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Office of the CIO
    Office of the CMO
     Market Trends
           2012




Tell me and I’ll forget
Show me and I may         STKI Summit 2012
remember                      Galit Fein
Involve me and I’ll       VP & Senior Analyst
Agenda


    MEGA                                   Office of                                  Office of
    Trends                                 the CIO                                    the CMO
                                           IT Services and
                                             Chargeback                                 Mobility

                                                          QA,
                                              Service Desk

                                                                                      Social Media
                                                    Sourcing


         Galit Fein’s work Copyright 2012 @STKI                                                    2
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Israeli Enterprise 2012: Under Pressure




                                                              COM
                                                              PETI
                                                              TION




                                                   Enterprise
          Global Economy                                                                  Innovation
                                                           2012

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1980’s - IT Department



                                                                                           MIS   BO
    Operations
                         Back
        DRP              Office
              Infrastructure

                             Security




              Galit Fein’s work Copyright 2012 @STKI                                                  4
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1990’s - IT Department



                                                                                             IT           CFO
  Transactions                                                                             manager   BO


                 Back
                 Office ERP
        DRP
              Infrastructure

                             Security




              Galit Fein’s work Copyright 2012 @STKI                                                        5
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2000’s - IT Organization




     Processes                                                                     CIO    BO
                                                                                               CFO Sales
                                                  Web
               Back CRM                           site
               Office
         DRP            ERP
             Infrastructure

                            Security




             Galit Fein’s work Copyright 2012 @STKI                                                   6
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2005 - IT Organization


                                                                                           HR

     Processes                                                                     CIO
               Back CRM
               Office
         DRP            ERP                          HR
             Infrastructure

                            Security

                                                                                                CFO Sales
                                                                                          BO


             Galit Fein’s work Copyright 2012 @STKI                                                    7
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2008 - IT Organization

                                                                                                  OCIO
                                                                                           HR

     Processes                                                                     CIO
               Back CRM                           HR
               Office
         DRP            ERP
                                                   PPM
             Infrastructure

                            Security

                                                                                                CFO Sales
                                                                                          BO


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2010’s – Technology & Information Systems

                                                                                              CEO             OCIO
                                                                                                         HR          CMO

 Business Products                                                          Technology
                                                                              & IT VP

 Analytics         Back CRM                           HR
                   Office
             DRP            ERP
    BI                                                 PPM
                 Infrastructure
   OR                                                    Mobile
                                Security
                                                        Social
                                                        media                                             CFO Sales
                                                                                                    BO


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Capex increasing, Opex not decreasing



                                                                                         Capex:
                                                                                         New business
                                                                                         demand
                                                                                         for IT services


$$                                                                                       Opex1:
                                                                                         Last year capex x 15%


                                                                                         Opex2:
                                                                                         5-10% decrease
                                                                                               on existed
                                                    Time
            Galit Fein’s work Copyright 2012 @STKI                                                         10
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How Can We Fill The Gap?


                                                                                        Business demand
                                                                                         for IT services




$$

                                                                                         IT Budget




                                                   Time
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IT Budget Trends

• Modest increase in IT budget -average rise of 3.7%

• IT Capex flattens at beginning
  of year due to uncertainty

• Despite continued volatility,
  IT staffing remains constant



            Galit Fein’s work Copyright 2012 @STKI                                       12
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Meeting business expectations

IT has to:
• Create new platforms to support business innovation and
    growth
• To be competitive to new IT service models or be open to
    use them

                                                                 Creating new products
                IT’s ideal priorities                           Reducing
                                                                IT costs




                                                                 IT basic services
Satisfaction with IT’s effectiveness
                                                                 New ideas

                                                                                              Source: McKinsey 2012


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Capital Organizational Spending




                                                                                          Technology
           Other                                                                         Investments
                                                                                             47%




                                                                                                   Source: IDC 2012


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The Majority of IT total spending goes to Maintenance

       Breakdown of Total IT Expenditure 2009-2012
                                                                    Innovation

                                                                    Business opportunity




                                                                    Maintenance



                                                                    Mandatory


                                       Source: CIO Executive Board 2012




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If you can’t beat them…

   What are the main reasons for SW project overruns?
                                                                                                            IT Portfolio is
        Changing requirements                                                                       56%   changing quickly
        Poor estimation                                         17%                                       due to changes in
                                                                                                             competitive
Pressure from management                                        15%
to accept unreasonable schedules                                                   Resource: Cutter           conditions


 Agile world – ability to respond on the fly to constant changes
                                              in business requests
 Small, cost-sensitive, more likely to be "disposable"




                       Galit Fein’s work Copyright 2012 @STKI                                                        16
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Changing Requirements AND Deliverables All the Time

Sprint B       Previous requests AND                                                           Sprint A       Business
               New business demands                                                                           requests
           P                                                                                              P
           R              A2                                                                      A7      R     A
           I                                            Detailed                                          I
           O                                                                                              O
           R
                                                        Planning                                          R
                          A3                                                                      A             A2
           I                                                                                              I
           T                                                                                              T
           I              B1                                                                              I
           Z                                                                                     A        Z
           A                                                                                              A
           T                                                                                              T
           I              B2                                                                              I     A80
                                                                                                 A79
           O                                                                                              O
           N                                                                                              N



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                                                                                                                    17
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Consumer Power

• End of IT monarchy:
                    IT will be one of possible sources of development that
                    departments can use, and in many cases internal IT will compete
                    with outside contractors for specific jobs




• IT spending is gradually changing it’s guards - from ITO to
  business departments

• Different areas such as: risk, mobile, HR, IT purchase leaks
  to business departments

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Radical Change of IT - Efficiency and Agility

•     IT can find itself nearly irrelevant, unless it becomes efficient
      , agile, and competitive with other market offerings



•     IT should embrace the new models offered by cloud or service
      providers, otherwise it will be replaced by them

•     Lean IT




                  Galit Fein’s work Copyright 2012 @STKI                                       19
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What is Lean?

 •   Japanese automotive Industry developed Lean
     manufacturing with a lead from Toyota and utilising the
     Toyota Production System (TPS) factory.

 •   Maximize customer value by eliminating waste and
     optimizing the existing processes in all aspects of a firm’s
     production activities: HR, vendor relations
     , technology, and the mngt of materials and inventory

 •   Doing more with less effort. Focus on your key processes
     in meeting customer needs with all muscles without any fat
     or waste.
                                                                 Source: http://www.hydspin.org/files/conf09/g_appa_rao.ppt
                                                                                     STKI modifications
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Customer VALUE and WASTE

 •   The purpose is to deliver VALUE that the customer needs
     and is willing to pay for
 • If it ain’t value, its WASTE
 – Extra (unused) features
 – Handoffs
 – Task switching
 – Delays
 – Defects / REWORK
 – Partially done work / work in process


                                                                                         Source: AgileSparks

            Galit Fein’s work Copyright 2012 @STKI                                                       21
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Lean Benefits

    Wait Time
                                                                                    Cycle Time
    (non value
    add)           Before
    Work Time
    (value add)     After
                                                                                                                Same work
                                                                                                           completed in less time

 Requirements                   Design                            Development
                                                                                                   Cost/
                                                                                                   Chaos
 FLOW
Avg time
3 weeks
                  Waiting                         Waiting                              Defect Fixing
                                                                                                               Cycle time



                  Relentlessly focus on reducing non-value adding activities

                      Galit Fein’s work Copyright 2012 @STKI                                                                22
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Anything that slows down development

 •   Inefficient manual steps to build/ install/ test/ release
 •   Not fixing broken build/tests
 •   Code Complexity (skipping refactoring, duplicate
     code, coupling and spaghetti code, etc.)
 •   Code that not executed (but supported)
 •   No documentation and leveraging
      of knowledge




                                                                                           Source: AgileSparks


              Galit Fein’s work Copyright 2012 @STKI                                                       23
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Office of the CIO



  Galit Fein’s work Copyright 2012 @STKI                                       24
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Office of the CIO penetration in Israel 2012

                                                                     OCIO


      Banking

    Insurance

       Health

  Credit Cards

     Telecom

     Industry

  Goverment

          IDF


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MEGA IT Trends 2012

                                                                 Real Time Predictive Analytics




              and Mobility
Consumerization




                                                               IT Services




                                                                                                                          social
                                                                                                          Context based


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IT services and cost transparency

•     By implementing OCIO tools and methodologies , ITOs achieved
      greater business satisfaction with IT
•     BUs received greater visibility and control over their technology
      budgets
•     NOW, encouraged by better visibility and cloud models
      alternatives, business managers do not want the technology cost to
      become overhead cost or annual tax
•     IT must sell and deliver cost based services


                                         We deliver IT




                  Galit Fein’s work Copyright 2012 @STKI                                       27
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From unresponsive corporate overhead
                  to an agile business partner

     All-you-can-eat buffet                                                                Fast-food restaurant


                                                                 VS


•   Everyone pays the same                                                  •         Price is affordable
    price                                                                   •         Choices driven by market
•   Food selections are driven by                                                     demand
    the chef’s priorities                                                   •         Customers pay only
                                                                                      for what they consume
              Galit Fein’s work Copyright 2012 @STKI                                                         28
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The new IT




                                                                                                         Client/user




                                                                                      Packaged
                                                                                      Application


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Why do we need IT Chargeback

•    It helps organizations understand that IT is not free

•    It gives BUs greater visibility and control over their
     technology budgets

•    It demonstrates the cost savings from shared services

•    Demand for visibility in IT costs comes
     from outside the ITO



                 Galit Fein’s work Copyright 2012 @STKI                                       30
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IT Chargeback Recommendations

1. Well-defined portfolio of IT activities along with output
in terms which are coherent to the customer
                                                                                              Server       DRP
2. Start mapping types of
                                                                                                          Upgrade
requirements which repeat themselves:
• BI reports
• Changes in GUI (field, color, etc.)
• Client differentiation
                             “When we are no longer able to change a
                        situation, we are challenged to change ourselves”.
                                                                                          Victor Frankl
             Galit Fein’s work Copyright 2012 @STKI                                                       31
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Put It All Together: The IT Service Portfolio and Service Catalog

• Bundling:                                                            • Value proposition:
A clear definition of what the                                         Why should the business buy it?
service entails, and how it relates
and integrates with others as a                                        • Competitive advantage:
service package
                                                                       Why should the service be bought
                                                                       from internal IT?
• Differentiation:
Multiple offerings at different       •                                          SLAs/reporting/performance
prices for different parameter                                                   data
values, for items such as service     •                                          Pricing and chargeback
hours, availability and response time
                                      •                                          Exceptions and escalations
                                      •                                          Internal and external
                                                                                 benchmark data
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Ascertain IT Service Costs


