IT Governance: Insourcing, Outsourcing and Offshoring
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Transcript of IT Governance: Insourcing, Outsourcing and Offshoring
NACCO Materials Handling Group -- Information Technology Management Meeting 1
IT Governance:IT Governance:
Information Technology Management Meeting
presented bypresented by Ben BerryBen BerryChief Information OfficerChief Information OfficerOregon Department of TransportationOregon Department of Transportation
[email protected]@odot.state.or.ushttp://www.oregon.gov/ODOT/CS/ISB/cio_report.shtmlhttp://www.oregon.gov/ODOT/CS/ISB/cio_report.shtml
Insourcing – Outsourcing – Off ShoringInsourcing – Outsourcing – Off ShoringAT&T Building - 19801 SW 72nd Ave, Tualatin, Oregon
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State of Oregon GovernmentOregon State Legislature 3D Rendering
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Shared
Vision
ITGovernance
ODOT LOB Communities of InterestODOT LOB Communities of Interest Enterprise IT GovernanceEnterprise IT Governance State Data Center – State Data Center – Leadership Beyond TechnologyLeadership Beyond Technology
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Ok,Ok,So what is IT Governance?So what is IT Governance?
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IT Governance:IT Governance:A unified stakeholder A unified stakeholder decision making process decision making process between business focus and IT managementbetween business focus and IT management..
Structure
ValuedDecisions
People
Regulation
Involved
Partnership
TechnologyPlanning Priorities
Trust Colleague
Participation Strategic
Communicate
Goals
Process
Interests Seek inputPortfolio
Align
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ODOTODOTIT GovernanceIT Governance
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““IT GovernanceIT Governance is the is the decision rights and decision rights and
accountability framework for accountability framework for encouraging desirable behavior encouraging desirable behavior
in the use of IT.” in the use of IT.”
In plain English, it’s putting structure In plain English, it’s putting structure around how we align IT strategy with around how we align IT strategy with business strategy, ensuring we stay on business strategy, ensuring we stay on track to achieve organizational strategies track to achieve organizational strategies and goals. and goals.
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Intelligent Transportation SystemsIntelligent Transportation Systems
RegionalTOC
TOCSystemReports
Weather, Travel & Incident Data
Public
Trav
eler
Info
Phone Inquiries
Report Incidents
Other States(WA, ID, CA)
Location (AVL) / Status*
Dispatch*
Networked TOC Data
Remote User Access (RAS or VPN)
Historical Archive Data
Cities & Countiesand Other Agencies
As Required
Management &System Control
ResearchD
ata
ODOT REGIONAL TOC CONCEPT OF OPERATIONS V IEW
Statewide EOCRemote Terminal
Adjacent Regional TOCNetworked Terminal
Page
Noti
ficati
on, V
ideo S
tream
Media
ODOT HeadquartersTOC Data Archive
And Permit Database
Wire
less
Acce
ssOSP Troopers
Incident Response Vehicles Incident Info
Highway AdvisoryTelephone
RampMeters
Crew assignments, Availability, Contact infoLocation, Status / Dispatch*
Location, Status/ Dispatch*
District HQ Module
Maintenence Rigs
NOAA / WeatherServices
RoadMaintenance
Personnel
Weather Data
When Connected to
ODOT Local Master
HighwayAdvisory
Radio
ODOTSignals
Other AgencySignals
Dynamic Message Signs
ACCIDENT5 MILES AHEAD
RWIS CCTV TrafficMeteringSystem
(Road Loops)
Inci
dent
Dat
a an
d M
essa
ges
Oregon State Police(OSP) }Common InterfaceCounty 911/ EOC's
(TOC Contact forLocal Police and Fire)
Dispatch*
