Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

54
Notes On An ITO Appliance Approach To Productising And Industrialising IT Outsourcing Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney

Transcript of Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Page 1: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Notes On An ITO Appliance Approach To Productising And Industrialising IT Outsourcing

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney

Page 2: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Objective

• Describe an approach to the development of an ITO reference architecture that enables rapid and repeatable take-on and delivery of ITO services consistently through productisation and industrialisation

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Page 3: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

IT Outsourcing Appliance

• ITO Appliance – a standardised, packaged and extendable set of processes/systems that support the take-on, delivery and operation of IT outsourcing services

• Repeatable and modular ITO solution to be customised and deployed to operate ITO

• ITO Appliance approach enables productised and industrialised ITO

• A ITO reference architecture that can be customised to specific implementations and sets of customer requirements

• SKU-based ITO service that reduces resources and budgets by lowering the cost of operation and administration

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Page 4: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

IT Outsourcing Appliance

• Proactively address outsourcing pain points and supplier and customer requirements − Infrastructure inventory and asset management − Software license management − Technology refreshes − Changes

• Assist in productising and industrialising ITO

• Provide a common language between suppliers and customers that fosters understanding of exactly what is being sold and bought

• Benefits − Reduce cost of ITO transition and operation − Improve customer service − Enable consistent measurement − Introduce repeatability consistency into outsourcing process − Manage customer expectations − Reduce customer and supplier risk − Improve outsourcing success

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Page 5: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Service Delivery Requirement Hierarchy

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ITO Service Delivery Personnel, Tools and Facilities

Used to enable efficient operation of ITO

ITO Service Delivery Delivers the agreed service by efficiently implementing and operating the agreed

service management processes

Service Management Processes Processes defined to deliver the agreed

type and level of service

Processes Define What ITO Service Delivery Should Do

ITO Service Delivery Requirements Define

Required Functionality

Page 6: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Increased Scope and Complexity of Outsourcing Arrangement

Layers of Service-Related Processes To Be Handled by ITO Service Delivery

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Incident Management

Problem Management

Service Request Management

Event and Alert Management

Access Management

Change Management

Release Management

Configuration Management

Service Level Management

Availability

Management

Capacity Management

Service Continuity Management

Financial

Management

People Management

Facilities

Management

Security Management

Page 7: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Layers of Service-Related Processes To Be Handled by ITO Service Delivery

• Outsourcing arrangement encompasses greater set of more complex services that need to be supported by a wider set of service operation and deliver process

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Increased Scope and Complexity of Outsourcing Arrangement

Page 8: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Services Actualised By Processes Supported By Resources And Facilities

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• Remember: it is not about the service management resources and facilities, it is about the underlying processes the resources and facilities support and use

ITO Services Provided to Customers

Service Management Approach and Processes

Are Made Easier, Faster, Cheaper Through the Effective Implementation

and Operation of …

Service Management Standards

Which Are Defined Using Standards and Frameworks for

Rapid Implementation Such As …

Service Management Resources and Facilities

Which in Turn Are Implemented and

Operated Using Appropriate …

Page 9: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Services Actualised By Processes Supported By Resources And Facilities

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ITO Services Provided to Customers

Service Management Approach and Processes

Are Made Easier, Faster, Cheaper Through the Effective Implementation

and Operation of …

Service Management Standards

Which Are Defined Using Standards and Frameworks for

Rapid Implementation Such As …

Service Management Resources and Facilities

Which in Turn Are Implemented and

Operated Using Appropriate …

Define The ITO Services That Can Be Cost-Effectively and Credibly Provided and Which Customers Want And Will

Buy

1

Define The Services Management Processes That Will Make Service

Delivery Easier, Most Cost Effective, More Consistent

2

Select a Resources and Facilities That Meets Service Management Implementation and Operation Requirements and Constraints

3

Page 10: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Manage And Deliver On Customer Expectations During ITO Service

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Customer Experience

Service Delivery Over Time

ITO Service Negotiation ITO Service Transition ITO Service Delivery

Customer Expectations

Actual Customer

Experience

+ + + + + +

+ ITO

Service Definition

ITO Service Configuration

and Pricing

ITO Contract Signing

ITO Service

Transition ITO

Service Delivery

ITO Service

Changes ITO

Service Reporting

Page 11: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Productised And Industrialised ITO Enables Management And Delivery On Customer Expectations During ITO Service

