operational excellence and global delivery
TRANSCRIPT
Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish itself are registered trademarks of Atos Origin SA. June 2006© 2006 Atos Origin
Operational Excellence and Global Delivery
Tarek Moustafa, Group CIOHubert Tardieu, Global C&SI
Francis Delacourt, Global MOLondon, December 2007
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»Industrialization »Global
Sourcing»MS
Global factory
»Talents
»Global markets
»Global and
focused sales
Operate as a global
company
»Support functions
»Purcha-sing
»Portfolio review and
optimization
Accelerate organic growth
capabilitiesImprove
operational efficiency
»R
EV
EN
UE
S
»C
OS
TS
Launch of the "3 objectives over 3 years"
» An integrated and related set of initiatives
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Selected Consolidation
Holding Company
Network of Businesses
Shared Services
Fully Integrated
Aggregation
Common EnterpriseFramework
CompleteIntegration
Retain All models
Establish basicInter-business linkages
Standardize Key Processes Systems & Tools
Adopt one model Risk of Unnecessary spending
Incapable of supporting desired business outcomes
Degree of integration determined by business requir ements
Imp
acts
on
Pro
cess
, Org
aniz
atio
n,
Sys
tem
s &
To
ols
Leverage Atos Origin scale for growth and efficiency
3
Process
From 3o3 to Operational Excellence
» Organizational Responsibilities
» Process Owners who perform process management and control
Organization
3o3 Operational Excellence Bus iness as UsualIt is about Controlled Change and Business Continui ty
» Performance driven
» Change linked to Financial measures
KPIs
» IT-solutions which support Business Process automation and business change
IT Solution & Tools
» Business Process Risks and related Controls to meet regulatory and compliance requirements
Risks
Required controls
4
» Consolidation of Atos Origin purchasing power and supplier rationalization
The purchasing action plan has moved into execution
Support Functions
» Industrialization
Clients/ Offer
Global
Delivery
Talents
» 7 Initiatives
» Sales
» Global Sourcing» Global Factory
» Talents
» Finance, HR, IT
» Purchasing
5
» Improved business support
» Less administration
An initiative to focus finance, HR and IT teams on added-value tasks
Support Functions
» Industrialization
Clients/ Offer
Global
Delivery
Talents
» 7 Initiatives
» Sales
» Global Sourcing» Global Factory
» Talents
» Finance, HR, IT
» Purchasing
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» Attract, develop and retain the best people
The Talents initiative will help us become an employer of choice in the IT sector
Support Functions
» Industrialization
Clients/ Offer
Global
Delivery
Talents
» 7 Initiatives
» Sales
» Global Sourcing» Global Factory
» Talents
» Finance, HR, IT
» Purchasing
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» Global Sourcing
» MS Global Delivery
» Industrialization
» Global
» Delivery
Transformation of our core business processes
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Through the Global Delivery Strategy we have started to leverage our scale and presence…
QUALITY
ORGANISATION
» Service Lines
» Geographies
» Centers of Excellence» Solutions» Innovation and R&D» Processes
» Industries» Technologies» Products
EXPERTISE
Bundle and align existing knowledge
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…through economies of scale and reuse
4 critical success factors
Global Delivery
» Closeshore» Nearshore» Offshore
» CMMI» ITIL
Industry Standards Partnerships
» SAP
Industrialization
» Shared Services Centers» Common processes» Common tooling
» Global MO factory» Mainframe consolidation
Higher growth, increased efficiency
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From Geographies to Matrix
Management Board
Group Sales & Markets
Consulting
Systems Integration
ManagedOperations
SupportFunctions
FR GCE ES NL UK IT ROW AEMS WL
C&SI