Dispatch / Paging and Safety Check*
<<<Roadside Device Control
Incident, Road-Weather, DeviceControl or Service Request
Location, Status and Road Weather data , Safety Check-in*
RoadsideWarningSystems
HIGH WINDSFLOODS &SIESMIC
Law Enforcement Data(LEDS)
Reports and Traffic Impact Events
Lice
nse
Pla
te C
heck
Req
uest
and
Adm
in M
sgs
Location (AVL), Status, Sensor and Road Weather data*
Road-WeatherReports
AutomatedDe-icing
VariableSpeedLimit
SPEEDLIMIT45
VMSCMS
Roadside Sensor Data > Video > Status > Location >>>
Incident Response CoordinationGIS Mapping
IncidentDetection
Media & PersonnelPaging
ODOT Motor Carriers Division
Current Restrictions, Device Status, Weight Station Status
Tow Rotation Data
WeatherForecast Data
Travel Time
*Wireless Connection Network Connection Telephone or NetworkConnection
Reports
Road Status data
Even
t Per
mit
Req
uest
ODOT Information Systems: Technology Business Decisions
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ODOT’s IT Governance FrameworkODOT’s IT Governance Framework
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IT Governance FrameworkIT Governance Framework
A structure set up to enable decision A structure set up to enable decision making at the appropriate level making at the appropriate level
regarding IT decisions for:regarding IT decisions for:
Defines the role of IT.Defines the role of IT. Architects technical standards.Architects technical standards. Delivers applications over IT Infrastructure.Delivers applications over IT Infrastructure. Develops project requirements.Develops project requirements. Makes IT investments & priority decisions.Makes IT investments & priority decisions.
ODOT IT
Principles
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Concept DevelopmentProject Definition
ImplementationProject Oversight
OperationsProgram Oversight
STATE CIO
DAS DEPUTY
CIO COUNCIL ASMG
ENTERPRISE IT GOVERNANCE FRAMEWORK
Project Initiation B
usiness Case D
evelopment &
Implem
entation Strategy
Investment P
ortfolio Decisions and B
udget Approval
Project Closeout
Business C
ase Refinem
ent and Portfolio A
ssessments
Project C
loseout and Transition to Operations
Ongoing P
rogram E
valuation and Operational A
ssessment
DAS DIRECTOR
DRAFT DOCUMENT
* CNIC* E-Gov* OWIN* Security* OGIC* Other
DAS DIRECTORDeputy Director, State
CIO, SDCAAgency
Directors(Advise)
DAS Division Administrator or
Designee(SCIO, SDCA,
Agency Lead, etc.)
Agency Directors*(Advise)
Steering Committee
(Advise)
Project Manager QA * Sub -
Committee
Sustained agency director involvement and major IT project portfolio oversight and reporting
* As necessary, a special subcommittee of subject matter experts or other key individuals may be formed
* As necessary, a special subcommittee of subject matter experts or other key individuals may be formed
* Sub * Sub
* Sub * Sub
DAS DIRECTOR
Agency Directors(Advise)
DAS Division Administrator or
Designee(SCIO, SDCA,
Agency Lead, etc.)Advisory Committee
Program Manager Audit * Sub -
Committee
* Sub * Sub
* Sub * Sub
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Less time to decide(time efficient)
Leader decides
More time to decide(more developmental)
Group decides
L1 L2 LF1 LF2 M
No group Self or written information
Gather info and then Leader decides
Leader meets with people one on one Collects info Leader makes decision
consultative
Leader meets with group in open forum Prompts ideas and considers input Leader still makes decision
assumes Goal Congruence
Group participation Group Decides
autocratic consensus
Art of Decision – MakingArt of Decision – MakingLeadership that shapes the future!
Legend: L = Leader F = Followers M = Mutual
Art of Decision – MakingArt of Decision – MakingLeadership that shapes the future!
