IT Optimering. IT Manager Konference 5. september Jens Cajus Pedersen IT Consulting DK IBM Integrated Technology Services.
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1 IT Optimering IT Manager Konference 5. september 2006 Jens Cajus Pedersen IT Consulting DK IBM Integrated Technology Services Copyright IBM Corporation
2 IBM s IT optimerings metode adresserer en række forskellige udfordringer Reducering af IT-omkostninger - IT-organisationen er under pres for at nedbringe omkostningerne til IT Stadigt stigende arbejdsmængder og højere servicekrav fra forretningsorganisationen - IT-organisationen modtager stadigt stigende arbejdsmængder og højere krav til den leverede service fra forretningsorganisationen Øgning af effektiviteten i IT-organisationen - IT-organisationen er under pres for at øge effektiviteten for at kunne følge med stigende arbejdsmængder uden yderligere ressourcer Ikke-standardiseret IT-infrastruktur - Manglende standardisering i IT-infrastruktur medfører øgede omkostninger til drift Nøgleressourcer - Stor afhængighed af specifikke personer der typisk har en indgående viden om virksomhedens ITsystemer og deres sammenhænge, eller som besidder viden og ekspertise der er kritisk for driften af virksomhedens IT-systemer For få ressourcer - Allokeringen af ressourcer til IT-organisationen følger ikke den stigende arbejdsmængde 2 Copyright IBM Corporation 2006
3 IBM s IT optimerings metode adresserer en række forskellige udfordringer Manglende struktur på arbejdet - Der er ingen procedurer for hvordan arbejdet i IT-organisationen udføres og ingen erfaringsdokumentering. Der er ikke implementeret værktøjer til at understøtte processerne Vanskeligheder med korrekt prioritering af opgaver og projekter - Manglende overblik over hvilke systemer der er vigtigst for forretningen, medfører at prioritering af opgaver og projekter ikke sker i forhold til deres vigtighed. Manglende dokumentation af hvilket arbejde IT-organisationen udfører - Problemer med at dokumentere arbejdsmængden og bredden af arbejdsopgaver i IT-afdelingen Applikationsportefølje i vækst uden overblik over de ressource- og omkostningsmæssige konsekvenser - IT-organisationen mangler overblik over hvilke omkostninger, der er knyttet til driften af forretningsorganisationens applikationer Manglende overblik over samt dokumentation af IT-infrastruktur - Viden omkring den samlede IT-infrastruktur er placeret hos nøgleressourcer eller er spredt bredt ud i IT-organisationen. Manglende overblik over sikkerhed - Er IT-infrastrukturen sikker? - Lever virksomheden op til forretningsmæssige og sikkerhedsmæssige krav? 3 Copyright IBM Corporation 2006
4 ITO potentielle besparelser For at kunne opnå de potentielle fordele ved en IT optimering vil visse initielle investeringer ofte være nødvendige. Værdien af optimeringen kan bestemmes ud fra Return On Investment (ROI). Costs Investment IT Costs w/o change Saving or Re-investment Optimized IT Costs Time 4 Copyright IBM Corporation 2006
5 Udfordringen for en IT Optimering er at løse konflikten mellem IT omkostninger og værdien for forretningen Benefits Open up new business areas Meet customer expectations IT Optimization Improve internal efficiency Reduce IT total costs Costs 5 Copyright IBM Corporation 2006
6 Et IT Optimerings projekt vil evaluere et antal forbundne domæner for at identificere potentielle optimerings initiativer Arkitektur Hardware System software Værktøjer Udnyttelsesgrad Sikkerhed Netværk og IP-Telefoni IT Strategi som styrende element Infrastructure Data and Applications Applikationsportefølje Forretningsværdi IT-omkostninger Sikkerhed Netværk Topologi Udnyttelse Telefoni Network Strategic Alignment Processes SLA er Effektivitet Konsistens Roller og ansvar Sikkerhed Gennemskuelighed af IT-omkostninger Budgettering Indkøb Finance Organization Kompetencer IT-styring Roller og ansvar Organisationsstruktur 6 Copyright IBM Corporation 2006
7 A determination of whether or not IT goals, objectives, and measurements are supportive of the business goals and objectives is provided within the strategic alignment domain Infrastructure Data and Applications Key Activities Document relevant business strategies and requirements Network Strategic Alignment Processes Document relevant IT strategies and requirements Document relevant IT operating plans Document relevant IT service delivery commitments Document relevant management practices and policies Finance Organization Factors to Consider Business Strategies User Population Demographics Business Unit Mission IT Position within Enterprise Current Service Providers Profile IT Directions Assessment Techniques Balanced Scorecard Analysis Customer Surveys Functional Analysis of Business against Technology Budgetary Mapping Strength-Weakness-Opportunity-Threat (SWOT) Analysis IT Measurements Review Analysis of Stakeholder Perceptions and Expectations Possible Solution Paths IT Investments Process Relationship Strategy Requirements Strategy Metrics System Technology Refresh Strategy Technology Deployment Approach Service Delivery Model 7 Copyright IBM Corporation 2006