COULD BE:

 Capex        Hardware
              Software
              Installation costs
              Customization costs


One-time
expenses

             Training costs




            Source: Galit Fein’s work Copyright
                    ITSM                         2012 @STKI                                        33
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Cost Model with Variable Pricing - Examples

High-level     Availability           Performance                       Provisioning              Security     Standard
description of                        guarantees                                                  guarantees   service
what the                                                                                                       definitions
service
provides
E-mail                                24 x 7 with 4/9                                                          mission critical
delivery                              uptime
                                      10 x 5 with 3/9                                                          business
                                                                                                               critical

                                                                                                               business
                                                                                                               operational
                                                                                                               administration
Help desk
support


                     Galit Fein’s work Copyright 2012 @STKI                                                               34
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Cost Model with Variable Pricing - Examples
High-level       Costs
description of
what the service
provides
Help desk        Cost of tech                                  Equipment
support                                                        Software
                 Labor                                         Manager
                                                               1st level support
                                                               2nd level support
                 Facilities
                 3rd party services
                 Direct costs                                  Email server
                 Indirect costs                                Per-foot operating cost of
                                                               a DC
                 Fixed                                         Permanent IT staff
                 Variable costs                                Temps
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IT Chargeback


Consumption                                 $X per month per gigabyte of
                                            network storage
Transactions:                               $Y per new PC set up and
                                            configuration
Units or headcount                          $Z per phone number or network
                                            port

Allocation                                  A base fee for IT overhead allocated,
                                            according to a BU’s percentage of
                                            total revenue or total employees
                Galit Fein’s work Copyright 2012 @STKI                                       36
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OCIO comprises of Business-IT relationship managers

•     All these ITG methodologies and new defined processes, SLAs, IT
      chargebacks and service catalogs could be very confusing


• OCIO has important role in the communication with and the
      support of BU


•     Effective BRM must be a true hybrid of business
      and technical orientation


•     More than audit & reporting role - guidance
      to BU heads on ways to improve efficiency

                  Galit Fein’s work Copyright 2012 @STKI                                       37
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Office of the CIO

•     As decentralized as IT gets, one person should have the
      visibility on the total spend, because there are a lot of places
      where effort and resources can get duplicated and wasted if no
      one has the big picture

•     Greater business partner responsibility - more business
      leaders are willing to take primary responsibility for managing
      delivery. BRMs consistently underestimate business partners'
      willingness to lead

•     Engage business leaders in advance, to ensure effective
      technology delivery that doesn't introduce inefficiency and
      unnecessary complexity or undermine IT strategy

                 Galit Fein’s work Copyright 2012 @STKI                                       38
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OCIO is Very Busy

•    BRM (Key Users)                                               •     IT Operations
•    Budget plan                                                   •     Project mng/ Development
•    IT HR                                                         •     QA/ Testing
                                                                   •     Vendors mng
• EA                                                               •     Legal/ Compliance
•    Procurement plan                                              •     Remote sites - DR/BCP
•    Change mng                                                    •     Critical Success Factors
–    ITIL-related
                                                                   •     Key Process Indicators
–    Project-related
                                                                   •     Controls in general
•    Risk/ security mng
•    Configuration Items:                                          • Roll Out -
–    New ones that will be installed
                                                                                         Does not end after project goes
–    Existing ones that will be change                                                   live! OCIO must maintain charge
                                                                                         of employees knowledge and
                       Galit Fein’s work Copyright 2012 @STKI                            usage of new system/ features
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OCIO Responsibilities in Israel 2012


                                 Strategic IT Plan
 …Selection, control and evaluation of IT
                                                          PMO
                                     IT budget mng
       Methodologies, processes & tools
                                                 Risk mng
                   Enterprise architecture
                                                               HR
                                                              QA
                                                              HD
   Other: App mng, training, config. Mng
                                                                                             Source: STKI 2012
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OCIO helps IT be Competitive Service Provider

     Optimum
   portfolio mix                         Investment decisions                             Service Level
                                           translation into IT
    and project                          architecture and infra.                          Agreements
    evaluation



                                                                                           Project
    Chargeback                               Resource mng
                                                                                          Tracking



      Formal
    Tracking of                                    Roll out
   Business Value

             Galit Fein’s work Copyright 2012 @STKI                                                  41
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IT Project Rollout Plan - Actual project mngt

 •    Detailed Work Breakdown Structure with dates -
      milestones, control gates, etc.

 •    GANTT charts showing dependencies and progress

 •    Human Resource Plan (Internal, Vendors, Customers)

 •    Configuration Items:
      New ones that will be installed

      Existing ones that will be changed

 •    Purchase/procurement plan for required CIs

 •    Budget Plan
                 Galit Fein’s work Copyright 2012 @STKI                                       42
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Employees knowledge and usage of new system/ features

•     Communication Plan (Awareness, Meeting schedules)

•     Project Change mngt Plan

•     Security Plan

•     Other aspects of project mngt based on your organization’s needs
      What controls are needed to create a reasonable assurance of outcomes?

•     Roll Out

         Does not end after project goes live! OCIO must maintain charge of
      employees knowledge and usage of new system/ features


                    Galit Fein’s work Copyright 2012 @STKI                                       43
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PPM Tools
Positioning of the Israeli Market

                                                                                                   Clarity
                                                                                                    (CA)
                              Microsoft
                                                                                                             Worldwide
                                                                                                              Leader

                                                                                                             Enterprise
       Local Support




                                                                       MSP
                                                                                                             SaaS Player

                                                                                                             New Player
                                                                       Sciforma
                                HP
                       ITCC                      Primavera

                        Clarizen

                                                       Market Presence
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PPM Tools & Integrators in Israel

                                   Clients                                        New Clients 11’       Integrators
Clarity (CA)   Ministry of Tourism, Clalit, SanDisk,                           Orange, Pelephone    Proceed
               Leumi Card, Harel, Jewish Agency,
               Strauss, Bank Leumi

               Teva, Bank Hapoalim                                                                  CA, Orantech

MSP            Menora, IAI, Tel-Aviv Munic. Ayalon-                            Min.of the Environment ONE1
               ins, Cellcom, Phoenix, Leumit,                                  Visa CAL, BDO
               Justice Department, Clal Bit, Bank
               Igud, Delek, Paz, YES,
               CIO Dashboard: Random Logic, IDF,
               Elbit. iTeam (budget planning)
Sciforma       Bank Discount, Menora, Teva, Visa   HOT, ZIM, Isracard,                              Xioma
               Cal, BVR, Nova, Evogene, Leadcom    Machteshim agan eng.                             Signifer, Aman
               Hazera Genetics, Bid Band Networks, Given Imaging
               IDE, Veraz, Opgal, Teva Tech
PPM (HP)       Mataf, Motorola(Global), LivePerson                                                  HP, BDA


                    Galit Fein’s work Copyright 2012 @STKI                                                      45
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PPM Tools & Integrators in Israel

                                        Clients                                            New Clients 11’               Integrators
EPM                M-system, Leumit, IAI, IAA, Lotem, Bezeq,                         MS 2010                             Matan, Orantec
                   Mekorot, Orbotech, Bank Leumi, Coca-                              Amdocs, Defense
(Microsoft)        Cola, Nice, Matan: Machteshim Agan,
                                                                                                                         h, Neway, PZ
                                                                                     Matan: Strauss, Tel-Aviv Municip.
                   Prime Minister, Maccabi, Alvarion, IAA,                           Elta, Marvell                       Projects
                   Better Place, Tnuva, Random Logic;                                Orantech: Navy, Shabas, Teva R&D,
                   Orantech: Netafim, ECI, Ceragon, Logic,                           Sorek, Leumi Le’Mashcantaot
                   AD Gency Sol gel Rocar Playtech,                                  PZ Projects: Justice Department,
                   Sandisk; KAKAL, MODU, Kodak, RAD; PZ                              Elisra
                   Projects: Min. of Foreign Affers; Proceed:
                   Malam
Approach           Netafim                                                                                               Approach,
PPM on Force.com                                                                                                         SalesForce.com
Clarizen           Tnuva                                                                                                 Clarizen

Primavera          Mercava, IDF, Intel                                                                                   Aviv
(Oracle)
Compuware          Jacada (Global), Retalix (Global)                                                                     Matrix
Changepoint
ITCC                                                                                 ECI, Tama, Metro Motor              that's IT
                           Galit Fein’s work Copyright 2012 @STKI                                                                46
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Learning, Training and Implementation




           Galit Fein’s work Copyright 2012 @STKI                                       47
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Learning, Training and Implementation Trends

 As a result of:
  Too many new systems
  IT requirements flood
  Employment high turnover
  Generation gap
  Lack of control of new system’s implementation


           Training and implementation
               are under HUGE focus

            Galit Fein’s work Copyright 2012 @STKI                                       48
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Does your organization measure the ROI generated
by the new system?




                                                                                          Yes

        No




                                                                                            Source: STKI 2012




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Learning, Training and Implementation - Major Trends




• Gamification



• Video


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Video e-Learning –Next Generation Customer Care

                                                                                        Subject covered in
                                                                                    Shahar Maor’s presentation

                                                                                                       Choose your next
                                                                                                       choice on-the-fly




Video evolves according to choices made


                 http://blogs.wsj.com/speakeasy/2010/10/25/andy-grammers-keep-your-head-up-applies-choose-your-
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Recommendations


• Look for innovative ways to make SW training less boring

    Clue: American test is BORING

• Gamification and Video trends serve as perfect training and
 implementation tool

• If you invest massively in purchasing new SW invest a little more
 to make sure your employees use it to the max

                                                                                                 Subject covered in
                                                                                            Liza Bodogin’s presentation


               Galit Fein’s work Copyright 2012 @STKI
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Agenda


    MEGA                                   Office of                                  Office of
    Trends                                 the CIO                                    the CMO
                                           IT Services and
                                             Chargeback                                 Mobility

                                                          QA,
                                              Service Desk

                                                                                      Social Media
                                                    Sourcing


         Galit Fein’s work Copyright 2012 @STKI                                                    53
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QA and Testing




           Galit Fein’s work Copyright 2012 @STKI                                       54
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QA & Testing Services - Trends

 •   Becoming more important as a result of new regulations
     and security requirements

 •   Major priority to cost reduction: by using Nearshore model

 •   Due to high competition - use of variety of tools and
     methods:
     Crowd testing, KDTpro, Practitest, Experitest, Perfecto Mobile


 •   In spite of clients' preferences for in-house QA, they’re
     more willing to give vendor some scopes of work

              Galit Fein’s work Copyright 2012 @STKI                                       55
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QA & Testing Services - Israeli Market

 •   We can honestly say “goodbye” to independent testing
     companies! We’ve tried, but we failed 

 •   Majority of IT projects are using the same vendor for both
     development and QA

 •   Clients consider using different vendors as a waste of time
     and money

 •   Increasing interest in Cyber, mobile and cloud testing


             Galit Fein’s work Copyright 2012 @STKI                                       56
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Because of the scope and complexity of IT
most ITOs often fail to define useful performance metrics




                                                                                      Source:
                                                                                      Gartner
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Resource mng, Talent mng & Capacity planning




                                                                  ~44% of IT budget goes to
                                                                        manpower




           Galit Fein’s work Copyright 2012 @STKI                                        58
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Capacity Planning

 •   After considering maintenance and HD commitment – how
     available are your resources? What are your bottlenecks?
     What skills do we lack?
 •   It’s not just a matter of matching project to the available
     employee
 •   It’s about matching skills, experience & employee
     availability to project requirements




             Galit Fein’s work Copyright 2012 @STKI                                       59
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Watch Out!

