The document describes an approach to productizing and industrializing IT outsourcing (ITO) through the use of an ITO appliance. The ITO appliance would be a standardized, packaged set of processes and systems to support the delivery of ITO services consistently. This would enable a repeatable and modular ITO solution that could be customized for specific implementations. The goal is to reduce the costs and resources required for ITO through lower transition and operation costs, improved customer service, and reduced risk for both customers and suppliers.
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