8 IT Optimization starts by establishing a shared understanding of the value of IT New Capability Focus Enabler Provider researches, recommends and implements technology to enable quantum leap in business capability Business View IT View Partner Provider works with others to develop a service and provide resources/skills necessary to support the service Promote Customer Satisfaction Focus Utility Provider of a quality service at a cost equal to or lower than the competition Commodity Provider of an adequate service at a cost lower than the competition Business Drivers Cost Focus Internal Efficiencies Focus 8 Copyright IBM Corporation 2006
9 Implementation of your technology infrastructure (mainframe, midrange, desktop, printers, storage, facilities) is assessed at a high level to determine if these technologies are fully and optimally utilized Key Activities Infrastructure Data and Applications Analyze current IT environment Current processing install base and utilization Current storage install base and utilization Network Strategic Alignment Processes Current operating systems install base Current operations and production control environment Current facilities environment Analyze projected IT environment Proposed processing requirements Finance Organization Proposed IT plans Analyze current service level commitments and service level attainment Factors to Consider Technology Usage Efficiency (Processors, Operating Systems, Storage, Output and Media) Disaster Recovery / Security Technology Currency Physical Facilities Existing Automation Assessment Techniques Server Consolidation Analysis Restructure and Consolidation Feasibility Storage and Implementation Analysis Business Continuity and Recovery Study Capacity and Utilization Trending Performance and Testing Simulation Technology Convergence Review Possible Solution Paths IT Architecture and Direction Server Consolidation Strategy Data Center Consolidation Strategy SAN / NAS Implementation Approach Self-Recovery and Rapid-Recovery Framework Automation Strategy ebusiness-on-demand Solutions 9 Copyright IBM Corporation 2006
10 Implementation of your network infrastructure (Wan, Lan, and Voice) is assessed at a high level to determine if these technologies are fully and optimally utilized Infrastructure Data and Applications Key Activities Network Strategic Alignment Processes Analyze current IT environment Current WAN topography Current LAN topography Current Voice environment Current Dial environment Current Remote Access environment Current Systems and Software supporting the Network Finance Organization Analyze projected IT environment Proposed processing requirements Proposed IT plans Analyze current service level commitments and service level attainment Factors to Consider Technology Usage Efficiency (Processors, Operating Systems, Storage, Output and Media) Disaster Recovery / Security Technology Currency Physical Facilities Existing Automation Assessment Techniques Network Consolidation Analysis Network Restructure Feasibility Business Continuity and Recovery Study Capacity and Utilization Trending Performance and Testing Simulation Technology Convergence Review Possible Solution Paths IT Architecture and Direction Network Consolidation Strategy Self-Recovery and Rapid-Recovery Framework Automation Strategy ebusiness-on-demand Solutions 10 Copyright IBM Corporation 2006
11 Within the infrastructure and network domain, we explore a variety of options to achieve optimization objectives through improved productivity and leveraged economies of scale Server-1 OS-1 Server-2 OS-2 physical consolidation OS-1 Server-3 OS-2 App-1 App-2 App-1 App-2 Server-1 OS-1 App-1 Server-2 OS-2 App-2 logical consolidation App-1 Server-3 OS-3 App-2 complexity savings Server-1 OS-1 Server-2 OS-2 application consolidation Server-3 OS-3 App-1 App-2 App-3 11 Copyright IBM Corporation 2006
