gta assessment initiative kick-off august 14, 2007 august 14 and 16, 2007
TRANSCRIPT
GTA Assessment Initiative
Kick-off
August 14, 2007
August 14 and 16, 2007
© 2005 GDEcD©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Agenda
• Introductions
• Transition Vision
• Sourcing Assessment Team
• Governor’s Intent
• Assessment Objectives
• TPI Overview of Assessment Data Gathering
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Governor’s Intent
• IT enterprise managed well
• Technology leadership
• Best managed state
• Best value
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
GTA Transition
Vision• Superbly manage IT infrastructure services for the state
of Georgia• Ensure Georgia’s IT investments create business value
for state agencies and state taxpayers
Mission• Work collaboratively with agency partners to define the
best solution for IT service delivery to Georgia’s state government
Guiding Principles• State’s interests come first• Work as partners• Earn trust
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©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Sourcing Assessment Team
Derek ReynoldsBusiness Owner
Charlie SasserProject Director
Sue ArmstrongTeam MemberProcurement/
Financials
Marcia PartinTeam Member
Communications
Jeff SentsTeam Member
Enterprise Architecture
Tom FrumanProject Manager
Brenda ParkerTeam MemberAdministrative
Support
Crystal ArmstrongWorkforce
Liaison
Terry NordinWorkforce
Liaison
Steve NicholsTechnical Advisor
Rory McClureTeam Member
Contracts
Kevin StanfordTeam Member
Financials
Patrick MooreExecutive Sponsor
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Our Approach to IT Assessment
• This is a GTA-led initiative ― TPI is a resource to assist
• TPI will:▪ provide an objective view ― “solution agnostic”▪ draw on its experience to recommend executable
strategies▪ work with agencies in a “sleeves rolled up,”
collaborative way
• Information collected can be used in subsequent phases
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©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Sourcing Assessment Objectives
• Ensure all sourcing decisions of state IT Infrastructure Services are in the best interest of the State of Georgia for the long term
• Ensure all sourcing decisions and resulting implementations support the State of Georgia in being the best managed state
• Develop a best practices Service Management Organization for GTA
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Why are we doing the Assessment?
• GTA faces unsustainable financial losses• GTA’s IT operations do not meet industry
standards• GTA lacks processes and automation to operate
effectively• State’s IT enterprise has not been managed well
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Sourcing Assessment Outcomes
• Retain state service delivery but make improvements
• Outsource services: GTA manages vendor and state owns IT assets
• Outsource services: GTA manages vendor and vendor owns IT assets
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Scope of Sourcing Assessment
• Covers IT processes, assets and facilities▪ Data Center services▪ Desktop services▪ Telecommunications services
▪ Support functions
• Determines how services compare to minimum standards▪ Service delivery and service level targets▪ Business continuity and disaster recovery▪ Condition, life cycle, cost to refresh and maintain IT assets
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Scope of Sourcing Assessment, cont.
• Methodology will provide framework criteria, including:▪ ITIL process implementation assessment for IT
functions and processes▪ IT business continuity and disaster recovery
process assessment▪ IT assets and data center facilities assessment
• GTA will work with agencies to define scope of operational assessment
©2005 GDEcD Georgia Technology Authority
Assessment Kickoff | 8/14-16, 2007
Copyright © 2006, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.
GTA Assessment Initiative – Orientation / Kick-off
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TPI role and qualifications
What are we planning to do?
How do we plan to do it?
Importance of the information
Scope of the Assessment
Overview of Data Gathering Templates
Don’t panic – typical problems, issues and solutions
Review and confirmation
Outcomes / Value
Next Steps
Q&A
Agenda
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TPI role and qualifications
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TPI’s Project Team
TPI’s has assigned a very experienced team blending Public and Private Sector experience, experience of similar engagements and deep subject matter expertise.
Process and Functional Champions
TPI Market Research Team
The overall TPI team can be segmented into three integrated sub-teams:
• Strategic Leadership Team coordinates overarching objectives
• Project Team leads day-to-day activity
• Service Management and Governance Team works in parallel during all Phases
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Creating Substantial and Sustained Improvements
How do we implement change for long-term success?
How are we performing?
