The document discusses TSG, a company that provides a service and sourcing lifecycle management platform. The platform helps companies design, plan, build, and manage their IT services. It provides features like a service catalog, pricing models, sourcing management, and contract management. The goal is to help companies transform their IT services, increase cost transparency, and better manage the full lifecycle of their services. TSG operates globally and has customers across many industries.

1. Service & Sourcing Lifecycle Management
The Next Generation Service & Sourcing Lifecycle Management Platform
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2. TSG: A Swiss Company. Incorporated in Palo Alto, CA
Countries of Operation:
• Switzerland
• United States Palo Alto, CA
• Germany
• South Africa
• India (Development)
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3. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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4. TSG Customers and Testimonials
TSG Customers
“TSG is the number one choice when it comes to real
IT transparency and large scale cost take out efforts. Finance
It enabled Volkswagen to source to the cloud.”
Dr. Martin Hofmann, CIO of Volkswagen AG, Germany Insurance
„TSG has helped us to understand where the levers Transport
are to control and manage IT like a Business“
Norbert Hoffmann, CIO Alpiq Group, Europe Manufact.
“Prior to TSG, we were spending almost a month to Telco
generate Cloud enabled Services. Now we can do the
same with just a touch of a button“.
Service Provider
John Jenkins, Chief Executive Services Group, Business
Connexion (Pty) Ltd, South Africa
Utility
“The TSG Toolset allows us to take big steps towards
Government
getting the cost of our healthcare system under
control while allowing to implement Cloud based IT
Services” Various
Martin Häusermann, Head Operation, KSA, Switzerland
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5. TSG Cloud Service Transformation Platform
• TSG was founded in 1998 by the former
management team of EDS Switzerland
(1991 - 1998 building EDS Switzerland's
business from 0 to $ 550 M in revenues
over 7 years)
• Serving Fortune 500 IT Organizations in
Europe for complex IT Sourcing transactions
and managing more than $ 15 B of IT
Outsourcing Service Contracts
• Building Service Intelligence Database,
holding more than 10’000 Service Elements
and $ 2.8 B in managed IT Service Contracts
• TSG is supported by
Steve Walske (ex. PTC & Baldelogic)
Dr. Martin Hofmann (CIO of Volkswagen)
Jeroen Tas (CIO of Philips) TSG
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6. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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7. Paradigm Shift in IT Services
Business IT (Information Technology)
Market dynamics force the business to Challenge: Increased complexity &
implement new services and innovate integration of internal and external
faster factories
Cost of Service? IT Standardization?
Quality of Service? IT Customization?
Time to Implement the Service? OPEX to run legacy?
Market Service Pricing? Cutting Cost?
Security & Compliance?
Shift in Paradigm
• Cloud based Services
• Service on Demand
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8. Buying IT Services in the Future: The Hybrid Cloud
Corporate Corporate
core delivered Corporate commoditized
IT Services Corporate and sourced
specific shared standardized IT Services
delivered and sourced
IT Services Services
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9. The 4 challenges of managing cloud transformation
1 Design the Service
On Premise delivered Ability to specify the Service
IT Services will decrease 70% to 80% and make it transparent
from 60% to 30%
2 Plan the Service
Cloud Ability to plan demand
Sourced and supply of a service
IT Services
3 Build the Service
Ability to customize
From single to
and engineer a service
multi sourced IT Services
% of cloud sourced Service (t) 4 Manage the Service
Ability to source
and integrate a service
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10. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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11. Learning from Industrialization of Car Manufacturing
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12. Automotive vs. IT Service Configuration
Consumer View (Configurator) Manufacturing View (Bill of Material)
Option 1
Option 2
Option 3
Halbzeug
Einzelteil
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13. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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14. 4 Core Competencies to manage the cloud transformation
Cloud Readyness
TSG enables IT :
• to improve cost transparency Service & Sourcing Lifecycle Management
100%
• to deliver tailored services for IV
the business
TSG
80%
Design the Plan the Manage the
• to optimize and streamline Services
IT services and reduce the 60%
Services Services III &
Service
time to implement up to 90% Build the Configuration
II Services
• to deliver business centric 40% &
Service Engineering
services for market pricing
20%
I
Cost Manage IT Industrialize Business
Transparency like a Business IT Services Centric
IT Services
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15. Increase Cost Transparency. Design the Service
Business Service
“Running IT like a Business means
managing your money”
• How successful would McDonalds be
if they didn’t know what a Big Mac
costs them?
• $ 1.00 for the meat
• $ 0.02 for ketchup packet
• $ 0.05 for bathroom cleaning
• $ 0.02 for fryer maintenance
• Value starts with pricing
• Calculate demand with pricing even
if you don’t charge back
• Define the quality of service (1.6 oz. beef)
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16. Industrialize IT Services. Build the Service Model
•What does Car Manufacturing have in common with IT Services?
•Why are industrialized IT Services necessary?
•Why is the customer looking for a standardized and modularized Service Portfolio?
•Why are systematically designed and engineered IT Services prerequisite for cloud services?
•How does transparent service pricing help Service Providers?
Industry Standardized IT Services
Standardized
Product (Platform) IT Service (Plattform)
&
Option 1 Modularized Products
Option 2
Option 3
Assembly
Options
Variants
Options
Halbzeug
Components
Parts
Systematic
Design
Process Hardware Software Others
& Element
Product Structure
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17. Plan the Service. Manage IT like a Business
•Bill of material for services in order to control and manage service consumption and
to plan resources for IT delivery
•Continuous engineering and planning for usage-based service delivery. „Service on Demand“
•Calculation of true TCO „total cost of ownership“ as well as financial KPI‘s like EBIT, EBIDA, RoI,
EVA for new sourcing opportunities and projects
•Monitoring of KPI regarding „quality and quantity of Service“.
•Availability for standardized & competitive services unit pricing
Demand Consolidated IT-Service Planning , Control
Quantity of
Service
Total
Demand
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18. Industrialize the Service. Define the Service Model
•Convert a technical Service Portfolio into customer centric Services
•Build service platforms similar to car platforms, allowing most flexibility
to represent customers requirements
•Build service platforms, allowing a highly automated and standardized level
of the current companies’ delivery processes
•Deliver “Service on Demand” to accommodate the customers’ needs
and have changes more rapidly implemented
Delivery View Modularized Service Portfolio
Service Provider Service Consumer
Product Organization Service Organization
P1 Delivery 1 Catalog
Service 1
Cycle Mgmt
Service Life
P2 Delivery 2 Variante
IT Delivery
Customer Optionen
Production P3 Delivery 3 Variante
Delivery 1
Delivery 2
Delivery 3
Delivery 4
P4 Delivery 4 Optionen
Service 2
P5 Delivery 5 Variante
Optionen
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19. Industrialize IT Services. Service Engineering
Building the Service Model IT Bill of Material (Platform)
IT Service
externer externer
Kunde Kunde
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Inter diAx u. Luc
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Intrusion port
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wall de de
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NTSWISS NICEL SU
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ogging
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Telep und CTI SLIFE2
stik SLIFE
Print- Server
honie Profitline LAN
Server
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Heart
Option beat
UBSL1 UBSL1 UBSL1 WS80 WS80
Datenban Datenban Datenban Web- Zutritts
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Faxm
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Kun H Kun U
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Components
Process Hardwar Software Others
Element e
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20. Business Centric IT Service. Service Configuration
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21. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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22. TSG Service & Sourcing Lifecycle Management SaaS Platform
TSG SaaS Platform delivers:
• Service & Sourcing Lifecycle Management
to implement real cost savings beyond cost Service & Sourcing
transparency and service pricing Lifecycle Management
• Real Time IT Benchmarking
based on $ 2.8B service contracts
• IT demand based on the Leading Edge IT Demand Total
Mgmt Cost Mgmt
Service Configurator
• Total Cost Management with Service Price Service
IT Sourcing
Calculator & SLA/ Statement-of-Work IT Benchmarking Configurator Mgmt
Generator Catalogue
• IT Sourcing Management with Reverse
Auctioning Capabilities IT Service Intelligence Data Base
(Target Scope & Target Pricing Engine) Service Reference Model
• IT Service Reference Model allows to build Sourcing Provider Network
Business Centric IT Services for Fortune 500
Companies SaaS Platform TSG
• Sourcing Provider Network to get fast
service and benefits implementation
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23. TSG Platform Core Functions
TSG Service & Sourcing Plan & Build Manage IT Services
Design IT Services
Lifecycle Platform IT Services Service Delivery
Service Contracts SLA Service Catalogue & Service Service Dashboard manages Service Delivery & Capacity
Configurator Service Demand & Supply Mgmt. Dashboard
IT Service & Sourcing Product
Service
Intelligence Product Variants & Scope Price Modeler
Hardware,Component Options
Offers Business Case
Software & s Billing Approval
• Reference Service Catalogue Miscellaneous
Process
• Service Pricing /Benchmarking Processes & Service Service
Integration
Sheets
Organization Engineering Model Planning
• Service Demand Mgmt. Planning Service
Service Portfolio Contracts &
• Service Budgeting Service SLA
Management
• Service Contract Mgmt., Planning Optimization Analysis & Capacity
Management
• Service Sourcing Mgmt. Management
Reporting
• Service Provisioning
• Service OLA, SLA Generator
• Service Bid Generator
• Service Metering
• Service Billing Reporting
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24. The TSG difference
We enable IT & Business
Implementation of maximized TSG
savings with TSG Platform
• The Holistic View:
Constantly compare IT Services to
Saving Potential
global market standards (e.g.
leveraging benefits of cloud Continuous Cost
Transparency Program
computing) to reduce efforts and
to provide better Services in Cost
Transparency by Initiative
quality and price
• Demand, Cost & Sourcing
Management must be an ongoing
and integrated business function
6 Month 12 Month 18 Month 24 Month 30 Month 36 Month
• Rapid Implementation of Cost
+ 6 month * * Time to Implement Cost Savings
Savings and Service Improvement + 12 month*
and Improvements
< 6 month with TSG Platform TSG
< 12 month Continuous Cost
transparency Program
< 18 month by Cost
Transparency Initiative
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25. The TSG advantage
Industrialized IT Services
More than just implementing TBM*
• Having full cost transparency and
budget allocation implemented is
the first stage to create “virtual
money savings”
Calculate Evaluate
• TSG’s platform goes much further in Create IT Cost Define Service, Market and Source &
IT Budget Benchmark
Transparency Service Contract Implement
implementing the savings of REAL Planning Services Pricing Service Service
money through industrialization of
services, and by sourcing the Technology Business Management
services from the most efficient IT
delivery source like: TSG
TSG
• On Premise
• Virtual Private Cloud Save Virtual Save REAL
Money money
• Public Cloud
* Technology Business Management
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26. The TSG speed factor
Business Centric
IT Services
Speed to Implement Benefits
• Going far beyond budget allocation
and cost transparency (internal view)
• Market Service Pricing Engine
Benefit from TSG’s Platform
Dramatically reduces cost
• Market Service Catalog allows
composition of competitive Services
• Unique Service Configurator Traditional Cost Saving Implementation
builds Business Centric Services
• Integrated Demand & Sourcing Classical
Management Technology Business Management
TSG Service & Sourcing Lifecycle Management
20% 40% 60% 80% 100%
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27. Agenda
1 TSG
2 Paradigm Shift in IT
3 Learning from Car Manufacturing
4 4 steps to transform IT Services to the cloud
5 TSG SaaS Platform, Managing the Service- & Sourcing Life Cycle
6 Real Case Automotive
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28. Service based Calculation Models. TSG SaaS Platform
Service Engineering
TCO based Calculation Service based Calculation
(Total Cost of Ownership) (Cost per Service)
Total Cost
Manpower Cost Model
Top Down
Hardware Income Statement Year 1 Year 2 Year 3 Year 4
Software
Miscellaneous
Service Line 1
Service Line 2
Service Line 3
Service Line n
Bottom Up
Service Pricing Service Pricing Service Contracts SLA
€ /Unit
Cost Splitting Price
per Manpower
Total Number Price Unit
Cost of per
HW
Units
#=€
Unit
€ SW
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29. Global Infrastructure Deployment for Hosted Platform
Americas EMEA China APAC
Operation Center Operation Center Operation Center Operation Center
2
WAN Access WAN Access WAN Access
WAN Backbone WAN Backbone WAN Backbone WAN Access
WAN Backbone
LAN LAN LAN
LAN
5 TB 5 TB 5 TB
5 TB
Managed Managed Managed Managed
5 Web Server Storage 5 Web Server Storage 5 Web Server Storage Storage
Server Server Server 5 Web Server
Server
4 15 2 2
Americas Markets EMEA Markets China Markets APAC Markets
WAN Access WAN Access WAN Access WAN Access
WAN Backbone WAN Backbone WAN Backbone WAN Backbone
LAN LAN
8TB 8TB 8TB 8TB
8 Web Server Storage 8 Web Server Storage 8 Web Server Storage 8 Web Server Storage
Server Server Server Server
Corporate Shared Services
Dedicated System TEST / Development DBS Storage / Archiving
21 VW 6 DBS 4 DBS CCS 2 DBS 2 DBS FE 5 WAS
CMS 5 DBS Red Hat
CCBB2 WAS Strang 3 Media QS Rendering DBS Identy Store Development
Server Server Server Server Server Server Server
5TB 5TB
4 CSS Abnahme
4 CSS 3 CSS 9 DBS 2 DBS MA Server
Roll Out Q2X Zone CCS-P adapter Front-/Backend SAN Storage SAN Backup
Server Server Server Server
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30. Transparent Service Quality & SLA
Monday - Friday Saturday - Sunday
Operating Hours
0 3 6 9 12 15 18 21 24 0 3 6 9 12 15 18 21 24
Base Operating Hours Productive System 24h 24h
Test / Quality System 6h 6h
Service Time 24h 24h
Problem Handling Reaction Time ResolutionTime
0h 12h 24h 36h 48h 0h 24h 48h 72h
Reaction & Resolution Time CRITICAL 15 min 2
HIGH 1h 4
Medium 24 h 72 h
LOW 24 h 72 h
Availability
99.0% 99.5% 99.8% 100%
Monthly Fee Reduction
100% 50% 0%
Requested Completion Time
0h 12h 24h 36h 48h 72h
Short 6
Medium 12
Long 72
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31. Automated SLA Generation based on selected services
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32. Service Modeling
Volkswagen Calculation Sheet Service Reference Catalogue (best practice)
Costs over all ma
Cost Type
2012
HOSTING
Cloud Hosting 84'211 €
Hardware Backends 0€
DCRM Broker Platform 18'000 €
DCRM Broker AVS -
DCRM Broker Dealersearch -
Google Maps -
FundingProductCatalog (FD Proxy) 5'897 €
Omniture Tracking 0€
BehaviouralTargeting 84'000 €
xProfile 255'000 €
IP-TV -
Sub Total Hosting: 454'308 €
SUPPORT
1st Level Support (by SASD) 50'186 €
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33. Service Reference Catalogue – Volkswagen Service Cost
Service Reference Catalogue (best practice) Volkswagen Calculation Sheet
Bezeichnung Elemente Menge Preis
DBS-CCS-P_Adapter-Server 6+3 Windows Server 9 116'400 €
DBS_CCS-P_DB-Storage_3TB Oracle Erweiterung um 3 TB 3 TB 14'400.00 €
DBS CCBB2 Renderserver 6 Windows Server (hochverfügbar, darum 6 99'000 €
DBS Renderengine Frontendserver mit Loadbalancer)
2 Windows Server 2 33'000.00 €
Price DBS 3D Media QS-Umgebung 2 Windows Server 2 27'200.00 €
DBS Identity Store 5 WAS Server + 1DB 5 41'700 €
Aufbau DBS Development Suite 5 Red Hat Linux VM + 1 Db Erweitwerung 5 107'500.00 €
VWCMS-SAN-Erweiterung SAN Plattenplatzerweiterung um 200 GB 200 GB 4'500.00 €
VWCMS - HW-Erweiterung 21 Server + 3 TB SAN Speicherplatz 21 253'100 €
Quality
2 *Windows Server Service € 27’200 / year
1 “Windows Server Service € 1’133 / month
*: Data Center and Network services are included as well
Scope
Benchmarking:
• Price (equal quality, equal scope)
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34. Industrialized Price and Scope for Cloud Computing
4 Target Pricing
€M Current € 60.42 M €M Target € 40.28 M
2.6 2.6
2.4 2.4
2.0 2.0
1.6 1.6
1.2 1.2
0.8 Market dependent Fee 0.8 Market dependent Fee
0.4 0.4
Fix Fee Fix Fee
2012 2013 2014 2015 2012 2013 2014 2015
Target Scope Service Price &
4 Quantity
Service Level
Business-specific Application €M Target € 4.28 M
Application
2.6
Services
Standard Business Application Service Scope 2.4
2.0
Standard Applications
1.6
Mail, Group Collaboration 1.2
0.8 Market dependent Fee
Database / Middleware Statement of Work 0.4
Cloud Computing Fix Fee
Infrastructure
Incident / Problem
2012 2013 2014 2015
System Operation
Services
System Mgmt.
Hosting Platform
Computing
Storage
Network / Connectivity
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35. Cloud Service Savings Potential
Price
Starting Calculation Cloud Offering Cloud Offering
Point TSG Service Provider 1-2 Provider 3
Base Line Configurator
40% 40% 30%
Target
Pricing
Negotiated
Contract
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36. 4 reasons why you need the TSG SaaS Platform
Configure & Build
1 Business Centric and Competitive
Services
Create Transparency
2 to bundle and buy
Competitive Services
3 Engineer Services for
Cloud Manageability
4 Manage your
Service & Sourcing Lifecycle
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