How to Choose A Company for Managed IT Services

By Richard Bruneau

Table of Contents: Introduction………………………………………………………………………………………………….2 What is IT?……………………………………………………………………………………………………3 What Is Outsourcing?………………………………………………………………………………… ……5 What is Difference Between IT Staff Augmentation an d IT Managed Services?…………………6 Summary of Outsourcing IT Through Managed Services… …………………………………………11 IT Outsourcing: The Risks…………………………………………………………………… …………….13 What is Workflow and Why Is it Important?………………………… …………………………………..14 Office Equipment and Software to Make Managed IT Mo re Effective…………………..…………..19 Questions to Ask to or About Your Computer IT Speci alists………………………………………..21 Levels of Service………………………………………………………………………………………… …..22 Conclusion…………………………………………………………………………………………………….23

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Introduction Many businesses today use some form of IT (informat ion technology) support to assist them with technical issues and problems relating to thei r computers, networks and peripheral equipment. Sometimes IT support can be used profit ably for the business, but sometimes it can be a costly mistake if done incorrectly. This short book examines the issue of how to not make mistakes when choosing or looking for IT suppo rt. The questions to ask about using IT personnel are t he following:

(1) Is outsourcing IT management a better option th an in-house alternatives? (2) What criteria should be used in a choosing a ma naged IT provider? And, (3) How does a business choose a level of service(s ) appropriate for their particular

business?

Outsourcing IT functions for most businesses makes better sens e than most in-house options or even using temporary employees. Outsour cing proven to work can range anywhere from partial to full outsourcing—which is usually detailed in a some sort of service level agreement (SLA). Outsourced managed IT offer s a proactive approach, where uncertainties are minimized. Reactive IT management, especially insourced or inhouse, ca n usually be considered costly and inefficient for mo st businesses that have networks and a server, a larger number of employees, and numerous users who need access to a server.

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What is “IT”?

Information technology (IT) is the application of c omputers and telecommunications equipment to store, retrieve, transmit and manipula te data in a business or other enterprise. The word IT is commonly used as a synonym for compu ters and computer networks, but it also refers to other information distribution techn ologies such as telephones and television. IT also can refer to computer hardware, software, s emiconductors, electronics, internet, telecom equipment, e-commerce and miscellaneous com puter services.

The Information Technology Association of America has defined information technology as "the study, design, development, appl ication, implementation, support or management of computer-based information systems". The responsibilities of those working in the IT field include network administration and software development and installation. It often also includes the manner in which hardware an d software is maintained, upgraded and/or replaced. And monitoring of a company’s entire system on a regular basis is usually critical.

Within an academic context, the Association for Computing Machinery defines IT as "undergraduate degree programs that prepare student s to meet the computer technology needs of business, government, healthcare, schools, and other kinds of organizations. IT specialists assume responsibility for selecting har dware and software products appropriate for an organization, integrating such products with the organization’s needs and infrastructure. These specialists then install, cu stomize, and maintain those applications for the organization’s computer end users."

The value to a business of information technology l ies in automating business

processes, providing information for decision makin g, connecting businesses with their customers and other businesses, and providing produ ctivity tools to increase efficiency.

Approximately $3,737 billion is estimated to be spe nt worldwide on IT in 2013, which includes devices, data center systems, enterprise s oftware, IT services, and telecom services. About $927 billion of that total is on IT services alone.

IT management and problem-solving is normally a spe cialty requiring the knowledge and expertise of professionals and is not usually d one well as a “sideline.” It is not typically a “do-it-yourself” issue for most businesses, unless what the business does and what it uses for technology are very simple.

Selecting IT personnel to handle all of its complex ities in a cost-effective way for a

business is not an easy process. The IT personnel ideally should understand the needs of that particular industry or business very well, inc luding what specialized equipment that business uses as well as any specialized computer a nd software. Law firms, for example, have various programs to manage their practice. He althcare providers have software unique to its workflow needs (discussed later). An IT fir m should specialize in the needs of industries and businesses it understands fairly well. There are also ethical issues that must be addressed by IT personnel that are of paramount importance to many organizations, such as the follo wing:

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• Breaches of copyright by those downloading files st ored without the permission of the copyright holders

• Employers monitoring their employees' emails and ot her Internet usage • Unsolicited emails • “Hackers” accessing online databases • Web sites installing “cookies” or “spyware” to moni tor a user's online activities

Professional IT firms have usually covered m ost or all of the bases necessary to be effective in the markets they serve. Everything so far addressed is on their menu, as requirements of “professionals.” This cannot alway s be said of personnel hired to work internally to solve whatever problems may come up. Regardless of the education level and experience of the internal IT specialist, there are frequently issues and problems that are not handled properly without outside expertise. The professional services of IT firms usual ly fall into the category what we refer to as “outsourcing.” But they may also be classified as “staff augmentation.” We will explore the differences between the two.

