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BASF IT Services

Project Management for international IT Projects

Ralf Transier, Project Manager with BASF IT Services

of 49BASF IT Services, Ralf Transier All rights reserved. BASF IT Services

Speaker’s Introduction

Ralf Transier, BASF IT Services

Betriebswirt (IHK), PMP

Member of PMI

Project Management since 1994 (Pre- and Postsale Projects)

Project experience:

International IT Outsourcing Projects

Complex Radio Communication Projects for Police, Airports and Public Transport Customers

Pilot projects Digital Radio Communication System (TETRA) for BOS in Berlin and Aachen


Agenda

General Outsourcing Approach2.

BASF IT Services1.

Summary5.

Project Management of BASF IT Services4.

General Project Management Approach3.


Agenda


BASF IT Services1.

Summary 5.




2nd April 2001: Creation of pan-European BASF IT organisation:

Integration of European BASF IT organisations of:BASF AG, BASF Schwarzheide, Elastogran

BASF Computer Services subsidiaries

BASF IT Services Spain

BASF IT Services Italy

One of the leading IT service providers for the process industryin Europe

BASF IT ServicesIntroduction


20 locations in Europe, with

own IT competence centres,

sales and marketing units

Circa 2,300 employees

(31.12.2005)

Net Sales: 364 Mio. Euros

(2005)

BASF IT ServicesIntroduction

Central Co-ordinationStandard processes throughout Europe

Centrally steered: One contact person for the customer

Regional Presence

Close proximity to both

market and customer

Good starting point for growth and acquisitions in Europe


Vision:

„Grow successfully in Europe through speed and quality“

Mission:

„Our Mission is to provide throughout Europe best-in-class

IT services in the areas of Process Industry and Managed

Infrastructure as well as Business Process Outsourcing.

We accomplish this by satisfying our customers with

sustainability, with a convincing IT service portfolio, our

excellent team and years of experience from a global

company“

BASF IT ServicesVision & Mission


We intend to continue growing profitably in Europe.

We intend to continue strengthening our portfolio and

competitiveness.

We help our customers to be more successful.

We intend to remain the largest IT service provider for the

BASF Group companies in Europe.

BASF IT ServicesOur targets


BASF IT Services NV

BASF IT Services B.V.

Wädenswil Branch

BASF IT Services Ltd.

Levallois Branch

BASF IT Services S.A.

BASF IT Services Spa.

BASF IT Services GmbH

plan business market enabling services AG

BASF IT Services B.V.

BASF IT Services Nederland B.V.

BASF IT Services Holding GmbH

HelsinkiBranch

GöteborgBranch

Copenhagen Branch

BASF IT ServicesLegal Entities


First acquisition in the history of BASF IT Services:plan business groupPortfolio

Consulting- & Implementation Services

Operational Services

Turnover: approximately 33 Mio. Euros (2005)

Located in Hamburg

Approx. 140 employees

Customers: long-term Blue-Chip-Customers

BASF IT Servicesplan business


Marketing and Communications

Sales and Delivery

Customer and Workplace Services

Account Management

Finance and Corporate Functions

Enterprise Inform. and Collaborative Solutions

Information Processing and Network Services

Finance, Asset Mgt and Global Rep.Solutions

Human Resources Services

Programme Mgt and Sales Support

Service Management

Supply Chain Mgt and Enterprise Solutions

Sales

Human Resources and Site Management

Legal

Finance and Controlling

Strategic Procurement

Corporate IT and QM

Plan Business

BASF IT ServicesOrganisation


IT Solutions for the industry

Business process consultancy

Optimisation of all IT-supported production and supply processes

Integration und customisation of SAP-system landscapes

Operating Services for each IT infrastructure area

System-Operation services

Maintenance and servicing of applications

Configuration and operation of security solutions

Services for optimising business processes

Handling of IT-based personnel processes

Processing of salaries and travelling costs

BASF IT ServicesOur Core Competencies


Industry SolutionsBusiness Intelligence

Customer Relationship Management

E-Business

Managed Infrastructure Services

Data Centre Services

Desktop Services

Helpdesk Services

Business Process Outsourcing

Human Resources Services

Environment, Health and Safety

Supply Chain Management

Engineering & Maintenance

Security Services

Collaboration & Messaging

Network & Communication Services

BASF IT ServicesOur Service Offering Portfolio


Alcatel SEL Dunkermotoren

BASELL

BASF AG

BASF Coatings

CEPSA

Comparex

data process

Dr. Wolman

Dorma

Elastogran

K+S

LuK

Messer Group

Pfalzkom

Sorin

Solvin

Stadt Ludwigshafen

Taminco

Team Training Solution

Technotrans

Uzin Utz AG

Wintershall

Würfel Spedition

XSYS Print Solutions

Customers (excerpt):

BASF IT ServicesToday more than 40 companies throughout Europetrust in our experience


Agenda


BASF IT Services stellt sich vor1.



Summary 5.


General Outsourcing Approach IT follows Business Requirements

Business Improvement Initiatives follow in general 5 areas of action.

Strategy, Processes and Methods

Organisation, Structure, Leadership

Qualification, Motivation, Knowledge

Market, Customer, Products

IT:Infrastructure, Applications, Resources


General Outsourcing Approach The Challenge: Business - IT Alignment

IT can support, hinder or be irrelevant to the achievement of business objectives

It is important to ensure that business and IT are correctly aligned to achieve the overall corporate goals

It is therefore necessary to document the business objectives, the level of influence that IT may have on achieving these objectives and then to do a gap analysis between the IT that is needed and the IT that exists.

Determine and implement a strategy to eliminate the gap

Define Core Competencies and Sourcing Strategy

IT Outsourcing Project


General Outsourcing Approach General approach for IT re-engineering

Existing Service(Present MO)

Consolidation (Transition MO)

Improvement(Future MO)

Analysis Phase

DefineIT Strategy

MO: Mode of Operation

Strategy and Analysis Phase (Planning and Decision Phase)

PMO - Present Mode of Operations Implement Quick win projects

TMO - Transition Mode of Operations Perform the services on basis of existing service level and transfer the services STEP by STEP into FMO

FMO - Future Mode of OperationsOptimized operation in accordance with the agreed Delivery Model and Service Levels


General Outsourcing ApproachMain Phases in Outsourcing Projects

Month a-b Month b-c Month c-d Month d-e Month e-...Analysis Phase

Stock Taking CMO- Infrastructure Analysis- Application AnalysisDefinition IT strategieDesign FMO (Future Mode of Operation)Definition Service ScopeDefinition Service LevelsBuild Business Case

Current Mode of OperationAgree on Roll Out PlanHardware OrderingPrepare organizational changesPrepare infrastructure changesPrepare hardware exchangePrepare software changesPrepare support changesConduct training

Transition Mode of OperationImplement organizational changesImplement infrastructure changesExchange hardwareImplement software changesImplement support processesInform / train end users

Future Mode of Operation Further Process Optimization


General Outsourcing Approachsome typical topics in IT Outsourcing Projects

The IT Outsourcing Project shall solve Business Process Issues or organizational Issues in the customers organization

Customer is not prepared for Change Management

Customer Obligations and Out of Scope may not be clearly defined in Proposal

IT Outsourcing Projects with or without employee transfer

During PMO and TMO the Project Team and Ongoing Operations is working for the customer


Agenda





Summary 5.


Project Initiation Development of the

Work Breakdown structure

cost estimation

scheduling

Agreement of the planMonitoring of the implementation

Change Request Management

Project Closing

General Overview of the Project Management Cycle


Concept Development Execution Finish time

decision line

effort

Room for decisions

cost(accumulated)

effort with intensive planning

cost

General Overview Planning and Change Impact


Roles & Responsibilities in IT Projects

Project Stakeholder

All persons or bodys who are directly or indirectly involved or who have interest in the outcome of the project

Provider:to perform a project to transfer the current situation in the Future Mode

to provide the IT for the customer for the contract period (Contract, Service Level Agreement, KPI, Credit & Penalty)

Customer:to provide the Business Process redesign

to build up the IT Governance

to perform Change Management in his organization


Delivery Units

Infrastructure

Employee A

Employee B

Employee C

WorkplaceServices

Employee A

Employee B

Employee C

ApplicationManagement

Employee A

Employee B

Employee C

Project Team - limited for the time of the project

ProjectManagement

Project Manager

Project Manager

Project Manager

Ongoing Team - limited for the time of the contract

Project Organization in IT Projects


Organization it IT Projects

The Organization will be successful if

the knowledge transfer from Project to Ongoing is ensured

the roles & responsibility are clearly defined

the requirements of the Ongoing Organization are considered

the communication will work horizontally

the decisions will be made by the necessary level

the understanding of Team Work exists


Top Management: Goals for the ProjectOrganization of the ProjectProject Steering Committee

Line Management: Ensure Know How and StaffingProvide Technical SolutionSynergiesNew technology and quality

Project Steering Committee: Strategic project selectionPrioritiesensure project goalscoordinate capacity

Project Manager: reach project goalmanage scope, budget and scheduletracking and reporting

Project Team: PlanningExecutionTeam Work

Organization it IT Projects Requirements for effective Project Organization


The Challenges

Different cultures

Different goals

Different knowledge base

Different approach of the organization

Conflicts

Effect of “Not invented here”

Organization it IT Projects


Agenda





Summary 5.


Project Management Method BIPEC

European Sales Back Office, Delivery Units, Service Management

Account Manager

Sales Support

Service DeliveryManagement

ProjectManagement

Initiation Planning & Organisation

Execution & Controlling Closing

I P E CClarification

(defined inside the Selling Process)

BASF IT Services


Project Management Body of Knowledge ofProject Management Institute

Framework

Process complexity

Largeprojects /programmes

High

Middle

Low

Project size

Middleprojects

Smallprojects

PC&SPa rts of BIPE C

BIPEC

BIPEC – Method for Project Management

PC&S: Program Management Controlling& Scheduling

BIPEC: BASF IT ServicesInitiation, Planning, Execution& Closing


Project Office Activity

sequence planning

Schedule development Cost planning Planing

verification

Activity definition

Maintenance resource planning

Human resource planning

Procurement planning

Activity duration planning

Scope definition

General Process Structure

Forms, Check Lists, Templates, Project Life Cycle Models...

Main

processesTop-level processes

Processsteps

Informa-

tionpool

Best practices

Project Management Process

Rough Concept

Project Planning Sign Off

Project Review &

Evaluation

Planning & OrganisationInitiation Execution &

Controlling Closing


Standard Project Management Process of BASF IT Services: Crossfunctions

Account Manager: communication with the customer regarding contract issues and new business

Sales Support: calculate changes and add on business

Service management: consulting & service level management

Project Manager: executes the implementation with his team


Initiation Planning &Organisation



Initiation PhaseM

ain processes

Project Organi-sation

Project StandardPortfolio

Kick Off Meeting

RoughProject

Planning

Top-levelprocesses


Initiation Planning & Organisation



Rough Project Planning

High level project summary (Rough estimations)

Initiate Risk Management

Establish Issue/ Risk and Action List

Project Organisation - Set up small core team (based on scope)

Project Standard Portfolio – Define Tools and Project Rules

Set up Project Office

Establish Communication Plan

Kick Off Meeting

Initiation Phase – Process Overview


Project Office and Project RulesDocumentation: common platform to be usedToolset and rules to be decided and publishedWelcome Package to new Team Members necessary

Project Communication:Stakeholder AnalysisMedia Plan & Milestone definitionMessages to be positive, clear, easy to understand, consistent

Meetings: only the minimum required persons should be invitedRules to be set for the meetingAn agenda is mandatoryMeeting report to be published

Kick Off event should be done (if project size allows)

Initiation Phase – Practical Experience


Planning & Organisation PhaseM

ain processes

Rough Concept

Project Planning Sign Off

Project Review &

Evaluation

Top-levelprocesses


Planning & Organisation

Execution & Controlling ClosingInitiation


Establish Project Office and Project Team Workspace

Define & agree Scope: Statement of Work / Work Breakdown Structure

Scheduling & Milestone definition

Risk Management

Resource Planning (Central and local teams)

Define & agree project Budget

Project Staffing (make or buy analysis)

Define & agree Acceptance Test procedure

Define & agree measurement procedures within the project

Define & agree change request management procedure

Project Plan Sign Off

Planning & Organisation Phase – Process Overview


Common project room to be provided – boost for the project Trust the experince of the specialist, but identify the bufferDo not forget on Risk ManagementThe local teams make the difference (native language, culture, etc.)Conflicts will happen – they need to be faced with the right strategyTeam building activities to be planned (budget planning)Knowlege Transfer to be planned from Project to Ongoing teamPlan for consulting the customer about change managementTools to be prepared:

Internal measurements for Quality Measures (Time / Budget / Scope)Report PlanningAcceptance Test DocumentsTransfer into Production processchange request management procedureProject Plan (only with necessary level of detail)

Planning & Organisation Phase – Practical Experience


Execution & ControllingM

ain processes

(PM-oriented)

Project Plan Execution

Integrated Change Control

Performance Reporting

Establish Support

Processes

Support processes


Top-level processes

Execution & Controlling

Planning & OrganisationInitiation Closing


Establish Support ProcessesQuality ManagementCommunication ManagementRisk Management

Project Plan ExecutionFollow the planControl of scope, schedule, performance and risk response

Integrated Change ControlUse predefined tools for all changes (internal & external)

Performance ReportingProject Performance and Planning report (incl. Forecast at completion)

Execution & Controlling Phase – Process Overview


Publish Project Organization and ensure that resources are available

Publish Project Plan and agree to Quality Measurement Procedure

Culture for open communication necessary (early information, no surprises –early warning system)

Project Structure to be set up to facilitate the reporting requirements

Scope to be monitored carefully

Communication to be actively managed:

Several ways for the Customer to contact the provider about requests

Soft facts to be listened

Change Request Management to be actively performed – Iterative Process

Perform clear documentation (the minimum necessary)

Execution & Controlling Phase – Practical Experience


Closing Phase


Close Down Implemen-

tation

Close Down Finances

Post Implemen-

tation Review

Archive the Implemen-

tation

Release the Team-

Members

Main

processesTop-level processes

Execution & Controlling ClosingPlanning &

OrganisationInitiation


Close Down Implementation

Perform the Acceptance Test Procedures and get the documents signed

Close Down Finances

Perform Final Financial Project Report

Book accruals for warranty period if necessary

Perform Post Implementation Review

Lessons Learned session

Archive the Implementation

Release the Team members from the Project

Closing Phase – Process Overview


Perform the Acceptance Test according the predefined procedure

Lessons Learned session to be

Structured

Relevant

Detailed

Used in the organization

Ensure knowledge transfer from the Project Team to the Ongoing Team

Celebrate success

Consider recognition & rewards to the team members

Closing Phase – Practical Experience


Agenda





Summary 5.


SummarySuccessful Outsourcing Projects or a based on

Contracts with clearly definedscope (what is in scope and what is out of scope)

Project work streams and goals

Customer Responsibilities

Service Level Agreements (SLA) with measurable Key Performance Indicators (KPI)

Flexibility Model & Change Request Management

Change Management

Experienced Delivery Organisation

Risk Management

Communication Management

Change Request Management

Project Management


BASF IT Services. Trust in Experience.

Questions & Discussion


Contact

Ralf Transier Project Manager

BASF IT Services

PS-B – Q920Carl-Bosch-Straße 38

D-67059 Ludwigshafen

Phone +49 621 60-71532E-Mail [email protected]

www.basf-it-services.com