NGITS: Enabling Value through

Service Delivery

October 18, 2014

Mansi Bhatt, Lakshmi Chaudhari & Daina Dangerfield

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

NEG Community is looking to deliver value to its

customers and employees
NGITS
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

Pressures
Results needed now

Increasing IT costs as a
percentage of total
budgets

High speed network

connectivity and
significant bandwidth
required

Avoided investing in
the latest technology

How can NGITS evolve into an optimized Shared Service Center?

3

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

Operational
Excellence

Impact

Business
Process
Redesign

Key Business Objectives

Performance
Management
Operational Excellence
Cost
Optimization

Performance Management

Low

Cost Optimization

Low

Growth Opportunity

High
4

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

Operational
Excellence

Resource Alignment
Custom Service
Management
Framework

Implement a
Change
Management Plan

Continuous
Improvement for
Client
Relationships

Technology
Upgrades and
Initiatives

Technology
Upgrades &
Initiatives

Performance
Management

Cost Optimization
5

NGITS must adopt a customized layered service

management framework
G
o
v
e
r
n
a
n
c
e
L
a
y
e
r

Management
Processes:

S
S
C

Performance

Key Performance Indicators

People Development

Chargeback Approach

Supplier Management
Service Portfolio/Level Management

Information Security

Finance

Compliance

CI for Client
Relationships

Technology
Upgrades &
Initiatives

Service Definition
Roles & Responsibilities

Process
Assessment/Redesign

Implement a
Change
Mgmt. Plan

Service Level Agreements:

Customer Relationship

Continuous Service
Improvement

Service
Framework

Customer Contract Layers:

Incident Taking

Service Taking

Incident Routing

Service Routing

Incident Tracking

Service Tracking

Incident Resolution

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
Source: Accenture Optimizing Shared Service Through Better Service Mgmt.

NGITS needs a Joint IT operating model & a

Service Optimizing delivery model

Service
Framework

Implement a
Change
Mgmt. Plan

CI for Client
Relationships

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)

A robust organizational change management plan

will be needed to support the new governance
structure
Difficulties &
Resistance
Cultural Bias
New team structure &
organizational hierarchy
adjustments

Monetary relocation
benefits
Education & Training

Distrust due to new

organizational structure
Realignment of business
processes

Strong Project
Management

Resistance to relocation

Implement a
Change
Mgmt. Plan

CI for Client
Relationships

Technology
Upgrades &
Initiatives

Key Factors

Stay-on perks

Support programs
with individual
attention

Service
Framework

Means to
Overcome

Sources: Building a shared services data center IBM, Implementing Shared Services Centers by Institute of Management Accountants

Communication
Motivation
Increase stakeholder
buy-in
Organizational
readiness
Growth projection &
alignment to central
strategy

NGITS can have a competitive advantage by

investing in and utilizing new technologies
Service Mgmt. Technology

New Capabilities

Service
Framework

Implement a
Change
Mgmt. Plan

CI for Client
Relationships

Technology
Upgrades &
Initiatives

Infrastructure Optimization

*Procured for all groups

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

Leveraging Business Intelligence will bring more

value to service delivery
Auditing and Reporting
Capabilities

Supports Incident
Management and Problem
Management

Service
Framework

Implement a
Change
Mgmt. Plan

CI for Client
Relationships

Technology
Upgrades &
Initiatives

Assists Management of
Shared Service Model

Audit trails increase

accountability

Records, Tracks,
Reports Solutions

Capability analysis
detects
performance of
service desks

Multiple levels of
granularity
supported

Investigative
capabilities help in
disaster recovery

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

Continual Service Improvement focusing on user

feedback will help exceed customer expectations

Service
Framework

Implement a
Change
Mgmt. Plan

CI for Client
Relationships

Technology
Upgrades &
Initiatives

Continual Service Manager

CSI Team
Quality assurance

Inputs:
Vision
KPIs/CSFs
Baselines

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

Service Reporting

Customer
Feedback
through
surveys

Continual
Service
Improvement
Register

Continuous
Improvement
Communication to both internal and external customers and employees
Source: ITIL Foundations Handbook

11

The approximate cost of our recommendations will

be $411 Million with potential benefits of $608
Million
Potential
Benefits

Costs

$8 M
$17 M
$23 M

Data Integration Savings

Shared Service Desk Savings
Data Center Consolidation Savings

$560 M

Legacy System Savings

$108 M

Technology Costs

$48.5 M
$24 M
$13 M
$1.3 M
$1.2 M

Internal Staffing
New Hires
Relocation Costs
Training Costs
Consulting Fees

Potential Benefits based on

Previous Case Studies of
SSC Implementations:
Pfizer incorporated data
integration into its SSC
National Business Center
decommissioned legacy
systems and shared service
desk savings
Microsoft implemented
data center consolidation
See Appendices for additional
information on these case studies

12

The implementation of our recommendation will

span 14 months
2014
Nov Dec

Jan

Feb

Mar

Apr

May

2015
Jun
Jul

Aug

Sep

Oct

Nov

Dec

2016
Jan
Feb

Create

Governance

Implement
R&R
Skills
Internal Hiring

Ext Hiring
Change Management
Support Training

Counseling / Support Programs

Service Desk

End User Training

Strategy

Service Desk Reorg

Facilities
Relocation
CSI

DC Consolidation Plan

Technology

Implement DC
Maintenance
Service Mgmt. Tech
Implement
Config.
Testing
Deployment

13

Risk & Mitigation Strategy

Process maturity may decrease initially (going

local to centralized)

Assessment
Probability

Risk

Mitigation
Provide appropriate training and resources to
ensure smooth operations

Impact

Senior Leadership must communicate the

importance of the process in order to create
buy in

Probability

Service Management processes are not adopted

by business and IT stakeholders

Confusion in the ownership of responsibilities

with the extensive relocation and reorganization

Probability

Impact

Impact

Ensure consistency and integration of data and

technology during data center consolidation
process

Probability

Existence of many poorly integrated IT systems

across agencies

Place great initial emphasis on process

redesign, identify the process ownership, and
set up service agreements between SSC and
agencies

Impact
14

Our recommendation will enable NGITS to evolve

into an optimized Shared Service Center
Next Steps:
Operational
Excellence

Performance
Management

Custom Service
Management
Framework

Implement a
Change Mgmt.
Plan

Continuous
Improvement for
Client
Relationships

Technology
Upgrades and
Initiatives

Resource
Alignment

Manage ongoing operations to achieve the

Shared Service Centers business case targets:
Scope, volume, cost, quality

Use incremental demonstrations of results

to move from Commodity IT to Support IT &
Mission IT

Cost
Optimization

Use standardized and predictable estimation

models for more accurate budget forecasting
Improve the scalability of the existing model
by evaluating cloud computing
15

Questions?

16

Appendix Table of Contents

Shared Services Center

Operating Model

Service Management

Current State to Target State

Comparison of different IT Operating models

Service Portfolio

Roles & Responsibilities

Benefits of Joint IT Operating model

Information Security

Key Performance Indicators

Relationship between IT Operating model and delivery

Supplier

Location Rationale

IT delivery model maturation framework

SKMS

Technology

Miscellaneous

Data Center Consolidation

Government Guidelines & Compliance

Service Desk

Data Center Consolidation Financials

Cost Optimization Model

Custom Model

Self service Collaboration Webpages

Organizational Change Management

Tier Description of Model

MGND: Incident and Problem

Best Practices

Organizational Chart

Reporting process in MGND

Additional Risk & Mitigations

Process Redesign

Case Studies

Process Assessment

Service Desk Redesign

Current State of Process Maturity

Pfizer

As-Is to To-Be CMMI assessment

National Business Center

Financial Support

Chargeback Model

17

Transformation to NGITS: Current State to Target

State
Current State:

Unpredictable Costs
Lack of visibility into service performance
Lack of access to high speed network connectivity & bandwidth
Poor investment in cutting edge technologies

Target State:

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
18
worker productivity

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

Roles & Responsibilities of Shared Service Office

Role

Responsibility

Support Service Desk

Knowledge Management
Problem Management
Access Management
Service Catalog Management

IT Directorate
Corporate Directorate

Responsible for hosting, desktop management and service-desk-related services and/or processes.
Responsible for application development, integration, maintenance, enhancement and support.
Responsible for corporate services such as Finance, Audit, Payroll, Human Resources

Data Delivery Directorate

Quality Directorate

Project Management Office

Serve as a competency center model: the focal point for data integration and reporting capabilities within
NGITS
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.
Lead the project management activities for the Shared Service Center Implementation
Track project progress along with risks & issues
Service Performance Issues
Continuous Improvement Feedback
New Requirements

Continual Service Improvement

20

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.

Decrease in call wait time

Decrease in call abandonment rate

Service Mgmt. Tools

Rationalization

Reduces inefficiency
Improves Help Desk productivity

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

Increase in percentage of incidents resolved

through self-service
Improves first call resolution rate

Change Mgmt.

Control over changes and management of risks it introduces

Reduction in change related service failures

Reduction in number of changes that cause

incidents

Configuration Mgmt.

Centralized view of configuration information

Improves impact and root-cause analysis
Optimizes use of IT service assets

Reduction in time to perform root-cause analysis

Improved change success rate

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

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

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.

Catalogue of services offered by IT and their

business value

Increase percentage of services captured in the catalogue

Service Level
Mgmt.

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

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

Number of events logged in timely manner

Percentage success in initiating appropriate response

Continuous
Improvement

Increased standardization and compliance with

processes
Continual improvement and standardization of
processes

Increase in the compliance with ITSM processes

Increase in the number of changes as a result of continual improvement
initiatives

22

Location Rationale for SSC and Data Centers

1.

Locate Shared Services Center

and Main Data Center in the
National Capital Region

The majority of the agencies will be

located in the NCR

Assumption: ALRNs biggest office is located in the Midwest

2.

Locate Shared Services Center

and Main Data Center near
ALRN base

The majority of the Shared Services will

come from ALRN employees

23

Finance Appendix Costs & Benefits

Benefits

Costs
Consulting Fees

$1,234,000

New Hires to support

Service Desk

$23,994,000

Internal Staffing
CSI,PMO,Support Desk

$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

$23,200,000

Decommissioning of
Legacy Systems

$560,000,000

Cost Savings from Shared

Service Desk

$17,000,000

Cost Savings from Data

Integration

$8,217,647

Total Cost Savings

$608,417,647

24

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

Savings from decommisioning of 5 legacy Finance systems
Savings from decommisioning of 5 legacy Audit systems
Savings from decommisioning of 5 Payroll systems
Cost Savings from Shared Service Desk (from 2007-2016)
Cost Savings from Data Integration (Pfizer case Study)
Size of Pfizer
Size of NEG Community
Benefits Multiplication Factor
Cost Savings from Data Center Consolidation
for Microsoft

$
$
$
$
$
$

4,000,000.00
4,000,000.00
4,000,000.00
4,000,000.00
17,000,000.00
5,000,000.00
85000
139700
1.64

23,200,000.00

25

NGITS Shared Service Center Chargeback Model

Roadmap
Harmonize Budgets
(Year 1)

Service Based Costing

(Year 2)

Excellent Customer
Relationships
Usage patterns to
Superb Delivery
derive potential future
Capability
charges
Surplus available to
Refine Governance
invest in resources over
concerning SLAs
time
Encourage customers to
Focus on quick wins to
accept standardization
set vital benchmarks
across services

Source: How to Create a Public-Sector Shared-Services Road Map for Charging, Gartner(2014)

Demand Based Pricing

(Year 3)

Continual Improvement
Generate Investment
Funds for future
innovation
Manage operations
flexibly to grow or
contract
Grow Customer base
26

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

Web Based Services,

Automated Call
Distribution

Tier1

Tier2

Tier3

ITIL, Databases,
Knowledge Bases, Call
Monitoring

Source: http://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=1695&context=iatul

Tier2

In-person support for

hardware issues

Tier1

Tier2

Tier3

Specialized Systems &

Support
27

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

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

Desktop Support: 67

Audit

Data warehousing &

BI: 65

Network Mgmt.: 67

Payroll

Report Distribution: 4

Server Hosting: 48
Storage Mgmt.: 59
Backup / Restore
Mgmt.: 63

Quality Directorate: 30

Finance
HR

Internet Telephony
Services: 73
Printer Mgmt.: 61
Database Mgmt.: 58
Procurement
Support: 58

29

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

Tightly aligned

Moderately aligned

Discrete alignments

Moderately aligned

Organizational Culture

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

Benefits of the Joint Operating Model

Leverage
Existing
Expertise

Minimize
Union Issues &
Workforce
Disagreements

Source: Four Types of Government Shared-Service Initiatives, Gartner (2013)

Centralized
Procurement
& Vendor
Management

Long Term
Value Creation

31

Relationships between Operating Model & Delivery

Model
Operating Model
Type

Asset Optimization
Delivery Model

Process Optimization Service Optimization Value Optimization

Delivery Model
Delivery Model
Delivery Model

Centralized

Maximizes
Corporate Assets
Best Fit

Optimizes Process Optimizes

Optimizes value of
Coordination &
corporate services
integrated value
Integration
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 units
unique services

Optimizes
independent
value chains

Source: Get Your IT Service Model Right by Optimizing IT's Operations and Outcomes

32

IT Delivery Model Maturation Framework

50%

Approximate
Adoption Rates

Best practice model

depends on business
expectations

Acts like a cost center

Acts like ESP

25%
Asset

Acts like profit center

Process
Service

0%

IT-Focused

Internal
Customer Focused

Value

External
Market Focused

Maturation Rates
Source: Running IT Like a Business 2.0: The Service-Optimizing IT Delivery Model

33

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

1.

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
2.
either buckets

3.

Leverages standardization and consistency amongst all organizations which reduce system
interface complexity

4.

Enables service deployment innovatively, reallocating underutilized or over utilized

resources

Source: IBM Building a shared services data center

Data centers will be

zoned and security
mechanisms will be
set up. This ensures
confidentiality and
integrity of all data

34

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.

Source: Federal Data Center Consolidation Initiative

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.

35

Self Service Collaboration Webpages

1.
Allows users to create and resolve
their own incident requests
2.
Reduces call volumes to service
desks
3.

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

Pre-configured service requests

reduce service desk response time

Source: http://www.bmc.com/it-solutions/demonstrations/remedyforce-self-service.html

36

MGND BPA: Incident Management Systems &

Problem Management
Incident Management System

Problem Management

An organized reporting standards assists Director and other top officials in

management reporting

This functionality allows service desk employees to analyze

incidents to prevent them from reoccurring

3.

2.

1.
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

Reporting Process in the MGND BPA Suite

Export

Edit

CSV Formats
XLS Formats
Category
Client

Reports
Generated

SLAs
Analyze
capability

Analyze
productivity

Analyze Time
spent in
system

View

Filtered Report
Source: http://www.bmc.com/it-solutions/demonstrations/remedyforce-reporting.html

38

Process Assessment & Redesign

External Environment
Customers
Products
Business Process
Operation View

Organization
Structure
Population

Behavioral View

Technology

Information

Source:
http://www.win.tue.nl/~hreijers/H.A.%20Reijers%20Bestanden/impact.PDF

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

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

39

Current Process Maturity Levels based on Service

Line
**Average
of all 7
agencies
processes

Release & Deployment Mgmt.

Problem Mgmt.

Change Evaluation
Transition Planning
& Support
Service Validation &
Testing

Knowledge Mgmt.

Event Mgmt.
Access Mgmt.

Incident Mgmt.

Change Mgmt.
Service Asset & Configuration Mgmt.
Request Fulfillment

Level 0:

Level 1:

Level 2:

Level 3:

Level 4:

Level 5:

Incomplete

Performed

Managed

Established

Predictable

Optimizing

Source: http://www.lc-stars.com/iso15504-expert.html

40

As-Is CMMI Structure to To-Be CMMI Structure

Level 5
Currently at high level 1 and goal should be high level 2
Level 3
Level 2
Level 1
Performed
Process
unpredictable,
poorly controlled
and reactive

Managed
Process
characterized for
projects and is often
reactive

Source: http://www.broadswordsolutions.com/what-is-cmmi/

Defined
Process
characterized for
the organization and
is proactive

Level 4
Quantitatively
Managed

Optimizing
Focus on Process
Improvement

Process measured
and controlled

41

Service Portfolio Management

Manages SM investment
Service Portfolio

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

Pipeline

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

Information Security Management

IT Security Policy meets organizations security policy and corporate governance requirements

1.
2.
3.
4.
5.

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

Plan

Maintain

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

Evaluation

Implement

Trustworthiness: business transactions and information

exchanges can be trusted

Source: ITIL Framework

43

Supplier Management
Critical Success Factors

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

Source: ITIL Handbook and TBI Central.com Vendor Mgmt. Best Practices

High
Value & Importance

Include end users and have recurring and

standing meetings with suppliers

Low

Communication

Supplier Categorization
Operational
Suppliers

Tactical
Suppliers

Strategic
Suppliers

Operational
Suppliers

Tactical
Suppliers

Tactical
Suppliers

Commodity
Suppliers

Operational
Suppliers

Operational
Suppliers

Low

Risk & Impact

High
44

Service Knowledge Management systems function

as repositories for faster issue resolution
Lifecycle of Data within the SKMS

Data

Information

Knowledge

Source: ITIL Foundations Handbook

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
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

45

Government Guidelines & Compliance

Federal
Information
Technology
Shared Services
Strategy

M-11-29:
Memorandum
to Agency CIOS

Four main focus

areas:
Governance
Commodity IT
Program
Management
Information
Security

Federal
Government
Approach to
Enterprise
Architecture

Portfolio Stat
Process
Future-First
Architecture
Future-Ready
Digital
Government

Centralize
architecture
Minimize
duplication of
resources
Increase shared
services
Promote
engagement

Federal
Transition
Framework
(FTF) Service
Catalog

Used for interagency

information
transfer
Improves
effectiveness &
efficiency of IT
investments

Sources: BMC Incident Problem Mgmt., CIO.gov 25 Point Implementation Plan to Reform Federal, Public Law 104-106, Division
E, Clinger-Cohen Act of 1996, White House Shared Services Strategy, White House OMB Memoranda

OMB
Memorandum
M-05-22 : IPv6

Perform
inventory check
of network
infrastructure
Switch to IPv6
compliant
devices
Additional
security

46

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
Source: Gartner (October 2011)

Different types of cost optimization involve different parts of the

organization and varying IT department decision rights

Value
47

Organizational Change Management Best

Practices

1.

Change
Strategy
and
Planning

2.

Audience
Analysis and
Impact
Assessment

3.
Sponsorship and
Communication
Plan

Support Training: Consultants

train Support Desk
End User Training: Train the
Trainer aka Super Users

Source: Motorola Case

4.
Role Design
and
Mapping

5.

6.

Training
Design and
Development

Training
Deployment

7.

8.
Start up
Support

Readiness
Assessments

48

Additional Risk & Mitigation Strategy

Unexpected Implementation Cost Escalation

Assessment

Mitigation
Perform project performance monitoring to keep
expenses in check

Probability

Risk

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

Legal, Regulatory barriers

Probability

Impact

Agreeing early on that majority decisions are the

rule, instead of unanimous decisions.
Impact

Investigate the regulatory and other barriers

thoroughly
Impact

49

2nd 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

Situation

Case Study: Service Desk Redesign Results

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

2009

2011

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

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

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

Situation

Case Study: National Business Center Reduced

Costs & Improved Services in Multi tower Shared
Services

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.

Source: The National Business Center Reduced Costs and Improved Services in Multitower Shared Services , Gartner(2009)

Action

Result

Decommissioned
5 legacy systems

Reduced annual IT
costs by $4

million
Shared
investment
among 50
agencies

NBC could

investment
additional $5
million
Other agencies
could investment

additional $10
million

51

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

Situation

Case Study: Pfizer delivers effective data

integration capabilities via a Shared Services
Model

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.

Source: Pfizer Delivers Effective Data Integration Capabilities via a Shared Services Model , Gartner(2008)

Action

Result

Dozens of
redundant
project-specific
environments

Lead to millions

Additional
benefits

Other parts of IT
benefit from
standardization

of dollars in
savings on
annual basis

52