12 In the process domain, we utilize IT process assessment techniques to quickly understand which processes require the most attention, in a priority sequence Infrastructure Data and Applications Key Activities The following service delivery processes are typically in scope for this assessment (compare against ITIL and/or IBM IT Process Model): Existing application development processes Network Strategic Alignment Processes Enable Service Delivery Requirements Manage Problems and Administer Change Provide Operational Support to Customers Manage IT Inventory and Assets Manage Availability Finance Organization Interviews with senior level and line IT managers A process assessment workshop with line managers that in aggregate, can provide and endto-end view of the processes used to manage IT Factors to Consider Service Level Attainment Customer Satisfaction Process Maturity Predictability of Process Results Scalability Process Implementation Pervasiveness Roles and Responsibilities Assessment Techniques Analysis against IBM s IT Process Model and/or ITIL SEI Capability and Maturity Assessment PAT (Process Analysis Technique) Best Practices/Benchmarks Comparisons Process Support Tools Analysis Process Flow Mapping against Process Roles Statistical Analysis of In-Process and End-of-Process Results Possible Solution Paths Process Development and Deployment Strategy Formalization of Process Models Process Streamlining and Realignment Definition of Process-Based Job Functions Prioritization of Critical Processes Functional Specifications and Selection of Process Support Tools 12 Copyright IBM Corporation 2006
13 Our approach to the process domain will leverage proven tools and techniques to identify actionable optimization opportunity areas IBM Process Reference Model for IT og ITIL 5 4 Process improvement is a continuous focus. Processes are both measured and controlled Optimizing Quantitatively Managed Business IT Customers IT IT Customer Customer Relationships Relationships IT IT Direction Direction IT IT System System Solution Solution Development Development Solution Solution Deployment Deployment IT IT Resilience Resilience IT IT Operational Operational Services Services Regulation IT Users Processes are characterized for the organization and are proactive Processes are characterized for projects; actions are often reactive Processes are reactive, unpredictable, and poorly controlled Defined Managed Initial IT Suppliers IT IT Administration Administration 13 Copyright IBM Corporation 2006
14 THE PRM-IT MODEL: Processes core ITIL alignment IT System IT System Framework IT System Framework IT System Design, IT System Design, Development and Implementation Development and Implementation IT System Operation IT System Operation IT System Evaluation IT System Evaluation IT Customer Relationships Stakeholder Stakeholder Requirements Requirements Service Service Marketing Marketing and and Sales Sales Service Service Level Level Customer Satisfaction Customer Satisfaction IT Direction IT IT Strategy Strategy IT IT Research Research and and Innovation Innovation Architecture Architecture Risk Risk IT IT Portfolio Portfolio Project Project Solution Development Solution Solution Requirements Requirements Solution Solution Analysis Analysis and and Design Design Solution Build Solution Build Solution Solution Test Test Solution Solution Acceptance Acceptance Core Alignment Process Core Alignment Process Solution Deployment Change Change Release Release Configuration Configuration IT Operational Services Service Service Execution Execution Data Data and and Storage Storage Event Event User User Contact Contact Incident Incident Problem Problem IT Resilience Compliance Compliance Security Security Availability Availability Capacity Capacity Facility Facility IT Service Continuity IT Service Continuity IT Administration Financial Financial Asset Asset Supplier Supplier Relationship Relationship Service Service Pricing Pricing and and Contract Contract Administration Administration Workforce Workforce Knowledge Knowledge 14 Copyright IBM Corporation 2006
15 In the organization domain, we evaluate the organizational structure and model, roles and responsibilities, governance processes and then identify skill needs and gaps Infrastructure Data and Applications Key Activities Understand current IT organization structure, staffing levels, roles & responsibilities and management system processes Network Strategic Alignment Processes Evaluate implications of HR processes and procedures on IT Survey of executive management to assess organization readiness for change Determine consistency with Business and IT Strategy Compare to industry best practices Finance Organization Factors to Consider and Functional Alignment FTE Allocation Shift Coverage Skills Level and