enterprise cloud operating model design
DESCRIPTION
A Cloud Operations Service ModelTRANSCRIPT
Enterprise Cloud Opera1ng Model Design
Service Offering Descrip1on Joseph Schwartz
12/17/13 © Copyright 2010-‐2011 Joseph Schwartz All Rights Reserved.
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Opera&ng Model Elements Processes – how we perform ac1vi1es that deliver predictable and repeatable business results through competent people using the right tools. Governance – how we make and sustain important decisions about IT. Sourcing – how we select and manage the sourcing of our IT products and services. Services – our porPolio of IT products and services. Measurement – how we measure and monitor our performance. Organiza&on – how we structure and organize our IT capabili1es?
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Major Assumptions • The scope of managed services addressed by the model should be flexible
enough to support technical services, e.g., network, storage, compute and application infrastructure or middleware, needed to deliver service offerings to the SBUs as well as the business services needed to run IT, e.g., infrastructure management systems, service management systems
• Best practice approaches should be leveraged wherever possible to deliver a Type 2 or 3 Service Provider Model (ITIL V3), e.g. managed and shared services
• In the Target Operational Model headcounts and skill levels will be aligned to ‘market standards’ to allow for operational metrics and KPIs to be benchmarked against industry best practices, e.g. ratio of devices / admin, incident metrics, etc.
– The best practice numbers will serve as a goal against which the target environment will be measured as it matures
• Operational maturity and skill levels will be evaluated after a Due Diligence phase and organizational gap remediation steps taken to ensure that the saves promised by initiative (s) be realized.
• The model must support E2E processes for all service management flows as they span Service Desk (e.g., incident, Support and Operations, e.g., config,. change, facilities mgmt., etc)
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 7
Process Model • End-to-end operating processes • Process triggers and interfaces
• E.g., ITIL , eTOM, ISO 2000 • Performance KPIs
People & Organization • Roles & Responsibilities (RACI)
• Process owners • Escalations & interactions, etc. • Performance KPIs and Metrics
Technology (IT Infrastructure, Tools & Automation)
• Process automation • Data models and repositories (e.g.,
CMDB) • COTS, standards & simplification
Operating Model Goals are:
• Operational Efficiency • Customer Experience • Revenue & Margin
Operating Model Scope
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12/17/13 8
Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 9
Assumed Operating Model Savings Targets - Operations Value Metric Desired
Direction Value Metric Desired
Direction Value Metric Desired
Direction
Improved Audit Compliance
% of Applications Running on a Virtualized Infrastructure
Average cost per type of service request
Number of emergency changes due to non-compliance
Percentage Re-use and Redistribution of Under-utilized resources and assets
Percentage increase in the overall end-to-end availability of service
Number of unauthorized changes
Average cost per incident
Service unplanned downtime connected to change activities (hours / month)
Non-complaint assets identified as the cause of service failures
Mean-time between Failures (MTBF)
Percentage reduction in the costs and time associated with service provision
Time and cost to audit and remediate (audit cycle time)
% of Incidents closed by Level 1 Support
Change (all) to Admin (all) Ratio
% Cost of Compliance to Total IT Budget
Service downtime connected to rollout activities (hours / month)
Reduction in the number of failed changes
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12/17/13 10
Assumed Operating Model Savings Targets - Support Value Metric Desired
Direction Value Metric Desired
Direction Value Metric Desired
Direction
Percentage reduction in SLA targets missed
Reduction in number and percentage of major incidents
Time and cost to audit and remediate (audit cycle time)
% of Incidents reported by End Users and customers vs IT Operations
% of emergency changes due to non-compliance
Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time
Time and cost to audit and remediate (Audit cycle time)
Percentage increase in customer perception and satisfaction of SLA achievements
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12/17/13 11
Assumed Operating Model Savings Targets - SBUs Value Metric Desired
Direction Value Metric Desired
Direction Value Metric Desired
Direction
% Increase in Customer Satisfaction of SLA’s
Improved Audit Compliance (# of audit tests passed versus total)
Percentage reduction in costs associated with service provision
% of IT Projects that Align with Corporate Objectives
Cost of Unplanned Business Interruptions
Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time
% of Budget Focused on Operations, Labor, Investments
Actual spend versus budgeted spend
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Design Approach: Blending Industry Best Practices
Isn’t ITIL Enough? • ITIL V3 covers 100%+ of Day 1 capabilities • From a pure end-state design perspective,
ITIL is Internally focused – experience shows that once transparency is achieved for the business, comparative valuation occurs – eTOM offer management and campaign processes could address an important gap in the end state
• ITIL does not link solutions and training to a design process (it is part of release)
• The use of eTOM simply ensures that the end state design provides full coverage in the event the client needs to access additional capabilities as it matures
Integrate with client
requirements
End-to-end operating processes
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 14
Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 15
Strategy & Service
Operations and Support
High Level-Process Model
Service Lifecycle Management
Business Strategy,
Architecture & Planning
Service Management
and Operations
Service Fulfillment
Service Assurance
Customer Service
Service Configuration & Activation
Service Quality Management
Service Development & Management
Resource Development & Management
Supplier Development & Management
• The Operating Model shows seven vertical process groupings that are the end-to-end processes that are required to support customers and to manage operations
• The operating model also includes views of functionality as they span horizontally across the clients’s internal organization
• The horizontal functional process groupings distinguish functional operations processes and other types of business functional processes, e.g., Service Development versus Service Activation & Configuration, etc.
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Operating Model E2E Processes
• Built on industry best practice business and IT process models
• Addresses all of end-to-end processes needed to deliver Managed Services to customers - Includes – Strategy and Service: “Enabling” processes of Business
Strategy, Architecture & Planning, including • Service Lifecycle Management and Service Development &
Management – Operations and Support: “Lights on,” or core operations
processes of Customer Service, Service Management and Operations, including • Operations Support, Billing/Chargeback, Service Desk,
Service Development and Management • Service Configuration & Activation, Service Quality
Management, Facilities and Operations
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Strategy & Service
Operations and Support
ITIL V3 Mapping
Service Lifecycle Management
Business Strategy,
Architecture & Planning
Service Management
and Operations
Service Fulfillment
Service Assurance
Serv
ice
Port
folio
Man
agem
ent
Serv
ice
Cat
alog
Man
agem
ent
Ris
k M
anag
emen
t
Com
plia
nce
Man
agem
ent
Arc
hite
ctur
e M
anag
emen
t
Supp
lier M
anag
emen
t
Dem
and
Man
agem
ent
Fina
ncia
l Man
agem
ent
Secu
rity
Man
agem
ent
Cap
acity
Man
agem
ent
Chargeback M
anagement
Release &
Deploym
ent Mgm
t.
Change M
anagement
Configuration M
anagement
Facilities Managem
ent
Solution Managem
ent
Availability Managem
ent
Service Continuity M
anagement
Service Desk
Incident/Fault Managem
ent Problem
Managem
ent
Request Fulfillm
ent
Event Managem
ent A
ccess Managem
ent
Service Validation & Testing
Operations M
anagement
Service-Level Managem
ent
Know
ledge Managem
ent
Continuous Service Im
provement
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Operating Model REFERENCE MODEL
TEC
HN
OLO
GY
P
RO
CES
S
PEO
PLE
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• Strategy & Service covers the processes involved in forming and deciding Service Strategy and gaining commitment from the business for this
• Service Lifecycle Management covers the services themselves – note that the model distinguishes Service, used by the client to represent the “technical” part of the product, and Resource (physical and non-physical components used to support Service)
• The vertical functional groupings in are mapped from ITIL V3, Service Strategy and Design
Business Strategy, Architecture & Planning Processes
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Level 0 Operations & Support Processes
• Operations & Support (O&S) provide the core of lights-on Operations and first- and second-line support
• The vertical processes in O&S represent a view of flow-through of activity, and map to ITIL V3 processes where there is functionally-related activity, e.g., Service Transition, Operation and CSI
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Resource Model
Result
Schedule of Decremented initiative Ops Roles / Process/Task Headcount Schedule for Incremented Ops Roles / Process/Task Headcount
Apply
Industry Benchmarks for Operational Metrics for Mature, Automated Processes, Roles Tasks
Map To
End State Roles / Process / Task Headcount Device Retirement Schedule New Device Deployments schedule Role/Process/Task Headcount
Inputs
Cient Org. Roles / Process/Task Headcount
Incremental Roles / Process/Task Headcount
needed for SVMA Pre-program Device Count Day 1 Device Count
Baseline Operational Metrics, e.g., Device to
Admin Ratio
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12/17/13 22
Resource Model at a Glance Process
Grouping
ITIL V3 Processes
Key Baseline Metrics
Industry Benchmark
Metrics
ITIL Roles
Headcount Forecast
Demand Forecast
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 24
The Target Model as a Business Planning Tool • Roles (ITIL V3)
• Processes (ITIL V3)
• Skills (SFIA)
• KPIs / Metrics (Role Based / Processes Based) – Baseline and improvement
• Allows us to dial up and down to see ROI
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Anticipated Trends Forecast (sample)
Aurora Planning Timeline
BAU Headcounts
BAU + Incremental Initiative Headcounts
Infrastructure Capacity, Efficiency,
Scale and Ability Cope with Change
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Key Planning Metrics
• Key Operations Metrics
• Mean Time to Repair (time required to diagnose and resolve problems)
• Incident to Change Ratio
• % of Incidents Reported by End Users
• % of Outages Traced to Mis-configurations
• % of Changes Completed within change Windows
• % of Changes Automated versus Manual • Device to Admin Ratio
• Service roll-out cycle time (MTTD - mean time to deploy)
• Changes per Admin
• $ Unit per Device Managed
• Time and cost to Audit and Remediate (Audit cycle time)
• Time and cost to Grant and Revoke Administrative Access
• Downtime traced to compliance violations
• % of configuration audits passed • $ Operation per Device Managed
• Key Support Metrics
• Ratio of L1 to L2 to L3 support staff
• First call resolution rate
• Percentage of escalations to L2 and L3 support
• Time to plan a change • Time to approve a change
• Backlog of changes
• # of change collisions
• % of changes rolled back
• # of calls resolved via self-service requests (call avoidance)
• MTBF for business availability • Ratio of planned to unplanned changes
• Average cost per incident
• Average cost per type of service request
• % of incidents closed by L1 support
• # of Incidents • Ratio of L1 to L2 to L3 incidents
Low Hanging Fruit?
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Candidate Operational Flows
• Start the dialog
• Guide POV / POC activities
• Tied to KPIs / Metrics can help determine direct value opportunity
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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1. New Service Request/Service Provisioning
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2. New Service Request Development Environment
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3. New Service Request Development Application
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4. Application Promotion
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5. Closed Loop Compliance
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6. Proactive Incident Management
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 35
Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.
12/17/13 36
Call to action
• Gather data to complete Resource Model spreadsheet
• Cross-org. process “innovation workshop” – Gain consensus and buy-in on high priority operational process
improvement targets, KPIs, phasing, etc.
• Organization skills assessment, remediation recommendations
• Interface mapping across upstream and downstream systems (dependency mapping between SM, CRM, MIS, etc.)
• Implement operational flows in POV using defined alternatives
• Gain understanding of E2E optimization choices, e.g., replacement vs. migration
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Operating Model Focus Group Plan Milestones
Day One – Operations Transition Readiness
Phase One - Strategic Target Operating Model Design
Phase 2 - Skills Assessment and Remediation Plan
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High Level Roadmap
Day One
Q4 Q2 Q1 Q3 Q4 Q2 Q1
Day One Operations Transition Readiness
Stakeholder Process Transition Team and Infrastructure in place
Phase 1
Phase 2
Dedicated Resources Assigned (see Resource Model)
Governance Process Business-line Application Team Engagement
Complete Resource Model
Strategic Target OM Design
Develop Approach Gain consensus on priority
Identify Process Owners
Develop and roadmap Sync with program priorities
Skills Assessment & Remediation Plan
Develop Approach Gain consensus on approach
Identify Functions / Skills Roles
Execute assessment, identify gaps, develop remediation plan Align plan to roadmap
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Day 1 – Operations Transition Readiness Q4 Q2 Q1 Q3 Q4 Q2 Q1
Deliverables • Operations transition team in place, transition processes documented and ready to support Day One
operations and activities • Stakeholder process • Resource Model Delivered • Governance Process
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Stakeholder engagement, commitment by management to Governance Process
Dependencies • Existence of quality metric data • Availability of Transition Team resources
Day 1 Stakeholder Process Transition Team and Infrastructure in place
Qualified, Dedicated Resources Assigned (see Resource Required)
Governance Process SBU Application Team Engagement
Complete Resource Model - deliver to WG5
Day One Operational Transition Readiness
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Phase 1 – Strategic Target Operating Model Design Q4 Q2 Q1 Q3 Q4 Q2 Q1
Deliverables • Process Owners identified and committed – engagement with WG4 • Process Models / Roadmap delivered • Prioritization Model / Approach / KPIs delivered
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation (from Technical Operations), dedicated process design resources (see Day One Resource requirements)
Dependencies • Availability of dedicated resources (Budget) • Availability and commitment of Process Owners
Phase 2
Strategic Target OM Design
Develop Approach Gain consensus on priority
Identify Process Owners
Develop and roadmap Sync with Aurora priorities
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Phase 2 – Skills Assessment and Remediation Plan Q4 2009 Q2 2010 Q1 2010 Q3 2009 Q4 2010 Q2 2011 Q1 2011
Deliverables • Skills Assessment Framework • Function / skills / role profiles • Gap / remediation plan (e.g., Training / HR Plan)
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation, dedicated HR / training resources
Dependencies (items still to be resolved – if any, and who might be the person / group to ask) • Assessment framework (Budget) • Availability of Process Owners • Dedicated HR / Training planners (Budget) • Training Resources (Budget)
Phase 2
Skills Assessment & Remediation Plan
Develop Approach Gain consensus on approach
Identify Functions / Skills Roles
Execute assessment, identify gaps, develop remediation plan Align plan to roadmap
© Copyright 2010-2011 Joseph Schwartz All Rights Reserved.