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Customer Experience

Service Delivery Over Time

Service Negotiation Service Transition Service Delivery

Customer Expectations

Actual Customer

Experience

+ + + + + + +

ITO Service

Definition ITO Service

Configuration and Pricing

ITO Contract Signing

ITO Service

Transition

ITO Service Delivery

ITO Service

Changes

ITO Service

Reporting

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Preventing The Outsourcing Death Spiral

Naive And Simplistic

Expectations

Over-Dependence On Service Provider As

Strategic Partner

No Governance Model

Insufficient Understanding Of Current State Of Services Being

Outsourced

No Defined Outsourcing

Strategy

No Service Catalogue

No Defined Future

Operating Model Or

Architecture

Oversimplification Of Outsourcing

Process

Underestimated And Unquantified

Resource Commitment

Invalid Assumptions

Unarticulated Expectations

Incomplete Contract

Incomplete SLAs/OLAs

Insufficient Management And Oversight

Lengthy Negotiations

Unanticipated And Large Out-

Of-Scope Services

High Management

Resources And Costs

Backsourcing/ Insourcing/

Circumvention of Arrangement

Development Of Parallel IT

Services

Constant Renegotiations

Breakdown Of Relationship

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ITO Operation And Service Management

• Individual ITO services have attributes that define/ modify/ specify/ customise their delivery

• Attributes can define the cost of service delivery

• Operation of ITO services governed by service management processes

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ITO Service Service

Management Process

ITO Service Implemented by

Service Management Processes

Service Management

Process Service

Attribute/ Characteristic

Service Attribute/

Characteristic

Service Attribute/

Characteristic

Service Attribute/

Characteristic

Service Attribute/

Characteristic

Service Attribute/

Characteristic

Page 14: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Operation And Service Management

• An ITO solution as sold to a customer will consist of a customised package of ITO service components

• Services included in ITO solution will define the implementation and operational requirements

• Aggregated services will have common requirements and attributes

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ITO Service 1 Service

Management Process 1

Service Management

Process 2

ITO Solution

ITO Service 2

ITO Service 3

Service Management

Process 3

Service Management

Process 4

Service Management

Process 5

ITO Solution as Sold Consists of a

Number of ITO Services

ITO Services Controlled by Service Management

Processes

Page 15: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Service Configuration Sample

• Characteristics of service define its cost, resources required, complexity and other factors

• Define attributes associated with services to ensure service configured correctly so they can be costed and delivered

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ITO Service

Coverage

8 x 5 12 x 5 12 x 6 7 x 24

SLA

30 Minutes 1 Hour 2 Hours 4 Hours

Number of Units Covered

1,000 2,000 3,000 4,000 5,000

Locations

1 2 3

Team Location

Local

Remote

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Standardisation Of ITO Services

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IT Outsourcing Services

Service Delivery Supporting Technology

Service Delivery Management

Processes

IT Outsourcing Implementation, Deployment and

Operating Models

Services Packaged in Deployment

Models

Provision of Managed Through

Standardised Processes

Provision of Operated Through Standardised Technology and Tools

Standardised Technology and

Tools Form Part of Deployment Models

Standardised Processes Form

Part of Deployment Models

Page 17: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Process-Oriented View Of Outsourcing

Desktop/ Terminal

Communications/ Network

Data Centre

On Premise Infrastructure

Storage Service/ Support Desk

Application Management

Incident Management Problem Management Service Request Management Event and Alert Management Access Management Change Management Release Management Configuration Management Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management People Management Facilities Management Security Management

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Type/Nature of Outsourcing Arrangement/Service

Depth and

Level of

Service

Page 18: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Process-Oriented View Of Outsourcing

Desktop/ Terminal

Communications/ Network

Data Centre

On Premise Infrastructure

Storage Service/ Support Desk

Application Management

Incident Management Problem Management Service Request Management Event and Alert Management Access Management Change Management Release Management Configuration Management Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management People Management Facilities Management Security Management

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Type/Nature of Outsourcing Arrangement/Service

Depth and

Level of

Service

Simple Outsourcing Service

Complex Outsourcing Service

Page 19: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Process-Oriented View Of Outsourcing

• Type/Nature of Outsourcing Arrangement/Service, such as: −Desktop/Terminal

− Communications/Network

−Data Centre

−On Premise Infrastructure

− Storage

− Service/Support Desk

−Application Management

• Depth and Level of Service −What level of service is being provided and therefore what service

management processes are needed to deliver the service?