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Data CenterConsolidation
13Long-term SavingsGovernance
Server Consolidation
CollaborationMaintenance
NetworkConsolidation
UtilityComputing
System Integration
ValueProposition
InfrastructureManagement
Storage Mainframe
State Data CenterLeadership Beyond Technology
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• Network Consulting• Network Design• Installation Mgt.• SW Support• Performance Analysis/Rpts.• Capacity Planning• Problem Management• NOC support 24x7
(Network Operations Center)
• Interface Engine• Data Integration
SystemIntegration
Network Services
SINGLE INFRASTRUCTURE MANAGED
A G
E N
C Y
B
U S
I N E
S S
V
A L
U E
CNIC Key Concepts
• Internet or E-Government
• Line of Business Systems
• Process Control Systems
• Web-based Employee Services
• Supply Chain Mgt Linkages
• Customer Care applications
• HR & Finance Applications
Strategic Planning
Applications
Highest Customer Visibility
Highest Customer Visibility
Hardware & MaintenanceServices
Lowest Customer VisibilityLowest Customer Visibility
• User Devices• Servers• Disaster Recovery• Cabling Services
• Consolidation• Server Mgt.• Database Mgt.• Email /
messaging• Imaging/
Archiving
Data Center
Help Desk• Call Mgt.• Trouble Tickets• 1st Tier Resolution
• Tools Admin.• Alerts Mgt.• Critical Call Mgt.
IT Monitoring Security• Internet Mgt.• Intrusion Detect.• Content
Inspection- Email- Internet- FTP
Utility Value Proposition
Utility Value PropositionUtility Value Proposition
• Allocation of resources to areas of greatest business value for the enterprise
• Technology guarantee; optimizing network backbone performance
• Service Level Agreements
• Constant predictable infrastructure budgeting Statewide: capital/operating
• State Data Center Single-point responsibility for Infrastructure Mgt. & Risk
• Flexibility to leverage State with single infrastructure contracts
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What a Consolidated State Data Center Enables!What a Consolidated State Data Center Enables!
ITDesign
Services
Physical & Cyber Security
7/24 Onsite Operations Support Troubleshooting
Support Data Center Controls Documentation
Systems Implementation
On-site Engineering
Customized Agency Charge back/ Assessment
Server Management and Back up
Service Delivery Management
Staff Education & Training
Project Management
Support
Service Level & Performance Reports
7/24Network Monitoring
Data Storage Management
Network Reporting
Technology Staff Certification
SystemsProvisioning
IT Infrastructu
re Utility
1
13
15
16
17
18 23
4
5
6
101112
8
7
9
14
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Program & Customer Relationship Management
Development & Testing Environment
E-Gov and Line-of-Business Applications
Agency-Specific
State Data Center Infrastructure Utility
Shared
CNIC Roles & Responsibilities CNIC Roles & Responsibilities
WAN Switches LAN Switches Routers Internetworking
Software Management
Software Distribution
SLA Mgt. Change Mgmt. Process Reporting Security Charge Back
Performance
ManagementData
GatheringSurveillanceCapacityPlanning
Data Cable Infrastructure
End User Help Desk
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Oregon Consolidates Oregon Consolidates for Virtualization for Virtualization ((Video)Video)
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Shared
Vision
Transformation Transformation SourcingSourcing
InsourcingInsourcing OutsourcingOutsourcing Off ShoringOff Shoring
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State Data CenterState Data CenterInsource Functional Service ModelInsource Functional Service Model
This Functional Service Model represents a functional design for the SDC. It is not meant to depict areas of operation for staff. This model is designed to be representative of the data center functions required to execute data center processes and deliver services to SDC customers.