Management Board
GMOSupport
Functions
AEMSRegion 1 Region 2 Region 3 Region 4
From To
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ACSIMO – Leverage presence x-service lineUsing Enterprise Architecture to build end-to-end solutions
» Atos Consulting» Strategy and Business Case» Business Processes Models» Operational Transformation
» Systems Integration» Product implementation » Integration» Rollout
» Managed Operations» Infrastructure» Storage» Compliance
Infrastructu ur
Extern e infrastructu ur service
Application components and services
Rollen en actoren
Externe applicatie service
Externe business services
Claimafhandeling
Klant Verzekerde VerzekeraarArchiSurance
Registratie UitbetalingBeoodelingAcceptatie
Klant -Informatie -
Service
Claim -Uitbetaling -
Service
Klantadministratie
service
Betalings -service
CRMsyste em
Financi eleapplicati e
Klant -gegevens -
service
Claimregistration
service
Claim -Registratie -
service
Claim -administratie -
service
Polisadministratie
Claimfiles
service
zSeries mainframe
DB 2database
Finapplicati e
EJBs
Klantenfiles
service
Sun Blade
iPlanetapp server
Claim -gegevens -
service
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Global Delivery key enablers: Global Sourcing and Industrialization
Sta
ndar
d de
liver
y
» From T&M to SLA» Common processes and tools
» Consistent metrics and KPIs
» Output based
Dis
trib
uted
del
iver
y » Customer intimacy and innovation with resources close to market and customer
» Efficiencies of scale through specialized factories in low cost regions
» Capabilities to deliver to all regions
» Shared service centers provide common infrastructure for all Atos Origin staff
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IndiaMumbai
PuneBangaloreCalcutta
BrazilCuritiba
MoroccoCasablanca
ArmeniaYerevan
Global Sourcing Centers for SI: Critical size across the regions through specialization
US time zone
Ibero-European clients
SAP configuration services, CRM
Primary offshore center
SAP, Oracle
.net, J2EE
IBM Mainframe
IBM Technologies
French clients
14
SI: In 2007, progress on global sourcing has been best-in-class (70% organic growth)
0
2500
5000
7500
10000
2006 2007 2008 2009
Offshore Closeshore
0
2500
5000
7500
10000
12500
15000
2006 2007 2008 2009
CMMI 3+
» Number of staff CMMI3+ certified multiplied by 6 between 2006 and 2009C
ertif
i-ca
tion
» New centers in Mumbai and Bangalore; new campus in Punein2009
» New center in Curitiba » Expansion in Morocco
» Delocalization plans in all countries (e.g. 700 staff from Paris to regions)
» Germany: Meppen» Spain: Valladolid» UK: Nottingham
Offs
hore
Clo
sesh
ore
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Shared service center for development & maintenance tools
» Testing factory» Requirements Management» Project Management» Productivity Management» Data Mining» Configuration Management
Substantial progress has been achieved in SI tooling
0
5 000
10 000
15 000
20 000
2006 2007 2008 2009
Local Shared
key enablers for global Sourcing and Industrializat ion
0
2 500
5 000
7 500
10 000
2006 2007 2008 2009
T&M
Too
ling
» Software Development and Maintenance Centers” (SDMC)
» Global Software Engineering Process Group (SEPG)
» T&M part decreasing significantly for all
Ope
ratin
g M
odel
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Renault(Industrialization and Global Sourcing @ work)
» 5y Application Management Outsourcing
» Customer facing unit in Paris managing delivery centers in France (closeshore), Spain, India and Brazil
» Common processes, tools and metrics
» Implementation of Industry standards (CMMI) consistently through all locations
» Output based pricing with contractually committed cost savings through» Productivity improvements (CMMI)» Global Sourcing» Enterprise Architecture (Consulting)
Early large European AM outsourcing with successful delivery
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ChemChina(ACSIMO @ work)
SAP Consulting and Systems Integration
1. Jan ’07: Business and IT Consulting program successfully delivered out of UK and China
2. Sep ’07: Global Strategic Partnership Framework Agreement for BC and IT
3. Oct ’07: Signature of initial SAP implementation deal for systems integration in APAC
» Competence Centers: Support from SAP-MMT competence center in Walsrode (DE) and TCC in Brussels (BE)
Successful Consulting engagement opening up signifi cant SI opportunities
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IndiaMumbai
MalaysiaKuala Lumpur
PolandBydgoszcz
BrazilSao Paulo
SurinameParamaribo
MoroccoCasablanca
Atos Origin Global Sourcing Model for MO Distributed delivery through standard processes and to ols
Service Desk
Op. Center
Level 2
Service Desk
Service Desk
Op. Center
Op. Center
Level 2
Service Desk
Op. Center
Level 2
Service Desk
Op. Center
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» Service Desk, EMC and 2nd level support
» Built in the Service Portfolio» Activities are moved offshore
MO: Significant progress has been achieved on global sourcing & ITIL
0
500
1000
1500
2000
2006 2007 2008 2009
Offshore
0
2 000
4 000
6 000
8 000
10 000
12 000
2006 2007 2008 2009
ITIL (CSDM)
10%15%
25%
30%
50%60%
65%
70%O
ffsho
re
Well on track for balanced sourcing
» Continuous Service Delivery Model (CSDM)
• 100% ITIL compliant• Globally deployed• > 7,000 CSDM certified operational
staff worldwide
Glo
bal P
roce
sses
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MO: Significant progress has been achieved on global sourcing & ITIL
0
10
20
30
40
50
60
2006 2007 2008 2009
Server/Eng.
Significant efficiency improvement
0
50
100
150
200
250
2006 2007 2008 2009
Server/Oper.
²
0
10
20
30
40
50
2006 2007 2008 2009
Calls/Analyst
0
50
100
150
2006 2007 2008 2009
Incidents/Eng.
» Consolidation of EMC and further standardization and industrialization
» Increased efficiency through optimized process and industrialization
» Increased usage of remote repair and optimized resource deployment
Server Management Monitoring Center (EMC)
Service Desk Field Services
» Stages: • Basic• Standardized• Consolidated• Optimized
Plan to move towards Optimized
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Alstom Global Delivery ModelGlobal support for > 48.000 seats and 53 countries
MalaysiaKuala Lumpur
BrazilSao Paulo
SurinameParamaribo
Netherlands and ItalyNetherlands and Italy
PolandBydgoszcz
OnOn--shoreshore
MoroccoCasablanca
Alstom phase 2:
Argentina, Australia, Bahrain, Bulgaria, Chile, China, Colombia, Croatia, Czech Republic, Denmark, Dubai, Egypt, Estonia, Greece, Hong Kong, Hungary, Indonesia, Japan, Korea, Latvia, Malaysia, New Zealand, Norway, Panama, Peru, Philippines, Romania, Russia, Saudi Arabia, Slovakia, Taiwan, Thailand, Turkey, UAE, Venezuela and Vietnam (with 3.745 seats combined).
Alstom phase 1 (seats):
Belgium (1.024), Brazil (2.323), Canada (1.050), France (12.000), Germany (4.085), India (1.400), Ireland (50), Italy (2.868), Mexico (365), Netherlands (107), Poland (1.776), Portugal (227), Spain (1.381), Sweden (925), Switzerland (6.208), UK (3.865) and US (4.630).
Near/offNear/off--shoreshore
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» Atos Origin owns a vast amount of industry, technology and process expertise .
» We are increasing the leverage of our scale and presence in order to design, build and globally operate innovative solut ions faster, more efficiently and to a higher level of quality.
Global SourcingIndustrialization Innovation
are key elements of this strategy
» We will deliver these elements through a common operational model to best-in-class industry standards
In summary…
123
Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish itself are registered trademarks of Atos Origin SA. June 2006© 2006 Atos Origin
Operational Excellence and Global Delivery
Tarek Moustafa, Group CIOHubert Tardieu, Global C&SI
Francis Delacourt, Global MOLondon, December 2007