 •   The share of employees and contractors reporting to IT
     leaders has dropped more than 15% in 2011

 •   At the same time, more than a 1/3 of larger orgs report
     increase in social media specialists, service
     architects, technology brokers, and other new-to-world
     roles

 •   Use strategic plans, labor market analysis, an org.
     review, and forecasting to create an action plan which
     include a talent mng. strategy, outsourcing plan, and
     organizational/ job redesign plan
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Resource Management

 •   OCIO gains the momentum, but real skills, capacity and
     training are not treated well

 •   IT Talent and capacity mng - Identify emerging skills gaps
     and role changes in traditional IT roles in order to prepare
     for changes by strategic workforce planning

 •   Prepare internal resources to become brokers, not
     providers, as the cloud enables externalization of many
     current IT functions



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IT Service Desk




                                            HELP!!!!




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IT Service Desk - Trends

 • Service desk is the first to be cut down

 • SPOC – HR, facilities, procurement request

 • Standardization of products & services (ITIL)

 • Proactive problem management

 • SLA externalization

 • Knowledge mng – make your tool work for you

 • Self-Service is the KING!



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Total Cost of Ownership




• As the Level 1 resolution rate increases, the cost per call for Level 1 increases
• But the total cost per call, including Level 2 costs, declines
• The cost of resolution at level 2 is typically 5X to 10X greater than at level 1
                    Galit Fein’s work Copyright 2012 @STKI
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Over Time


• Clients become more savvy (Gen-Y)
• Users prefer using blogs, vendor and user online support sites,
  and social networks to find answers instead of using service
  desk portal
• Incidents’ complexity increase

• Total cost per HD call increase




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Growing Call Volume

 •   Rapid increase in call volume stretches already limited
     resources, impacting customer satisfaction

 •   Changes are main reason for call-volume increase:
     new HW, new app, new mobile device, etc

 • Mobile devices need attention:
   most orgs don’t support personal mobile devices neither
   company-owned mobile devices



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Reasons for Decrease in Support Incidents


Infrastructure changes

          Self-Service

IT HD staff competency

Customer competency

      Knowledge mng

      Nu of customers

         Remote tools

  Outsourcing support                                                                  Source: InformationWeek Analytics 2o11


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Self-Service


• Personal attention VS prompt answer

• User friendly systems – YouTube “How to…” examples

• IT HD phone call twice as expensive as Self-Service

• SW distribution

• Online catalog

• Higher Clients satisfaction



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Measuring the Right KPIs

                 • On hold times (contributes to customer satisfaction)
                 • Number of calls received (trend analysis and
 Help desk         problem identification)
 metrics still   • Call duration (knowledge deficiencies)
  relevant



                • Customer satisfaction is KEY
Metric focus is • Meeting service level targets
   on the
 customer:



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Top Metrics for Service Desk




                                                                                 Source: InformationWeek Analytics 2o11




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Cost per Incident

                                                                Source: InformationWeek Analytics 2o11




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IT Service Desk –
Positioning of the Israeli Market


                                                                                                          CA
                                       Microsoft
                                                                                                                    Worldwide
                                                                                                                    BSM Leader

                                                                                                                    Enterprise
       Local Support




                                                        IBM              HP                                         IT Help Desk
                                                                                          BMC                       Modules from
                                                                                                                    CRM packages

                       SAP           Siebel
                                                                      Pivotal                              SysAid
                                               PeopleSoft

                        Altiris

                                                      Market Presence
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IT Service Desk Tools & Integrators in Israel

      Clients                                                                                New Clients 11’   Integrators
CA    Comverse, IAI, Discount, Elta, ECI, HOT, Motorola, Teva,                               Ness (SaaS),      CA, Ness, Ma
      Elbit, Mekorot, Osem, Phoenix, DSW, Bezeq Int, Beit Berl,                              Haartz,           lam -
      Israel Police, Tnuva, Central Bureau of Statistics, EL-AL,                             Phoenix, Bank     Team, Techm
      Tamas, TASE, Ministry of Health, Tel-Aviv Municipality,
                                                                                             Yahav, MOD        ind
      Herzelia Munic. Clalbit, Shabas, Rafael, Isracard, 888,
      9900, Bank Hapoalim, Mifal Hapais, Ministry of Justice,
      Ministry of Defense, Yediot, Petah-Tikva Munic, Bank
      Israel, Ministry of Immigration, RASHAT, Teva (Bar),
      Brom, Lotem

BMC   Zim, Malan, IGS, MED Nautilus, Malam, Kneset, NDS,                                     Migdal, SCD,    Matrix
      Social Insurance, Uniliver, Creo, Intel, Motorola, Summit                              012 - eng.,
      Design, Polycom, Cellcom- eng. HOT-eng. Partner – eng,                                 Texas Instrum ,
      Sandisk, Comverse, Nice, IAI, Better Place
                                                                                             Netvision eng.

HP    HPOV:IDF, Netafim, Shaam, Open University, Orbotech,                                                     Aman, HP
      Tower Semiconductors, Haaretz; Service Manager: NDS,
      PlayTech, Shupersal
      Tefensoft: Clalit Health, Menora, Migdal, Prime
      Minister, Hadasa,work Copyright 2012 @STKI
                 Galit Fein’s
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IT Service Desk Tools & Integrators in Israel

           Clients                                                                                New Clients 11’       Integrators
IBM        Harel, Menora                                                                          Bahai World Center,   IBM, Addon,
TSRM                                                                                              Edgar Real-estate,    Ludan
                                                                                                  Natgaz

Altiris    Callmobile, IDF                                                                        Ormat                 Aman, Bynet,
Symantec                                                                                                                Netcom,
                                                                                                                        GlassHouse




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IT Service Desk Tools & Integrators in Israel

         Clients                                                                                    New Clients 11’                 Integrators
         Jonson & Jonson, Highway 6, Omrix, Wintegra, Sami Shimon                                   (300 Israeli clients)           Consist
SysAid   College, Africa Israel, Mei-Eden, AIG, Electra, McCann Erickson,                           Opgal
         Diesenhaus unitours, Opal , Flash Networsks, Liveperson, Hertz, Psagot                     Madanes Insu Shlomo Sixt
         Ofek, Coca Cola, Beit Barel College, Ashdod Port, Technion, Shila,                         Caesar stone Magic Cal
         Sugat, Gadot, Bezeq Int. AeroScout, Strauss, IKEA, Delek, Tempo, 013                       auto West galilee collage
         Netvision, Tami4 ,Bank of Jerusalem Leumi Mortgage , Bituach Yeshir,                       Lageen Logic
         Holmes Place, Ashot Ashkelon, Netformx, Fishman, Hospital-                                 Motorola Safe city Gitam
         Nahariya, halman aldubi, Eged Tour, Zoglobek, Madanes, Tempo, Beeri                        BBDO Danya-cebus Tower
         print, Lubensky, Shlomo Sixt, Excellence, Elul, Ophir optronics,                           Semiconductor Tcpoit
         Realcommerce, Nextcom, Fritz, LR Group, Israel Ports, Magicsoftware,                       Keshe TV
         Cal auto, West galilee collage, Maabarot Products, Haifa Port,                             FedEX WIX          - Fibernet
         PharmUp, Lageen, ICQ, Logic, Tambur, Kamada, The Nation Traffic,                           Sapir collage Albar Intel
         Elcam, Carmel container systems, Brightsourceenergy, Kavim, Gitam                          Labs Dash El-Al Sec Div
         BBDO, Rishon Lezion Muni, Dania sibos, Baran group, Tower                                  Diplomat Holon Muni Rokar
         Semiconductors, Bee Group, Betterplace, Keshet TV, Leumi Card,                             Tiny love IDC NOVA IMDsoft
         FedEX, WIX, Optier, Tahal, TGS, Palram, Sapience, Orca, UPS, Beeper,                       Tmura The Council for
         Intel labs, Mivtach Saimon, Albar, EMC, Tel-o-Fun, Dash, EL-AL Sec,                        Higher Education Imperva
         Sapir collage, Diplomat, Hulon Muni, Shlomo Insu, conduit, Hadssa                          Netformx Ashot Ashkelon
         hospital , Tradenetworks, Ceragon, Rokar, Celtro, National library, IDC,                   Eged Tour Environmental
         Nova, Ambar, Mediamind, UTI, Barzilay Hospital, Afimilk, David                             Services Company Ltd. (ESC)
         Intercontinental, Hertz, Isrotel, IKEA, IMsoft, Tmura, polymerlogistics,                   Shirbit
         shastovich, , Imperva, Haifa university, mashcal, Tel-hai collage, IBI,
         D&B, and many more




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IT Help Desk Modules from CRM packages

              Clients                                                              New Clients 11’       Integrators
              Ministry of Finance, Israeli Navy, Intel, Prime Minister,                                  20 Partners, including:
Microsoft     Eldan
                                                                                   Ministry of Health,
                                                                                                         Matrix-
CRM           Advantech: Eged, Shikunbinui, Amidar, Volcani Center,                Shikun & Binui,       Effect, SIT, Advantech, Malam-
              Lavi
                                                                                   TOTO, Osem, College   Team, Netwise, Bynet
              EL AD: Judicial Authority, Ministry of Transport, Court                                    SW, Yael, El-AD….
              Malam-Team: TAU                                                      of Management
              Guardian: Baad15, Jewish agency
              Matrix-Effect: Igud, Malan, Superpharm, Cellcom, Visa
              Cal, Machteshim-Agan, Marlboro, Ministry of Education
               Almog: Telmap

              Bat-Yam Municipality, Exlibris, Systematics, Panorama,                                     ONE1
Pivotal       Telmap, Ericom FGG Radvision, Gilat, Shahal, Ritalix,
              Globs, Tadiran, Orad, Maccabi, Negev Ceramics