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What is Outsourcing? The benefits of outsourcing seem obvious, touted by experts across numerous industries as the answer to cutting costs for business functions ranging from information technology to accounting, marketing and human resources. It seem s possible that you could run an entire company without ever hiring a single employee.

But is there more to outsourcing than the bottom li ne? What are the other reasons companies choose this route?

Wikipedia defines outsourcing the following way:

“In business, outsourcing is the contracting out of a business process to a third-party. The term "outsourcing" became popular in the United States near the turn of the 21st century. Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always. Ou tsourcing is also used to describe the practice of handing over control of pu blic services to for-profit corporations.

Outsourcing includes both foreign and domestic cont racting, and sometimes includes offshoring or relocating a busin ess function to another country. Financial savings from lower international labor rates is a big motivation for outsourcing/offshoring.

The opposite of outsourcing is called insourcing , which entails bringing processes handled by third-party firms in-house, an d is sometimes accomplished via vertical integration. However, a business can p rovide a contract service to another business without necessarily insourcing tha t business process.

Among the reasons companies elect to outsource incl ude the avoidance of regulations, high taxes, high energy costs, and cos ts associated with defined benefits in labor-union contracts and taxes for gov ernment-mandated benefits. Perceived or actual gross margin in the short run i ncentivizes a company to outsource. With reduced short-run costs, executive management sees the opportunity for short-run profits, while the income growth of the consumer base is strained. This motivates companies to outsource for lower labor costs. However, the company may or may not incur unexpecte d costs to train these overseas workers. Lower regulatory costs are an add ition to companies saving money when outsourcing. On comparative costs, a U.S . employer typically incurs higher defined benefit costs associated with taxes to account for social security, Medicare, safety protection (OSHA regulations) and FICA taxes etc. than in other countries.

Read the full article:

http://en.wikipedia.org/wiki/Outsourcing

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What Is the Difference between IT Staff Augmentatio n and IT Managed Services (Outsourcing)?

Staff augmentation is using temporary workers to fi ll short-term positions. IT staff augmentation could be thought of as a subsection of outsourcing, but there is a difference between full-blown outsourcing and staff augmentati on. Employing temporary workers allows companies to avoid the hiring process and additiona l payroll duties. Outsourcing lets companies take advantage of a subcontractor set up to perform certain tasks or activities. Staff augmentation leans more toward the idea of ut ilizing statutory or temporary employees than independent contractors who are completely in business for themselves.

Companies may decide to use a staff augmentation pl an to avoid expanding their current operations. If it chooses to hire more empl oyees, the company will incur costs for the floor space needed for these individuals to work an d complete projects, as well as their salaries and benefits.

Large organizations may outsource or use staff augm entation that involves foreign countries, where labor is often cheaper than in the United States. Foreign labor markets often have experienced workers available and favorable la ws for completing projects. With respect to IT, this explains why you often reach “tech supp ort” people in countries such as India and the Philippines when you dial toll-free numbers for help. The duty has been outsourced.

It is a constant struggle for many companies to ret ain and train application experts and find required skills when and where they are needed .

While some organizations are comfortable having a t hird-party manage part or all of their application environment, many seek to augment their in-house skills with external IT talent who can work under their direction, control and guidance.

Many IT organizations today seek out both the flexi bility to obtain resources when and where needed and the ability to “gear up” for proje cts that require specialized application skills that don’t exist or can’t be obtained intern ally.

Staff augmentation can help a business achieve a nu mber of business goals including faster “speed-to-market,” find industry and technic al experience that accelerates the quality and speed of development, and avoid the cost and ti me required for internal training and skill development.

Staff Augmentation services provides skilled person nel to work under your direction to help you develop, maintain, manage and support your applications. Skilled application professionals can help you manage fluctuating skill needs, skills gaps and changing staffing needs to meet your aggressive project timetables. T hey can work with you on-site or remotely, and should be certified in key technologies.

Under a staff augmentation scenario, the cost of hi ring for temporary needs and disengaging once those needs have been met can more than offset the higher cost of continuing to pay for more permanent resources. Als o, staff augmentation requires minimal contracting effort, has a simple cost model (rate t imes hours worked), can scale up or down quickly, and has minimal impact on the existing sta te of an IT organization.

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Staff augmentation, however, can become a problem w hen it evolves into a permanent operating structure. As a long-term solution, it ha s none of the benefits of alternative long-term external sourcing solutions, such as managed s ervices (outsourcing). In fact, staff augmentation can create a number of serious risks i f considered a long-term solution.

By its nature, staff augmentation represents higher labor costs. But reliance on staff augmentation as a permanent m odel tends to foster a management

style that does not plan for resource consumption. Resources become too easily accessed. The consequence of this could be gradual “staff cre ep” and an unrecognized “head count” that slips under the organization’s notice. Benefits of Staff Augmentation Benefits as a temporary solution

• Rapid access to missing capabilities and skills • Accommodate staff shortages due to unexpected event s • Avoidance of hiring / de-hiring costs • Costs scalable to demand • No impact on operating model • Easily contracted • Cost model transparent

Issues as a permanent mode of operation

• No service level commitment • Higher cost • Fosters a management style that does not plan • All issues attributed to insufficient staffing • Increase overhead managing individual subcontractor s • Knowledge vested in the individual (as with interna l staff, but less control)

Because staff augmentation has no associated servic e level commitments other than hours available to work, the value derived is frequently unclear and hard to measure.

Perhaps most significant is the loss of knowledge c ontrol. As contractors become embedded in the organization, they accumulate infor mation and capabilities upon which the organization is functionally dependent. With no con tracted service commitment or requirement to document their knowledge in a transf errable manner, contractors can and do often hold organizations hostage, perpetuating the permanency of their engagement. Advantages of managed services (outsourcing)

If an organization is involved in a staff augmentat ion committment, transitioning to a managed services (outsourcing) situation can yield all of the benefits of flexibility and skill access it needs, while overcoming the major disadva ntages associated with staff augmentation. The managed services (outsourcing) mo del differs from staff augmentation in a number of ways. The essential difference between th e two is that under a managed services model (outsourcing), the provider is committed to d elivering an “outcome” at a pre-defined

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price versus an “input” as under the staff augmenta tion model. An input is simply the performance of an activity with no commitment that the activity will result in the desired outcome. Comparing Staff Augmentation (out-tasking) vs. Mana ged Services (outsourcing) Managed Services (Outsourcing)

• IT supplier assumes control of all or part of the s ervice delivery commitments expressed as “service levels”

• More definite and committed scope and term • Pricing more frequently tied to service levels and volumes • Supplier assumes control of all or part of the exec ution component of IT • Commitments expressed as “service levels” • Committed scope and term • Knowledge must be documented and transferrable • Supplier assumes the risk of transition and operati ons • Limited commitment • Supplier commits to providing resources of defined capability at a price • Pricing tied to hours worked and availability • Customer manages the delivery model • Knowledge vested in the individual • All delivery risk remains with client

Staff Augmentation (Out-tasking)

• Commitment to deliver an outcome only • Commitment to provide an input based on planning, a s the organization must define the

requirement on a service and performance criteria b asis. • Pricing is tied to the outcome. Should the service requirement diminish or disappear,

the associated costs react in kind. This provides t he “scalability to demand” often sought in a staff augmentation model, but scalabili ty that is tied to service.

• Under staff augmentation, the only service commitme nt is hours of work. Under managed services (outsourcing), the provider assume s all of the risk of meeting the service commitment.

Managed services organizations generally serve mult iple clients from multiple locations. As opposed to smaller staff augmentation organizations (or individual contractors), managed services organizations have the capability of deliv ering a wealth of skills and capabilities. Client organizations have access to a broad base of skills, solutions and knowledge to meet evolving requirements. A managed services (outsourc ing) firm delivers all of the skills access and flexibility staff augmentation, but because man aged services relies heavily on management and process rigor, clients generally exp erience an elevated capability themselves. Inhibitors to transferring to a managed services (o utsourcing) With all of the benefits of managed services (outso urcing), why do organizations retain long-term staff augmentation?

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Pricing in managed services is harder to explain and under stand compared to staff

augmentation in which pricing is little more than a rate card (because the commitment is no more than availability to work on an hour by hour b asis). The staff augmentation scenario therefore appeals to departments that want to “get it done” that can issue requests for rate cards to multiple vendors and select accordingly. T his bypasses the value element of service commitment entirely, but it is simple.

Pricing for managed services requires that the part ies agree on defined outcomes and the pricing is tied to those outcomes. A system can easily be put in place to ensure that the value is retained over time. The process is more co mplex, but the defining of outcomes expected substantially justifies the effort.

The managed services (outsourcing) model requires a partnering mentality. Managed services providers have as the core of their busine ss philosophy service delivery excellence and they invest heavily in achieving and nurturing that capability. By partnering with a quality managed services provider, organizations allow IT l eadership to focus on how to utilize technology to add value to their particular organiz ations. Inhibitors that prevent companies from moving to a Managed Services (outsourcing) alternative

• A built-in bias towards staff augmentation • Heightened perception of control and staff manageme nt • Simpler pricing model • Perception of being more cost effective • Easily contracted within IT organization • Partnership not an issue • Permits IT organization to focus on requirements no t execution • Enhanced control through service levels and reporti ng metrics

Transforming the Model (Addressing the Inhibitors) under contract. The primary hurdle is the perception that transferr ing day-to-day operational responsibility is giving up control when, in fact, control is always retained through relationship and contractual commitments. For IT departments that have become de pendent on the staff augmentation model, transforming these arrangements into a manag ed services (outsourcing) model can create significant economic and service value. The managed services (outsourcing) model is focused on providing “outcomes” (service levels and specific services linked to a volume of activity) for a pre-determined price versus “inputs ” at a cost.

This provides price/cost predictability for the cli ent, while shifting the delivery risk to the provider. The costs of meeting service level co mmitments can exceed price if poorly estimated or managed, so the outsourcing provider i s highly motivated to implement productivity tools and operational “hygienic” tools and processes that promote the maintenance and preservation of operational health, both of which ultimately deliver added value to the customer business needs

The long-term nature of managed services (outsourci ng) models means the provider is better able to plan, manage resources, and balance workload. The result is a lower cost of

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delivery for a specific level of service. In genera l, a service provider under a managed services (outsourcing) model can deliver service at substant ially lower cost than the cost of similar services delivered under a staff augmentation arran gement.

By creating a clear picture of service, business ne ed, and cost, outsourcing tends to shift the focus from rate cards and resource utiliz ation to effective problem solving. Once this partnered vision is established, we frequently see clients requesting service levels lower than what has been previously delivered and reducing the ir IT spending accordingly.

In a managed services scenario, value is linked to the ability to move work to the best resource/best location, which requires that the pro vider document its knowledge. Since this documentation contractually belongs to the client, the risk of knowledge loss is minimized for IT departments.

Because pricing is fixed the managed services provi der has an incentive to help the client resolve in advance key issues that impact pe rformance, such as unnecessary complexity and a lack of adherence to standards. Conclusion Staff augmentation has its place in an IT departmen t’s arsenal. Even with managed services (outsourcing), staff augmentation is often utilized for selected services at specific points in time. However, when staff augmentation becomes the most expected operating model for an IT organization, it constitutes an ineffective form of outsourcing that involves high cost, low commitment and high risk.

IT departments utilizing staff augmentation should recognize that they are already “sourcing externally” and should seek to adopt inst ead a true managed services (outsourcing) model to maximize value.

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Summary of Outsourcing IT Through Managed Services

Keeps You Focused on Your Core Business . Every business has limited resources, and managers have limited time and attention. Outsourc ing helps you not get distracted by complex IT issues. It is neither practical, nor po ssible to be a jack of all trades. Outsourcing lets you focus on your core competencies while anot her company focuses on theirs.

Resources are not available internally. On the flip side, maybe you don't have anyone in y our company who can manage your IT needs, and hiring a new employee is not in the budget. Outsourcing can be a feasible alternative, both for the interim and for the long-term.

Control IT Costs . With outsourcing of IT, you only pay for what yo u use when you need it.

Reduce Operating and Labor Costs . Hiring and training an internal or in-house IT p erson can be very expensive. And temporary employees can dis appoint you by not living up to your expectations. Outsourcing, on the other hand, allo ws you to focus your human resources where they are most needed. When you outsource, yo u eliminate the costs associated with hiring an employee, such as management oversight, t raining, health insurance, employment taxes, retirement plans etc.

IT Companies are Experienced as Well as Qualified . IT service companies see related problems multiple times. But an in-house IT person , although trained and qualified, may be dealing with an isolated experience for the first t ime and not have enough experience to effectively deal with it. Since it's their core co mpetency, outsourced IT vendors look to hire staff with specific qualifications and certificatio ns. You may not know what to look for if you're hiring someone to be on staff full-time, so you may hire the wrong person for the job.

Gain access to exceptional capabilities. Your return on investment is so much greater when you outsource information technology to a firm that specializes in the areas you need. Instead of just the knowledge of one person, you benefit fr om the collective experience of a team of IT professionals. Outsourced IT companies usually requ ire their IT staff to have proper industry training and certifications as well.

Free internal resources for other purposes. You may have someone in your office that is pretty good with computers or accounting, but most likely these were not the jobs he or she was hired to do. If they are spending time taking c are of these things, who is doing what they were hired to do? Outsourcing allows you to retain employees for their highest and best use, rather than wasting their time on things that may t ake them longer than someone who is trained in these specific areas.

Increase Competitiveness and Efficiency . Companies that try to do all IT Services themsel ves in-house frequently have much higher research, deve lopment, and implementation time. These all are costly, and the costs are then passed on to the consumers. New Technology Can Be Implemented Quickly . A high quality outsourced IT company has the resources to start new projects immediately. Under taking the same project in-house could involve weeks or months to hire the right people, p rovide them with the support they need, and train them. Experienced IT companies will brin g years of experience right at the beginning, automatically saving time and money.

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Outsourced IT Companies Can Level the Playing Field . Larger companies may be able to afford and absorb the cost of an in-house IT team, but a smaller company may not be able to match what the big companies have. Outsourcing can give small companies access to the same technology and expertise larger companies have at a more affordable cost, using “economy of scale.” Reduce Risk . Outsourcing companies can assume and manage risk , especially when they have specific industry knowledge. They will be on top of security and compliance issues, as well as what the competition is doing, financial co nditions in the economy, and technology changes. Keeping up with technology required to ru n your business is expensive and time consuming. Because professional outsourced IT provi ders work with multiple clients and need to keep up on industry best practices, they ty pically know what is right and what is not. This kind of knowledge and experience dramatically reduces your risk of implementing a costly wrong decision.

Maximize restructuring benefits. When you are restructuring your company to improve costs, quality, service, or speed, your non-core business functions may get pushed aside. They still need to be handled, however, and outsourcing is an optimal way to do this. Don't sabotage your restructuring efforts by failing to keep up wi th non-core needs.

Function difficult to manage or out of control. This is definitely a scenario when outsourcing to experts can make a big difference. But don't mak e the mistake of thinking you can forget about the problem now that it's being "handled." Yo u still need to be involved even after control is regained.

Make capital funds available. By outsourcing non-core business functions, you ca n spend your capital funds on items that are directly relat ed to your product or your customers.

Access to the latest and greatest in technology. You may have noticed how rapidly software and hardware becomes obsolete in this industry. How is one staff person going to keep up-to-date with everything? Outsourcing gives you the ben efit of having more than just one IT professional. And since it's the core competency of the company, they can give you sound advice to put your IT dollars to work for you.

Flexibility. Vendors have multiple resources available to them, while internal staff may have limited resources and capabilities.

Job security and burnout reduction for regular empl oyees. Using an outsourced IT company removes the burden from your staff who has taken on more than he or she was hired for because "someone needs to do it." You will establis h a better relationship with your employees when you let them do what they do best an d what they were hired to do.

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IT Outsourcing: The Risks Anytime you give someone else responsibility for an y aspect of your business, whether a full-time new hire or an outside vendor, there is risk i nvolved. There will always be the question did I hire the right person/company to do the job? Will they do what they are supposed to do? How will they "fit" with my employees or department s?

Business owners who consider outsourcing IT functio ns need to be aware of the following risks:

Some IT functions are not easily outsourced. IT affects an entire organization, from the simple tasks employees do every day to the complex automat ed aspects. Be sure the outside vendor are qualified to take care of your greatest needs.

Control may be lost. Critics argue that an outside vendor will never be as effective as a full-time employee who is under the same management as o ther employees. However, a supervisor that is knowledgeable in managing an IT staff member will usually be sufficient.

Employee morale could be affected. This is particularly true if you will be laying of f employees to replace their job functions with an outsourced f irm. Then other employees may wonder if their job is at risk, too.

You may get "locked in." If the vendor does not document their work on your network and system, or if you've had to purchase their propriet ary software, you may feel like you can't go anywhere else or take back your network. Many outso urced companies require you to sign a year to year contract which limits flexibility.

Most of these risks can be avoided altogether if yo u know what to look for in a vendor and ask the right questions.

These questions will get you thinking about what to ask and what to look for, whether you want to hire a full-time IT professional on staff, or outsource to a support provider.

There are many rewards you can expect when you outs ource your company's IT functions as well:

Conclusion: Whether you choose to outsource or hire internally, one thing is certain, you must know how to manage successful working relationships with you r IT service providers. They're not always the easiest people in the world to understand and d eal with, but here are some tips:

• Clearly form and communicate the goals and objectiv es. • Have a strategic vision and plan. • Select the right vendor through research and refere nces. • Insist on a contract or plan that includes all the expectations of the relationship,

especially the financial aspect. • Maintain open communication with all affected indiv iduals and groups. • Rally support and involvement from decision makers involved.

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What is Workflow and Why Is it Important? The definition of productivity as it relates to business success is changing rapi dly. Productivity is no longer defined simply as creatin g more with less. Increasingly, value is linked not only to sheer output but to innovation, or the ability to correctly anticipate and creatively respond to new and changing market oppor tunities. Today, a strong competitive advantage is enjoyed by those companies with the fl exible business infrastructures and tools in place to quickly develop new products and servic es and continuously outperform the time to market of their competitors. Information techno logy (IT) holds the keys to this flexibility. IT make tools for innovation readily available to impl ement quickly. According to famed management consultant Peter Druc ker:

“Innovation is the design and development of someth ing new, as yet unknown and not in existence, which will establish a new ec onomic configuration out of the old, known, existing elements. It will give th ese elements an entirely new economic dimension. It is the missing link between having a number of disconnected elements, each marginally effective, a nd an integrated system of great power. It is this ‘systems’ aspect of innovation that is i nvoked when we say that men like Siemens or Edison created a new industry. All the elements were there, except one. Adding this one new element created an entire ly new economic capacity.” Peter F. Drucker, Managing for Results, 1964, 1986, p. 147

The concept of workflow is critical in the process of innovation. The two are intricately and intimately tied. When workflow is inhibited, innov ation is delayed, impaired or even prevented altogether.

Workflow, loosely defined, is the set of tasks—grou ped chronologically into processes—and the set of people or resources needed for those tasks, that are necessary to accomplish a given goal. An organization’s workflow is comprised of the set of processes it needs to accomplish, the set of people or other res ources available to perform those processes, and the interactions among them.

Workflow can be described simply as the movement of documents and tasks through a

business process. Workflow can be a sequential pro gression of work activities or a complex set of processes each taking place concurrently, ev entually impacting each other according to a set of rules, routes, and roles.

The dependence of today's business enterprises on i nnovation and fast delivery of product cannot be overestimated. With the new empha sis on relentless innovation and the advantages that it breeds, successful companies are constantly searching for ways to reshape their corporate structures and streamline t heir business processes. Workflow Management: Streamlining Business Goods and services must be produced both faster and smarter through teamwork and efficiency. Only those companies with innovative st aff, products, services, and short development cycles will prosper.

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Workflow management, a strategy for automating busi ness processes, is a powerful tool for translating the collaborative vision into real-worl d business applications with clear and measurable paybacks. The aim of workflow management is to streamline the components of various office systems by eliminating unnecessary tasks (and the costs associated with the performance of those tasks) and automating the remaining tasks in a process.

Workflow management is the effective application of information technologies to internal business processes in order to accelerate the collaborative and creative processes that drive innovation. The goal of workflow softwar e technology is the creation of a single environment for managing the complexities multiple- office automation environments. As software has moved from individualized solutions wi th dedicated functionality to integrated groupware solutions, workflow has evolved as a meta phor for the efficient coordination of multiple workgroups using multiple technologies. Most workflow products support two basic functions:

• Tools for mapping business processes, defined sets of routes, roles, and rules for the movement of documents and tasks.

• Implementation of those business processes through linkages with a company's computer network, shared databases, and email syste ms, so that information can flow through the organization at a controlled and effici ent pace.

Key benefits of workflow management include:

• Improved efficiency through the elimination of many unnecessary task steps. • Better business process control achieved by standar dizing work methods and creating

audit trails. • Improved customer service from trackable processes and responses. • Flexibility created from software control over proc esses, which enables future redesign

in response to changing needs.

Workflow Enhancement Scenario

• Conventional workflow. • Enhanced workflow

Conventional Workflow

Information critical to a workflow process can be d efined and stored in databases, enabling a computer system to automate the flow of information and tasks. Automation mini mizes reliance on physical meetings to enter redundant da ta and to physically exchange paper . For example, using an automated workflow process, purch ase orders and work orders can be processed to completion without a single printout. The defined workflow information might include order activity rules, workflow steps, and e xpenditure authorization requests, all of which can be routed automatically using email.

The following scenario demonstrates savings in labo r and time that can be achieved when workflow technology is applied to a typical bu siness.

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Typical Paper Trail Process

• The department supervisor at a remote office fills out a requisition form to request goods. • The administrative assistant processes the requisit ion form, looks through two catalogs,

and locates the items. The assistant then fills out the paper portion of the requisition and walks it to the department director.

• The department director reviews the requisition, si gns it, and puts it in an Out basket. • The administrative assistant retrieves the requisit ion and places it in a courier pack to the

central office. • A courier drives to the remote office, picks up the courier pack, and delivers it to the

purchasing clerk at the central office. • The purchasing clerk reviews the requisition, audit s central stores, and sends the

requisition to the purchasing manager if the item i s in stock, or to the buyer if the item is not in stock.

• The buyer reviews the document, selects the supplie r, calls for a quote, and passes the requisition to the purchasing manager.

• The purchasing manager reviews, signs, and places t he requisition in an Out basket. • The purchasing clerk retrieves the requisition and passes it to the encumbrance clerk. • The encumbrance clerk reviews the items, assigns ac count codes, and checks the budget.

If funds are available, the requisition is passed b ack to the purchasing clerk. • The purchasing clerk sends the requisition to the c omptroller if the item is in central

stores, or to the buyer if it is not in stock and m ust be bought and delivered to central stores.

• The clerk retrieves the purchase order and delivers it to the comptroller or buyer. • The buyer consolidates the requisition into a singl e purchase order per vendor and places

the order in the Out basket for delivery to the com ptroller. • The comptroller reviews and signs the purchase orde r. At this step, the routing can take

longer, based on the amount of the request and the level of authorization of the person approving the purchase.

• The clerk retrieves the document and places it in i nteroffice mail. Another day passes. • Using interoffice mail, a multipart document arrive s one day later in the purchasing

department. The purchasing clerk tears out the whit e copy and sends the rest of the multipart form to central stores.The purchasing cle rk logs and files the white copy.

• The central stores clerk retrieves the item from th e shelf, tears out the pink copy, places it in the accounts payable stack, and ships the item a nd the remaining copies to the remote office.

• The administrative assistant receives the item, tea rs out, logs, and files the blue copies, and places the green receiving and yellow accounts payable copy in a courier pack to go back to the central office.

• A courier retrieves the pack and returns the green and yellow copies to the central office. • The purchasing clerk attaches the white original an d green receiving copies to each other,

puts them in the file, and sends the yellow copy to accounts payable. • The accounts payable clerk receives the invoice fro m central stores, retrieves the open

yellow receiver copy from the file, and matches and enters the voucher.

Total time (in minutes) per item if the item is not in stock: 172.5

Total time (in minutes) per item if the item is in stock: 147.5

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Enhanced Workflow

The following shows how workflow enhancement softwa re can improve a conventional workflow by reducing the paper trail, minimizing re dundant data and data entry, and reducing errors or the need to redo work. Workflow Enhancements

Using enchanced workflow, an organization can strea mline its workflow process as described below:

1. The department supervisor fills out a requisitio n form to request goods. 2. The administrative assistant processes the requi sition form online. The system checks

the budget and automatically routes the request to the next approver based on the software workflow table hierarchy and the amount of the item.

3. The department director reviews and approves the requisition online. The system automatically routes the requisition to the appropr iate buyer or purchasing manager.

4. The purchasing manager consolidates the requisit ion with others for the same vendor into a purchase order. The system automatically rou tes the purchase order to the next approver.

5. The comptroller reviews and approves the purchas e order as required. 6. The purchase order is automatically routed to ce ntral stores. A clerk takes the pick slip,

retrieves the item from the shelf, and ships it for next-day delivery. 7. The administrative assistant receives the item o n the next day. 8. The accounts payable clerk receives the invoice online and matches it to the open

receipt that is also online. The system automatical ly creates a voucher.

There are many such scenarios possible or illustrat ions that can be created. Workflow improvement is critical to many businesses today. This is especially true in hospitals, where human lives are at stake. Any slowdown in workflow could mean someone is healed sooner rather than later, or someone dies because procedur es were not implemented soon enough. According to Connexall:

“Patient care in hospitals calls for tight coupling of work processes across teams. There is a need for high levels of interdepe ndence between many care team members - often with different backgrounds, de partments and disciplines.

Connexall's healthcare workflow solution provides s tability when the environment is uncertain. In most cases of patient flow and throughput, work is carried out in isolation, not through true collabor ation (i.e. sharing knowledge and resources across all team members). The reality is that it is hard to have working relationships across functional teams. Shar ed knowledge is good but not sufficient. There is a need for an interdependent e nvironment, especially for task management.

In hospitals today, it is inefficient for care team s to be unable to function or be collaborative across an entire care path. The path starts in admissions and goes to the floor, supported by numerous people, departm ents and tasks.” (http://www.connexall.com/solutions).

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Workflow enhancement even in basic businesses is di fficult to achieve without the right choice of IT support. This means there needs to be equipment in place, such as multi-function printers, that are integrated with softwar e engineered to improve workflow in that particular industry or business. Wrong choice of I T support could mean the equipment and software a company uses are not properly integrated or not integrated at all.

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Office Equipment and Software to Make IT Management More Effective

The models and scenarios discussed so far, such as workflow and efficient choice of managed IT services require an additional dimension for analysis: choice of office equipment . Keeping or choosing the wrong office equipment, par ticularly scanners, fax machines, copiers, multi-function machines, etc., can inhibit even the best of arrangements with respect to IT outsourcing and efforts to improve workflow.

Lexmark, for example, designs software for many of its multi-function machines with solutions to problems in mind, rather than just opt imal functionality. One such system called Clinical Assistant is designed to solve problems related to the healt hcare industry. According to one of their brochures:

“The Lexmark Clinical Assistant is a software bundle for Lexmark multifunction printers (MSPs) customized specifically for the hea lthcare industry. Clinical Assistant applications are designed to address comm on workflow challenges in clinical environments to help increase staff produc tivity and reduce errors.

Clinical Assistant is a suite of powerful document applications that are bundled in one unique offering to help streamline work process es and improve patient care. In addition to copy, fax and scan-to-email function s, the suite includes four timesaving document management and workflow applica tions. These convenient options are easily accessed through icons on the Le xmark MFP’s user-friendly touch screen, allowing clinical staff to complete c omplicated and critical workflow processes with a single touch – and withou t special training.”

http://www.lexmark.com/en_US/solutions/industry-sol utions/healthcare/clinical-assistant.shtml

If you are a healthcare provider, the company you u se to outsource IT services should understand and even offer these software packages a nd machines (or the equivalent).

Xerox Corporation’s Extensible Interface Platform allows workflow problems to be solved by choosing the right MFP (multi-function printer) and customized software. As they say in one of their brochures:

“There’s a difference when you combine your EIP-ena bled multifunction system with EIP-enabled software. With our Xerox Business Innovation Partners, we can improve the way businesses run, whether it’s a hosp ital, a school system, a law office, a multinational company or a small business .

EIP is a software platform inside many Xerox® MFPs that allows independent software vendors and developers to easily create pe rsonalized and customized document management solutions that you can access r ight from the MFP touch screen. These solutions can leverage your existing infrastructure and databases.

To experience the power of EIP, you’ll need a multi function system and software that are EIP-enabled. By itself, EIP is not a produ ct. You can take advantage of applications from industry-leading software provide rs, or, since EIP is based on web standards, it’s easy for anyone with developmen t capabilities to create custom solutions.”

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So the bottom line here is to do business with an I T firm that also sells and services equipment that does what you want, such as the MFPs and applications just described. Workflow can be personalized with the right choices of systems. A company that sells, understands and services these solutions should be under the same roof as your IT team. If they are not, you might have two teams that only kn ow how to walk over each other rather than collaborate on solutions.

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Questions to Ask to or About Your Computer IT Speci alists

Is anyone on the team Microsoft Certified? Yes No

Do their IT Professionals receive weekly training, monthly, etc? Yes No

Do they respond to your emergency computer issues w ithin 4 hours or less? Yes No

Are they available in a timely manner when you need them for non-emergency functions?

Yes No

Is there a person in their office dedicated to taki ng your calls and arranging proper service for

you? Yes No

Do they have more than one IT professional who is f ully trained? Yes No

Do they offer a prescheduled maintenance program? Yes No

Do they use a maintenance checklist that you can re view? Yes No

Do they have a Helpdesk system that allows you to a dd issues to and track their progress?

Yes No

Do they provide you with detailed documentation you can use to measure their service after

each visit? Yes No

Does it ever feel like they are learning their trad e on your time? Yes No

Do they talk about your network in a way that is co mpletely understandable to you?

Yes No

Are they always friendly and courteous to your empl oyees? Yes No

Do they arrive on time, every time? Yes No Do they have customer service policies in writing t o ensure your guaranteed satisfaction?

Yes No Do they provide proactive advice to help you achiev e your business goals or are they mostly

"break-fix?" Proactive Advice Mostly "Break-Fix"

Do they have management oversight, are they account able to anyone, or do they just do what

they feel like doing? Yes No

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What happens when your IT support person is sick or goes on vacation?

We wait for them to get back

They have multiple IT Professionals to take their p lace

How is your critical network and support info store d?

In online database

On paper and in binders

None at all Not told

Do they provide you with an outlined or comprehensi ve plan including a budget based on

your business goals? Yes No

When they come to your office do they check in and check out with you to review what needs

to be done and what has been completed? Yes No How would you rank their follow-up skills?

Excellent

Good

Average

Poor

Terrible If you answered more than 70% of these questions ne gatively, it’s likely time to choose a new IT provider. Levels of Service Your Managed IT firm should offer levels of service based on your needs and budget. You should be able to select and omit whatever suits yo u or does not. Many firms sell these “packages” with terms such as “silver,” “bronze,” “ gold,” etc. This is a marketing ploy to give packages a “name,” but it makes sense nonetheless. Smaller businesses have different needs than larger businesses, especially where thei r networks and number of users is small. You can always “upgrade” your level of service as y our business grows.

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Conclusion You should do business with an IT firm that also se lls and services equipment that does what you want, such as the MFPs and applications you nee d to improve workflow . Workflow can be personalized with the right choices of systems. A company that sells, understands and services these solutions should be under the same r oof as your IT team. If they are not, you might have two or more teams that only know how to walk over each other rather than collaborate on solutions. Your IT team should be just that—a “team.” Relian ce on a single person can be dangerous to your business. The team should be pro fessional and qualified, and they should know how to handle your particular business or indu stry from experience.