecture Management

Risk Management

IT Portfolio Management

Program and Project Management

Solution Development

Solution Requirements

Solution Analysis and Design

Solution Build

Solution Test

Solution Acceptance

Solution Requirements

Solution Analysis and Design

Solution Build

Solution Test

Solution Acceptance

IT Governance and Management System

IT Governance and Management System

Framework

IT Governance and Management Capabilities

IT Management System Operation

IT Governance and Management System

Evaluation

IT Governance and Management System

Framework

IT Governance and Management Capabilities

IT Management System Operation

IT Governance and Management System

Evaluation

IT Customer Relationships

Stakeholder Requirements Management

IT Customer Transformation Management

Service Marketing and Sales

�Service Level Management

Customer Satisfaction Management

Stakeholder Requirements Management

IT Customer Transformation Management

Service Marketing and Sales

�Service Level Management

Customer Satisfaction Management

IT Administration

�Financial Management

Asset Management

Supplier Relationship Management

Service Pricing and

Contract Administration

Workforce Management

Knowledge Management

�Financial Management

Asset Management

Supplier Relationship Management

Service Pricing and

Contract Administration

Workforce Management

Knowledge Management

IT Resilience

Compliance Management

Security Management

�Availability Management

�Capacity Management

Facility Management

� IT Service Continuity

Management

Compliance Management

Security Management

�Availability Management

�Capacity Management

Facility Management

� IT Service Continuity

Management

IT Operational Services

Service Execution

Data Management

Event Management

User Contact Management

� Incident Management

�Problem Management

Service Execution

Data Management

Event Management

User Contact Management

� Incident Management

�Problem Management

Solution Deployment

�Change Management

�Release Management

�Configuration Management

�Change Management

�Release Management

�Configuration Management

IT Direction

IT Strategy

IT Research and Innovation

Architecture Management

Risk Management

IT Portfolio Management

Program and Project Management

IT Strategy

IT Research and Innovation

Architecture Management

Risk Management

IT Portfolio Management

Program and Project Management

Solution Development

Solution Requirements

Solution Analysis and Design

Solution Build

Solution Test

Solution Acceptance

Solution Requirements

Solution Analysis and Design

Solution Build

Solution Test

Solution Acceptance

ChallengesChallenges

�� Playing field changed after program commencedPlaying field changed after program commenced

�� ‘‘TypicalTypical’’ challenges of a Large Projectchallenges of a Large Project

�� Commitment to maintain staffing levelCommitment to maintain staffing level

�� IT services span multiple business units, each at IT services span multiple business units, each at

different layers within the Program circle of different layers within the Program circle of

influence influence

�� Management of organizational change, buyManagement of organizational change, buy--in, in,

and communicationsand communications

"I never talk about problems and I'll tell you why. I think "I never talk about problems and I'll tell you why. I think

80% of the people don't care about other people's 80% of the people don't care about other people's

problems and the other 20% are happy to hear you have problems and the other 20% are happy to hear you have

them." them." -- Tommy Tommy LasordaLasorda

SuccessesSuccesses

�� Identified Identified SMEsSMEs and their and their importance to the importance to the organizationorganization

�� Established a Established a ““Change Change ChampionChampion”” catalyst programcatalyst program

�� Adopted first iteration of Adopted first iteration of new organizational structurenew organizational structure

�� PeoplePeople�� Provided ITIL Foundation training for over oneProvided ITIL Foundation training for over one--third of Infrastructure third of Infrastructure

staff staff –– including all of management teamincluding all of management team

�� Systematically defined organizational roles & responsibilities fSystematically defined organizational roles & responsibilities for or both individuals and groupsboth individuals and groups

�� Introduced a formalized teaming model (e.g., Process Owner Introduced a formalized teaming model (e.g., Process Owner Council and Architecture)Council and Architecture)

But we’ve always

done it that way!

Organizations that don’t change

Don’t survive

Successes (continued)Successes (continued)

�� ProcessProcess

�� Focused on implementation of six ITILFocused on implementation of six ITIL--based processes (Incident, based processes (Incident, Change, Configuration, SLM, Capacity, and Event Management)Change, Configuration, SLM, Capacity, and Event Management)

�� New processes integrated with one another; no more New processes integrated with one another; no more ““process silosprocess silos””

�� Change & Incident: Produced approved and enforceable policy and Change & Incident: Produced approved and enforceable policy and standardsstandards

�� Change: Improved averaged lead times on Change: Improved averaged lead times on RFCsRFCs from 7 from 7 hourshours to 7 to 7 days; days; standardized and mandated change approval and acceptance standardized and mandated change approval and acceptance requirementsrequirements

�� SLM: Established core infrastructure service listings with attenSLM: Established core infrastructure service listings with attendant dant SLAs; established financial foundations within services to facilSLAs; established financial foundations within services to facilitate itate costing (i.e., chargeback)costing (i.e., chargeback)

�� Event & Incident: Established a shared and common process flow Event & Incident: Established a shared and common process flow for event correlation and subsequent incident registrationfor event correlation and subsequent incident registration

Successes (continued)Successes (continued)

�� TechnologyTechnology

�� Service desk application suite (Service desk application suite (ServiceCenterServiceCenter) introduced and ) introduced and

utilized across the enterpriseutilized across the enterprise

�� Smooth retirement of legacy Incident Management systemSmooth retirement of legacy Incident Management system

�� Implemented functional modules to support process initiatives Implemented functional modules to support process initiatives

(Incident, Change, and Configuration modules)(Incident, Change, and Configuration modules)

�� Automated Event Management and alert/escalation functional Automated Event Management and alert/escalation functional

capabilities integrated with Incident modulecapabilities integrated with Incident module

�� Established foundation for upcoming modules (Request FulfillmentEstablished foundation for upcoming modules (Request Fulfillment, ,

Service Catalog)Service Catalog)

�� Provided centralized reporting hub and formatProvided centralized reporting hub and format

November, 2007

Lessons LearnedLessons Learned

That which does not kill me makes me stronger.That which does not kill me makes me stronger.

Lessons LearnedLessons Learned

�� ((‘‘Ability toAbility to’’ do something) do something) ≠≠ (Solution)(Solution)

�� Situational Awareness, not Tool AwarenessSituational Awareness, not Tool Awareness

�� Teamed Leadership is the best way to Team LeadTeamed Leadership is the best way to Team Lead

�� Marketing: Say, Do, and EngageMarketing: Say, Do, and Engage

�� Need workshops and sessions for:Need workshops and sessions for:

�� CollaborationCollaboration

�� CollaborationCollaboration

�� CollaborationCollaboration

�� Partnership (noun) 1. Partnership (noun) 1. Requiring two to tangoRequiring two to tango

�� KISSKISS

““The value of IT management software is not The value of IT management software is not

derived from its deployment,derived from its deployment,”” said Ray said Ray PaquetPaquet, ,

managing vice president, Gartner. managing vice president, Gartner. ““Rather, the Rather, the

benefit comes from its use."benefit comes from its use."

Lessons Learned (continued)Lessons Learned (continued)

�� Horizontal approach is Horizontal approach is ‘‘shallowshallow’’ by nature by nature

�� Enterprise solutions benefits outweigh individual/point solutionEnterprise solutions benefits outweigh individual/point solutionss

�� Legacy tools have their place and timeLegacy tools have their place and time

�� Break larger phases into Break larger phases into ‘‘chewable chunkschewable chunks’’

�� Service Level Management Service Level Management -- brick by brickbrick by brick

�� Changing behaviors requires the buyChanging behaviors requires the buy--in and commitment of the in and commitment of the

leadership teamleadership team

�� DonDon’’t underestimate cultural changet underestimate cultural change

Governance: Ensuring that Policies and Strategy Governance: Ensuring that Policies and Strategy

are actually implemented, and that required are actually implemented, and that required

processes are correctly followedprocesses are correctly followed…….includes .includes

taking actions to resolve any issues identified.taking actions to resolve any issues identified.

-- The Official Introduction to the ITIL Service LifecycleThe Official Introduction to the ITIL Service Lifecycle

Next StepsNext Steps

�� Request Fulfillment Request Fulfillment

�� Service CatalogService Catalog

�� Capacity Management and ForecastingCapacity Management and Forecasting

�� Expand configuration management and CMDBExpand configuration management and CMDB

Q & A

Questions?