              Paz, Isr. Government, Bazan, Bank Hapoalim (modul)                                         Ness, Taldor, Advantech, Value
SAP                                                                                                  _
                                                                                                         plus

              Ministry of Foreign Affairs, Mamram, Bezeq                                             _   Matrix
PeopleSoft
              Tnuva, Golden Pages, Bank Leumi                                                            Taldor, IBM
Siebel
(Siebel CRM
onDemand)

              Yad Hanadiv                                                                                Service Wise
SalesForce
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Outsourcing Trends




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Outsourcing

 •   In recent years the number of comprehensive and infra
     outsourcing new deals significantly decreased ,
     except for public sector, SMB and some niche areas

 •   On the other hand - successful examples of existing clients,
     who recently had revaluated and renewed their
     outsourcing contracts (with a lot changes)

 •   Disappointment from conventional outsourcing for failing
     to meet client expectations


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State of World Wide Outsourcing is NOT better

         35%
                                                                          Applications Outsourcing
                                                                                                 Infrastructure Outsourcing


                                                                                                          Source: CIO Executive Board 2012
          25%
                              2010                                 2011                            2012

  Percentage of Org. Allocating More than 20% of Total IT Spending to Outsourcing 2011




 PMO     DB admin       Testing/QA                Voice               Network              Help Desk       App         App
                    Galit Fein’s work Copyright  commun
                                                2012 @STKI                                                Mainten     Develop 79
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Products and Services in IT

   Traditional
   Outsourcing



     Bought Services
     Owned Products




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Outsourcing transforms into Cloud Computing


  Traditional Outsourcing
                                                       Cloudy Sourcing
  Your own assets
                                                                                            Cloud computing
  Resources control                                    Multi-tenant, shared
  Fix price                                            resources
  Location does matter                                 Outcome focused
  Vendor monitoring SLA based                          Usage-based pricing
  Minimal ability to change the                        Location-agnostic
  terms of the contract                                Automated
                                                       provisioning, self-service
                                                       requesting




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Three Approaches to Cloud Deployments




                Private                                                  Hybrid                                 Public
   • Designed for, and access                         • Enterprise’s cloud services                • Designed for a market, not a
     restricted to, a single enterprise                 portfolio includes both private              single enterprise
     (or extended enterprise)                           and public cloud services                  • Open to a largely unrestricted
   • An internal shared resource, not                 • Some specific services are                   universe of potential users
     a commercial offering                              delivered in a combination of              • Customers buy at specific level
   • IT Org is the “vendor” of the                      public and private models                    of abstraction
     shared/std service to its users                    (e.g., private cloud “bursting to”           (server, application, platform)
                                                        a public cloud service)                    • Single-vendor or multi-vendor


   Resource        Single enterprise/                        Virtual and physical (non-                     Multiple unrelated
   Isolation      extended enterprise                          cloud) resources and                        enterprises (shared)
                      (dedicated)                                    applications
 Control | SLA |        Specialization            |     Security         |     Agility | Price Advantage    | Access | Elasticity
    D.I.Y.

                      Galit Fein’s work Copyright 2012 @STKI                                                                      82
                      Do not remove source or attribution from any graphic or portion of graphic                  Source: IDC
5 types: Enterprise Clouds




            Galit Fein’s work Copyright 2012 @STKI                                       83
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Change is Coming

Please estimate how much of your company's IT budget (inc. server, storage, network infrastructure, desktops and
devices, IT staff, infra. middleware, and applications), will be allocated to buying and managing these different types of
IT products and services.




                                                                                                                                               Source: IDC's North American Cloud Survey, 2011
                                                                                        Anticipated budget
                                              Today                                 dedicated to OUTSOURCED
                        -14%                                                          IT cloud by 2013 = 52%
                                              Months out




                                                       +2%
                                                                                   +3%                       +4%                  +3%




                                                                                                                                               n = 603 (Dir IT and above) Totals sum to 100%
                Traditional IT      Outsourced IT/ASP              Enterprise Private             Hosted Private        Public cloud
             (Internal) we own        3rd party owns                      Cloud                        cloud              (External)
              and manage the         hardware, runs IT                  (Internal)                   (External)         subscription
            hardware, software        staff, software             virtualized, dynamic         Hosted/managed by      software services
                 and IT staff       ownership is mixed               resource pools            3rd party, dedicated    delivered over
                                                                      deployed and               to the use of my          internet
                                                                  managed in house)                  company

                          True multi-sourcing is becoming a reality at many firms
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Utility Computing at Predictable Price


     CIOs are willing                                                                      how they should
     to make sizable                                   which workloads                    best prioritize their
                                                        are most “SaaS                      spending and IT
      bets, but they                                        ready“                         resources to take
     need guidance:                                                                       advantage of cloud



      Utility/cloud                                         rentable
                                                       infrastructure for
       computing                                          on-premises
         assets                                           applications


    Firms who want                                       but need to
    some benefits of                                 maintain their own
                                                     apps ecosystem for
     SaaS (reduced                                        business
     fixed IT costs)                                 performance needs


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Cloud Benefits and Challenges




                                                                                         Source: IDC 2011

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• People Outsourcing




Galit Fein’s work Copyright 2012 @STKI                                       87
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Staff Augmentation

•   IT will always use some Staff Augmentation for flexibility
    and scalability

•   Private sector reduce Staff Augmentation but the trend
    still exists especially in public sector, in ITOs with strong
    trade unions and Short term professionals

•   “Hashkalizazia”
    of Staff Augmentation market




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NearShore - Trends in 2012

•    Majority of ITOs will at least consider NearShore (NearSite)
     model to reduce costs in 2012
•    NearSite model invention for better control
•    Few clients complain re high turnover and knowledge
     preserving in orthodox nearshore
•    Work tariff rates are slowly on the rise
•    Existing clients usually expand their scope of work
•    Hot topics: BI, Web and mobile development and
     testing, cloud and automation testing




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X-Shore…

       Scope


       Quality


Time             Cost




                        Near-site




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Caution! Fix Price Ahead!


                                                                 108
                                                                 162
                                                                 324
                                                                28.5
                                                                42.75
                                                                85.5
                                                                29.5
                                                                44.25
  Price reduction race                                          88.5
                                                                 108
                                                                 216
                                                                 432

                                                                 1M
                                                                              What is missing?
                                                                              Evaluating the risk
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Client / Vendor tug of rope

                                                                                                      Vendor
      Client




                                                                                       • Takes the project in spite of
                                                                                          “losing” prices
•    Chooses service provider by lowest price                                          • Hopes to get new business
•    Doesn’t take the risk element into account                                        • Wants the client to be happy
•    Gets use to receive free requirements                                             • Moves to other pricing models
•    Ready to pay for additional work to a
     certain limit

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Chronicle of a IT project foretold




   Underpriced
                                                                                          High profit




                                                                                           Temps
             Galit Fein’s work Copyright 2012 @STKI                                                93
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New type of client/ vendor relationship


 •   Service provider has to make money

 •   Sometimes you can’t avoid the conflict – choose an arbitrator
     agreed on both sides

 •   Relationship between the parties is more important to the
     project’s success than price, performance and the terms

 •   Less profit, less “home” vendors, more work




              Galit Fein’s work Copyright 2012 @STKI                                       94
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Vendor/Client revenue asymmetry


                   Investment                                                       Expenditure

             Time & Materials                                                             Fix Price
        License

                                      Development                             SOW  RFP SLA Fix

                                            Testing                          Testing

                                           Hatmaa

      Delivery Day 1                                                        Rollout
                                      Maintenance


                  Vendor/Client revenue asymmetry
             Galit Fein’s work Copyright 2012 @STKI                                                   95
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Staff Augmentation – Pros and Cons




                                                                                  Source: TheMarker and STKI

           Galit Fein’s work Copyright 2012 @STKI                                                              96
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Thank You And Hope You Enjoyed!




                                                            Here you can find the latest version
                                                                   of this presentation :
                                                                            http://www.slideshare.net/Galit

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Galit fein office of the cio presentation full version v5