SDC Management & Governance
General Administration
Network Administration
System Administration
Planning and Administratio
n
HR / Personnel
Management
Security Oversight
Remote Access
Video Services
Network Security
Server Computing
System Security
Storage
Security
Identity and Access
Management
Back-up / Recovery
Management
Directory Administratio
n
Facilities / Environmentals
Customer Service
Management
Mainframe Computing
Business Services
Financial Management
Availability Management
Capacity Management
SDC Policy and Strategy
Service Support
Service Desk /
Incident Management
Change Management
/ Release Management
Problem Management
Configuration Management
Service Level Management
IT Service Continuity
Operations Services
Project Management
24/7 Shift Management
Print Services
Production Control WAN
LAN DBA
Consulting Services
Security Monitoring
Transformation Insourcing
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Operations ServicesOperations Services
Facilities / EnvironmentalsPhysical security, HVAC monitoring, cabling and wiring, and level 3 dispatch, emergency power
24/7 Shift ManagementOperational personnel management of shifts
Print ServicesMainframe print
Production ControlBatch processing, production control, job scheduling, system monitoring
Facilities /Environmentals
OperationsServices
24/7 ShiftManagement
Print Services
ProductionControl
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General AdministrationGeneral Administration
Planning and AdministrationArchitecture, Device Management, project planning, architecture planning
HR / Personnel ManagementHR-related issues, recruiting & staffing, position descriptions, labor relations
GeneralAdministration
Planning andAdministration
HR /Personnel
Management
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Network AdministrationNetwork Administration
Remote AccessVPN
Video ServicesVideo conferencing, video scheduling, audio conferencing
Network SecurityNetwork monitoring, intrusion detection, DOS, install and monitor anti-virus and anti-mal-ware
WANWAN connectivity, operations, integrity, performance, availability, log and report administration, DNS administration
LANLAN connectivity, operations, integrity, performance, availability, log and report administration
NetworkAdministration
RemoteAccess
VideoServices
NetworkSecurity
WAN
LAN
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SecuritySecurityIdentity and Access ManagementAccess control, authentication, LDAP
Back-up / Recovery ManagementResponse to failed hardware or other event
Directory AdministrationDirectory services, LDAP
Security OversightMonitor and audit virus and mal-ware
Security MonitoringAudit operators, DBAs, SAs, and firewall administrators
SecurityOversight
Security
Identity andAccess
Management
Back-up /Recovery
Management
DirectoryAdministration
SecurityMonitoring
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System AdministrationSystem Administration
Server Computing (long term - WinTel, Linux, AIX, short term - Solaris, Netware)Hardware installation, logical computing, transaction systems, shared applications, performance tuning
Mainframe Computing (iSeries, zSeries)Hardware installation, logical computing, transaction systems, shared applications, performance tuning
StorageProvide SAN, RAID, disk, tape, back-up services
System SecurityProvide host security, configuration management, intrusion detection, and install and monitor anti-virus and anti-mal-ware
DBASystem DBA services, application DBA services
SystemAdministration
ServerComputing
SystemSecurity
Storage
MainframeComputing
DBA
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Business ServicesBusiness ServicesFinancial ManagementRate setting, invoicing, budgeting, chargeback development and management, accounting and planning, asset planning, procurement,
Availability ManagementMonitor IT components for availability
Capacity ManagementPlanning, sizing, and controlling IT capacity
Customer Service ManagementCustomer account planning
Service Level ManagementService level monitoring and reporting, service level agreements, service issue resolution, SDC scorecard
IT Service ContinuityEnsure that any IT service can provide value to the customer in the event that normal availability solutions fail
Project ManagementInternal and external project management, planning, execution, and delivery
Consulting ServicesApplication analysis and configuration, problem resolution, integration, technical advice
CustomerService
Management
BusinessServices
FinancialManagement
AvailabilityManagement
CapacityManagement
Service LevelManagement
IT ServiceContinuity
ProjectManagement
ConsultingServices
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Service SupportService SupportService Desk / Incident ManagementSDC service desk services (Single Point of Contact), optional tier 1 help desk services, incident related customer communications, alert communications
Logging, classifying, prioritizing, assigning, tracking, investigating, and resolving incidents and routine service requests.
Change Management / Release ManagementStandardized methods and procedures for handling of changes, includes a change scheduling and coordinator function
Protection of live environment through the formal procedures and checks through changes
Problem ManagementMinimizing the adverse impact of incidents and problems on the business that are caused by errors within the IT Infrastructure, and to prevent recurrence of incidents related to these errors.