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Page 20: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO In Business Context

June 8, 2015 20 Applications, Systems and Infrastructure

IT and Business Processes and Services

Business and Users

Customers B

usin

ess U

sing IT

IT D

eliv

eri

ng

Bu

sin

ess

Ne

ed

s

Scope of ITO Service

Page 21: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO In Business Context

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Applications, Systems and Infrastructure

IT and Business Processes and Services

Business and Users

What is Being Managed Here …

… Delivers a Service Here

… And Here

Page 22: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO In Business Context

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Applications, Systems and Infrastructure

IT and Business Processes and Services

Business and Users

Reporting And Alerting Here …

… Allows Service

Reporting Here

… And Here

Page 23: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Service Operation And Delivery Process Framework

ITO Service Delivery

Service Strategy

Service Portfolio Management

Financial Management

Service Design

Service Catalogue Management

Service Level Management

Risk Management

Capacity Management

Availability Management

IT Service Continuity Management

IT Security Management

Compliance Management

IT Architecture Management

Supplier Management

Service Transition

Change Management

Project Management (Transition Planning and

Support)

Release and Deployment Management

Service Validation and Testing

Application Development and Customisation

Service Asset and Configuration Management

Knowledge Management

Service Operation

Event Management

Incident Management

Request Fulfilment

Access and Identity Management

Problem Management

IT Operations Management

IT Facilities Management

Continual Service Improvement

Service Evaluation

Process Evaluation

Definition of CSI Initiatives

CSI Monitoring

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Page 24: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Service Operation And Delivery Process Framework

• Extensive set of services management processes available to manage the delivery ITO services – from simple to complex

• Customer can be enabled to select ITO operational options

• Associated defined service delivery process will ensure ITO supplier can accurately assess the impact of providing selected options

• For each service option there is an associated process that manages its delivery

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Page 25: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Process-Oriented View Of Outsourcing

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Type of outsourcing

service

Depth and breadth of

outsourcing

service – the What

Scope of operation of outsourcing arrangement

Service management and delivery processes –

the How

= +

Processes define the way in which the service

is operated, delivered and managed – linking the what to the how

For every service, there is an associated delivery

process

Page 26: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Explicit And Implicit ITO Services

• In any ITO operation, there will be two sets of services being provided:

1. The outsourcing services explicitly sold

2. Underlying enabling services that are being provided to control the provision of the core outsourcing services

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IT Outsourcing Services

Operational Services

Supporting Services and Associated

Technology

Services As Sold To The

Customer Consists of …

ITO Services As Sold

Controlling, Managing, Enabling,

Reporting, Supporting

Services

Above the Line - Explicitly Sold and Provided

Below the Line – Implicitly Sold and Provided

Page 27: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Dimensions Of Classification Of Outsourcing Arrangements

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Services Being Provided

Supporting and Ancillary Processes and Related

Technology, Systems and Service Delivery Arrangements

Service Management System Deployment and Operational

Scenarios

Page 28: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Dimensions Of Classification Of Outsourcing Arrangements

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Implementation 1

Implementation 2

Implementation 3

Services Being Provided

Supporting and Ancillary Processes and Related

Technology, Systems and Service Delivery Arrangements

Service Management System Deployment and Operational Scenarios

Page 29: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework

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Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Offsite Portal

Customer Managed

Applications

Service Desk System

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Offsite CMDB

Offsite Known Error

Database

Customer Support Team

Offsite Application Password

Reset

Onsite Application Password

Reset

Warranty and Parts

Management

Supplier Onsite Service Desk System

Onsite Portal

Customer Location Service Provision Centralised Location

Offsite Configuration

Discovery

Onsite Event/Alert

Handler

Offsite Event/Alert

Handler

Page 30: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework

• Deployment and operation of ITO services is another SKU dimension when defining ITO product

• Supported by appropriate set of tools − Tools are key to productised and industrialised ITO

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Page 31: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework

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Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Offsite Portal