  • 1. Office of the CIO Office of the CMO Market Trends 2012 Tell me and I’ll forget Show me and I may STKI Summit 2012 remember Galit Fein Involve me and I’ll VP & Senior Analyst
  • 2. Agenda MEGA Office of Office of Trends the CIO the CMO IT Services and Chargeback Mobility QA, Service Desk Social Media Sourcing Galit Fein’s work Copyright 2012 @STKI 2 Do not remove source or attribution from any graphic or portion of graphic
  • 3. Israeli Enterprise 2012: Under Pressure COM PETI TION Enterprise Global Economy Innovation 2012 Galit Fein’s work Copyright 2012 @STKI 3 Do not remove source or attribution from any graphic or portion of graphic
  • 4. 1980’s - IT Department MIS BO Operations Back DRP Office Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 4 Do not remove source or attribution from any graphic or portion of graphic
  • 5. 1990’s - IT Department IT CFO Transactions manager BO Back Office ERP DRP Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 5 Do not remove source or attribution from any graphic or portion of graphic
  • 6. 2000’s - IT Organization Processes CIO BO CFO Sales Web Back CRM site Office DRP ERP Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 6 Do not remove source or attribution from any graphic or portion of graphic
  • 7. 2005 - IT Organization HR Processes CIO Back CRM Office DRP ERP HR Infrastructure Security CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 7 Do not remove source or attribution from any graphic or portion of graphic
  • 8. 2008 - IT Organization OCIO HR Processes CIO Back CRM HR Office DRP ERP PPM Infrastructure Security CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 8 Do not remove source or attribution from any graphic or portion of graphic
  • 9. 2010’s – Technology & Information Systems CEO OCIO HR CMO Business Products Technology & IT VP Analytics Back CRM HR Office DRP ERP BI PPM Infrastructure OR Mobile Security Social media CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 9 Do not remove source or attribution from any graphic or portion of graphic
  • 10. Capex increasing, Opex not decreasing Capex: New business demand for IT services $$ Opex1: Last year capex x 15% Opex2: 5-10% decrease on existed Time Galit Fein’s work Copyright 2012 @STKI 10 Do not remove source or attribution from any graphic or portion of graphic
  • 11. How Can We Fill The Gap? Business demand for IT services $$ IT Budget Time Galit Fein’s work Copyright 2012 @STKI 11 Do not remove source or attribution from any graphic or portion of graphic
  • 12. IT Budget Trends • Modest increase in IT budget -average rise of 3.7% • IT Capex flattens at beginning of year due to uncertainty • Despite continued volatility, IT staffing remains constant Galit Fein’s work Copyright 2012 @STKI 12 Do not remove source or attribution from any graphic or portion of graphic
  • 13. Meeting business expectations IT has to: • Create new platforms to support business innovation and growth • To be competitive to new IT service models or be open to use them Creating new products IT’s ideal priorities Reducing IT costs IT basic services Satisfaction with IT’s effectiveness New ideas Source: McKinsey 2012 Galit Fein’s work Copyright 2012 @STKI 13 Do not remove source or attribution from any graphic or portion of graphic
  • 14. Capital Organizational Spending Technology Other Investments 47% Source: IDC 2012 Galit Fein’s work Copyright 2012 @STKI 14 Do not remove source or attribution from any graphic or portion of graphic
  • 15. The Majority of IT total spending goes to Maintenance Breakdown of Total IT Expenditure 2009-2012 Innovation Business opportunity Maintenance Mandatory Source: CIO Executive Board 2012 Galit Fein’s work Copyright 2012 @STKI 15 Do not remove source or attribution from any graphic or portion of graphic
  • 16. If you can’t beat them… What are the main reasons for SW project overruns? IT Portfolio is Changing requirements 56% changing quickly Poor estimation 17% due to changes in competitive Pressure from management 15% to accept unreasonable schedules Resource: Cutter conditions  Agile world – ability to respond on the fly to constant changes in business requests  Small, cost-sensitive, more likely to be "disposable" Galit Fein’s work Copyright 2012 @STKI 16 Do not remove source or attribution from any graphic or portion of graphic
  • 17. Changing Requirements AND Deliverables All the Time Sprint B Previous requests AND Sprint A Business New business demands requests P P R A2 A7 R A I Detailed I O O R Planning R A3 A A2 I I T T I B1 I Z A Z A A T T I B2 I A80 A79 O O N N Galit Fein’s work Copyright 2012 @STKI 17 Do not remove source or attribution from any graphic or portion of graphic
  • 18. Consumer Power • End of IT monarchy: IT will be one of possible sources of development that departments can use, and in many cases internal IT will compete with outside contractors for specific jobs • IT spending is gradually changing it’s guards - from ITO to business departments • Different areas such as: risk, mobile, HR, IT purchase leaks to business departments Galit Fein’s work Copyright 2012 @STKI 18 Do not remove source or attribution from any graphic or portion of graphic
  • 19. Radical Change of IT - Efficiency and Agility • IT can find itself nearly irrelevant, unless it becomes efficient , agile, and competitive with other market offerings • IT should embrace the new models offered by cloud or service providers, otherwise it will be replaced by them • Lean IT Galit Fein’s work Copyright 2012 @STKI 19 Do not remove source or attribution from any graphic or portion of graphic
  • 20. What is Lean? • Japanese automotive Industry developed Lean manufacturing with a lead from Toyota and utilising the Toyota Production System (TPS) factory. • Maximize customer value by eliminating waste and optimizing the existing processes in all aspects of a firm’s production activities: HR, vendor relations , technology, and the mngt of materials and inventory • Doing more with less effort. Focus on your key processes in meeting customer needs with all muscles without any fat or waste. Source: http://www.hydspin.org/files/conf09/g_appa_rao.ppt STKI modifications Galit Fein’s work Copyright 2012 @STKI 20 Do not remove source or attribution from any graphic or portion of graphic
  • 21. Customer VALUE and WASTE • The purpose is to deliver VALUE that the customer needs and is willing to pay for • If it ain’t value, its WASTE – Extra (unused) features – Handoffs – Task switching – Delays – Defects / REWORK – Partially done work / work in process Source: AgileSparks Galit Fein’s work Copyright 2012 @STKI 21 Do not remove source or attribution from any graphic or portion of graphic
  • 22. Lean Benefits Wait Time Cycle Time (non value add) Before Work Time (value add) After Same work completed in less time Requirements Design Development Cost/ Chaos FLOW Avg time 3 weeks Waiting Waiting Defect Fixing Cycle time Relentlessly focus on reducing non-value adding activities Galit Fein’s work Copyright 2012 @STKI 22 Do not remove source or attribution from any graphic or portion of graphic
  • 23. Anything that slows down development • Inefficient manual steps to build/ install/ test/ release • Not fixing broken build/tests • Code Complexity (skipping refactoring, duplicate code, coupling and spaghetti code, etc.) • Code that not executed (but supported) • No documentation and leveraging of knowledge Source: AgileSparks Galit Fein’s work Copyright 2012 @STKI 23 Do not remove source or attribution from any graphic or portion of graphic
  • 24. Office of the CIO Galit Fein’s work Copyright 2012 @STKI 24 Do not remove source or attribution from any graphic or portion of graphic
  • 25. Office of the CIO penetration in Israel 2012 OCIO Banking Insurance Health Credit Cards Telecom Industry Goverment IDF Galit Fein’s work Copyright 2012 @STKI 25 Do not remove source or attribution from any graphic or portion of graphic
  • 26. MEGA IT Trends 2012 Real Time Predictive Analytics and Mobility Consumerization IT Services social Context based Galit Fein’s work Copyright 2012 @STKI 26 Do not remove source or attribution from any graphic or portion of graphic
  • 27. IT services and cost transparency • By implementing OCIO tools and methodologies , ITOs achieved greater business satisfaction with IT • BUs received greater visibility and control over their technology budgets • NOW, encouraged by better visibility and cloud models alternatives, business managers do not want the technology cost to become overhead cost or annual tax • IT must sell and deliver cost based services We deliver IT Galit Fein’s work Copyright 2012 @STKI 27 Do not remove source or attribution from any graphic or portion of graphic
  • 28. From unresponsive corporate overhead to an agile business partner All-you-can-eat buffet Fast-food restaurant VS • Everyone pays the same • Price is affordable price • Choices driven by market • Food selections are driven by demand the chef’s priorities • Customers pay only for what they consume Galit Fein’s work Copyright 2012 @STKI 28 Do not remove source or attribution from any graphic or portion of graphic
  • 29. The new IT Client/user Packaged Application Galit Fein’s work Copyright 2012 @STKI 29 Do not remove source or attribution from any graphic or portion of graphic
  • 30. Why do we need IT Chargeback • It helps organizations understand that IT is not free • It gives BUs greater visibility and control over their technology budgets • It demonstrates the cost savings from shared services • Demand for visibility in IT costs comes from outside the ITO Galit Fein’s work Copyright 2012 @STKI 30 Do not remove source or attribution from any graphic or portion of graphic
  • 31. IT Chargeback Recommendations 1. Well-defined portfolio of IT activities along with output in terms which are coherent to the customer Server DRP 2. Start mapping types of Upgrade requirements which repeat themselves: • BI reports • Changes in GUI (field, color, etc.) • Client differentiation “When we are no longer able to change a situation, we are challenged to change ourselves”. Victor Frankl Galit Fein’s work Copyright 2012 @STKI 31 Do not remove source or attribution from any graphic or portion of graphic
  • 32. Put It All Together: The IT Service Portfolio and Service Catalog • Bundling: • Value proposition: A clear definition of what the Why should the business buy it? service entails, and how it relates and integrates with others as a • Competitive advantage: service package Why should the service be bought from internal IT? • Differentiation: Multiple offerings at different • SLAs/reporting/performance prices for different parameter data values, for items such as service • Pricing and chargeback hours, availability and response time • Exceptions and escalations • Internal and external benchmark data Galit Fein’s work Copyright 2012 @STKI 32 Do not remove source or attribution from any graphic or portion of graphic
  • 33. Ascertain IT Service Costs COULD BE: Capex Hardware Software Installation costs Customization costs One-time expenses Training costs Source: Galit Fein’s work Copyright ITSM 2012 @STKI 33 Do not remove source or attribution from any graphic or portion of graphic
  • 34. Cost Model with Variable Pricing - Examples High-level Availability Performance Provisioning Security Standard description of guarantees guarantees service what the definitions service provides E-mail 24 x 7 with 4/9 mission critical delivery uptime 10 x 5 with 3/9 business critical business operational administration Help desk support Galit Fein’s work Copyright 2012 @STKI 34 Do not remove source or attribution from any graphic or portion of graphic
  • 35. Cost Model with Variable Pricing - Examples High-level Costs description of what the service provides Help desk Cost of tech Equipment support Software Labor Manager 1st level support 2nd level support Facilities 3rd party services Direct costs Email server Indirect costs Per-foot operating cost of a DC Fixed Permanent IT staff Variable costs Temps Galit Fein’s work Copyright 2012 @STKI 35 Do not remove source or attribution from any graphic or portion of graphic
  • 36. IT Chargeback Consumption $X per month per gigabyte of network storage Transactions: $Y per new PC set up and configuration Units or headcount $Z per phone number or network port Allocation A base fee for IT overhead allocated, according to a BU’s percentage of total revenue or total employees Galit Fein’s work Copyright 2012 @STKI 36 Do not remove source or attribution from any graphic or portion of graphic
  • 37. OCIO comprises of Business-IT relationship managers • All these ITG methodologies and new defined processes, SLAs, IT chargebacks and service catalogs could be very confusing • OCIO has important role in the communication with and the support of BU • Effective BRM must be a true hybrid of business and technical orientation • More than audit & reporting role - guidance to BU heads on ways to improve efficiency Galit Fein’s work Copyright 2012 @STKI 37 Do not remove source or attribution from any graphic or portion of graphic