What are our alternatives for improvement?
What competencies are required for managing to results?
Technology-enabled Business Support Functions
Shared Services Insourcing
Captive Offshore Outsourcing
Operational Assessments
Strategy and Business Case for Change
Service Management & Governance
TPI ServicesEnterprise Business Support
Function Challenges
TPI assists with complex challenges related to improving the cost/capacity/capability of business support functions through the integration of data, knowledge and expertise.
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Foundation for Success
370+ Highly-Experienced Practitioners, Each Accomplished in Sourcing Strategies,
Implementations and Operations
Financial Data Repository – The Industry’s Deepest Source of Outsourcing Pricing and Contract Term Intelligence
Financial Modeling ToolsContracting Templates and
ToolsIndustry-Defining
Methodologies
Market Intelligence & Research / TPI Index
Prevalence DatabasesGovernance Excellence
BenchmarkService Provider Profiles
Sourcing Leadership Exchange Sourcing Industry Conferences
TPI’s global team of advisors is supported by the industry’s deepest foundation of knowledge-based resources, all aimed at empowering “most informed” status.
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Sourcing Strategy Framework
PortfolioBundling
Alternatives
Development /Maintenance
SourceIt All
ERP –Package –Custom
BusinessProcess
TechnologyPlatform
DevelopmentLifecycle
DiscreetNon-Strategic
Geography
Operating & Organization
AlignmentCentralized Center-Leading Center of Excellence
Operating Model and Organization Alignment
Strategies
InSourcing SelectiveSourcing
StrategicSourcing
ValueBased
Single Function Value SharingBroad ScopeInSource Optimization
Supplier Joint Venture Subsidiary
Sole-Sourced Multi-Sourced
Portfolio for Less Portfolio Rationalization Portfolio Modernization
Tactics
Single Geography
Sourced Competencies, Functions & Roles Retained Competencies, Functions & Roles
Assumed Risk
Multi-Geography
Shared Risk Source the Risk
Onshore OffshoreNear Shore HybridOnsite
OperatingModels
StaffAug.
ExtendedCenters
ProjectBased
BuildOperateTransfer
TraditionalSourcing
Fixed TimeFixed Price InsourcedShared
ServicesCaptiveVirtualCaptive
Insourced ModelsOutsourced Models
CoE
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Sourcing Assessment Design: Map of Essential Deliverables
We employ a structured, outcome-oriented approach towards uncovering the spectrum of transformational opportunities, and their related virtues/risks.
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TPI: Reputation MattersStrategic decisions require the expertise of the market leader.
TPI exclusively concentrates on helping enterprises make lasting improvements to their business support functions.Focused
Possessing practical experience in global operations, TPI’s roster of colleagues appreciate the significance of interconnected economies.Global
The sourcing advisory industry founder and innovator, TPI has grown with its clients. We employ advisors in regions that include the Americas, EMEA and Asia Pacific.
Leading
TPI is the advisor on more than 50% of the transactions that use an outsourcing advisor and on more than 25% of the total contract value awarded each year.
Experience
The outcomes that TPI recommends are entirely driven by the client situation and meaningful understanding of market realities.Objective, Informed
TPI advisors share a genuine conviction for the value that we help clients achieve.Passionate
TPI is the largest sourcing advisory firm in the world focused on a broad range of business support functions and related research methodologies.Largest
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Key Messages on the TPI approach
This is a GTA led initiative – TPI is your resource to assist
TPI is tasked with providing GTA with an objective view – solution agnostic
TPI will draw on its experience to recommend executable strategies
Recognizing the scale and complexity of the task ahead, we will work with Agencies – ‘sleeves rolled up’ collaborative approach
The information collected during the assessment phase can be used in subsequent phases should the alternative call for continued movement forward
Copyright © 2006, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.
What are we planning to do?
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Overview of Assessment activities
The timeline focus is on good information early
The assessment will be presented to Senior Managers
Individual reports provided to each Agency Head
The recommendations will include a Business Case
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Who participates?
Agency nominated representatives plus … GTA account representatives will work with you to identify who
CIO
CFO or nominee
Business Representative
Other stakeholders – Application leads
Subject Matter Experts (SME) – different per Agency
Mainframe
Servers
Managed Network Services (MNS)
End User Computing (EUC)
Help Desk
Cross-functional
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Data Gathering & Interview Logistics
Each Data Gathering Pack – at least 2 and maybe more than 6 involved
1st Round interviews = co-ordination of 50+ interviews (1 – 3 hours in length)
Separate submissions of information - data gathering and following interviews
A 2nd round of interviews will focus on areas of complexity and data queries
‘Question and Answer’ established to support agencies
Discoveries will establish the agenda for second round interviews and follow-on data requests
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Key activities - 1st round of information gathering
Orientation August 14 & 16
Training August 22 & 23
Data Collection commences August 23
GTA support – Q&A process August 23 through completion
Appointment window for interviews August 28 – October 3
1st Submission of data forms September 28
1st Submission of interview requests September 28
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Key activities - 2nd round of information gathering
Data Collection continues
GTA support – Q&A process continues
Appointment window for interviews October 10 – November 6
2nd Submission of data forms (final) October 26
2nd Submission of interview requests October 19
3rd Submission of interview requests (final) October 25
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Key activities - Validation and confirmation
Agency confirmation of data collected from October 7 to 30
Agency commentary on observations from October 9 to 30
GTA validation window November 5 - 12
Completion of validation November 13
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How we plan to do it ….
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IT Infrastructure Services Analysis Inputs
Baseline Data Categories & Selected Examples
Selected Inputs
Baseline Data
Financial data (inc. in
Baseline)
State Strategy Considerations
Service and Financial
Objectives
Organization data
Operational Metrics
Performance Metrics
Current Contracts / SOWs
Prior reviews (reports i.e.
customer satisfaction /
performance reviews etc.)
Operational AssessmentData
Performance Data
Any additional data required in addition to that collected during the Baseline and Operational Assessment activities will be identified early in Phase 1. TPI will not require additional data to be collected but will gather further insights through interview and documentation review of available sources of additional information.
Infrastructure Financial Data
State Strategy, Operational, & Contractual Data
Organization Data
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Base Year 1 Year 2 Year 10
Mainframe - CPU Hours 0 0 0 0Mainframe - DASD 0 0 0 0Mainframe - Tape Mounts 0 0 0 0Mainframe - Print Pages 0 0 0 0
Apps Servers - Wintel High Complexity 0 0 0 0 Medium Complexity 0 0 0 0 Low Complexity 0 0 0 0
Apps Servers - UNIX High Complexity 0 0 0 0 Medium Complexity 0 0 0 0
Base Year 1 Year 2 Year 10
Mainframe - CPU Hours 0 0 0 0Mainframe - DASD 0 0 0 0Mainframe - Tape Mounts 0 0 0 0Mainframe - Print Pages 0 0 0 0
Apps Servers - Wintel High Complexity 0 0 0 0 Medium Complexity 0 0 0 0 Low Complexity 0 0 0 0
Apps Servers - UNIX High Complexity 0 0 0 0 Medium Complexity 0 0 0 0
Resource Baselines
The Resource Baselines establish the basis for
the long-term projections
The Resource Baselines establish the basis for
the long-term projections
Data CollectionBaseline Volumes and Base Year Expense
Base CaseCategory Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Baseline Volumes are the drivers of the financial cases for both GTA and the Service Provider and drive variable cost
Baseline Volumes must be reconciled with Base Year expense and align with the pricing methodology
Volumes must be collected for each discrete function – not all are pricing units
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TPI Mark to Market (M2M) Comparison Process
Once data has been collected the actual M2M comparison and analysis is performed by normalizing the client data for specific Client environmental factors and comparing to market data.
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Infrastructure Scenario Comparison – Impact SummaryTransition Risk, Change Management, X-Year Savings
GTA/Agencies Risk & Accountability
Shared or Supplier Risk & Accountability
Amount of Change
Transition Risk
Low High1 53
SavingsLow High1 53
-$0M $10M
Scenario #1
Amount of Change
Transition Risk
Low High1 53
SavingsLow High1 53
-$0M $10M
Scenario #2
Amount of Change
Transition Risk
Low High1 53
SavingsLow High1 53
-$0M $10M
Scenario #3
Amount of Change
Transition Risk
Low High1 53
SavingsLow High1 53
-$0M $10M
Scenario #8
Note: all savings are based on the X year model.
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Year 1 Year 2 Year n
Mainframe Base Charge 0 0 0Storage Base Charge 0 0 0Servers Base Charge 0 0 0
Total Service Provider Base Charge 0 0 0
Service Provider Transition Charge 0 0 0
Service Provider's Total Charges 0 0 0
Alternative ScenariosTotal Base Case
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year 10
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Retained andPass-thru Costs Net New Costs Recommended Scenario
+ + = Business Case
Assumed replaced
by cost of alternative scenarios
Alternative Scenarios are Normalized to
Enable Comparison
Mechanics of Developing the Business Case
Year 1 Year 2 Year n
Mainframe Base Charge 0 0 0Storage Base Charge 0 0 0Servers Base Charge 0 0 0
Total Service Provider Base Charge 0 0 0
Service Provider Transition Charge 0 0 0
Service Provider's Total Charges 0 0 0
Year 1 Year 2 Year n
Mainframe Base Charge 0 0 0Storage Base Charge 0 0 0Servers Base Charge 0 0 0
Total Service Provider Base Charge 0 0 0
Service Provider Transition Charge 0 0 0
Service Provider's Total Charges 0 0 0
Category Base Year Year 1 Year 2 Year n
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year n
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year n
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Category Base Year Year 1 Year 2 Year n
Direct Staff - Overhead 0 0 0 0Direct Staff - Countable 0 0 0 0Consultants - Countable 0 0 0 0 Total 0 0 0 0
Salary 0 0 0 0Fringe Benefits 0 0 0 0Other (salary related) 0 0 0 0Contractors 0 0 0 0Facilities / Premises 0 0 0 0Training 0 0 0 0Telecommunications 0 0 0 0Furniture 0 0 0 0Equipment 0 0 0 0Travel and expenses 0 0 0 0Data Center 0 0 0 0Other ______________ 0 0 0 0Other ______________ 0 0 0 0
0 0 0 0
Grand Total 0 0 0 0
Year 1 Year 2 Year n
Mainframe Base Charge 0 0 0Storage Base Charge 0 0 0Servers Base Charge 0 0 0
Total Service Provider Base Charge 0 0 0
Service Provider Transition Charge 0 0 0
Service Provider's Total Charges 0 0 0
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Importance and relevance of the information to be gathered
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Importance & Relevance
The focus upfront is to understand the complexity of each agency
Detailed data points are only relevant when they are placed in the right context
Different sources of information need to be mapped to bring the quantitative and qualitative together
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What is the scope of the Assessment
“we are going to bite the apple from the outside and work to the core, …. not the other way ‘round”
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What is the scope of the Assessment
Mainframe
Computer Operations support for all mainframe hardware, peripherals and application processing
Physical Database administration for Mainframes
Servers
Computer Operations support for all servers, associated peripherals and production application processing
Physical Database administration for Servers
Application Servers
Utility Servers
End User Computing
Help Desk
Managed Network Services
Network Data
Network Voice
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What is the scope of the Assessment … cont’d
Cross Functional
Enterprise Change Management
Disaster Recovery Planning, test co-ordination and execution
Contract maintenance and vendor relations
Information Security Management
Security Engineering, Consulting and Architecture
Security Policy and Guidance
Information Security Administration
Project Management and Administration
Configuration Management
Asset Management
Hardware Asset Management
Copyright © 2006, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.
A deeper dive – an overview of Data Gathering Templates
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Key Components of the Templates
Instructions
Overview of each template
Definitions of key terms and fields
Drop down menus for input standards
Formatted fields as appropriate
Cross References and maps
Field for “Comments” when additional data would be useful or judgment calls need to be made
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FTE Mapping to Functional TowersTower Allocation
IBM Unisys and Mail
IT Employees (Full Time Equivalents) - - - - - - - - -
Employee or Contractor Name(Last Name, First Name)
(Note "Vacant" if position is open)
BudgetedPositionNumber
Full Time (F) orPart Time (P)
Agency (2)Job Title
(See Drop Down List)Mainframe
Location (3)
INFRASTRUCTURE RESOURCES
Resource Description Skills TypeExperience Level
Senior Manager / Project Director Proficient across multiple operations process areas, has both Functional/Process and Technical Skills
8-10+ years
Project Manager / Project Leader Proficient across multiple operations process areas, has both Functional/Process and Technical Skills
6-8+ years
Junior Project Manager / Team Leader Proficient across 1-2 process areas, has both Functional/Process and Technical Skills
4-6 years
Senior Systems Engineer Proficient across multiple operating systems, hardware platforms and integration between disparate systems. Extensive architecture and implementation background
8+ years
Junior Systems Engineer Proficient across 2-3 operating systems and hardware platforms. Some architecture and implementation background
3-5 years
Storage Engineer Specialized in mass storage solutions and data backup systems. Extensive experience designing and integrating storage solutions with multi-platform environments.
3-5 years
UNIX Systems Administrator Specialized in the installation and execution of daily operating tasks associated with UNIX
2-3 years
Intel Systems Administrator Specialized in the installation and execution of daily operating tasks associated with Windows, Linux, and Novell
1-2 years
Cross-Functional Across Operations Areas
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Points to Remember
This data collection process may at times yield only a close approximation
The more accurate the data the more reliable the solution and pricing in the long run
Assets are generally a point in time count
Volumes and Service Levels are monthly to provide trend information
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Resource Baseline Volumes
Key
Must Have
Will Use if Available
Units Agency Managed Volumes GTA Managed Volumes
CPU UtilizationMVS - IBM - Application CPU Hour CPU HoursMVS - IBM - Installed MIPS MIPSMVS - IBM - Average Monthly Utilized MIPS MIPSMVS - IBM - Monthly Peak MIPS MIPSUNISYS - Installed MIPS MIPS
Disk StorageMVS - IBM - Allocated Application DASD GBMVS - IBM - Installed DASD GBUNISYS - Allocated Application DASD GBUNISYS - Installed DASD GB
Tape StorageApplication Tapes in Storage (Active) CartridgeApplication Tapes in Storage - Virtual Tape Storage Disk GBApplication Tapes in Storage - Archived CartridgeBackup Retention - DR Offsite Cartridge/Media
Other Resource UnitsPrint Images (000s) ImagesMailing Insertions (000s) EnvelopesMicrofiche - Originals/Duplicates (enter as one number) FicheCD - Creates/Re-creates (enter as one number) CDsOptical Storage GB
Resource Baseline Units
Resource Description
Mainframe Services
Assessment Base Year Volumes
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Application Profile
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Application Profile (cont)
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Service Levels
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Additional Information
Some data (Resource volumes and Service Levels) will need to be gathered on a monthly basis to provide trend information to providers
Some data (Hardware Counts) may need to be refreshed during the process
There is additional non-template data required:
Network Topology depicting links into each of the major processing facilities w/circuit capacity
IT Org Chart with Name and Budget Position Number
Agency Overview - Narrative of the processing environment
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We acknowledge that there will be issues to reconcile …
Agency resources – time to commit limited
Information not available – e.g. server inventory date of service
Conflicting information, concern for accuracy
Segregation of services between GTA and Agency
Complex organizational structure of some Agencies
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Financial Data – Challenges
Identifying costs for performing infrastructure services
Cost for FTEs in remote locations performing multiple tasks including some infrastructure activities
Cost for FTEs in Agency functional areas performing infrastructure activities
Identifying volumes for infrastructure services with Agency functional areas
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Headcount Data - Challenges
Identifying # of people performing infrastructure services
# of people in remote locations performing multiple tasks including some infrastructure activities
# people in Agency functional areas performing infrastructure activities
Allocation of all people to appropriate towers
Assumptions regarding tasks performed and time utilization
Collected using templates and interview process of key managers
Assumptions regarding benefits and estimated percentage of direct compensation
Employee benefits
Overtime
Other compensation
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Asset Data - Challenges
Alternative data sources may need to be used
Agency “off-line” inventories and fixed asset listings
Purchase order and procurement information
Electronic discovery of network attached devices
Lease agreements, schedules and associated records
Outside suppliers
Agency subject matter experts
Annual expenditure will be reviewed for reasonableness
Review current year expenditure with prior years to determine trends
Asset volume growth and technology refresh rates will need to be considered
Adjustments may need to be made for major transformation or refresh activities
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Baseline Profile Considerations
Most of the time, the IT budget/actuals do not represent the true cost of IT to the organization
Human resource, asset, resource baseline volumes and service levels are linked and inseparable from the financials
The overall success of the assessment project is dependant on the quality, accuracy and integrity of the initial data collected
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QA & Validation Approach
TPI will use its extensive experience in undertaking similar engagements to test the quality and integrity of the data being collected.
Data validation will be undertaken collaboratively between the Agency representative, GTA Agency Rep and TPI Advisor
Checkpoints will be included in the project plan to ensure ongoing data validation
Final baseline profiles will be electronically “traceable” back to source data
TPI advisors will follow QA checklists and conduct peer reviews of other Agency data and analysis
Copyright © 2006, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.
What are the outcomes – what is the value
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Sourcing Strategy Framework
PortfolioBundling
Alternatives
Development /Maintenance
SourceIt All
ERP –Package –Custom
BusinessProcess
TechnologyPlatform
DevelopmentLifecycle
DiscreetNon-Strategic
Geography
Operating & Organization
AlignmentCentralized Center-Leading Center of Excellence
Operating Model and Organization Alignment
Strategies
InSourcing SelectiveSourcing
StrategicSourcing
ValueBased
Single Function Value SharingBroad ScopeInSource Optimization
Supplier Joint Venture Subsidiary
Sole-Sourced Multi-Sourced
Portfolio for Less Portfolio Rationalization Portfolio Modernization
Tactics
Single Geography
Sourced Competencies, Functions & Roles Retained Competencies, Functions & Roles
Assumed Risk
Multi-Geography
Shared Risk Source the Risk
Onshore OffshoreNear Shore HybridOnsite
OperatingModels
StaffAug.
ExtendedCenters
ProjectBased
BuildOperateTransfer
TraditionalSourcing
Fixed TimeFixed Price InsourcedShared
ServicesCaptiveVirtualCaptive
Insourced ModelsOutsourced Models
CoE
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Example – Sourcing Alternatives Assessment Tool
Low Moderate Good
1 2 3 4 5
PRO Process 2.0 10% 0.2
PEO People 2.2 15% 0.3
INF Infrastructure 4.1 5% 0.2
ORG Organizational 1.8 10% 0.2
MEA Measurement / Metrics 2.6 7% 0.2
FIN Financial 2.2 10% 0.2
SOM Sourcing Management 0.0 0% 0.0
CON Contractual 0.0 0% 0.0
SEC Security 4.1 5% 0.2
BCP Business Continuity 3.9 5% 0.2
DEL Delivery 2.5 10% 0.3
SCA Scale 1.7 13% 0.2
TRA Transition 2.4 10% 0.2
100% 2.4
2.41
Operational Assessment Summary
Overall Score
Sco
re
Fil
ter
Val
ues
Fil
ter
Wei
gh
tin
g Operational
model has 13
key Filters and
120 Factors
that are ranked
and weighted
to develop the
operational
score
An operational assessment is required to determine how the current operation is functioning and identifying key gaps that need to be addressed by the sourcing strategy or operational improvement plan.
…..Scenario nScenario 1
Integrated Analysis
Separate
scenario views
Illustrative
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Example - Sourcing Readiness Filter Summary Illustrative
Not Ready
Moderate Ready
1 2 3 4 5
Org Organization Characteristics 2.3 20%
Com Organization Commitment 3.2 10%
Kno Knowledge Management 1.3 25%
Sou Sourcing Management 1.7 10%
Pm Process Management 2.2 25%
Inf Infrastructure Readiness 3.0 10%
2.1
Observations12 Significant work must go into preparing the 3 EAD operating groups operate in silos with minimal 4 Each EAD operating group works with XYZ EAD in 5 Support for the transformation at the Director level is
6Support for the transformation at the Manager level is mixed with some not understanding what it is
7Support for the transformation at the Staff level (based on interviews with the Managers) is low with limited trust in the real strategy
Note: Factors and Filters are scored based on experience using key observations with subjectively defined attributes. The results provide TPI a means of assessing if sourcing fits the clients strategic objectives and corporate needs.
XYZ’s EAD is not ready for large scaled outsourcing of EAD functions
Filt
er
Val
ues
Filt
er
Wei
gh
tin
g
Sourcing Readiness Summary
Sourcing Score
So
urc
ing
Rea
din
ess
Sco
re
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Current State Analysis and Opportunity ReportMark-to-Market
The Mark-to-Market analysis delivers comparative financial and operational metrics comparisons to comparable sourcing deals in the market today.
(1) Fully Loaded Associate FTE/Hr
Comparison of GTA’s internal cost per service unit to other companies
Result is an indication of cost competitiveness
(2) People / Service Ratio (PSR) Comparison
Total IT Infrastructure Services headcount / total service portfolio supportedandcomparison of support ratios
Result is an indication of IT Infrastructure Services efficiencies
(3) Service Level Comparisons
Comparison of current service levels against industry standard service level metrics and performance levels
(4) Mark-2-Market Comparisons
In-house
Outsourced with GTA retained Managed Service
Full outsource
(1)
(2)
(3)
(4)
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Example Output – Recommending Sourcing Alternatives
Servers are a weak candidate for outsourcing(1/ 3)
Financial analysis
Key facts: Total 2003 cost: $117 M Key support ratios:
Market range of x-yservers/FTE– Client ’03 – 13.7
servers/FTE– Client ’05 – 9.5
servers/FTE
Total cost$ millions
ClientMarket price range
2003 ($M) 2004 ($M) 2005 ($M)
(53)-(2) (18)-19 3-32Base
(79)-(17) (68)-(11) (65)-(7)Growth
(48)-1 (10)-23 12-37Contract-ion
Premium(<0%)
Low(<5%)
Medium (5-15%)
High High (>15%)(>15%)
Potential savings
Other sourcing costsAnnual governance cost: $4 M
Transition cost:$6 - 12 M
Net savings (premium)*
2003 2004 2005Cost ($000)/OSI
xx.xyy.yzz.z
Market highMarket lowClient
xx.xyy.yzz.z
xx.xyy.yzz.z
X
# of servers(monthly average during consolidation)9004 7820 6580
43-493219(8)-(2)Low
(12) –(6)181(31)-(25)Middle
(68)-(62)3(18)(53)-(47)High
3-yr. Total
200520042003Part of range
43-493219(8)-(2)Low
(12) –(6)181(31)-(25)Middle
(68)-(62)3(18)(53)-(47)High
3-yr. Total
200520042003Part of range
Assumptions incorporated into financial model and savings range Transition cost of $6-12 million incurred in 2003 and annual governance cost of $4 M Plan to reduce 110 FTE, phased from 2003 through EOY 2005
– Servers & storage (50 FTEs), Central operations (20 FTEs), security automation (15 FTEs); 3% annual productivity gains in rest of tower (25 FTEs) Exclusion of server consolidation project team from analysis – 20 FTEs Retained 110 FTEs (e.g., GAD aligned DBAs, business-aligned market data, QA)
Range of potential savings (premium)
Fall in supplier price assumes they perform a consolidation and charge based on reduced # of units
Client cost model assumes successful execution of a number of planned projects (e.g., 110 FTE reduction by EOY 2005)
Possible savings from outsourcing unclear based on range of market prices
Unlikely Client will get a price on the lowest end of market price range
$ millions
106117 111
50
100
150
200
* Net savings include considerations for transition and governance costs
IllustrativeIllustrative
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Session Recap
GTA led initiative
Detailed process with inter-dependencies
Good data, timely
Support from TPI and GTA Agency representatives
Reports for each Agency
Executable strategies
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Next Steps
Training Next Week
Additional activities to address more complex agencies
Scheduling Interviews
Providing contact information and Q&A submission forms
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SharePoint site
http://sps.gta.ga.gov/sites/ISAP/Pages/Default.aspx
Collaboration site
Document Center
Templates
Data Repository
Announcements
Team Discussions
Contact Information
Calendar
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Questions ….