Configuration ManagementIdentification, recording, and reporting of IT components
ServiceSupport
Service Desk/ Incident
Management
ChangeManagement /
ReleaseManagement
ProblemManagement
ConfigurationManagement
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So Why Outsourcing?So Why Outsourcing?
Core vs. non-core Optimizing skills and delivery enables implementing tactical workload balancing and helps keep high-value employees focused on strategic initiatives.
Internal cost pressure Implementing a outsourcing delivery strategy can reduce overall costs and increase the productivity and efficiency.
Strategic advantage Leverage IT cost savings to invest in new strategic investments to help enhance business value.
Quality performance Utilizing the best skills—wherever they may be located—and applying proven methodologies and processes can help improve the overall quality of application and services.
Leverage skills where they exist Accessing a pool of resources can provide a flexible, cost-effective approach to addressing rapidly changing business conditions.
Because of…
Transformation Outsourcing
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Three-Tier:Three-Tier: Outsourcing Service Delivery Model Outsourcing Service Delivery Model
Transformation Outsourcing
Enabling
Service
Growth2. Selective Outsourcing
1. Full-Scope Outsourcing
3-Tier Outsourcing
Model
Outsource a broad scope of IT
applications.
Partner with firm to assist in the development of
selective components of IT applications.
Perform in-house (Insourcing) development and partner with
firms to develop selective applications.
3. Hybrid Outsourcing
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high
low
- Value of IT Uniqueness +low high
VALUEOFIT
SKILLS
Application Outsourcing Assessment Framework:Application Outsourcing Assessment Framework:How to address what to Outsource?
Strong Outsourcing Candidates
Grey Area: Outsourcing?
Perform In-house Services
Grey Area:Scarce Resources?
Customer Value?Retrain Staff?
Strong Outsourcing Candidates
Business-Specific
New Architecture
Trai
ning
Layoffs
NN
SSEEWW
Standardize
Mgm
t Sk
ills
Attrition
Moving Apps North: Increases the economic value of IT personnel. Perform in-house services.Moving Apps South: Financial burden of outsourcing arrangements; Need to benchmark industry.Moving Apps East:Creates unique applications, decreases outsourcing; Increase selective outsource.Moving Apps West: Standard applications & technical architectures. Selective/full-scope outsourcing.
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China: Off-Shoring Pipeline to Xi’An CityChina: Off-Shoring Pipeline to Xi’An CityHow to harvest U.S. projects?How to harvest U.S. projects?
陕西加中 IT 培训学校ShanXi Sino-Canadian IT Training School
BusinessCluster
Resource Alliance Pool
UniversityStudents
Xi’AnTeam
Shared Team
U.S. Team
Core Competency
Transformation Off Shoring
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Xi’An City: • 35 Public Universities• 401,000 students in school• 68 Private universities• 178 Training schools
Shanghai City: • 57 Public Universities• Undergraduate: 378,500 • Graduate: 59,100 each year
University IT Graduates Off-Shoring in University IT Graduates Off-Shoring in Shanghai and Xi’AnShanghai and Xi’An
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Requirements
Analysis & Design
Coding & Unit Test
Test
Deployment
Requirement survey
Requirement Analysis
Requirement Definition
Integration TestSystem TestAcceptance Test
Peer review then set up baselineHigh Level DesignDetails Design
Peer review then set up baseline
Peer review then set up baseline
Peer review then set up baseline
CodingUnit Test
Requirement Management
SPTO
Risk management
Quality Audit
Configuration Management (CM)
Peer review
Project Execution
support workflow
Off-Shoring Process Workflow
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Core Competency: Core Competency: Off-Shoring Capability Off-Shoring Capability of Application Developmentof Application Development
• Domain Knowledge• Technical Knowledge• Software Engineering
& Management• Resource
Resources
Domain Knowledge
Technology Management
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IT Governance
Outsourcing – Insourcing – Off Shoring
presented bypresented by Ben Berry Ben BerryChief Information OfficerChief Information OfficerOregon Department of TransportationOregon Department of Transportation
[email protected]@odot.state.or.us