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Notes Managed Service Implementation and Management

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					Information on Managed
Service Implementation
and Management
Objectives

• Toprovide information on selecting solutions for
 optimising the management of information technology
 systems and infrastructure




 May 17, 2009                                          2
Agenda

• Possible      Managed Service Requirements
• Benefits      of Managed Services
• Approachto Solution Analysis, Definition, Selection
 and Business Case Generation
• Contract       Management
• Service       Transition and Due Diligence
• Service       Management and Operation




 May 17, 2009                                           3
Possible Managed Service Requirements

•   Analyse existing processes
•   Define requirements and proposed new supporting processes
•   Define and document the requirements of an system to support the processes
•   Generate a business case for the selection of a new system
•   Identification of suitable products and vendors to be invited to propose a
    solution
•   Produce material that can be incorporated into a tender for a system
•   Define the process for evaluating proposals and responses from vendors
•   Manage the team to perform the evaluation of the proposals and select the
    most suitable solution
•   Additionally possibly assist in managing the implementation of the solution




    May 17, 2009                                                                  4
Benefits of Managed Services

•   Managed Services offers an alternative approach for a client to acquire IT or telecom
    support services
      − Managed services solutions are designed and delivered by service providers according to a
        predefined statement of deliverables and generally includes end-to-end service, service level
        agreements, and assets (if desired)
•   A managed service typically includes monthly recurring service-based pricing offering
    a more predictable cost approach for the client
•   Ongoing visibility of operational performance is provided and managed through pre-
    agreed performance parameters (known as service-level agreements)
      − The client may include their unique performance requirements such as degree of control and
        visibility, security, availability, capacity, service continuity and other requirements as it relates
        to the specific service
•   Because this is a core competency, the service provider is able to optimise the best
    balance of facilities, processes, resources, tools, and metrics, resulting in the best
    overall value for the client
      − Cost effectiveness is typically achieved through instituting process standards and establishing
        and supporting a standard operating environment (SOE) consisting of COTS (Commercial Of
        the Shelf) services and solutions
•   Managed services can be delivered either in a BOCO (Business-owned, contractor-
    operated) or COCO (contractor-owned, contractor-operated) model and is largely
    based on client preference


    May 17, 2009                                                                                                5
Developing a Vision for IT Services is Required

•   What do we do today?
•   What do our customers want us to do?
•   What changes do we need to make to align with our customers
    needs?
•   How will they pay for those services?
•   How will we deliver those services consistently and measure
    their delivery?
•   What kind of organisation (Governance/Contract
    Management/Structures/Staff/Skills/Service Providers) will we
    need to achieve it?
•   What service management processes (ITIL/ITSM) we should use?

    May 17, 2009                                                    6
Service Model Triangle — What Service Model do You
Want to Implement?
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                                                                                                     Customers
                       You                                                                            (Internal
                                                            Requests Services
                                                                                                    and External)
                                       Monitors Service Satisfaction and Sells Services
 May 17, 2009                                                                                                       7
Approach

     1: Undertake activity analysis and identify
• Step
 weaknesses ‘as is’ with current processes
   − Getronics Service Delivery role
   − Customer feedback on services and issues
   − Cost of service provision by location
   − Local practice differences
   − Contract structure/SLA’s
   − Use of automation and tools to smooth workflow and reduce
     duplication of effort
   − Service card costs, revenue and profit by service
   − Existing and new Lines of Service and process for handling


 May 17, 2009                                                     8
Approach

•   Step 2: Develop ‘to be’ processes and implement, write RFP for
    service provider
      −   Redefine Service Delivery role
      −   Assess customer requirements for IT services today and in the future
      −   Review service card and adapt based on customer feedback
      −   Reduce cost of service provision, and identify rate card changes
      −   Leverage best practice in some locations across all locations
      −   Identify economies of scale
      −   Identify and implement opportunities to upsell services
      −   Leverage lower cost locations
      −   Identify and reduce cost of service provision through automation and tools
      −   How to standardise service across all locations
      −   Develop RFP and RFP evaluation criteria


    May 17, 2009                                                                       9
Steps 3-6

• Dependent on 1 and 2, but should generally be
 designed to:
   − Manage transition to service provider
   − Determine what new services will be required
   − Design a service delivery requirement and model for the
     incoming service provider to bid for
   − Design a compensation structure for the incoming service
     provider that aligns achievement of IT services objectives and
     goals with the contract reward/remuneration schedule




 May 17, 2009                                                         10
High Level Approach
                                        Analysis                                        Planning                                 Execution
                     1. Establish an
                      1. Establish an    2. Describe the
                                         2. Describe the     3. Examine
                                                              3. Examine        4. Develop a
                                                                                4. Develop a        5. Decide how
                                                                                                     5. Decide how      6. Select the
                                                                                                                         6. Select the      7. Manage
                                                                                                                                            7. Manage
                     integrated
                      integrated         problem that
                                         problem that        solutions
                                                              solutions         PWS or SOO
                                                                                PWS or SOO          to measure and
                                                                                                     to measure and     right contractor
                                                                                                                         right contractor   performance
                                                                                                                                            performance
                     solutions team
                      solutions team     needs solving
                                         needs solving                                              manage
                                                                                                     manage
                                                                                                    performance
                                                                                                     performance

                     What result do we want to create?
                     What result do we want to create?                           Defining outcomes in writing is hard
                                                                                 Defining outcomes in writing is hard Continually assess relevance of metrics
                                                                                                                       Continually assess relevance of metrics
    Program
    Program          Defining “end state” or desired outcome.
                     Defining “end state” or desired outcome.                  work.
                                                                                work.
                                                                                                                      Maintain open lines of communication
                                                                                                                       Maintain open lines of communication
    Office
    Office           Conducting market research to see who else has solved that Define how we measure performance open
                     Conducting market research to see who else has solved that Define how we measure performance
                    problem, met that need.                                    to meet the desired outcome            open
                    problem, met that need.                                     to meet the desired outcome

                                                                                Does the SOO sufficiently describe the Use effective QASP procedures to self
                                                                                 Does the SOO sufficiently describe the Use effective QASP procedures to self
                     Define the desired outcome well enough to structure an
                     Define the desired outcome well enough to structure an    desired outcomes?
                                                                               desired outcomes?                       assess quality as well as contractor
                                                                                                                        assess quality as well as contractor
    Contract
    Contract        enforceable contract.
                    enforceable contract.                                        Will the contracting method provide quality
                                                                                Will the contracting method provide     quality
    Office
    Office           What contracting method will we likely use?
                     What contracting method will we likely use?               enough competition?
                                                                               enough competition?                       Base incentives and disincentives on
                                                                                                                         Base incentives and disincentives on
                     Which contract type?
                     Which contract type?                                       Is the contract type commensurate
                                                                                 Is the contract type commensurate     clear relevant metrics that everyone
                                                                                                                        clear relevant metrics that everyone
                                                                               with risk?
                                                                               with risk?                              understands
                                                                                                                        understands
                     Can we deliver the optimal outcome based on what we do Think in terms of outcomes!
                     Can we deliver the optimal outcome based on what we do Think in terms of outcomes!                 Foster clear and consistent Executive
                                                                                                                        Foster clear and consistent Executive
                    best?
                    best?                                                     Continually measure relevance of
                                                                              Continually measure relevance of         and Programmatic communication
                                                                                                                       and Programmatic communication
    Prime
    Prime            Great opportunity to reach informal understanding
                     Great opportunity to reach informal understanding      metrics to evolving missions
                                                                             metrics to evolving missions               Manage team or sub-contractor partners
                                                                                                                        Manage team or sub--contractor partners
                                                                                                                                          sub-
                                                                                                                                          sub
    Contractor
    Contractor      agreement on feasible outcomes.                                                                    and manufacturers on customer goals
                    agreement on feasible outcomes.                           Make sure my definition of success the
                                                                              Make sure my definition of success the   and manufacturers on customer goals
                                                                            same as the customers!
                                                                             same as the customers!                    and metrics
                                                                                                                       and metrics


•    Acronyms
       − PWS = Performance Work Statement
       − SOO = Statement Of Objectives
       − QASP = Quality Assurance Surveillance Plan

     May 17, 2009                                                                                                                                                 11
Approach to Solution Analysis and Definition



− Based on stakeholder participation
− Organised as a set of four fundamental views