Customer Managed

Applications

Service Desk System

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Offsite CMDB

Offsite Known Error

Database

Customer Support Team

Offsite Application Password

Reset

Onsite Application Password

Reset

Warranty and Parts

Management

Supplier Onsite Service Desk System

Onsite Portal

Customer Location Service Provision Centralised Location

Offsite Configuration

Discovery

Onsite Event/Alert

Handler

Offsite Event/Alert

Handler

1 2

23

3 4

6 7

9 10 11

12 13

20 21 22

15 16

18 19

24

8

17 5

14

Page 32: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework

1. Customer Users – this represents the end users of the ITO service

2. Onsite ITO Team –team based on the customer site providing the service to the customer and its users

3. Customer Service Desk System –the customer has a separate service management system that must be used by support personnel or that must be interfaced with by the service management system

4. Onsite Service Desk System – the customer has requested that the supplier service management system must be installed onsite

5. Onsite Event/Alert Handler – this will receive, consolidate and process events/alerts received from infrastructure under management and will be located on the customer premises

6. Customer Support Team – the support team may need to work with the customer’s (or a third party) support team to work on incidents and problems

7. Onsite CMDB – if there is an onsite separate service management system it will maintain its own CMDB

8. Onsite Portal – there may be a separate portal located on the customer’s site that provides a centralised point of information and application access

9. Customer Managed Infrastructure – this is the (subset of) customer infrastructure (hardware and possibly infrastructure-related applications) being managed by as part of the ITO contract

10. Onsite Configuration Discovery – there may be an onsite tool that performs onsite asset and configuration discovery

11. Onsite Known Error Database – if there is an onsite separate service management system it will maintain its own error database

12. Customer Managed Applications – this is the (subset of) customer applications being managed by as part of the ITO contract

13. Onsite Application Password Reset – the customer’s users may be provided with a facility (accessed by the portal or otherwise) that is located onsite where requests to reset password to applications are processed

14. Offsite Event/Alert Handler – this will receive, consolidate and process events/alerts received from infrastructure under management and will be located outside the customer premises

15. Offsite ITO Team(s) – the service to the customer may be provided by or supplemented by personnel from offsite team(s)

16. L2/L3 Support – incidents and problems within the site may be escalated to level 2 and level 3 support

17. Offsite Configuration Discovery – asset and configuration discovery may be performed by an offsite tool

18. Service Desk System – the service management system used to support the customer’s IT service management processes may be located offsite, either as a shared or dedicated facility

19. Warranty and Parts Management – manage any additional infrastructure required, provide break-fix services

20. Offsite Portal – there may be a shared multi-tenant portal located on in facility that provides a centralised point of information and application access

21. Offsite CMDB – if there is an offsite shared or dedicated service management system it will maintain its own CMDB

22. Workforce Management and Scheduling – the service to the customer may be provided by or supplemented by personnel from offsite team(s)

23. Offsite Application Password Reset– the customer’s users may be provided with a facility (accessed by the portal or otherwise) that is located offsite where requests to reset password to applications are processed

24. Offsite Known Error Database – if there is an offsite shared or dedicated service management system it will maintain its own error database

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Page 33: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework – Key Design Principles

• Emphasise self-service through user access to known errors and issues database and to user-initiated password reset

• Implement portal to provide centralised customer user access to information

• Implement infrastructure discovery and management through CMDB

• Implement automation of error handling and processing through alert and event management

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Page 34: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework

• Generalised set of components that depend on outsourcing deployment and operating model, such as: − ITO service delivery must occur on customer premises

− ITO service delivery can be offsite but must be dedicated

− ITO service delivery can be offsite but must located in a specific geographical region

− ITO service delivery can be offsite and shared subject to security restrictions

• And other factors, such as: − Customer has existing service management facility that ITO

service provider must interface with

−No external service management facility interface required

June 8, 2015 34

Page 35: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Generalised ITO Component Deployment Framework – Sample Architecture Options

1. Customer has existing service management system that the ITO supplier system must interface with and no restrictions on ITO supplier service management system

2. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system must be installed on customer premises

3. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite but must be dedicated

4. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite but must located in specific geographical region

5. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite and shared subject to security restrictions

6. No customer service management system interface required and no restrictions on ITO supplier service management system

7. No customer service management system interface required and ITO supplier service management system must be installed on customer premises

8. No customer service management system interface required and ITO supplier service management system can be offsite but must be dedicated