  • 38. Office of the CIO • As decentralized as IT gets, one person should have the visibility on the total spend, because there are a lot of places where effort and resources can get duplicated and wasted if no one has the big picture • Greater business partner responsibility - more business leaders are willing to take primary responsibility for managing delivery. BRMs consistently underestimate business partners' willingness to lead • Engage business leaders in advance, to ensure effective technology delivery that doesn't introduce inefficiency and unnecessary complexity or undermine IT strategy Galit Fein’s work Copyright 2012 @STKI 38 Do not remove source or attribution from any graphic or portion of graphic
  • 39. OCIO is Very Busy • BRM (Key Users) • IT Operations • Budget plan • Project mng/ Development • IT HR • QA/ Testing • Vendors mng • EA • Legal/ Compliance • Procurement plan • Remote sites - DR/BCP • Change mng • Critical Success Factors – ITIL-related • Key Process Indicators – Project-related • Controls in general • Risk/ security mng • Configuration Items: • Roll Out - – New ones that will be installed Does not end after project goes – Existing ones that will be change live! OCIO must maintain charge of employees knowledge and Galit Fein’s work Copyright 2012 @STKI usage of new system/ features Do not remove source or attribution from any graphic or portion of graphic
  • 40. OCIO Responsibilities in Israel 2012 Strategic IT Plan …Selection, control and evaluation of IT PMO IT budget mng Methodologies, processes & tools Risk mng Enterprise architecture HR QA HD Other: App mng, training, config. Mng Source: STKI 2012 Galit Fein’s work Copyright 2012 @STKI 40 Do not remove source or attribution from any graphic or portion of graphic
  • 41. OCIO helps IT be Competitive Service Provider Optimum portfolio mix Investment decisions Service Level translation into IT and project architecture and infra. Agreements evaluation Project Chargeback Resource mng Tracking Formal Tracking of Roll out Business Value Galit Fein’s work Copyright 2012 @STKI 41 Do not remove source or attribution from any graphic or portion of graphic
  • 42. IT Project Rollout Plan - Actual project mngt • Detailed Work Breakdown Structure with dates - milestones, control gates, etc. • GANTT charts showing dependencies and progress • Human Resource Plan (Internal, Vendors, Customers) • Configuration Items:  New ones that will be installed  Existing ones that will be changed • Purchase/procurement plan for required CIs • Budget Plan Galit Fein’s work Copyright 2012 @STKI 42 Do not remove source or attribution from any graphic or portion of graphic
  • 43. Employees knowledge and usage of new system/ features • Communication Plan (Awareness, Meeting schedules) • Project Change mngt Plan • Security Plan • Other aspects of project mngt based on your organization’s needs  What controls are needed to create a reasonable assurance of outcomes? • Roll Out  Does not end after project goes live! OCIO must maintain charge of employees knowledge and usage of new system/ features Galit Fein’s work Copyright 2012 @STKI 43 Do not remove source or attribution from any graphic or portion of graphic
  • 44. PPM Tools Positioning of the Israeli Market Clarity (CA) Microsoft Worldwide Leader Enterprise Local Support MSP SaaS Player New Player Sciforma HP ITCC Primavera Clarizen Market Presence Galit Fein’s work Copyright 2012 @STKI 44 Do not remove source or attribution from any graphic or portion of graphic
  • 45. PPM Tools & Integrators in Israel Clients New Clients 11’ Integrators Clarity (CA) Ministry of Tourism, Clalit, SanDisk, Orange, Pelephone Proceed Leumi Card, Harel, Jewish Agency, Strauss, Bank Leumi Teva, Bank Hapoalim CA, Orantech MSP Menora, IAI, Tel-Aviv Munic. Ayalon- Min.of the Environment ONE1 ins, Cellcom, Phoenix, Leumit, Visa CAL, BDO Justice Department, Clal Bit, Bank Igud, Delek, Paz, YES, CIO Dashboard: Random Logic, IDF, Elbit. iTeam (budget planning) Sciforma Bank Discount, Menora, Teva, Visa HOT, ZIM, Isracard, Xioma Cal, BVR, Nova, Evogene, Leadcom Machteshim agan eng. Signifer, Aman Hazera Genetics, Bid Band Networks, Given Imaging IDE, Veraz, Opgal, Teva Tech PPM (HP) Mataf, Motorola(Global), LivePerson HP, BDA Galit Fein’s work Copyright 2012 @STKI 45 Do not remove source or attribution from any graphic or portion of graphic
  • 46. PPM Tools & Integrators in Israel Clients New Clients 11’ Integrators EPM M-system, Leumit, IAI, IAA, Lotem, Bezeq, MS 2010 Matan, Orantec Mekorot, Orbotech, Bank Leumi, Coca- Amdocs, Defense (Microsoft) Cola, Nice, Matan: Machteshim Agan, h, Neway, PZ Matan: Strauss, Tel-Aviv Municip. Prime Minister, Maccabi, Alvarion, IAA, Elta, Marvell Projects Better Place, Tnuva, Random Logic; Orantech: Navy, Shabas, Teva R&D, Orantech: Netafim, ECI, Ceragon, Logic, Sorek, Leumi Le’Mashcantaot AD Gency Sol gel Rocar Playtech, PZ Projects: Justice Department, Sandisk; KAKAL, MODU, Kodak, RAD; PZ Elisra Projects: Min. of Foreign Affers; Proceed: Malam Approach Netafim Approach, PPM on Force.com SalesForce.com Clarizen Tnuva Clarizen Primavera Mercava, IDF, Intel Aviv (Oracle) Compuware Jacada (Global), Retalix (Global) Matrix Changepoint ITCC ECI, Tama, Metro Motor that's IT Galit Fein’s work Copyright 2012 @STKI 46 Do not remove source or attribution from any graphic or portion of graphic
  • 47. Learning, Training and Implementation Galit Fein’s work Copyright 2012 @STKI 47 Do not remove source or attribution from any graphic or portion of graphic
  • 48. Learning, Training and Implementation Trends As a result of:  Too many new systems  IT requirements flood  Employment high turnover  Generation gap  Lack of control of new system’s implementation Training and implementation are under HUGE focus Galit Fein’s work Copyright 2012 @STKI 48 Do not remove source or attribution from any graphic or portion of graphic
  • 49. Does your organization measure the ROI generated by the new system? Yes No Source: STKI 2012 Galit Fein’s work Copyright 2012 @STKI 49 Do not remove source or attribution from any graphic or portion of graphic
  • 50. Learning, Training and Implementation - Major Trends • Gamification • Video Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • 51. Video e-Learning –Next Generation Customer Care Subject covered in Shahar Maor’s presentation Choose your next choice on-the-fly Video evolves according to choices made http://blogs.wsj.com/speakeasy/2010/10/25/andy-grammers-keep-your-head-up-applies-choose-your- Galit Fein’s work Copyright 2012 @STKI own-adventure-logic-to-music-videos/ 51 Do not remove source or attribution from any graphic or portion of graphic
  • 52. Recommendations • Look for innovative ways to make SW training less boring Clue: American test is BORING • Gamification and Video trends serve as perfect training and implementation tool • If you invest massively in purchasing new SW invest a little more to make sure your employees use it to the max Subject covered in Liza Bodogin’s presentation Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • 53. Agenda MEGA Office of Office of Trends the CIO the CMO IT Services and Chargeback Mobility QA, Service Desk Social Media Sourcing Galit Fein’s work Copyright 2012 @STKI 53 Do not remove source or attribution from any graphic or portion of graphic
  • 54. QA and Testing Galit Fein’s work Copyright 2012 @STKI 54 Do not remove source or attribution from any graphic or portion of graphic
  • 55. QA & Testing Services - Trends • Becoming more important as a result of new regulations and security requirements • Major priority to cost reduction: by using Nearshore model • Due to high competition - use of variety of tools and methods: Crowd testing, KDTpro, Practitest, Experitest, Perfecto Mobile • In spite of clients' preferences for in-house QA, they’re more willing to give vendor some scopes of work Galit Fein’s work Copyright 2012 @STKI 55 Do not remove source or attribution from any graphic or portion of graphic
  • 56. QA & Testing Services - Israeli Market • We can honestly say “goodbye” to independent testing companies! We’ve tried, but we failed  • Majority of IT projects are using the same vendor for both development and QA • Clients consider using different vendors as a waste of time and money • Increasing interest in Cyber, mobile and cloud testing Galit Fein’s work Copyright 2012 @STKI 56 Do not remove source or attribution from any graphic or portion of graphic
  • 57. Because of the scope and complexity of IT most ITOs often fail to define useful performance metrics Source: Gartner Galit Fein’s work Copyright 2012 @STKI 57 Do not remove source or attribution from any graphic or portion of graphic
  • 58. Resource mng, Talent mng & Capacity planning ~44% of IT budget goes to manpower Galit Fein’s work Copyright 2012 @STKI 58 Do not remove source or attribution from any graphic or portion of graphic
  • 59. Capacity Planning • After considering maintenance and HD commitment – how available are your resources? What are your bottlenecks? What skills do we lack? • It’s not just a matter of matching project to the available employee • It’s about matching skills, experience & employee availability to project requirements Galit Fein’s work Copyright 2012 @STKI 59 Do not remove source or attribution from any graphic or portion of graphic
  • 60. Watch Out! • The share of employees and contractors reporting to IT leaders has dropped more than 15% in 2011 • At the same time, more than a 1/3 of larger orgs report increase in social media specialists, service architects, technology brokers, and other new-to-world roles • Use strategic plans, labor market analysis, an org. review, and forecasting to create an action plan which include a talent mng. strategy, outsourcing plan, and organizational/ job redesign plan Galit Fein’s work Copyright 2012 @STKI 60 Do not remove source or attribution from any graphic or portion of graphic
  • 61. Resource Management • OCIO gains the momentum, but real skills, capacity and training are not treated well • IT Talent and capacity mng - Identify emerging skills gaps and role changes in traditional IT roles in order to prepare for changes by strategic workforce planning • Prepare internal resources to become brokers, not providers, as the cloud enables externalization of many current IT functions Galit Fein’s work Copyright 2012 @STKI 61 Do not remove source or attribution from any graphic or portion of graphic
  • 62. IT Service Desk HELP!!!! Galit Fein’s work Copyright 2012 @STKI 62 Do not remove source or attribution from any graphic or portion of graphic
  • 63. IT Service Desk - Trends • Service desk is the first to be cut down • SPOC – HR, facilities, procurement request • Standardization of products & services (ITIL) • Proactive problem management • SLA externalization • Knowledge mng – make your tool work for you • Self-Service is the KING! Galit Fein’s work Copyright 2012 @STKI 63 Do not remove source or attribution from any graphic or portion of graphic
  • 64. Total Cost of Ownership • As the Level 1 resolution rate increases, the cost per call for Level 1 increases • But the total cost per call, including Level 2 costs, declines • The cost of resolution at level 2 is typically 5X to 10X greater than at level 1 Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • 65. Over Time • Clients become more savvy (Gen-Y) • Users prefer using blogs, vendor and user online support sites, and social networks to find answers instead of using service desk portal • Incidents’ complexity increase • Total cost per HD call increase Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • 66. Growing Call Volume • Rapid increase in call volume stretches already limited resources, impacting customer satisfaction • Changes are main reason for call-volume increase: new HW, new app, new mobile device, etc • Mobile devices need attention: most orgs don’t support personal mobile devices neither company-owned mobile devices Galit Fein’s work Copyright 2012 @STKI 66 Do not remove source or attribution from any graphic or portion of graphic
  • 67. Reasons for Decrease in Support Incidents Infrastructure changes Self-Service IT HD staff competency Customer competency Knowledge mng Nu of customers Remote tools Outsourcing support Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 67 Do not remove source or attribution from any graphic or portion of graphic
  • 68. Self-Service • Personal attention VS prompt answer • User friendly systems – YouTube “How to…” examples • IT HD phone call twice as expensive as Self-Service • SW distribution • Online catalog • Higher Clients satisfaction Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • 69. Measuring the Right KPIs • On hold times (contributes to customer satisfaction) • Number of calls received (trend analysis and Help desk problem identification) metrics still • Call duration (knowledge deficiencies) relevant • Customer satisfaction is KEY Metric focus is • Meeting service level targets on the customer: Galit Fein’s work Copyright 2012 @STKI 69 Do not remove source or attribution from any graphic or portion of graphic
  • 70. Top Metrics for Service Desk Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 70 Do not remove source or attribution from any graphic or portion of graphic
  • 71. Cost per Incident Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 71 Do not remove source or attribution from any graphic or portion of graphic
  • 72. IT Service Desk – Positioning of the Israeli Market CA Microsoft Worldwide BSM Leader Enterprise Local Support IBM HP IT Help Desk BMC Modules from CRM packages SAP Siebel Pivotal SysAid PeopleSoft Altiris Market Presence Galit Fein’s work Copyright 2012 @STKI 72 Do not remove source or attribution from any graphic or portion of graphic
  • 73. IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ Integrators CA Comverse, IAI, Discount, Elta, ECI, HOT, Motorola, Teva, Ness (SaaS), CA, Ness, Ma Elbit, Mekorot, Osem, Phoenix, DSW, Bezeq Int, Beit Berl, Haartz, lam - Israel Police, Tnuva, Central Bureau of Statistics, EL-AL, Phoenix, Bank Team, Techm Tamas, TASE, Ministry of Health, Tel-Aviv Municipality, Yahav, MOD ind Herzelia Munic. Clalbit, Shabas, Rafael, Isracard, 888, 9900, Bank Hapoalim, Mifal Hapais, Ministry of Justice, Ministry of Defense, Yediot, Petah-Tikva Munic, Bank Israel, Ministry of Immigration, RASHAT, Teva (Bar), Brom, Lotem BMC Zim, Malan, IGS, MED Nautilus, Malam, Kneset, NDS, Migdal, SCD, Matrix Social Insurance, Uniliver, Creo, Intel, Motorola, Summit 012 - eng., Design, Polycom, Cellcom- eng. HOT-eng. Partner – eng, Texas Instrum , Sandisk, Comverse, Nice, IAI, Better Place Netvision eng. HP HPOV:IDF, Netafim, Shaam, Open University, Orbotech, Aman, HP Tower Semiconductors, Haaretz; Service Manager: NDS, PlayTech, Shupersal Tefensoft: Clalit Health, Menora, Migdal, Prime Minister, Hadasa,work Copyright 2012 @STKI Galit Fein’s Machteshim, Maman, AudioCodes 73 Do not remove source or attribution from any graphic or portion of graphic
  • 74. IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ Integrators IBM Harel, Menora Bahai World Center, IBM, Addon, TSRM Edgar Real-estate, Ludan Natgaz Altiris Callmobile, IDF Ormat Aman, Bynet, Symantec Netcom, GlassHouse Galit Fein’s work Copyright 2012 @STKI 74 Do not remove source or attribution from any graphic or portion of graphic
  • 75. IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ Integrators Jonson & Jonson, Highway 6, Omrix, Wintegra, Sami Shimon (300 Israeli clients) Consist SysAid College, Africa Israel, Mei-Eden, AIG, Electra, McCann Erickson, Opgal Diesenhaus unitours, Opal , Flash Networsks, Liveperson, Hertz, Psagot Madanes Insu Shlomo Sixt Ofek, Coca Cola, Beit Barel College, Ashdod Port, Technion, Shila, Caesar stone Magic Cal Sugat, Gadot, Bezeq Int. AeroScout, Strauss, IKEA, Delek, Tempo, 013 auto West galilee collage Netvision, Tami4 ,Bank of Jerusalem Leumi Mortgage , Bituach Yeshir, Lageen Logic Holmes Place, Ashot Ashkelon, Netformx, Fishman, Hospital- Motorola Safe city Gitam Nahariya, halman aldubi, Eged Tour, Zoglobek, Madanes, Tempo, Beeri BBDO Danya-cebus Tower print, Lubensky, Shlomo Sixt, Excellence, Elul, Ophir optronics, Semiconductor Tcpoit Realcommerce, Nextcom, Fritz, LR Group, Israel Ports, Magicsoftware, Keshe TV Cal auto, West galilee collage, Maabarot Products, Haifa Port, FedEX WIX - Fibernet PharmUp, Lageen, ICQ, Logic, Tambur, Kamada, The Nation Traffic, Sapir collage Albar Intel Elcam, Carmel container systems, Brightsourceenergy, Kavim, Gitam Labs Dash El-Al Sec Div BBDO, Rishon Lezion Muni, Dania sibos, Baran group, Tower Diplomat Holon Muni Rokar Semiconductors, Bee Group, Betterplace, Keshet TV, Leumi Card, Tiny love IDC NOVA IMDsoft FedEX, WIX, Optier, Tahal, TGS, Palram, Sapience, Orca, UPS, Beeper, Tmura The Council for Intel labs, Mivtach Saimon, Albar, EMC, Tel-o-Fun, Dash, EL-AL Sec, Higher Education Imperva Sapir collage, Diplomat, Hulon Muni, Shlomo Insu, conduit, Hadssa Netformx Ashot Ashkelon hospital , Tradenetworks, Ceragon, Rokar, Celtro, National library, IDC, Eged Tour Environmental Nova, Ambar, Mediamind, UTI, Barzilay Hospital, Afimilk, David Services Company Ltd. (ESC) Intercontinental, Hertz, Isrotel, IKEA, IMsoft, Tmura, polymerlogistics, Shirbit shastovich, , Imperva, Haifa university, mashcal, Tel-hai collage, IBI, D&B, and many more Galit Fein’s work Copyright 2012 @STKI 75 Do not remove source or attribution from any graphic or portion of graphic
  • 76. IT Help Desk Modules from CRM packages Clients New Clients 11’ Integrators Ministry of Finance, Israeli Navy, Intel, Prime Minister, 20 Partners, including: Microsoft Eldan Ministry of Health, Matrix- CRM Advantech: Eged, Shikunbinui, Amidar, Volcani Center, Shikun & Binui, Effect, SIT, Advantech, Malam- Lavi TOTO, Osem, College Team, Netwise, Bynet EL AD: Judicial Authority, Ministry of Transport, Court SW, Yael, El-AD…. Malam-Team: TAU of Management Guardian: Baad15, Jewish agency Matrix-Effect: Igud, Malan, Superpharm, Cellcom, Visa Cal, Machteshim-Agan, Marlboro, Ministry of Education Almog: Telmap Bat-Yam Municipality, Exlibris, Systematics, Panorama, ONE1 Pivotal Telmap, Ericom FGG Radvision, Gilat, Shahal, Ritalix, Globs, Tadiran, Orad, Maccabi, Negev Ceramics Paz, Isr. Government, Bazan, Bank Hapoalim (modul) Ness, Taldor, Advantech, Value SAP _ plus Ministry of Foreign Affairs, Mamram, Bezeq _ Matrix PeopleSoft Tnuva, Golden Pages, Bank Leumi Taldor, IBM Siebel (Siebel CRM onDemand) Yad Hanadiv Service Wise SalesForce Galit Fein’s work Copyright 2012 @STKI 76 Do not remove source or attribution from any graphic or portion of graphic
  • 77. Outsourcing Trends Galit Fein’s work Copyright 2012 @STKI 77 Do not remove source or attribution from any graphic or portion of graphic
  • 78. Outsourcing • In recent years the number of comprehensive and infra outsourcing new deals significantly decreased , except for public sector, SMB and some niche areas • On the other hand - successful examples of existing clients, who recently had revaluated and renewed their outsourcing contracts (with a lot changes) • Disappointment from conventional outsourcing for failing to meet client expectations Galit Fein’s work Copyright 2012 @STKI 78 Do not remove source or attribution from any graphic or portion of graphic
  • 79. State of World Wide Outsourcing is NOT better 35% Applications Outsourcing Infrastructure Outsourcing Source: CIO Executive Board 2012 25% 2010 2011 2012 Percentage of Org. Allocating More than 20% of Total IT Spending to Outsourcing 2011 PMO DB admin Testing/QA Voice Network Help Desk App App Galit Fein’s work Copyright commun 2012 @STKI Mainten Develop 79 Do not remove source or attribution from any graphic or portion of graphic
  • 80. Products and Services in IT Traditional Outsourcing Bought Services Owned Products Galit Fein’s work Copyright 2012 @STKI 80 Do not remove source or attribution from any graphic or portion of graphic
  • 81. Outsourcing transforms into Cloud Computing Traditional Outsourcing Cloudy Sourcing Your own assets Cloud computing Resources control Multi-tenant, shared Fix price resources Location does matter Outcome focused Vendor monitoring SLA based Usage-based pricing Minimal ability to change the Location-agnostic terms of the contract Automated provisioning, self-service requesting Galit Fein’s work Copyright 2012 @STKI 81 Do not remove source or attribution from any graphic or portion of graphic
  • 82. Three Approaches to Cloud Deployments Private Hybrid Public • Designed for, and access • Enterprise’s cloud services • Designed for a market, not a restricted to, a single enterprise portfolio includes both private single enterprise (or extended enterprise) and public cloud services • Open to a largely unrestricted • An internal shared resource, not • Some specific services are universe of potential users a commercial offering delivered in a combination of • Customers buy at specific level • IT Org is the “vendor” of the public and private models of abstraction shared/std service to its users (e.g., private cloud “bursting to” (server, application, platform) a public cloud service) • Single-vendor or multi-vendor Resource Single enterprise/ Virtual and physical (non- Multiple unrelated Isolation extended enterprise cloud) resources and enterprises (shared) (dedicated) applications Control | SLA | Specialization | Security | Agility | Price Advantage | Access | Elasticity D.I.Y. Galit Fein’s work Copyright 2012 @STKI 82 Do not remove source or attribution from any graphic or portion of graphic Source: IDC
  • 83. 5 types: Enterprise Clouds Galit Fein’s work Copyright 2012 @STKI 83 Do not remove source or attribution from any graphic or portion of graphic
  • 84. Change is Coming Please estimate how much of your company's IT budget (inc. server, storage, network infrastructure, desktops and devices, IT staff, infra. middleware, and applications), will be allocated to buying and managing these different types of IT products and services. Source: IDC's North American Cloud Survey, 2011 Anticipated budget Today dedicated to OUTSOURCED -14% IT cloud by 2013 = 52% Months out +2% +3% +4% +3% n = 603 (Dir IT and above) Totals sum to 100% Traditional IT Outsourced IT/ASP Enterprise Private Hosted Private Public cloud (Internal) we own 3rd party owns Cloud cloud (External) and manage the hardware, runs IT (Internal) (External) subscription hardware, software staff, software virtualized, dynamic Hosted/managed by software services and IT staff ownership is mixed resource pools 3rd party, dedicated delivered over deployed and to the use of my internet managed in house) company True multi-sourcing is becoming a reality at many firms Galit Fein’s work Copyright 2012 @STKI 84 Do not remove source or attribution from any graphic or portion of graphic
  • 85. Utility Computing at Predictable Price CIOs are willing how they should to make sizable which workloads best prioritize their are most “SaaS spending and IT bets, but they ready“ resources to take need guidance: advantage of cloud Utility/cloud rentable infrastructure for computing on-premises assets applications Firms who want but need to some benefits of maintain their own apps ecosystem for SaaS (reduced business fixed IT costs) performance needs Galit Fein’s work Copyright 2012 @STKI 85 Do not remove source or attribution from any graphic or portion of graphic
  • 86. Cloud Benefits and Challenges Source: IDC 2011 Galit Fein’s work Copyright 2012 @STKI 86 Do not remove source or attribution from any graphic or portion of graphic
  • 87. • People Outsourcing Galit Fein’s work Copyright 2012 @STKI 87 Do not remove source or attribution from any graphic or portion of graphic
  • 88. Staff Augmentation • IT will always use some Staff Augmentation for flexibility and scalability • Private sector reduce Staff Augmentation but the trend still exists especially in public sector, in ITOs with strong trade unions and Short term professionals • “Hashkalizazia” of Staff Augmentation market Galit Fein’s work Copyright 2012 @STKI 88 Do not remove source or attribution from any graphic or portion of graphic
  • 89. NearShore - Trends in 2012 • Majority of ITOs will at least consider NearShore (NearSite) model to reduce costs in 2012 • NearSite model invention for better control • Few clients complain re high turnover and knowledge preserving in orthodox nearshore • Work tariff rates are slowly on the rise • Existing clients usually expand their scope of work • Hot topics: BI, Web and mobile development and testing, cloud and automation testing Galit Fein’s work Copyright 2012 @STKI 89 Do not remove source or attribution from any graphic or portion of graphic
  • 90. X-Shore… Scope Quality Time Cost Near-site Galit Fein’s work Copyright 2012 @STKI 90 Do not remove source or attribution from any graphic or portion of graphic
  • 91. Caution! Fix Price Ahead! 108 162 324 28.5 42.75 85.5 29.5 44.25 Price reduction race 88.5 108 216 432 1M What is missing? Evaluating the risk Galit Fein’s work Copyright 2012 @STKI 91 Do not remove source or attribution from any graphic or portion of graphic
  • 92. Client / Vendor tug of rope Vendor Client • Takes the project in spite of “losing” prices • Chooses service provider by lowest price • Hopes to get new business • Doesn’t take the risk element into account • Wants the client to be happy • Gets use to receive free requirements • Moves to other pricing models • Ready to pay for additional work to a certain limit Galit Fein’s work Copyright 2012 @STKI 92 Do not remove source or attribution from any graphic or portion of graphic
  • 93. Chronicle of a IT project foretold Underpriced High profit Temps Galit Fein’s work Copyright 2012 @STKI 93 Do not remove source or attribution from any graphic or portion of graphic
  • 94. New type of client/ vendor relationship • Service provider has to make money • Sometimes you can’t avoid the conflict – choose an arbitrator agreed on both sides • Relationship between the parties is more important to the project’s success than price, performance and the terms • Less profit, less “home” vendors, more work Galit Fein’s work Copyright 2012 @STKI 94 Do not remove source or attribution from any graphic or portion of graphic
  • 95. Vendor/Client revenue asymmetry Investment Expenditure Time & Materials Fix Price License Development SOW  RFP SLA Fix Testing Testing Hatmaa Delivery Day 1 Rollout Maintenance Vendor/Client revenue asymmetry Galit Fein’s work Copyright 2012 @STKI 95 Do not remove source or attribution from any graphic or portion of graphic
  • 96. Staff Augmentation – Pros and Cons Source: TheMarker and STKI Galit Fein’s work Copyright 2012 @STKI 96 Do not remove source or attribution from any graphic or portion of graphic
  • 97. Thank You And Hope You Enjoyed! Here you can find the latest version of this presentation : http://www.slideshare.net/Galit Galit Fein’s work Copyright 2012 @STKI 97 Do not remove source or attribution from any graphic or portion of graphic

Notes de l'éditeur

  1. PPM, QA, Service Desk, Sourcing,
  2. בשנת 2012 נמצאים ארגונים ישראליים תחת הלחץ:1. של כלכלה עולמית הלא יציבה (מיתון עולמי מצמצם את ייצוא ישראלי, מלחמה מסתמנת עם אירן, מהפכות בעולם הערבי)2. צורך לעמוד בדרישות רלגולטוריות חדשות3. עליית הכוח של הצרכנים אשר סימנה המהפכה החברתית4. התקפות סייבר – והצורך להתגונן מסיכון הלא נודע5. וצורך מתמיד בחדשנות על מנת לעמוד בקצב השינויים בהרגלי הצריכה של לקוחות
  3. Better managementChanging the IT services pricing modelSourcing modelsLean IT
  4. With economic pressure, increased cloud-sourcing and changes to service delivery models, the allocation of staff within IT remains surprisingly stable
  5. התעסקות בתקציבי ה IT אינה מקרית, מחצית מהשקעות הארגוניות הולכת להשקעה בטכנולוגיה. ע"י השקעה מאסיבית בטכנולוגיה החדשה ארגונים מסוגלים לתת מענה לתחרות הגוברת
  6. ולכן הטענה העיקרית נגד IT הנה כי IT מתנהג עדיין כספינת תובלה שקשה להזיזה מהנטיב הנקבע מראש וכי מרבית ההוצאות ה-IT הולכות עדיין על תחזוקה
  7. אםIT מואשם לעיתים בחוסר זריזות, הרי שגורם מספר אחד לאי עמידה של פר IT בלוחות זמנים או תקציבים – זה הדרישות המשתנות של הביזנס.אבל הפרדיגמה שפורטפוליו של IT לא משתנה היא שגויה, חייבים להתמודד עם שינויים במהירות עקב השינויים ששוק תחרותי מציף כל הזמן. פיני ידבר במצגת שלו על ספרינטים קצרים של פיתוח AGILE המאפשרים להגיב כל הזמן לשינויים בדרישות העסקיות. אנחנו נראה גם מעבר לחבילות עבודה קטנות יותר, רגישות למחיר, ובסבירות גדולה לא יוצאות לפועלHi level plan לרבעון הנוכחי
  8. Thanks to the cloud3. IT will be able to deliver new products and required services as quickly as market offerועדת היגוי קבוצתית ברבעון יותר שיתוף וחיבור
  9. IT will just be one of many possible sources of development that departments can use, and in many instances internal IT will compete with outside contractors for specific jobs
  10. successful leaninitiatives are increasing as manufacturersrecognize the key enabler of continuousimprovement and eliminatingwaste – technology.
  11. Acceture-ITG - Discussions on the impact of cloud computing and mobility have become routine. ITOs are just beginning to wrap their minds around Big Data. They’re pushing to weave analytics deeper into the organization
  12. is an internal accounting procedure where your company charges departments for the cost of IT support. If a department had to obtain programming support from an outside company, they would pay anywhere from $50 to $150 per hour for the work they request
  13. Clearly defined priced IT2 טענות מועלות בד"כ נגד
  14. Gartner: For Better Cost Chargeback, First Determine IT Services and Costs
  15. The IT services catalog should be the basis for developing a chargeback and allocation process and rate settingHardware: Depreciated and amortized capital expenditures, as well as leases and maintenance fees. Software: Depreciated and amortized capital expenditures as well as software licenses and maintenance fees. Personnel: Direct labor costs for full-time equivalents (FTEs) functioning in an IT capacity. Includes salaries and benefits. Services: Contracted costs from ESPs, including outsourcing, system integration, consulting, professional IT services and telecommunication carriers. Other: Facility costs, such as power, cooling, and occupancy of owned or leased buildings.
  16. setting aflat rate per email box is a decent first step toward usage-based billing but doesn’t account forindividual resource consumption. A refinement to more accurately reflect usage would be tosetting aflat rate per email box is a decent first step toward usage-based billing but doesn’t account forindividual resource consumption. A refinement to more accurately reflect usage would be to
  17. אמורים לדבר בקלות על נושאים עסקיים כמו – מהלך נבון בשיווק וגם בנושאים טכניים כמו - איפיון
  18. 2. But this role more of an audit and reporting role, the function of which is to give guidance to individual department heads on ways to improve efficiency through cooperation and consolidation
  19. אוש כדאי שיהיו ממוכניםחטיבה כלכלית של שיתוףחיבור BTM
  20. Optimum portfolio mix and project evaluation for cost, value, and riskResource mngt - Prepare internal resources to become brokers not providers as the cloud enables externalization of many current IT functions
  21. ליזה:נכון לעכשיו עדיין לא עושים הרבה שימוש בנושא של הווידיאו אבל בהחלט יש רצון להחליף את מערך ההדרכה המסורתי ליותר מעניין וכן להכניס יותר שימוש בוידיאו...יש לך כאן למטה 2 דוגמאות למה שאנשים בשולחן העגול דיברו על הווידאו....יש עכשיו גם משהו מעניין כזה שזה וידיאו שבמהלכו אתה בוחר מה יקרה הלאה וזה ממש יפה... אם תרצה אשלח לך לינק... פלאפון:הדבר הבא זה לומדות מתקדמות.. רוצים לעשות מערכות חזקות- רוב העובדים הם מאוד חדשים וזה האתגר הגדול- נמאס מהלומדות.. הדבר הבא זה ווידיאו.. הבעתיות זה סממנים חבריים- שם הקשיים מכבי שירותי בריאות: עולם חדש בונים על שרפויינט 2010 יכולת שיתוף הלינק על מנת לעשות הדרכה חברתית, לעשות וידיאו קונפרנס זה עדיין ממש בחיתולים... 
  22. PPM, QA, Service Desk, Sourcing,
  23. and on bureaucratic processes
  24. CAN’T YOU DO ANYTHING RIGHT?
  25. Respondents cited self-service, service desk staff competency and knowledge management asthe next three major reasons for the reduction in calls
  26. תמחור חסרהלא יודע
  27. מקווה לזכות בביזנס חדש- מה שלעולם לא קורהרוצה שלקוח יהיה מרוצה אבל לא מוכן להפסיד
  28. תמחור חסר
  29. אם יש פער גדול צריך להבין מאיפה אם אני ונדור להפסיד ואני הולך להפסידלפעמים לעבור ל טיים רק כדי להוריד אסקלציות טלפונת עדיף עוד כמה שקלים