Balance Historical Success of Change Implementation Customer Perceptions of IT Organization Assessment Techniques FTE Parsing and Comparisons to Industry Averages Workflow Analysis across Functional Boundaries Skills Profile and Fulfillment Assessment Staffing Analysis against Zero-Base Planning Approach Matrix Effectiveness Analysis Organizational Change Readiness Assessment Possible Solution Paths Staffing Level Re-Balancing Plan Skills Development, Retention, and Attrition Strategy Re-Alignment into Process-Based Competency Model Virtual Team Deployment Behavior-Based Change Initiatives Measurement-Based Change Initiative Options for Supplemental Resources 15 Copyright IBM Corporation 2006
16 A benchmarking approach is taken to evaluate the financial domain, with an additional IT accounting look at internal financial processes Infrastructure Data and Applications Key Activities Understand IT budget and investment process Perform financial baselines Network Strategic Alignment Processes Evaluate cross-charge processes and tools Support implementation of labor claiming and planning processes and tools Evaluate asset accounting processes and tools Finance Organization Compare to industry data Factors to Consider Contractual Terms and Conditions Charge-Back Algorithms Financial Base Case against Platforms and Support Functions IT Financial Ratios against Enterprise Performance Asset Deployment Practices Assessment Techniques Best Practices Comparisons Budget Line Item Parsing and Categorization Contract Reviews Asset Analysis Validation of Cost Allocation Coverage Total Cost of Ownership Analysis Possible Solution Paths Enterprise-Wide Contract Renegotiation Utility-Based Service Fees plus Activity- Based Allocations Self-Funding Model for Future Investments Cost Reduction Initiatives for Other Domains Asset Deployment Optimization Strategy Cost-Favorable Sourcing Options 16 Copyright IBM Corporation 2006
17 Our approach to the finance domain will leverage proven tools and techniques to identify actionable optimization opportunity areas Compare to Industry Data Company Cost Profile In Profile Mainframe $35,814,713 Midrange - Unix $25,556,787 Midrange AS/400 $3,369,410 NT - Server, Network, Desktop $34,394,004 Help Desk $2,455,000 Applications Development $43,770,183 All Other $2,756,460 Total $148,116,557 ADDITIONAL ITEMS FOR TOTAL SPEND Salary Contra $15,727,887 Other Revenue $26,088,425 Other Capital $28,972,113 Capitalized Professional Services $12,800,000 Total $83,588,425 Grand Total $231,704,982 IT Spend & Baseline Cost Analysis and Modeling Strategic Value Analysis Thousands Data Center Costs per Utilized MIPS Company Benchmark Peer Lowest Peer Average Peer Highest Net of I Budget Challenge II III IV $7,630,672 V PC Single Data Center Business Process Information Standardization Global Network and Helpdesk Standardization Integration consolidation Top Line Bid-to-Cash Gains Processes Cost Saving PC Knowledge Desktop Systems (Notes) LAN/WAN Order Fulfillment Processes Data Center HR / Finance Consolidation processes Regional Help Desks Common Product, Customer codes Information Repository IT Cost Operational Value Analysis IT Balanced Scorecard m Benefits Summary ACME plc Annual Savings Total Savings Client Client Procurement Centralised purchasing $ 195,833 $ 979,167 Volume software licence agreements $ 167,500 $ 502,500 Standardisation $ - $ - Consolidation to servers $ - $ - $ 363,333 $ 1,481,667 License & Contract Software License Compliance $ 67,000 $ 335,000 Software License Optimisation $ 134,000 $ 670,000 Return of leased assets $ - $ - Warranty Maintenance Reconciliation $ 33,500 $ 167,500 $ 234,500 $ 1,172,500 Operational Efficiencies Utilisation of unused assets $ 39,167 $ 195,833 Avoidance of theft $ 29,750 $ 148,750 Annual audit/inventory costs $ 100,500 $ 502,500 Service (Help) Desk efficiency $ 67,000 $ 335,000 More Efficient Moves, Adds and Changes $ 54,000 $ 270,000 $ 290,417 $ 1,452,083 Independent One face to the Departments Customer Cost Reduction Opportunity Identification TOTAL $ 888,250 $ 4,106,250 Benefits Summary Asset Accounting 17 Copyright IBM Corporation 2006
18 Within the Data and Applications domain, we follow the Application Portfolio (APM) approach Architectures Hardware System Software Availability Security and Privacy Infrastructure Data and Applications Application Diversity Application Portfolio Application Maintenance Data Diversity Business Alignment Topology Utilization Sourcing Network Strategic Alignment Processes IT Efficiency Ownership Effectiveness Consistency SLA Impl. Budgeting Labor Claiming Asset Accounting Procurement Policies Project Accounting Finance Organization Roles Responsibilities Skills Change Readiness 18 Copyright IBM Corporation 2006