                                      Business
                                       view


                                                 Functional
                                                   view
                 Stakeholders                                 Technical
                                                                view


                                                                          Implementation
                                                                               view


  May 17, 2009                                                                             12
The Four Solution Definition Views — Building a House Analogy


Business View                                  Technical View
Why do I want a new                         How will it be built?
house?                                      • foundation, framing,
• residence, entertainment,                   heat/ac, plumbing, ...
  business                                  • utilities:
• affordability                               - electric, water,
• location                                      comms, roads
• independence                              • security systems
• image                                     • controls
                                            • materials
                                                 Implementation View
Functional View
                                            With what will it be
What should the                             built?
new house give me?                          • sourcing
•   uses / room layouts                       - suppliers
•   peace & quiet, security                   - specific models
•   garden, trees                           • financing
•   garage, pet needs                       • phasing
                                            • moving
    May 17, 2009                                                       13
 Approach to Assessment

 •     Business requirements drive strategy and architecture
 •     Capturing business requirements is essential
 •     Define key principles/policies/critical success factors
       for IT
 •     Identify implementation constraints


   Business
  Functional
  Technical
                    Requirements   Strategy   Architecture   Implementation
Implementation




     May 17, 2009                                                        14
Fact Find and Solution Assessment Approach


     Business
     Drivers     Business       Functional    Technical      Implementation
                  View            View          View              View
                 Business      Functional      Technical     Implementation
       Goals
                 Principles    Principles      Principles      Principles


                Rationales     Rationales     Rationales       Rationales



                Implications   Implications   Implications    Implications



                 Obstacles      Obstacles      Obstacles       Obstacles


                  Actions       Actions         Actions       Actions
 May 17, 2009                                                                 15
Approach to Solution Identification and Evaluation Process


• Formalsolution management process that can be
 adapted easily to suit individual requirements




 May 17, 2009                                                16
Business Case Generation

•     Prepare a business case prepared that justifies the
      investment
•     An appropriate business case is needed to support a
      decision to make an investment in a project,
      programme or change
•     Preparing the business case so it can be presented for
      agreement requires a clear understanding of the
      proposition in terms of scope, objectives, options,
      implementation and investment and return



    May 17, 2009                                               17
Business Case

•     The business case should contain information in five
      key areas: strategic fit, options evaluation and
      identification, procurement and implementation,
      whole-life costs and plan for achievement
        − Strategic Fit
                   • Business need and its contribution to the organisation's business
                     strategy
                   • Key benefits to be realised
                   • Critical success factors and how they will be measured
        − Options Evaluation and Identification
                   • Cost/benefit analysis of realistic options for meeting the business need
                   • Statement of possible soft benefits that cannot be quantified in
                     financial terms
                   • Identify preferred option and any trade-offs
    May 17, 2009                                                                                18
Business Case

•   Procurement and Implementation
      − Proposed sourcing option with reasons
      − Key features of proposed commercial arrangements
      − Procurement approach/strategy with supporting details
•   Whole-Life Costs
      − Statement of available funding and details of projected whole-life cost of project
        (acquisition and operation), including all relevant costs
      − Expected financial benefits
•   Plan for Achievement
      −   Plan for achieving the desired outcome with key milestones and dependencies
      −   Contingency plans
      −   Risks identified and mitigation plan
      −   External supplier plans
      −   Resources, skills and experience required



    May 17, 2009                                                                             19
Effective Contract Management

•   PBC (Performance-Based Contracting)
•   Objectives structured into contracts and multiple incentive
    arrangements
•   Effective contract administration starts early with contract
    management planning
•   Begins during the acquisition planning phase
•   Recognises the performance-based elements of the contract
•   The Contract Management Plan is in place before after the time
    of award
      − Requirements are structured in a results or outcome oriented manner
      − Positive and/or negative incentives are included
      − Quality Assurance Surveillance Plans are required

    May 17, 2009                                                              20
Ensuring the Quality of Performance

• QASP
   − Develop early - during the early stages of the RFP (SOW)
   − Tool to evaluate contractor’s performance
   − Provides a structured approach to performing quality
     inspections and surveillance
   − Establishes frequency and types of inspections
   − Focuses on results - quality and timeliness
• QASP  linked with Performance Evaluation Management
 Plans (PEMPs)
   − PEMPs establish the performance evaluation process and fee
     determination process
   − PEMPs may be used to fulfill QASP requirement
 May 17, 2009                                                     21
Service Transition Process
                                                Contract Effective      Service Commencement
                                                  Date (CED)                  Date (SCD)




                                     Negotiate and             Pre-
                                                               Pre-Service               Service
            Submit Proposal
                                     Sign Contract           Commencement                Delivery



                                      Preliminary                 Final              Transition
                                     Transition Plan         Transition Plan          Closure

                                                                 Service
                                     Due Diligence           Commencement
                                                               Preparation


                                                                Transition
                  Key                                           Initiation

                   Planning Phase
                                                                Solution
                                                                Handoff
                  Transition Phase

 May 17, 2009                                                                                       22
  Transition and Transformation Management (TTM)


                                                                             Service               Transition                                      Transformation
                                                        Contract          Commencement              Criteria               Transformation              Criteria
                                                        Signed               Review                Achieved                   Reviews                 Achieved
                                                        Ts & Cs
                                                                                   Pursuit        Transition to                                    Transformation
                                                                                  Handoff(s)        Delivery                                         to Delivery
                                                                                                    Handoff                                           Handoff

              Development & Bid       Negotiate &
                                        Close                                                    Delivery
                       Planning                                    Transition                                Transformation                        Ongoing
                                                                                                                                                   Delivery
               Proposal Support                                    Initiation/Kick-
                                                        Transition Initiation/Kick-off                        Initiation/Kick-
                                                                                               Transformation Initiation/Kick-off
Preliminary Transition & Transformation Plans            Post Contract Verification                         Stabilisation
                    Due Diligence                             Solution Handoff                          Standardisation
        Final Integrated Transition Plan               Customer Management Office                    Transformation Close
                                                            Courts Service Transfer
                                                    Service Commencement Preparation                            KEY:
                                                                                                                  Key Quality         Key
                                                                                                                                                     Handoff
                                                             Transition Closure                                     Review         Reporting
                                                                                                                                                     Events
                                                                                                                   Milestone        Events

                                                                                                                       Customer Engagement Stage
                                                                                                                                TTM Phase
                                                                                                                   Activity




     May 17, 2009                                                                                                                                              23
Planning, Due Diligence and Transition Phases


                         Planning                             Transition
                       Proposal Support                           Initiation/Kick-
                                                       Transition Initiation/Kick-off

    Preliminary Transition & Transformation Plans       Post Contract Verification

                        Due Diligence                       Solution Handoff

                Final Integrated Transition Plan      Customer Management Office

                                                              BNM Transfer

                                                    Service Commencement Preparation

                                                            Transition Closure



 May 17, 2009                                                                           24
Due Diligence Objectives

•   Enhance understanding of business solution to be provided
•   Confirm scope of services, roles, responsibilities and service
    levels
•   Gain better knowledge of mission critical IT services and how
    they relate to the business objectives
•   Enhance operational understanding to enable refinement of
    service transition and transformation plans
•   Ensure service provider proposes the best and most suitable
    service
•   Opportunity to mutually gain a greater insight of company and
    service provider cultures, skills, partners and knowledge


    May 17, 2009                                                     25
Value of Due Diligence

• Confirmation of assumptions
• Verification of financials
• Ensure risks are mitigated, accepted and sized
• Identification of new risks
• Validation of transition plan to new service
• Safeguard of shareholder value
• Discovery and understanding of culture and management style
• Verification of the infrastructure and operational methodologies
• Identify opportunities to add additional value
• Building the trust relationship with the customer
• Providing confirmation of no deal-breaking criteria

    May 17, 2009                                                     26
Due Diligence Guiding Principles

• Wwork collaboratively and co-operatively with the
 customer
• Support        customer business objectives
• Evolve        and build relationships
• Solidify      common goals and focus
• Framework         for future collaboration
• The       goal is No Surprises




 May 17, 2009                                         27
Elements of Due Diligence

1.    Engagement
2.    Planning
3.    Execution
4.    Analysis
5.    Reporting




 May 17, 2009               28
Due Diligence Process Overview

Definition & planning
• define requirements
• document impacts
 and assumptions
• define cost drivers
• define & confirm
 approach
                        Data Collection
                        • conduct data room visits
      Planning          • conduct interview/discussions
                        • conduct site visits


                                                     Data Analysis
                          Execution                  • assess financial impact
                                                     • complete deviation reports
                                                     • document variances


                                                                                    Output
                                                            Analysis                • recommendations to SOW
                                                                                     T&C’s, risk adjustments
                                                                                    • recommendations for costing model




                                                                                              Results
   May 17, 2009                                                                                                           29
Making SLAs and OLAs Work


•     Service Level Agreements and Operating Level Agreements should:
        −    Be developed with contractor
        −    Be measurable and achievable
        −    Align with the deal
        −    Align with the organisation’s goals (relevant measures and metrics)
        −    Have effective incentives and disincentives to drive desired behavior
        −    Should be consistent with your strategic objectives

•     Effectiveness -- functional alignment with mission, committed delivery of service to
      stakeholders, leverages diversity in the marketplace, complies with regulatory
      mandates, and delivers outcome/impact within applicable constraints)
       − Enhancement — process and productivity improvement (claims processed,
          personnel productivity
       − Transformation — Business performance improvement (revenue growth, market
          growth)

•     Efficiency -- Cost improvement and cost control
       − Availability, response, resolution


    May 17, 2009                                                                             30
Sample Service Level Agreement Structure

•   1              Service Level Agreement
        −   1.1    Introduction, Purpose and Scope
        −   1.2    Structure of This Document
        −   1.3    Scope of SLA
              •    1.3.1             Purpose of SLA
              •    1.3.2             Involved IT Partners, Locations and Departments
              •    1.3.3             Customer Departments Involved
              •    1.3.4             Responsibilities
              •    1.3.5             Services Not Covered By This SLA
              •    1.3.6             Changes to SLA
                      −    1.3.6.1   Termination of Agreement
                      −    1.3.6.2   Amendment to Agreement
                      −    1.3.6.3   New Services and Applications
                      −    1.3.6.4   Levels of Effort
                      −    1.3.6.5   Renewal of Agreement
                      −    1.3.6.6   Review Process
        −   1.4    Support Operating Model
              •    1.4.1             Support Structure
        −   1.5    Application Support Services
              •    1.5.1             Overview
              •    1.5.2             Managing Incidents and Service Calls
              •    1.5.3             Support Services and Service Options
              •    1.5.4             Performance Measures
              •    1.5.5             Warranty Period
              •    1.5.6             Escalation Process
                      −    1.5.6.1   Services and Application Criticality Classification
        −   1.6    Service Options Details
              •    1.6.1             Service and Hours by Application and Service
              •    1.6.2             Holiday Coverage by Application and Service
              •    1.6.3             Business Critical Periods by Application and Service
              •    1.6.4             Application and Service Support Models
              •    1.6.5             Escalation Contacts by Application and Service
              •    1.6.6             Key Contacts by Application and Service
              •    1.6.7             Review Meetings
                      −    1.6.7.1   SLA Review Meeting
                      −    1.6.7.2   Operational Review Meeting
                      −    1.6.7.3   Service Provider Review Meeting
              •    1.6.8             Partner Service Level Agreements
        −   1.7    Communication Schedule
        −   1.8    Signatures




    May 17, 2009                                                                            31
Service Change Management

• Changes  during the course of the delivery of a service
 are inevitable and can affect the scope, cost and
 delivery
• Change Management is a systematic process that allows
 for changes and at the same time aims to minimise the
 negative consequences of these changes




 May 17, 2009                                               32
Change Control Steps

•   Planning — Establishing change management plans, processes and
    expectations during project planning
•   Initiation — Recognising the need for a change and documenting the request
•   Review — Reviewing the request for completeness
•   Approval for Evaluation — Approving the cost for further evaluation, if needed
•   Evaluation — Evaluating the change request in detail to understand its impact
    on the project
•   Review, Negotiation and Approval — Assessing the results of the review and or
    evaluation, the impact on the project and deciding the course of action
•   Implementation — Putting the approved change decisions into action
•   Review and Verification — Reviewing and assessing the results of change
    implementation
•   Closure — Capturing lessons learned and administratively closing the request




    May 17, 2009                                                                     33

				
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Description: Notes Managed Service Implementation and Management