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
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3. Israeli Enterprise 2012: Under Pressure
COM
PETI
TION
Enterprise
Global Economy Innovation
2012
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4. 1980’s - IT Department
MIS BO
Operations
Back
DRP Office
Infrastructure
Security
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5. 1990’s - IT Department
IT CFO
Transactions manager BO
Back
Office ERP
DRP
Infrastructure
Security
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6. 2000’s - IT Organization
Processes CIO BO
CFO Sales
Web
Back CRM site
Office
DRP ERP
Infrastructure
Security
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7. 2005 - IT Organization
HR
Processes CIO
Back CRM
Office
DRP ERP HR
Infrastructure
Security
CFO Sales
BO
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8. 2008 - IT Organization
OCIO
HR
Processes CIO
Back CRM HR
Office
DRP ERP
PPM
Infrastructure
Security
CFO Sales
BO
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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
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10. Capex increasing, Opex not decreasing
Capex:
New business
demand
for IT services
$$ Opex1:
Last year capex x 15%
Opex2:
5-10% decrease
on existed
Time
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11. How Can We Fill The Gap?
Business demand
for IT services
$$
IT Budget
Time
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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
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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
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14. Capital Organizational Spending
Technology
Other Investments
47%
Source: IDC 2012
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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
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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"
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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
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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
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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
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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
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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
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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
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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
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24. Office of the CIO
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25. Office of the CIO penetration in Israel 2012
OCIO
Banking
Insurance
Health
Credit Cards
Telecom
Industry
Goverment
IDF
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26. MEGA IT Trends 2012
Real Time Predictive Analytics
and Mobility
Consumerization
IT Services
social
Context based
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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
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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
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29. The new IT
Client/user
Packaged
Application
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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
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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
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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
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33. Ascertain IT Service Costs
COULD BE:
Capex Hardware
Software
Installation costs
Customization costs
One-time
expenses
Training costs
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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47. Learning, Training and Implementation
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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
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49. Does your organization measure the ROI generated
by the new system?
Yes
No
Source: STKI 2012
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50. Learning, Training and Implementation - Major Trends
• Gamification
• Video
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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-
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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
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53. Agenda
MEGA Office of Office of
Trends the CIO the CMO
IT Services and
Chargeback Mobility
QA,
Service Desk
Social Media
Sourcing
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54. QA and Testing
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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
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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
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57. Because of the scope and complexity of IT
most ITOs often fail to define useful performance metrics
Source:
Gartner
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58. Resource mng, Talent mng & Capacity planning
~44% of IT budget goes to
manpower
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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
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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
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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
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62. IT Service Desk
HELP!!!!
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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!
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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
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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
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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
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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
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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
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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:
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70. Top Metrics for Service Desk
Source: InformationWeek Analytics 2o11
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71. Cost per Incident
Source: InformationWeek Analytics 2o11
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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
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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
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Machteshim, Maman, AudioCodes 73
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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
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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
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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
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77. Outsourcing Trends
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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
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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
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2012 @STKI Mainten Develop 79
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80. Products and Services in IT
Traditional
Outsourcing
Bought Services
Owned Products
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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
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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.
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83. 5 types: Enterprise Clouds
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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
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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
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86. Cloud Benefits and Challenges
Source: IDC 2011
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87. • People Outsourcing
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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
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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
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90. X-Shore…
Scope
Quality
Time Cost
Near-site
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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
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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
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93. Chronicle of a IT project foretold
Underpriced
High profit
Temps
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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
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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
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96. Staff Augmentation – Pros and Cons
Source: TheMarker and STKI
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97. 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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Notes de l'éditeur
PPM, QA, Service Desk, Sourcing,
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
Better managementChanging the IT services pricing modelSourcing modelsLean IT
With economic pressure, increased cloud-sourcing and changes to service delivery models, the allocation of staff within IT remains surprisingly stable
התעסקות בתקציבי ה IT אינה מקרית, מחצית מהשקעות הארגוניות הולכת להשקעה בטכנולוגיה. ע"י השקעה מאסיבית בטכנולוגיה החדשה ארגונים מסוגלים לתת מענה לתחרות הגוברת
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
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
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
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
successful leaninitiatives are increasing as manufacturersrecognize the key enabler of continuousimprovement and eliminatingwaste – technology.
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
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
Clearly defined priced IT2 טענות מועלות בד"כ נגד
Gartner: For Better Cost Chargeback, First Determine IT Services and Costs
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.
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
אמורים לדבר בקלות על נושאים עסקיים כמו – מהלך נבון בשיווק וגם בנושאים טכניים כמו - איפיון
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
אוש כדאי שיהיו ממוכניםחטיבה כלכלית של שיתוףחיבור BTM
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
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...
PPM, QA, Service Desk, Sourcing,
and on bureaucratic processes
CAN’T YOU DO ANYTHING RIGHT?
Respondents cited self-service, service desk staff competency and knowledge management asthe next three major reasons for the reduction in calls
תמחור חסרהלא יודע
מקווה לזכות בביזנס חדש- מה שלעולם לא קורהרוצה שלקוח יהיה מרוצה אבל לא מוכן להפסיד
תמחור חסר
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