9. No customer service management system interface required and ITO supplier service management system can be offsite but must located in specific geographical region

10. No customer service management system interface required and ITO supplier service management system can be offsite and shared subject to security restrictions

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Page 36: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

1- Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And No Restrictions on ITO Supplier Service Management System

June 8, 2015 36

Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Offsite Portal

Customer Managed

Applications

Service Desk System

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Offsite CMDB

Offsite Known Error

Database

Customer Support Team

Offsite Application Password

Reset

Onsite Application Password

Reset

Warranty and Parts

Management

Onsite Portal

Customer Location Service Provision Centralised Location

Offsite Configuration

Discovery

1 2

23

3

6 7

9 10 11

12 13

20 21 22

15 16

18 19

24

8

17

Page 37: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

2 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Must Be Installed On Customer Premises

June 8, 2015 37

Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Customer Managed

Applications

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Customer Support Team

Onsite Application Password

Reset

Warranty and Parts

Management

Supplier Onsite Service Desk System

Onsite Portal

Customer Location Service Provision Centralised Location

Onsite Event/Alert

Handler

1 2

3 4

6 7

9 10 11

12 13

22

15 16

19

8

5

Page 38: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

3 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Can Be Offsite But Must Be Dedicated

June 8, 2015 38

Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Offsite Portal

Customer Managed

Applications

Service Desk System

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Offsite CMDB

Offsite Known Error

Database

Customer Support Team

Offsite Application Password

Reset

Onsite Application Password

Reset

Warranty and Parts

Management

Onsite Portal

Customer Location Service Provision Centralised Location

Offsite Configuration

Discovery

Onsite Event/Alert

Handler

Offsite Event/Alert

Handler

1 2

23

3

6 7

9 10 11

12 13

20 21 22

15 16

18 19

24

8

17 5

14

Page 39: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

4 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Can Be Offsite But Must Located In Specific Geographical Region

June 8, 2015 39

Customer Users

Customer Service Desk

System

Customer Managed

Infrastructure

Offsite Portal

Customer Managed

Applications

Service Desk System

Onsite ITO Delivery Team

Offsite ITO Delivery Team

Offsite L2/L3 Support

Onsite CMDB

Onsite Configuration

Discovery

Onsite Known Error

Database

Workforce Management

and Scheduling

Offsite CMDB

Offsite Known Error

Database

Customer Support Team

Offsite Application Password

Reset

Onsite Application Password

Reset

Warranty and Parts

Management

Onsite Portal

Customer Location Service Provision Centralised Location

Offsite Configuration

Discovery

Onsite Event/Alert

Handler

Offsite Event/Alert

Handler

1 2

23

3

6 7

9 10 11

12 13

20 21 22

15 16

18 19

24

8

17 5

14

Page 40: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

CMDB Is A Key Component Of Productised ITO

• Need to have a controlled Configuration Management environment that enables the tracking, recording, and reporting of Configuration Items (CIs) in the managed/ supported IT infrastructure − Ensure accurate inventory of infrastructure within

the scope of the ITO service − Assess the impact of a service failure quickly − Identify the components that make up a service so

that Service Level Objectives (SLOs) can be defined and availability measurements can be identified

− Assess the risk associated with the implementation of a change to the production environment

− Cost and price IT services accurately

• CMDB is at the core of Configuration Management

• CMDB is a key enabler of efficient Configuration Management

• CMDB provides a framework for event and alert management, storing configuration items against which alerts are tracked

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Service Management Processes

Configuration Management

CMDB

Page 41: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Effective CMDB Assists The ITO Process

• Effective Configuration Management and CMDB also drives sales processes −Due diligence −Warranty − Replacement −Upgrade − Refresh −Additional

capacity

June 8, 2015 41

Sales Processes

Service Management Processes

Configuration Management

CMDB

Page 42: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Transition Process And ITO Delivery Lifecycle

• Asset discovery and subsequent asset management is important to effective productised and industrialised ITO

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Service Negotiation and Contract

Signing

Pre-Operation and Pre-Integration

Start

ITO Service Transition

ITO Service Standardisation and

Transformation

Steady State Operation of Service

Initial Transition Plan

Pre-Contract Due Diligence

Final Transition Plan

Integration Preparation

Transition Initiation

Finalise Integration Solution

Architecture

Transition Completed

Transformation Completed

Technology Refreshes

Changes Post Contract Due

Diligence Verification

Page 43: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Asset Management During ITO Transition Process And ITO Delivery Lifecycle

June 8, 2015 43

Service Negotiation and Contract

Signing

Pre-Operation and Pre-Integration

Start

ITO Service Transition

ITO Service Standardisation and

Transformation

Steady State Operation of Service

Initial Transition Plan

Pre-Contract Due Diligence

Final Transition Plan

Integration Preparation

Transition Initiation

Finalise Integration Solution

Architecture

Transition Completed

Transformation Completed

Technology Refreshes

Changes

Post Contract Due Diligence

Verification

Asset Discovery and CMDB Maintenance During the Life of

ITO Service

Service Delivery

Page 44: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Idealised CMDB Components And Operation

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CMDB Management

System

Automated CI Discovery and

CMDB Population Tool

CMDB Data Access and Entry

CMDB Query and Maintenance

Links to Service Management Systems and

Processes

CI Usage and Performance

Collection Tool

CI Alerting Collection Tool

Links to Asset Management Systems and

Processes

Analysis Billing System = Core CMDB Components

Data Transformation

and Normalisation

Data Collection Scheduling

Facility

Data Warehouse

Infrastructure Being Managed

Page 45: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

CMDB Data Collection

• CMDB data collection − Infrastructure configuration and changes

− Events and alerts

− Performance and usage

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Collect Configuration, Performance, Alert Data

CMDB Users

Page 46: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

CMDB High-Level Data Structure

• CMDB holds data for configuration of infrastructure being managed by ITO service

• Each customer can have one or more solution being managed

• Each solution can consist of a package of multiple hardware and software components combined with a set of initial and on-going services (entitlements, warranty, upgrades, refreshes)

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CMDB

Location

Package

Hardware

Static Data Dynamic Data

Software

Static Data Dynamic Data

Services

Static Data Dynamic Data

Virtual Objects

Static Data Dynamic Data

Static Data Dynamic Data

Static Data Dynamic Data

Page 47: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Dimensions Of SKUs Of Outsourcing Service

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1. Type Of Outsourcing Service

+ 2. ITO Component

Deployment Framework

+ 3. Depth and Breadth of

Outsourcing Service

= ITO Offer

Page 48: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Hierarchy Of ITO Offer

ITO Offer

Contract

Terms and Conditions

Deployment and

Operation

Discounts

ITO Solution

Configuration

Deployment

Set of Services

ITO Product(s)

ITO Product ITO Product ITO Product

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Page 49: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Dimensions Of SKUs Of Outsourcing Service

• Enable ITO service catalogue to be defined

• Enable productisation of ITO

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Page 50: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Industrialisation and Productisation

• ITO productisation is a pre-requisite for and an enabler of ITO industrialisation

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ITO Productisation

Defined Set of ITO Services and Packaging

Options

ITO Industrialisation

Common Deployment, Implementation and

Operation Approaches

Page 51: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Industrialisation and Productisation

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ITO Productisation

Defined Set of ITO Services and Packaging

Options

ITO Industrialisation

Common Deployment, Implementation and

Operation Approaches

Supplier Representation of ITO Services

Supplier Delivery of ITO Services

= =

Page 52: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

ITO Industrialisation and Productisation

• Approach not for every outsourcing arrangement − Complex ITO arrangements will not lend themselves to this

approach

• Approach can also be used for in-house IT management

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Page 53: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

Summary

• ITO Appliance approach is a standardised, packaged and extendable set of processes/systems that support the take-on, delivery and operation of IT outsourcing services − SKU-based ITO service that reduces resources and budgets by lowering the cost of

operation and administration

• Approach enables productised and industrialised ITO

• Provides a common language between suppliers and customers that fosters understanding of exactly what is being sold and bought

• Processes define the way in which the service is operated, delivered and managed – linking the what to the how − For each service option there is an associated process that manages its delivery

• Tools are key to productised and industrialised ITO

• CMDB and associated asset discovery and subsequent asset management is key component of effective productised and industrialised ITO

• ITO productisation is a pre-requisite for and an enabler of ITO industrialisation

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Page 54: Notes on an ITO Appliance Approach to Productising and Industrialising IT Outsourcing

June 8, 2015 54

More Information

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney