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Notes On An ITO Appliance
Approach To Productising
And Industrialising IT
Outsourcing
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
Objective
• Describe an approach to the development of an ITO
reference architecture that enables rapid and repeatable
take-on and delivery of ITO services consistently through
productisation and industrialisation
June 8, 2015 2
IT Outsourcing Appliance
• ITO Appliance – a standardised, packaged and extendable
set of processes/systems that support the take-on,
delivery and operation of IT outsourcing services
• Repeatable and modular ITO solution to be customised
and deployed to operate ITO
• ITO Appliance approach enables productised and
industrialised ITO
• A ITO reference architecture that can be customised to
specific implementations and sets of customer
requirements
• SKU-based ITO service that reduces resources and budgets
by lowering the cost of operation and administration
June 8, 2015 3
IT Outsourcing Appliance
• Proactively address outsourcing pain points and supplier and customer
requirements
− Infrastructure inventory and asset management
− Software license management
− Technology refreshes
− Changes
• Assist in productising and industrialising ITO
• Provide a common language between suppliers and customers that fosters
understanding of exactly what is being sold and bought
• Benefits
− Reduce cost of ITO transition and operation
− Improve customer service
− Enable consistent measurement
− Introduce repeatability consistency into outsourcing process
− Manage customer expectations
− Reduce customer and supplier risk
− Improve outsourcing success
June 8, 2015 4
ITO Service Delivery Requirement Hierarchy
June 8, 2015 5
ITO Service Delivery Personnel, Tools and
Facilities
Used to enable efficient operation of ITO
ITO Service Delivery
Delivers the agreed service by efficiently
implementing and operating the agreed
service management processes
Service Management Processes
Processes defined to deliver the agreed
type and level of service
Processes Define What ITO
Service Delivery Should Do
ITO Service Delivery
Requirements Define
Required Functionality
Increased Scope and Complexity of Outsourcing Arrangement
Layers of Service-Related Processes To Be Handled
by ITO Service Delivery
June 8, 2015 6
Incident Management
Problem Management
Service Request
Management
Event and Alert
Management
Access Management
Change Management
Release Management
Configuration
Management
Service
Level Management
Availability
Management
Capacity
Management
Service Continuity
Management
Financial
Management
People
Management
Facilities
Management
Security
Management
Layers of Service-Related Processes To Be Handled
by ITO Service Delivery
• Outsourcing arrangement encompasses greater set of
more complex services that need to be supported by a
wider set of service operation and deliver process
June 8, 2015 7
Increased Scope and Complexity of Outsourcing Arrangement
Services Actualised By Processes Supported By
Resources And Facilities
June 8, 2015 8
• Remember: it is not about the service management
resources and facilities, it is about the underlying
processes the resources and facilities support and use
ITO Services Provided to
Customers
Service Management Approach
and Processes
Are Made Easier, Faster, Cheaper
Through the Effective Implementation
and Operation of …
Service Management Standards
Which Are Defined Using
Standards and Frameworks for
Rapid Implementation Such As …
Service Management Resources
and Facilities
Which in Turn Are
Implemented and
Operated Using
Appropriate …
Services Actualised By Processes Supported By
Resources And Facilities
June 8, 2015 9
ITO Services Provided to
Customers
Service Management Approach
and Processes
Are Made Easier, Faster, Cheaper
Through the Effective Implementation
and Operation of …
Service Management Standards
Which Are Defined Using
Standards and Frameworks for
Rapid Implementation Such As …
Service Management Resources
and Facilities
Which in Turn Are
Implemented and
Operated Using
Appropriate …
Define The ITO Services That Can Be
Cost-Effectively and Credibly Provided
and Which Customers Want And Will
Buy
1
Define The Services Management
Processes That Will Make Service
Delivery Easier, Most Cost
Effective, More Consistent
2
Select a Resources and Facilities
That Meets Service Management
Implementation and Operation
Requirements and Constraints
3
Manage And Deliver On Customer Expectations
During ITO Service
June 8, 2015 10
Customer
Experience
Service Delivery Over Time
ITO Service Negotiation ITO Service Transition ITO Service Delivery
Customer
Expectations
Actual
Customer
Experience
+ + + + +
+
+
ITO
Service
Definition
ITO Service
Configuration
and Pricing
ITO
Contract
Signing
ITO
Service
Transition
ITO
Service
Delivery
ITO
Service
Changes
ITO
Service
Reporting
Productised And Industrialised ITO Enables Management
And Delivery On Customer Expectations During ITO Service
June 8, 2015 11
Customer
Experience
Service Delivery Over Time
Service Negotiation Service Transition Service Delivery
Customer
Expectations
Actual
Customer
Experience
+ + + + + + +
ITO
Service
Definition
ITO Service
Configuration
and Pricing
ITO
Contract
Signing
ITO
Service
Transition
ITO
Service
Delivery
ITO
Service
Changes
ITO
Service
Reporting
June 8, 2015 12
Preventing The Outsourcing Death Spiral
Naive And
Simplistic
Expectations
Over-Dependence On
Service Provider As
Strategic Partner
No Governance
Model
Insufficient
Understanding Of
Current State Of
Services Being
Outsourced
No Defined
Outsourcing
Strategy
No Service
Catalogue
No Defined
Future
Operating
Model Or
Architecture
Oversimplification
Of Outsourcing
Process
Underestimated
And Unquantified
Resource
Commitment
Invalid
Assumptions
Unarticulated
Expectations
Incomplete
Contract
Incomplete
SLAs/OLAs
Insufficient
Management
And Oversight
Lengthy
Negotiations
Unanticipated
And Large Out-
Of-Scope
Services
High
Management
Resources And
Costs
Backsourcing/
Insourcing/
Circumvention
of Arrangement
Development
Of Parallel IT
Services
Constant
Renegotiations
Breakdown Of
Relationship
ITO Operation And Service Management
• Individual ITO
services have
attributes that
define/ modify/
specify/ customise
their delivery
• Attributes can
define the cost of
service delivery
• Operation of ITO
services governed
by service
management
processes
June 8, 2015 13
ITO Service
Service
Management
Process
ITO Service
Implemented by
Service Management
Processes
Service
Management
Process
Service
Attribute/
Characteristic
Service
Attribute/
Characteristic
Service
Attribute/
Characteristic
Service
Attribute/
Characteristic
Service
Attribute/
Characteristic
Service
Attribute/
Characteristic
ITO Operation And Service Management
• An ITO solution as
sold to a customer
will consist of a
customised package
of ITO service
components
• Services included in
ITO solution will
define the
implementation and
operational
requirements
• Aggregated services
will have common
requirements and
attributes
June 8, 2015 14
ITO Service 1
Service
Management
Process 1
Service
Management
Process 2
ITO Solution
ITO Service 2
ITO Service 3
Service
Management
Process 3
Service
Management
Process 4
Service
Management
Process 5
ITO Solution as
Sold Consists of a
Number of ITO
Services
ITO Services Controlled by
Service Management
Processes
ITO Service Configuration Sample
• Characteristics of service define its cost, resources required,
complexity and other factors
• Define attributes associated with services to ensure service
configured correctly so they can be costed and delivered
June 8, 2015 15
ITO Service
Coverage
8 x 5
12 x 5
12 x 6
7 x 24
SLA
30 Minutes
1 Hour
2 Hours
4 Hours
Number of Units
Covered
1,000
2,000
3,000
4,000
5,000
Locations
1
2
3
Team Location
Local
Remote
Standardisation Of ITO Services
June 8, 2015 16
IT Outsourcing
Services
Service Delivery
Supporting
Technology
Service Delivery
Management
Processes
IT Outsourcing
Implementation,
Deployment and
Operating Models
Services
Packaged in
Deployment
Models
Provision of
Managed Through
Standardised
Processes
Provision of Operated
Through Standardised
Technology and Tools
Standardised
Technology and
Tools Form Part of
Deployment Models
Standardised
Processes Form
Part of Deployment
Models
Process-Oriented View Of Outsourcing
Desktop/
Terminal
Communications/
Network
Data
Centre
On Premise
Infrastructure
Storage Service/
Support Desk
Application
Management
Incident Management
Problem Management
Service Request
Management
Event and Alert
Management
Access Management
Change Management
Release Management
Configuration
Management
Service Level
Management
Availability
Management
Capacity Management
Service Continuity
Management
Financial Management
People Management
Facilities Management
Security Management
June 8, 2015 17
Type/Nature of Outsourcing Arrangement/Service
Depth
and
Level
of
Service
Process-Oriented View Of Outsourcing
Desktop/
Terminal
Communications/
Network
Data
Centre
On Premise
Infrastructure
Storage Service/
Support Desk
Application
Management
Incident Management
Problem Management
Service Request
Management
Event and Alert
Management
Access Management
Change Management
Release Management
Configuration
Management
Service Level
Management
Availability
Management
Capacity Management
Service Continuity
Management
Financial Management
People Management
Facilities Management
Security Management
June 8, 2015 18
Type/Nature of Outsourcing Arrangement/Service
Depth
and
Level
of
Service
Simple Outsourcing Service
Complex Outsourcing Service
Process-Oriented View Of Outsourcing
• Type/Nature of Outsourcing Arrangement/Service, such
as:
− Desktop/Terminal
− Communications/Network
− Data Centre
− On Premise Infrastructure
− Storage
− Service/Support Desk
− Application Management
• Depth and Level of Service
− What level of service is being provided and therefore what service
management processes are needed to deliver the service?
June 8, 2015 19
ITO In Business Context
June 8, 2015 20Applications, Systems and Infrastructure
IT and Business Processes and Services
Business and Users
Customers
BusinessUsingIT
ITDeliveringBusinessNeeds
Scope of
ITO Service
ITO In Business Context
June 8, 2015 21
Applications, Systems and Infrastructure
IT and Business Processes and Services
Business and Users
What is Being
Managed Here …
… Delivers a
Service Here
… And Here
ITO In Business Context
June 8, 2015 22
Applications, Systems and Infrastructure
IT and Business Processes and Services
Business and Users
Reporting And
Alerting Here …
… Allows
Service
Reporting
Here
… And Here
ITO Service Operation And Delivery Process
Framework
ITO Service Delivery
Service Strategy
Service Portfolio
Management
Financial Management
Service Design
Service Catalogue
Management
Service Level Management
Risk Management
Capacity Management
Availability Management
IT Service Continuity
Management
IT Security Management
Compliance Management
IT Architecture Management
Supplier Management
Service Transition
Change Management
Project Management
(Transition Planning and
Support)
Release and Deployment
Management
Service Validation and
Testing
Application Development
and Customisation
Service Asset and
Configuration Management
Knowledge Management
Service Operation
Event Management
Incident Management
Request Fulfilment
Access and Identity
Management
Problem Management
IT Operations Management
IT Facilities Management
Continual Service
Improvement
Service Evaluation
Process Evaluation
Definition of CSI Initiatives
CSI Monitoring
June 8, 2015 23
ITO Service Operation And Delivery Process
Framework
• Extensive set of services management processes available
to manage the delivery ITO services – from simple to
complex
• Customer can be enabled to select ITO operational options
• Associated defined service delivery process will ensure ITO
supplier can accurately assess the impact of providing
selected options
• For each service option there is an associated process that
manages its delivery
June 8, 2015 24
Process-Oriented View Of Outsourcing
June 8, 2015 25
Type of
outsourcing
service
Depth and
breadth of
outsourcing
service – the
What
Scope of
operation of
outsourcing
arrangement
Service
management
and delivery
processes –
the How
=+
Processes define the
way in which the service
is operated, delivered
and managed – linking
the what to the how
For every service, there
is an associated delivery
process
Explicit And Implicit ITO Services
• In any ITO operation, there will be two sets of services being provided:
1. The outsourcing services explicitly sold
2. Underlying enabling services that are being provided to control the
provision of the core outsourcing services
June 8, 2015 26
IT Outsourcing
Services
Operational
Services
Supporting Services
and Associated
Technology
Services As Sold
To The
Customer
Consists of …
ITO
Services
As Sold
Controlling,
Managing,
Enabling,
Reporting,
Supporting
Services
Above the Line - Explicitly Sold and Provided
Below the Line – Implicitly Sold and Provided
Dimensions Of Classification Of Outsourcing
Arrangements
June 8, 2015 27
Services Being
Provided
Supporting and Ancillary
Processes and Related
Technology, Systems and Service
Delivery Arrangements
Service Management System
Deployment and Operational
Scenarios
Dimensions Of Classification Of Outsourcing
Arrangements
June 8, 2015 28
Implementation 1
Implementation 2
Implementation 3
Services Being
Provided
Supporting and Ancillary
Processes and Related
Technology, Systems and Service
Delivery Arrangements
Service Management System Deployment
and Operational Scenarios
Generalised ITO Component Deployment
Framework
June 8, 2015 29
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Offsite Portal
Customer
Managed
Applications
Service Desk
System
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Offsite CMDB
Offsite Known
Error
Database
Customer
Support Team
Offsite
Application
Password
Reset
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Supplier
Onsite Service
Desk System
Onsite Portal
Customer Location Service Provision Centralised Location
Offsite
Configuration
Discovery
Onsite
Event/Alert
Handler
Offsite
Event/Alert
Handler
Generalised ITO Component Deployment
Framework
• Deployment and operation of ITO services is another SKU
dimension when defining ITO product
• Supported by appropriate set of tools
− Tools are key to productised and industrialised ITO
June 8, 2015 30
Generalised ITO Component Deployment
Framework
June 8, 2015 31
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Offsite Portal
Customer
Managed
Applications
Service Desk
System
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Offsite CMDB
Offsite Known
Error
Database
Customer
Support Team
Offsite
Application
Password
Reset
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Supplier
Onsite Service
Desk System
Onsite Portal
Customer Location Service Provision Centralised Location
Offsite
Configuration
Discovery
Onsite
Event/Alert
Handler
Offsite
Event/Alert
Handler
1 2
23
3 4
6 7
9 10 11
12 13
20 21 22
15 16
18 19
24
8
175
14
Generalised ITO Component Deployment
Framework
1. Customer Users – this represents the end users of the ITO service
2. Onsite ITO Team –team based on the customer site providing the