19 IBM Application Portfolio Services (APM) help IT align applications with strategic enterprise priorities, increase performance and leverage scarce resources Assessment Business Strategy ƒstrategic goals ƒoperational priorities ƒmarketing strategies Transformation Opportunities Assess Portfolio Attributes ƒapplication qualities ƒtechnical objectives ƒfinancial performance Manage Application Portfolio Transformation Manage Projects ƒdefine portfolio goals ƒplan and develop projects ƒdeploy operational implementations Plan Align Continuous Alignment Manage Application Portfolio ƒmonitor triggers ƒmanage priorities ƒtrack progress Focus Areas Value Proposition Reduces overall application expenditures Aligns application spending with business objectives Delivers most desired functionality faster Balances maintenance versus new development and package implementation Supports ongoing business process transformation Exploits new technology more quickly Supports technology -based innovation 19 Copyright IBM Corporation 2006
20 Examples of other results in previous engagements Customer Telia Sonera ING Group (banking, insurance) Air Liquide Type of engagement Data Center Consolidation and Efficiency improvement Consolidation and platform operation - Unix, Tandem, AS/400, Intel applications. Full consolidation, redcution of sites from 18 to Savings and other results Improved quality of service, savings of operations cost, 30% of the operator costs 15% of total infrastructure budget identified Air Canada Full consolidation 30% av total infrastrukturbudget BNP Paribas Merger synergies planning, applications, infrastructure and operation servers. 250 million Euros of annual savings Tarkett Sommers Full consolidation 25% of total infrastructure budget IBM Full Consolidation infrastructure and application, z-series, Unix, Intel 2 BUSD world wide, 27-2 centres in Europe 20 Copyright IBM Corporation 2006
21 Methodology Hvordan forløber et IT optimerings projekt? Fase 1 Fase 2 Fase 3 Analyse Design Implementering ~ 3 mdr ~6 mdr op til 12 mdr Etabler guiding principles Udfør dataindsamling (interviews og dokumentation) Beskriv nuværende IT-arkitektur Beskriv nuværende nøgleprocesser Beskriv nuværende kompetencer Identificer fremtidige krav til IT Udfør gap -analyse på nuværende kontra fremtidig IT Detaljeret design for optimerings initiativer Arkitektur og standarder Forandringsledelse Projektplanlægning Forskellige transitionprojekter Typisk forløb af et ITO projekt 21 Copyright IBM Corporation 2006
22 Hvad koster en IT optimerings analyse og hvad får jeg for de penge? Resultatet er en let tilgængelig rapport i præsentationsformat som beskriver resultaterne fra analysen af optimeringsmuligheder samt præsenterer løsningsalternativer. Rapporten er henvendt til IT-afdelingen og kan danne grundlag for at træffe en beslutning om den fortsatte IT-drift i virksomheden. Analysen kan skræddersys så den behandler de IToptimeringsområder, der er af speciel interesse for IT-organisationen Projektet er bygget op omkring IBM s IT-optimeringsmetode, hvilket sikrer professionel kvalitet, struktur og styring af både projekt og rapport. En IT optimerings analyse koster fra ca DKK ekskl. moms. 22 Copyright IBM Corporation 2006
23 IT Optimerings workshop - en hurtig genvej til vurdering af potentielle optimeringsmuligheder baseret på spørgeskemaer. M1 Evaluering og forberedelse af workshop W1 Dokumentation af resultater fra workshop M2 Workshop indhold Værktøjsunderstøttet IT optimerings vurdering Gennemgang af IT Optimeringsmetoden Besvarelse af omfattende spørgeskemaer gennem en IBM faciliteret dialog Workshop resultat Fælles forståelse af en lang række IT mæssige områder Potentielle omkostningsbesparende og effektiviserende tiltag Eventuelle yderligere planlægningsaktiviteter Rapport i præsentations format Tidsforbrug Forberedelse - IBM Workshop 8 timer for IBM og virksomhedens team Efterbehandling og dokumentation - IBM 23 Copyright IBM Corporation 2006
24 Eksempler på skærmbilleder fra ITO workshop værktøjet ➊ ➋ ➌ ➍ 24 Copyright IBM Corporation 2006
25 25 Copyright IBM Corporation 2006
26 Ved spørgsmål eller behov for yderligere information venligst kontakt Jens Cajus Pedersen For yderligere spørgsmål venligst kontakt: Jens Cajus Pedersen Afdelingsleder IT Consulting IBM Danmark A/S Nymøllevej Lyngby tlf mobil Copyright IBM Corporation 2006
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