it demand and delivery management

BearingPoint - CA

IT Demand and Delivery

Management

(IT DDM)

1 © 2006 BearingPoint and CA confidential

Overview

IT Demand and Delivery Management (DDM) is a set of IT Management

capabilities that align Business and IT Value Chains

DDM Optimizes & Integrates three IT Domains to Align IT with the Business

BearingPoint & CA offer unique Business Value by

Bringing a deep & common understanding of the problem & the solution elements

Leveraging existing IP to customize a Target DDM Architecture and an Actionable

Roadmap that progressively increase the maturity in each Domain, integrate them,

and introduce overarching processes to further align IT with the Business

Accelerating the roadmap execution and the DDM solution implementation via a

phased approach bringing value both in the short and longer terms

Alignment

Integration

Maturity

IT Service

Management

IT Asset

Management

Project

Portfolio

Management

IT Demand & Delivery Management

(IT DDM)

Agility

Costs

Operational

Excellence

Risks


Agenda

Problem Statement

Solution

Approach

Value Proposition

Problem Statement


The IT Demand & Delivery Value

Chain is Broken

IT Factory Issues

• Service Levels not adapted

• Reactive

• Lack of financial feedback

• Lack of data

• Resources & Assets not adapted

• Misaligned budget

Demand Issues

• Inflated requests

• Unclear requirements

• Duplication

• Lengthy fulfillment

• Undefined services

• IT inability to commit

• Inability to forecast

• Inability to prioritize

• Lack of planning

Delivery Issues

• Not meeting Requirements

• Budget overruns

• Unfulfilled expectations

• Business needs changes

• No measurement of

success

Business IT

Demand

Delivery

Facto

ry


Functional

Challenges

The Underlying Processes Lack

Maturity and Integration

IT Service

Management

IT Asset

Management

Project

Portfolio

Management

Lack of Domain Maturity & Integration

Co

st R

ec

ove

ry

Imp

ac

t An

aly

sis

Ava

ilab

ility M

gm

t

As

se

t Ow

ners

hip

Co

nfig

ura

tion

Ca

pa

city

Mg

mt

Va

lue

Mg

mt

Pro

jec

t Ex

ec

utio

n

Ris

k M

an

ag

em

en

t

• Inconsistent metrics leads to inconsistent prioritization of improvements

• Inaccurate “total value” assessment creates silo investment strategies

• Lack of organized change capability crimples organization’s agility

• Limited forecasting reduces cost economies and increases overhead

• Challenges in visibility to resource scheduling increases SLA violations

• Ineffective communication of goals top-down and issues bottom-up

• Process segmentation creates challenges in third-party management


The DDM Problem Impacts The

Business

REZA

Agility

Cost / Budget Optimization

Operational Excellence

Risk Mitigation

Business IT

Demand

Delivery

Facto

ry

Broken Value Chain

IT Service

Management

IT Asset

Management Project

Portfolio

Management

Lack of Maturity & Integration

• Delayed and sub-optimized integration after M&A as

integration points are not identified in time

• Delay and reduced functionality in launching new

offerings due to the lack of an efficient IT Delivery solution

to support them

• Lack of financial transparency leading to regulatory non-

compliance and business risks

•Regulatory compliance & risk analysis can not occur

efficiently without real-time reporting capabilities

•Incomplete security/regulatory audit trails directly effect the

availability and accuracy of risk/compliance reporting

• Operational Excellence not achieved as no control of

the underlying Business and IT architecture has been

efficiently realized.

• Limited cost savings and budget optimization due to a

lack of integration of financial information

•Unnecessary costs are incurred as new investment

requirements can not be accurately matched to available IT

and Business resources

•IT cannot suggest cost savings based on project

rescheduling due to inadequate resource lifecycle

management

Solution


Aligning the IT Demand and

Delivery Value Chain D

DM

DDM

DDM

DDM

IT

Service Provider

Business

Client & Partner

Production

IT DDM enhances and coordinates various steps of the demand and

delivery value chain

Services Offering aligned with the Demand and Business Imperatives

Effective usage of the production systems and resources

Efficient and cost effective delivery of the services while meeting SLAs

Business Strategy IT Strategy

Resources

Demand

Delivery

Offer

Contracts / SLA

Service Factory


IT Demand & Delivery Management

• Operations Management

• Financial Management

• Demand Forecasting

• Performance Management

• Risk Management

• Demand Influencing

Demand Service Factory Delivery

Developing & Driving Towards a Target State

DDM Process Conceptual Architecture

• CI info

• Asset costs for service

provisioning

• Service capacity & usage

forecasts

• Procurement process info

Services Assets People Resources Infrastructure Cash

• Asset demand forecasts

• Repurposed assets

• Asset repurposing

opportunities / abilities

• Asset value (for capital

need forecasts)

• Procurement process info

PPM

• Project Mgmt

• Portfolio Mgmt

• Human

Resources Mgmt

• Financial Mgmt

• Request Mgmt

ITSM • Incident Mgmt

• Problem Mgmt

• Change Mgmt

• Release Mgmt

• Configuration Mgmt

• Availability Mgmt

• Capacity Mgmt

• Service Level Mgmt

• Financial Mgmt

• IT Service

Continuity Mgmt

• Planning

• Request and

Authorization

• Purchasing

• Receiving

inventory

• Setup Installation

• MAC Support

• Maintenance &

Upgrades

• Retirement

ITAM

• Release to production

process

• % Capital to Operational

roll over

• Service design options

(architecture)

• New service requests

• Service parameter changes

• Service usage forecast

Vendors


Bu

sin

es

s

Me

tric

s

Demand • Revenue Increase

• Decreased TCO

• Competitiveness

(optimized time to market)

Factory • Reduced cost of operation

• Reduced cost of development

• Increased Effectiveness

• Quality Goals Met

Delivery • Value Delivered

• Project Delivered

• Customer Satisfaction

• Successful Audits

• SLA’s Met

IT DDM Target Performance Metrics

PPM

• IT Spend efficiency

• Human Resource &

skills Mgt

• Project Efficiency

• Portfolio Alignment

• Regulatory

Compliance

ITSM

• Responsiveness

• Efficiency

• OLA’s Met

• Resource Utilization

• Successful Changes

• Reduced MTTR

• Increased MTBF

• Audit Compliance

• Total asset cost

• Cost of conducting /

maintaining inventory &

audits

• Cost of managing

contracts

• Cost of compliance

• Total lease costs

ITAM

• Accurate capacity &

usage forecasts

• Critical resource

prioritization

• Cost savings from early

resource allocation &

investment planning

• Reduced capacity

overruns

• Reduced new service

provisioning cost

• Reduced SLA violations

due to capacity issues

• Increased assets

utilization

• Reduced numbers of

rushed purchases

• Increased capital

Investment protection

Op

era

tio

na

l

Me

tric

s

IT Demand and Delivery Management

Approach


Strategy & Roadmap efforts are the 1st step in our overall approach to

deploying DDM

Processes & Organization Workstream

Technology & Facilities Workstream

Design Build Deploy Strategy Operate

Strategic

Plan &

Roadmap

Development

Manage Work Stream (Program, Project, Quality & Change Management)

Operations &

Continuous

Improvement

DDM Project Lifecycle

Review current state and

identify quick hits

Define the target state

Develop an actionable

implementation roadmap

Plateau 1 Plateau 1 Plateau 1 Plateau 1

Plateau 2 Plateau 2

Plateau 3 Plateau 3

Plateau N Plateau N



Plateau N Plateau N Plateau N Plateau N


Sources

Activities

Key Deliverables

Information

Gathering

Current State

Review &

Benchmarking

Target State

Development

GAP

Analysis

Business

Case

Questionnaires

& Surveys

Existing

Documentation

BE & ITIL

“Best Practices”

Tech. Research

& Industry Trends ROI Research

“Current State”

Assessment

- Operating Model

- Processes

- Technology

- Organization

- Facilities

Current State

Survey

Templates Future State

- Vision

- Principles

-

Architecture

-

Technology

Business Case

- Scope

- GAP Addressed

- Requirements

- Benefits

- Deliverables

- Risk Analysis

- Return On

Investment

GAP Analysis

- Implementation

Maturity

Roadmap

- Target Maturity

- GAP Analysis

- Process

- Technology

- Organization

- Facilities

Transition

Planning

Strategic Roadmap

- Scope

- Plateau

Definitions

- Implementation

Plan

- Dependencies

-

Timeline/Resources

Past Implementations

& Research

BE & ITIL

“Best Practices”

DDM Strategy Detailed Approach

Value Proposition


IT Assets

IT DDM optimizes/aligns the 3 DOMAINS of:

IT Service Delivery (Service Catalog, Assure, Accounting)

IT Asset Management (UAI, UAM, Argis)

IT Project & Portfolio Management (Niku Clarity)

BE & CA do the following to deliver the client unique Business Value:

INCREASE the maturity in each DOMAIN

INTEGRATE the DOMAINS

ADD overarching DDM IP to improve IT’s impact on the BUSINESS

By managing these in concert, not independently, IT DDM delivers true BUSINESS value:

Effectively Manage/Forecast IT Demand (brings a level of insight previously unavailable)

Increase Business Agility (Align IT with the LOB’s)

Cut/Optimize IT Costs (untapped economies of scale are now realized)

Decrease Risk (holistic IT landscape view, enables better decision-making)

DDM Value Proposition Summary


IT Assets

Why BearingPoint & CA?

- Experience of doing this type of project

CA & BE have strong references across all industries in the spaces of

Asset, Service, & Proj/Port mgt, and the integration thereof.

- Methodologies which capture and use this experience

CA & BE use best-practice approaches (e.g. Service Management & ITIL)

to address the domains of IT DDM.

BearingPoint brings real world-tested, industry-specific IP and

methodologies in delivering IT DDM

We have created joint IT DDM process IP

- Complete & Open Technology enablement

CA has market-leading technology across all of these Domains

CA tools are all open and can be easily integrated with existing 3rd party

software.

- No one else can deliver the IT DDM vision decisively and cost-effectively

today. There has never been a truly viable & realistic solution to “align IT

with the Business”…until now

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