service to the customer and its users
3. Customer Service Desk System –the customer has a separate service
management system that must be used by support personnel or that
must be interfaced with by the service management system
4. Onsite Service Desk System – the customer has requested that the
supplier service management system must be installed onsite
5. Onsite Event/Alert Handler – this will receive, consolidate and process
events/alerts received from infrastructure under management and will
be located on the customer premises
6. Customer Support Team – the support team may need to work with
the customer’s (or a third party) support team to work on incidents and
problems
7. Onsite CMDB – if there is an onsite separate service management
system it will maintain its own CMDB
8. Onsite Portal – there may be a separate portal located on the
customer’s site that provides a centralised point of information and
application access
9. Customer Managed Infrastructure – this is the (subset of) customer
infrastructure (hardware and possibly infrastructure-related
applications) being managed by as part of the ITO contract
10. Onsite Configuration Discovery – there may be an onsite tool that
performs onsite asset and configuration discovery
11. Onsite Known Error Database – if there is an onsite separate service
management system it will maintain its own error database
12. Customer Managed Applications – this is the (subset of) customer
applications being managed by as part of the ITO contract
13. Onsite Application Password Reset – the customer’s users may be
provided with a facility (accessed by the portal or otherwise) that is
located onsite where requests to reset password to applications are
processed
14. Offsite Event/Alert Handler – this will receive, consolidate and process
events/alerts received from infrastructure under management and will
be located outside the customer premises
15. Offsite ITO Team(s) – the service to the customer may be provided by
or supplemented by personnel from offsite team(s)
16. L2/L3 Support – incidents and problems within the site may be
escalated to level 2 and level 3 support
17. Offsite Configuration Discovery – asset and configuration discovery
may be performed by an offsite tool
18. Service Desk System – the service management system used to support
the customer’s IT service management processes may be located
offsite, either as a shared or dedicated facility
19. Warranty and Parts Management – manage any additional
infrastructure required, provide break-fix services
20. Offsite Portal – there may be a shared multi-tenant portal located on in
facility that provides a centralised point of information and application
access
21. Offsite CMDB – if there is an offsite shared or dedicated service
management system it will maintain its own CMDB
22. Workforce Management and Scheduling – the service to the customer
may be provided by or supplemented by personnel from offsite team(s)
23. Offsite Application Password Reset– the customer’s users may be
provided with a facility (accessed by the portal or otherwise) that is
located offsite where requests to reset password to applications are
processed
24. Offsite Known Error Database – if there is an offsite shared or
dedicated service management system it will maintain its own error
database
June 8, 2015 32
Generalised ITO Component Deployment
Framework – Key Design Principles
• Emphasise self-service through user access to known
errors and issues database and to user-initiated password
reset
• Implement portal to provide centralised customer user
access to information
• Implement infrastructure discovery and management
through CMDB
• Implement automation of error handling and processing
through alert and event management
June 8, 2015 33
Generalised ITO Component Deployment
Framework
• Generalised set of components that depend on
outsourcing deployment and operating model, such as:
− ITO service delivery must occur on customer premises
− ITO service delivery can be offsite but must be dedicated
− ITO service delivery can be offsite but must located in a specific
geographical region
− ITO service delivery can be offsite and shared subject to security
restrictions
• And other factors, such as:
− Customer has existing service management facility that ITO
service provider must interface with
− No external service management facility interface required
June 8, 2015 34
Generalised ITO Component Deployment
Framework – Sample Architecture Options
1. Customer has existing service management system that the ITO supplier system must interface with and
no restrictions on ITO supplier service management system
2. Customer has existing service management system that the ITO supplier system must interface with and
ITO supplier service management system must be installed on customer premises
3. Customer has existing service management system that the ITO supplier system must interface with and
ITO supplier service management system can be offsite but must be dedicated
4. Customer has existing service management system that the ITO supplier system must interface with and
ITO supplier service management system can be offsite but must located in specific geographical region
5. Customer has existing service management system that the ITO supplier system must interface with and
ITO supplier service management system can be offsite and shared subject to security restrictions
6. No customer service management system interface required and no restrictions on ITO supplier service
management system
7. No customer service management system interface required and ITO supplier service management system
must be installed on customer premises
8. No customer service management system interface required and ITO supplier service management system
can be offsite but must be dedicated
9. No customer service management system interface required and ITO supplier service management system
can be offsite but must located in specific geographical region
10. No customer service management system interface required and ITO supplier service management system
can be offsite and shared subject to security restrictions
June 8, 2015 35
1- Customer Has Existing Service Management System That The ITO Supplier
System Must Interface With And No Restrictions on ITO Supplier Service
Management System
June 8, 2015 36
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Offsite Portal
Customer
Managed
Applications
Service Desk
System
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Offsite CMDB
Offsite Known
Error
Database
Customer
Support Team
Offsite
Application
Password
Reset
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Onsite Portal
Customer Location Service Provision Centralised Location
Offsite
Configuration
Discovery
1 2
23
3
6 7
9 10 11
12 13
20 21 22
15 16
18 19
24
8
17
2 - Customer Has Existing Service Management System That The ITO Supplier
System Must Interface With And ITO Supplier Service Management System
Must Be Installed On Customer Premises
June 8, 2015 37
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Customer
Managed
Applications
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Customer
Support Team
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Supplier
Onsite Service
Desk System
Onsite Portal
Customer Location Service Provision Centralised Location
Onsite
Event/Alert
Handler
1 2
3 4
6 7
9 10 11
12 13
22
15 16
19
8
5
3 - Customer Has Existing Service Management System That The ITO Supplier
System Must Interface With And ITO Supplier Service Management System
Can Be Offsite But Must Be Dedicated
June 8, 2015 38
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Offsite Portal
Customer
Managed
Applications
Service Desk
System
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Offsite CMDB
Offsite Known
Error
Database
Customer
Support Team
Offsite
Application
Password
Reset
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Onsite Portal
Customer Location Service Provision Centralised Location
Offsite
Configuration
Discovery
Onsite
Event/Alert
Handler
Offsite
Event/Alert
Handler
1 2
23
3
6 7
9 10 11
12 13
20 21 22
15 16
18 19
24
8
175
14
4 - Customer Has Existing Service Management System That The ITO Supplier
System Must Interface With And ITO Supplier Service Management System
Can Be Offsite But Must Located In Specific Geographical Region
June 8, 2015 39
Customer
Users
Customer
Service Desk
System
Customer
Managed
Infrastructure
Offsite Portal
Customer
Managed
Applications
Service Desk
System
Onsite ITO
Delivery Team
Offsite ITO
Delivery Team
Offsite L2/L3
Support
Onsite CMDB
Onsite
Configuration
Discovery
Onsite Known
Error
Database
Workforce
Management
and
Scheduling
Offsite CMDB
Offsite Known
Error
Database
Customer
Support Team
Offsite
Application
Password
Reset
Onsite
Application
Password
Reset
Warranty and
Parts
Management
Onsite Portal
Customer Location Service Provision Centralised Location
Offsite
Configuration
Discovery
Onsite
Event/Alert
Handler
Offsite
Event/Alert
Handler
1 2
23
3
6 7
9 10 11
12 13
20 21 22
15 16
18 19
24
8
175
14
CMDB Is A Key Component Of Productised ITO
• Need to have a controlled Configuration
Management environment that enables the
tracking, recording, and reporting of
Configuration Items (CIs) in the managed/
supported IT infrastructure
− Ensure accurate inventory of infrastructure within
the scope of the ITO service
− Assess the impact of a service failure quickly
− Identify the components that make up a service so
that Service Level Objectives (SLOs) can be defined
and availability measurements can be identified
− Assess the risk associated with the implementation
of a change to the production environment
− Cost and price IT services accurately
• CMDB is at the core of Configuration
Management
• CMDB is a key enabler of efficient Configuration
Management
• CMDB provides a framework for event and alert
management, storing configuration items
against which alerts are tracked
June 8, 2015 40
Service Management Processes
Configuration Management
CMDB
Effective CMDB Assists The ITO Process
• Effective
Configuration
Management
and CMDB also
drives sales
processes
− Due diligence
− Warranty
− Replacement
− Upgrade
− Refresh
− Additional
capacity
June 8, 2015 41
Sales Processes
Service Management Processes
Configuration Management
CMDB
ITO Transition Process And ITO Delivery Lifecycle
• Asset discovery and subsequent asset management is
important to effective productised and industrialised ITO
June 8, 2015 42
Service Negotiation
and Contract
Signing
Pre-Operation and
Pre-Integration
Start
ITO Service
Transition
ITO Service
Standardisation and
Transformation
Steady State
Operation of Service
Initial Transition
Plan
Pre-Contract Due
Diligence
Final Transition Plan
Integration
Preparation
Transition Initiation
Finalise Integration
Solution
Architecture
Transition
Completed
Transformation
Completed
Technology
Refreshes
Changes
Post Contract Due
Diligence
Verification
Asset Management During ITO Transition Process
And ITO Delivery Lifecycle
June 8, 2015 43
Service Negotiation
and Contract
Signing
Pre-Operation and
Pre-Integration
Start
ITO Service
Transition
ITO Service
Standardisation and
Transformation
Steady State
Operation of Service
Initial Transition
Plan
Pre-Contract Due
Diligence
Final Transition Plan
Integration
Preparation
Transition Initiation
Finalise Integration
Solution
Architecture
Transition
Completed
Transformation
Completed
Technology
Refreshes
Changes
Post Contract Due
Diligence
Verification
Asset Discovery and CMDB
Maintenance During the Life of
ITO Service
Service Delivery
Idealised CMDB Components And Operation
June 8, 2015 44
CMDB
Management
System
Automated CI
Discovery and
CMDB Population
Tool
CMDB Data
Access and Entry
CMDB Query and
Maintenance
Links to Service
Management
Systems and
Processes
CI Usage and
Performance
Collection Tool
CI Alerting
Collection Tool
Links to Asset
Management
Systems and
Processes
Analysis Billing System
= Core CMDB Components
Data
Transformation
and
Normalisation
Data Collection
Scheduling
Facility
Data Warehouse
Infrastructure Being
Managed
CMDB Data Collection
• CMDB data collection
− Infrastructure configuration and changes
− Events and alerts
− Performance and usage
June 8, 2015 45
Collect Configuration,
Performance, Alert Data
CMDB Users
CMDB High-Level Data Structure
• CMDB holds data for
configuration of
infrastructure being
managed by ITO service
• Each customer can have
one or more solution
being managed
• Each solution can consist
of a package of multiple
hardware and software
components combined
with a set of initial and
on-going services
(entitlements, warranty,
upgrades, refreshes)
June 8, 2015 46
CMDB
Location
Package
Hardware
Static Data Dynamic Data
Software
Static Data Dynamic Data
Services
Static Data Dynamic Data
Virtual Objects
Static Data Dynamic Data
Static Data Dynamic Data
Static Data Dynamic Data
Dimensions Of SKUs Of Outsourcing Service
June 8, 2015 47
1. Type Of Outsourcing
Service
+
2. ITO Component
Deployment
Framework
+
3. Depth and Breadth of
Outsourcing Service
=
ITO Offer
Hierarchy Of ITO Offer
ITO Offer
Contract
Terms and
Conditions
Deployment
and
Operation
Discounts
ITO Solution
Configuration
Deployment
Set of Services
ITO Product(s)
ITO Product ITO Product ITO Product
June 8, 2015 48
Dimensions Of SKUs Of Outsourcing Service
• Enable ITO service catalogue to be defined
• Enable productisation of ITO
June 8, 2015 49
ITO Industrialisation and Productisation
• ITO productisation is a pre-requisite for and an enabler of
ITO industrialisation
June 8, 2015 50
ITO Productisation
Defined Set of ITO
Services and Packaging
Options
ITO Industrialisation
Common Deployment,
Implementation and
Operation Approaches
ITO Industrialisation and Productisation
June 8, 2015 51
ITO Productisation
Defined Set of ITO
Services and Packaging
Options
ITO Industrialisation
Common Deployment,
Implementation and
Operation Approaches
Supplier Representation of
ITO Services
Supplier Delivery of ITO
Services
= =
ITO Industrialisation and Productisation
• Approach not for every outsourcing arrangement
− Complex ITO arrangements will not lend themselves to this
approach
• Approach can also be used for in-house IT management
June 8, 2015 52
Summary
• ITO Appliance approach is a standardised, packaged and extendable set of
processes/systems that support the take-on, delivery and operation of IT
outsourcing services
− SKU-based ITO service that reduces resources and budgets by lowering the cost of
operation and administration
• Approach enables productised and industrialised ITO
• Provides a common language between suppliers and customers that
fosters understanding of exactly what is being sold and bought
• Processes define the way in which the service is operated, delivered and
managed – linking the what to the how
− For each service option there is an associated process that manages its delivery
• Tools are key to productised and industrialised ITO
• CMDB and associated asset discovery and subsequent asset management
is key component of effective productised and industrialised ITO
• ITO productisation is a pre-requisite for and an enabler of ITO
industrialisation
June 8, 2015 53
June 8, 2015 54
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

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

  • 1. Notes On An ITO Appliance Approach To Productising And Industrialising IT Outsourcing Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney
  • 2. Objective • Describe an approach to the development of an ITO reference architecture that enables rapid and repeatable take-on and delivery of ITO services consistently through productisation and industrialisation June 8, 2015 2
  • 3. IT Outsourcing Appliance • ITO Appliance – a standardised, packaged and extendable set of processes/systems that support the take-on, delivery and operation of IT outsourcing services • Repeatable and modular ITO solution to be customised and deployed to operate ITO • ITO Appliance approach enables productised and industrialised ITO • A ITO reference architecture that can be customised to specific implementations and sets of customer requirements • SKU-based ITO service that reduces resources and budgets by lowering the cost of operation and administration June 8, 2015 3
  • 4. IT Outsourcing Appliance • Proactively address outsourcing pain points and supplier and customer requirements − Infrastructure inventory and asset management − Software license management − Technology refreshes − Changes • Assist in productising and industrialising ITO • Provide a common language between suppliers and customers that fosters understanding of exactly what is being sold and bought • Benefits − Reduce cost of ITO transition and operation − Improve customer service − Enable consistent measurement − Introduce repeatability consistency into outsourcing process − Manage customer expectations − Reduce customer and supplier risk − Improve outsourcing success June 8, 2015 4
  • 5. ITO Service Delivery Requirement Hierarchy June 8, 2015 5 ITO Service Delivery Personnel, Tools and Facilities Used to enable efficient operation of ITO ITO Service Delivery Delivers the agreed service by efficiently implementing and operating the agreed service management processes Service Management Processes Processes defined to deliver the agreed type and level of service Processes Define What ITO Service Delivery Should Do ITO Service Delivery Requirements Define Required Functionality
  • 6. Increased Scope and Complexity of Outsourcing Arrangement Layers of Service-Related Processes To Be Handled by ITO Service Delivery June 8, 2015 6 Incident Management Problem Management Service Request Management Event and Alert Management Access Management Change Management Release Management Configuration Management Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management People Management Facilities Management Security Management
  • 7. Layers of Service-Related Processes To Be Handled by ITO Service Delivery • Outsourcing arrangement encompasses greater set of more complex services that need to be supported by a wider set of service operation and deliver process June 8, 2015 7 Increased Scope and Complexity of Outsourcing Arrangement
  • 8. Services Actualised By Processes Supported By Resources And Facilities June 8, 2015 8 • Remember: it is not about the service management resources and facilities, it is about the underlying processes the resources and facilities support and use ITO Services Provided to Customers Service Management Approach and Processes Are Made Easier, Faster, Cheaper Through the Effective Implementation and Operation of … Service Management Standards Which Are Defined Using Standards and Frameworks for Rapid Implementation Such As … Service Management Resources and Facilities Which in Turn Are Implemented and Operated Using Appropriate …
  • 9. Services Actualised By Processes Supported By Resources And Facilities June 8, 2015 9 ITO Services Provided to Customers Service Management Approach and Processes Are Made Easier, Faster, Cheaper Through the Effective Implementation and Operation of … Service Management Standards Which Are Defined Using Standards and Frameworks for Rapid Implementation Such As … Service Management Resources and Facilities Which in Turn Are Implemented and Operated Using Appropriate … Define The ITO Services That Can Be Cost-Effectively and Credibly Provided and Which Customers Want And Will Buy 1 Define The Services Management Processes That Will Make Service Delivery Easier, Most Cost Effective, More Consistent 2 Select a Resources and Facilities That Meets Service Management Implementation and Operation Requirements and Constraints 3
  • 10. Manage And Deliver On Customer Expectations During ITO Service June 8, 2015 10 Customer Experience Service Delivery Over Time ITO Service Negotiation ITO Service Transition ITO Service Delivery Customer Expectations Actual Customer Experience + + + + + + + ITO Service Definition ITO Service Configuration and Pricing ITO Contract Signing ITO Service Transition ITO Service Delivery ITO Service Changes ITO Service Reporting
  • 11. Productised And Industrialised ITO Enables Management And Delivery On Customer Expectations During ITO Service June 8, 2015 11 Customer Experience Service Delivery Over Time Service Negotiation Service Transition Service Delivery Customer Expectations Actual Customer Experience + + + + + + + ITO Service Definition ITO Service Configuration and Pricing ITO Contract Signing ITO Service Transition ITO Service Delivery ITO Service Changes ITO Service Reporting
  • 12. June 8, 2015 12 Preventing The Outsourcing Death Spiral Naive And Simplistic Expectations Over-Dependence On Service Provider As Strategic Partner No Governance Model Insufficient Understanding Of Current State Of Services Being Outsourced No Defined Outsourcing Strategy No Service Catalogue No Defined Future Operating Model Or Architecture Oversimplification Of Outsourcing Process Underestimated And Unquantified Resource Commitment Invalid Assumptions Unarticulated Expectations Incomplete Contract Incomplete SLAs/OLAs Insufficient Management And Oversight Lengthy Negotiations Unanticipated And Large Out- Of-Scope Services High Management Resources And Costs Backsourcing/ Insourcing/ Circumvention of Arrangement Development Of Parallel IT Services Constant Renegotiations Breakdown Of Relationship
  • 13. ITO Operation And Service Management • Individual ITO services have attributes that define/ modify/ specify/ customise their delivery • Attributes can define the cost of service delivery • Operation of ITO services governed by service management processes June 8, 2015 13 ITO Service Service Management Process ITO Service Implemented by Service Management Processes Service Management Process Service Attribute/ Characteristic Service Attribute/ Characteristic Service Attribute/ Characteristic Service Attribute/ Characteristic Service Attribute/ Characteristic Service Attribute/ Characteristic
  • 14. ITO Operation And Service Management • An ITO solution as sold to a customer will consist of a customised package of ITO service components • Services included in ITO solution will define the implementation and operational requirements • Aggregated services will have common requirements and attributes June 8, 2015 14 ITO Service 1 Service Management Process 1 Service Management Process 2 ITO Solution ITO Service 2 ITO Service 3 Service Management Process 3 Service Management Process 4 Service Management Process 5 ITO Solution as Sold Consists of a Number of ITO Services ITO Services Controlled by Service Management Processes
  • 15. ITO Service Configuration Sample • Characteristics of service define its cost, resources required, complexity and other factors • Define attributes associated with services to ensure service configured correctly so they can be costed and delivered June 8, 2015 15 ITO Service Coverage 8 x 5 12 x 5 12 x 6 7 x 24 SLA 30 Minutes 1 Hour 2 Hours 4 Hours Number of Units Covered 1,000 2,000 3,000 4,000 5,000 Locations 1 2 3 Team Location Local Remote
  • 16. Standardisation Of ITO Services June 8, 2015 16 IT Outsourcing Services Service Delivery Supporting Technology Service Delivery Management Processes IT Outsourcing Implementation, Deployment and Operating Models Services Packaged in Deployment Models Provision of Managed Through Standardised Processes Provision of Operated Through Standardised Technology and Tools Standardised Technology and Tools Form Part of Deployment Models Standardised Processes Form Part of Deployment Models
  • 17. Process-Oriented View Of Outsourcing Desktop/ Terminal Communications/ Network Data Centre On Premise Infrastructure Storage Service/ Support Desk Application Management Incident Management Problem Management Service Request Management Event and Alert Management Access Management Change Management Release Management Configuration Management Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management People Management Facilities Management Security Management June 8, 2015 17 Type/Nature of Outsourcing Arrangement/Service Depth and Level of Service
  • 18. Process-Oriented View Of Outsourcing Desktop/ Terminal Communications/ Network Data Centre On Premise Infrastructure Storage Service/ Support Desk Application Management Incident Management Problem Management Service Request Management Event and Alert Management Access Management Change Management Release Management Configuration Management Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management People Management Facilities Management Security Management June 8, 2015 18 Type/Nature of Outsourcing Arrangement/Service Depth and Level of Service Simple Outsourcing Service Complex Outsourcing Service
  • 19. Process-Oriented View Of Outsourcing • Type/Nature of Outsourcing Arrangement/Service, such as: − Desktop/Terminal − Communications/Network − Data Centre − On Premise Infrastructure − Storage − Service/Support Desk − Application Management • Depth and Level of Service − What level of service is being provided and therefore what service management processes are needed to deliver the service? June 8, 2015 19
  • 20. ITO In Business Context June 8, 2015 20Applications, Systems and Infrastructure IT and Business Processes and Services Business and Users Customers BusinessUsingIT ITDeliveringBusinessNeeds Scope of ITO Service
  • 21. ITO In Business Context June 8, 2015 21 Applications, Systems and Infrastructure IT and Business Processes and Services Business and Users What is Being Managed Here … … Delivers a Service Here … And Here
  • 22. ITO In Business Context June 8, 2015 22 Applications, Systems and Infrastructure IT and Business Processes and Services Business and Users Reporting And Alerting Here … … Allows Service Reporting Here … And Here
  • 23. ITO Service Operation And Delivery Process Framework ITO Service Delivery Service Strategy Service Portfolio Management Financial Management Service Design Service Catalogue Management Service Level Management Risk Management Capacity Management Availability Management IT Service Continuity Management IT Security Management Compliance Management IT Architecture Management Supplier Management Service Transition Change Management Project Management (Transition Planning and Support) Release and Deployment Management Service Validation and Testing Application Development and Customisation Service Asset and Configuration Management Knowledge Management Service Operation Event Management Incident Management Request Fulfilment Access and Identity Management Problem Management IT Operations Management IT Facilities Management Continual Service Improvement Service Evaluation Process Evaluation Definition of CSI Initiatives CSI Monitoring June 8, 2015 23
  • 24. ITO Service Operation And Delivery Process Framework • Extensive set of services management processes available to manage the delivery ITO services – from simple to complex • Customer can be enabled to select ITO operational options • Associated defined service delivery process will ensure ITO supplier can accurately assess the impact of providing selected options • For each service option there is an associated process that manages its delivery June 8, 2015 24
  • 25. Process-Oriented View Of Outsourcing June 8, 2015 25 Type of outsourcing service Depth and breadth of outsourcing service – the What Scope of operation of outsourcing arrangement Service management and delivery processes – the How =+ Processes define the way in which the service is operated, delivered and managed – linking the what to the how For every service, there is an associated delivery process
  • 26. Explicit And Implicit ITO Services • In any ITO operation, there will be two sets of services being provided: 1. The outsourcing services explicitly sold 2. Underlying enabling services that are being provided to control the provision of the core outsourcing services June 8, 2015 26 IT Outsourcing Services Operational Services Supporting Services and Associated Technology Services As Sold To The Customer Consists of … ITO Services As Sold Controlling, Managing, Enabling, Reporting, Supporting Services Above the Line - Explicitly Sold and Provided Below the Line – Implicitly Sold and Provided
  • 27. Dimensions Of Classification Of Outsourcing Arrangements June 8, 2015 27 Services Being Provided Supporting and Ancillary Processes and Related Technology, Systems and Service Delivery Arrangements Service Management System Deployment and Operational Scenarios
  • 28. Dimensions Of Classification Of Outsourcing Arrangements June 8, 2015 28 Implementation 1 Implementation 2 Implementation 3 Services Being Provided Supporting and Ancillary Processes and Related Technology, Systems and Service Delivery Arrangements Service Management System Deployment and Operational Scenarios
  • 29. Generalised ITO Component Deployment Framework June 8, 2015 29 Customer Users Customer Service Desk System Customer Managed Infrastructure Offsite Portal Customer Managed Applications Service Desk System Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Offsite CMDB Offsite Known Error Database Customer Support Team Offsite Application Password Reset Onsite Application Password Reset Warranty and Parts Management Supplier Onsite Service Desk System Onsite Portal Customer Location Service Provision Centralised Location Offsite Configuration Discovery Onsite Event/Alert Handler Offsite Event/Alert Handler
  • 30. Generalised ITO Component Deployment Framework • Deployment and operation of ITO services is another SKU dimension when defining ITO product • Supported by appropriate set of tools − Tools are key to productised and industrialised ITO June 8, 2015 30
  • 31. Generalised ITO Component Deployment Framework June 8, 2015 31 Customer Users Customer Service Desk System Customer Managed Infrastructure Offsite Portal Customer Managed Applications Service Desk System Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Offsite CMDB Offsite Known Error Database Customer Support Team Offsite Application Password Reset Onsite Application Password Reset Warranty and Parts Management Supplier Onsite Service Desk System Onsite Portal Customer Location Service Provision Centralised Location Offsite Configuration Discovery Onsite Event/Alert Handler Offsite Event/Alert Handler 1 2 23 3 4 6 7 9 10 11 12 13 20 21 22 15 16 18 19 24 8 175 14
  • 32. Generalised ITO Component Deployment Framework 1. Customer Users – this represents the end users of the ITO service 2. Onsite ITO Team –team based on the customer site providing the service to the customer and its users 3. Customer Service Desk System –the customer has a separate service management system that must be used by support personnel or that must be interfaced with by the service management system 4. Onsite Service Desk System – the customer has requested that the supplier service management system must be installed onsite 5. Onsite Event/Alert Handler – this will receive, consolidate and process events/alerts received from infrastructure under management and will be located on the customer premises 6. Customer Support Team – the support team may need to work with the customer’s (or a third party) support team to work on incidents and problems 7. Onsite CMDB – if there is an onsite separate service management system it will maintain its own CMDB 8. Onsite Portal – there may be a separate portal located on the customer’s site that provides a centralised point of information and application access 9. Customer Managed Infrastructure – this is the (subset of) customer infrastructure (hardware and possibly infrastructure-related applications) being managed by as part of the ITO contract 10. Onsite Configuration Discovery – there may be an onsite tool that performs onsite asset and configuration discovery 11. Onsite Known Error Database – if there is an onsite separate service management system it will maintain its own error database 12. Customer Managed Applications – this is the (subset of) customer applications being managed by as part of the ITO contract 13. Onsite Application Password Reset – the customer’s users may be provided with a facility (accessed by the portal or otherwise) that is located onsite where requests to reset password to applications are processed 14. Offsite Event/Alert Handler – this will receive, consolidate and process events/alerts received from infrastructure under management and will be located outside the customer premises 15. Offsite ITO Team(s) – the service to the customer may be provided by or supplemented by personnel from offsite team(s) 16. L2/L3 Support – incidents and problems within the site may be escalated to level 2 and level 3 support 17. Offsite Configuration Discovery – asset and configuration discovery may be performed by an offsite tool 18. Service Desk System – the service management system used to support the customer’s IT service management processes may be located offsite, either as a shared or dedicated facility 19. Warranty and Parts Management – manage any additional infrastructure required, provide break-fix services 20. Offsite Portal – there may be a shared multi-tenant portal located on in facility that provides a centralised point of information and application access 21. Offsite CMDB – if there is an offsite shared or dedicated service management system it will maintain its own CMDB 22. Workforce Management and Scheduling – the service to the customer may be provided by or supplemented by personnel from offsite team(s) 23. Offsite Application Password Reset– the customer’s users may be provided with a facility (accessed by the portal or otherwise) that is located offsite where requests to reset password to applications are processed 24. Offsite Known Error Database – if there is an offsite shared or dedicated service management system it will maintain its own error database June 8, 2015 32
  • 33. Generalised ITO Component Deployment Framework – Key Design Principles • Emphasise self-service through user access to known errors and issues database and to user-initiated password reset • Implement portal to provide centralised customer user access to information • Implement infrastructure discovery and management through CMDB • Implement automation of error handling and processing through alert and event management June 8, 2015 33
  • 34. Generalised ITO Component Deployment Framework • Generalised set of components that depend on outsourcing deployment and operating model, such as: − ITO service delivery must occur on customer premises − ITO service delivery can be offsite but must be dedicated − ITO service delivery can be offsite but must located in a specific geographical region − ITO service delivery can be offsite and shared subject to security restrictions • And other factors, such as: − Customer has existing service management facility that ITO service provider must interface with − No external service management facility interface required June 8, 2015 34
  • 35. Generalised ITO Component Deployment Framework – Sample Architecture Options 1. Customer has existing service management system that the ITO supplier system must interface with and no restrictions on ITO supplier service management system 2. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system must be installed on customer premises 3. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite but must be dedicated 4. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite but must located in specific geographical region 5. Customer has existing service management system that the ITO supplier system must interface with and ITO supplier service management system can be offsite and shared subject to security restrictions 6. No customer service management system interface required and no restrictions on ITO supplier service management system 7. No customer service management system interface required and ITO supplier service management system must be installed on customer premises 8. No customer service management system interface required and ITO supplier service management system can be offsite but must be dedicated 9. No customer service management system interface required and ITO supplier service management system can be offsite but must located in specific geographical region 10. No customer service management system interface required and ITO supplier service management system can be offsite and shared subject to security restrictions June 8, 2015 35
  • 36. 1- Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And No Restrictions on ITO Supplier Service Management System June 8, 2015 36 Customer Users Customer Service Desk System Customer Managed Infrastructure Offsite Portal Customer Managed Applications Service Desk System Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Offsite CMDB Offsite Known Error Database Customer Support Team Offsite Application Password Reset Onsite Application Password Reset Warranty and Parts Management Onsite Portal Customer Location Service Provision Centralised Location Offsite Configuration Discovery 1 2 23 3 6 7 9 10 11 12 13 20 21 22 15 16 18 19 24 8 17
  • 37. 2 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Must Be Installed On Customer Premises June 8, 2015 37 Customer Users Customer Service Desk System Customer Managed Infrastructure Customer Managed Applications Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Customer Support Team Onsite Application Password Reset Warranty and Parts Management Supplier Onsite Service Desk System Onsite Portal Customer Location Service Provision Centralised Location Onsite Event/Alert Handler 1 2 3 4 6 7 9 10 11 12 13 22 15 16 19 8 5
  • 38. 3 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Can Be Offsite But Must Be Dedicated June 8, 2015 38 Customer Users Customer Service Desk System Customer Managed Infrastructure Offsite Portal Customer Managed Applications Service Desk System Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Offsite CMDB Offsite Known Error Database Customer Support Team Offsite Application Password Reset Onsite Application Password Reset Warranty and Parts Management Onsite Portal Customer Location Service Provision Centralised Location Offsite Configuration Discovery Onsite Event/Alert Handler Offsite Event/Alert Handler 1 2 23 3 6 7 9 10 11 12 13 20 21 22 15 16 18 19 24 8 175 14
  • 39. 4 - Customer Has Existing Service Management System That The ITO Supplier System Must Interface With And ITO Supplier Service Management System Can Be Offsite But Must Located In Specific Geographical Region June 8, 2015 39 Customer Users Customer Service Desk System Customer Managed Infrastructure Offsite Portal Customer Managed Applications Service Desk System Onsite ITO Delivery Team Offsite ITO Delivery Team Offsite L2/L3 Support Onsite CMDB Onsite Configuration Discovery Onsite Known Error Database Workforce Management and Scheduling Offsite CMDB Offsite Known Error Database Customer Support Team Offsite Application Password Reset Onsite Application Password Reset Warranty and Parts Management Onsite Portal Customer Location Service Provision Centralised Location Offsite Configuration Discovery Onsite Event/Alert Handler Offsite Event/Alert Handler 1 2 23 3 6 7 9 10 11 12 13 20 21 22 15 16 18 19 24 8 175 14
  • 40. CMDB Is A Key Component Of Productised ITO • Need to have a controlled Configuration Management environment that enables the tracking, recording, and reporting of Configuration Items (CIs) in the managed/ supported IT infrastructure − Ensure accurate inventory of infrastructure within the scope of the ITO service − Assess the impact of a service failure quickly − Identify the components that make up a service so that Service Level Objectives (SLOs) can be defined and availability measurements can be identified − Assess the risk associated with the implementation of a change to the production environment − Cost and price IT services accurately • CMDB is at the core of Configuration Management • CMDB is a key enabler of efficient Configuration Management • CMDB provides a framework for event and alert management, storing configuration items against which alerts are tracked June 8, 2015 40 Service Management Processes Configuration Management CMDB
  • 41. Effective CMDB Assists The ITO Process • Effective Configuration Management and CMDB also drives sales processes − Due diligence − Warranty − Replacement − Upgrade − Refresh − Additional capacity June 8, 2015 41 Sales Processes Service Management Processes Configuration Management CMDB
  • 42. ITO Transition Process And ITO Delivery Lifecycle • Asset discovery and subsequent asset management is important to effective productised and industrialised ITO June 8, 2015 42 Service Negotiation and Contract Signing Pre-Operation and Pre-Integration Start ITO Service Transition ITO Service Standardisation and Transformation Steady State Operation of Service Initial Transition Plan Pre-Contract Due Diligence Final Transition Plan Integration Preparation Transition Initiation Finalise Integration Solution Architecture Transition Completed Transformation Completed Technology Refreshes Changes Post Contract Due Diligence Verification
  • 43. Asset Management During ITO Transition Process And ITO Delivery Lifecycle June 8, 2015 43 Service Negotiation and Contract Signing Pre-Operation and Pre-Integration Start ITO Service Transition ITO Service Standardisation and Transformation Steady State Operation of Service Initial Transition Plan Pre-Contract Due Diligence Final Transition Plan Integration Preparation Transition Initiation Finalise Integration Solution Architecture Transition Completed Transformation Completed Technology Refreshes Changes Post Contract Due Diligence Verification Asset Discovery and CMDB Maintenance During the Life of ITO Service Service Delivery
  • 44. Idealised CMDB Components And Operation June 8, 2015 44 CMDB Management System Automated CI Discovery and CMDB Population Tool CMDB Data Access and Entry CMDB Query and Maintenance Links to Service Management Systems and Processes CI Usage and Performance Collection Tool CI Alerting Collection Tool Links to Asset Management Systems and Processes Analysis Billing System = Core CMDB Components Data Transformation and Normalisation Data Collection Scheduling Facility Data Warehouse Infrastructure Being Managed
  • 45. CMDB Data Collection • CMDB data collection − Infrastructure configuration and changes − Events and alerts − Performance and usage June 8, 2015 45 Collect Configuration, Performance, Alert Data CMDB Users
  • 46. CMDB High-Level Data Structure • CMDB holds data for configuration of infrastructure being managed by ITO service • Each customer can have one or more solution being managed • Each solution can consist of a package of multiple hardware and software components combined with a set of initial and on-going services (entitlements, warranty, upgrades, refreshes) June 8, 2015 46 CMDB Location Package Hardware Static Data Dynamic Data Software Static Data Dynamic Data Services Static Data Dynamic Data Virtual Objects Static Data Dynamic Data Static Data Dynamic Data Static Data Dynamic Data
  • 47. Dimensions Of SKUs Of Outsourcing Service June 8, 2015 47 1. Type Of Outsourcing Service + 2. ITO Component Deployment Framework + 3. Depth and Breadth of Outsourcing Service = ITO Offer
  • 48. Hierarchy Of ITO Offer ITO Offer Contract Terms and Conditions Deployment and Operation Discounts ITO Solution Configuration Deployment Set of Services ITO Product(s) ITO Product ITO Product ITO Product June 8, 2015 48
  • 49. Dimensions Of SKUs Of Outsourcing Service • Enable ITO service catalogue to be defined • Enable productisation of ITO June 8, 2015 49
  • 50. ITO Industrialisation and Productisation • ITO productisation is a pre-requisite for and an enabler of ITO industrialisation June 8, 2015 50 ITO Productisation Defined Set of ITO Services and Packaging Options ITO Industrialisation Common Deployment, Implementation and Operation Approaches
  • 51. ITO Industrialisation and Productisation June 8, 2015 51 ITO Productisation Defined Set of ITO Services and Packaging Options ITO Industrialisation Common Deployment, Implementation and Operation Approaches Supplier Representation of ITO Services Supplier Delivery of ITO Services = =
  • 52. ITO Industrialisation and Productisation • Approach not for every outsourcing arrangement − Complex ITO arrangements will not lend themselves to this approach • Approach can also be used for in-house IT management June 8, 2015 52
  • 53. Summary • ITO Appliance approach is a standardised, packaged and extendable set of processes/systems that support the take-on, delivery and operation of IT outsourcing services − SKU-based ITO service that reduces resources and budgets by lowering the cost of operation and administration • Approach enables productised and industrialised ITO • Provides a common language between suppliers and customers that fosters understanding of exactly what is being sold and bought • Processes define the way in which the service is operated, delivered and managed – linking the what to the how − For each service option there is an associated process that manages its delivery • Tools are key to productised and industrialised ITO • CMDB and associated asset discovery and subsequent asset management is key component of effective productised and industrialised ITO • ITO productisation is a pre-requisite for and an enabler of ITO industrialisation June 8, 2015 53
  • 54. June 8, 2015 54 More Information Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney