service management integration - wsta · introduction dan stavola ... service management...

Service Management IntegrationImproving Service Delivery Performance in a Multi-Supplier Enterprise

Agenda

SMI Presentation 092016

► Introduction

► Industry trends/challenges

► SMI Overview/objectives

► Case study: SMI at a Financial Services Firm ► Business case

► Vision for Service Management Integration

► SMI readiness assessment

► SMI operating model

► eBonding

► Use cases

► Outcomes

► Lessons learned/considerations

Introduction

Dan Stavola

Executive Director

Enterprise Service Automation

[email protected]

212 773 5767

► Digital Enterprise Transformation

leader in EY Financial Services

Office

► Over 24 years experience in IT

operations and IT performance

improvement working with global

financial services firms


Background:

► Dan is an Executive Director in Ernst & Young’s Digital Enterprise Transformation practice, where he is

responsible for the design and delivery of digital automation advisory services. As a practice leader and IT

consultant with over 24 years of experience Dan has worked with leading global financial services firms in the

design and delivery of IT performance improvement programs leveraging his deep industry knowledge and

the pragmatic application of industry standards and leading practices applied to technology enablement.

► Professional Experience

► Served as the engagement lead and principal architect of a multi-year major IT transformation program. Focused on improving IT operations performance the program consisted of current state operational assessment and baseline, rationalization of all dimensions of IT resulting in cost rationalization, operating model redesign, IT optimization across the IT organization and a governing continuous improvement program.

► Served as the engagement lead in a data center consolidation of a banking and capital markets firm acquisition. The project included pre and post merger support, rationalization of technology and investment governance as well as migration and consolidation of IT operations and application and infrastructure technologies.

► Served as the engagement lead and principal architect of a program risk management office for a highly complex data center separation for a banking and capital markets firm divestiture. The project included both project risk governance, investment protection, and post separation operational risk management

► Served as the engagement lead and principal architect for a trading platform design and resiliency assessment for a top national asset management firm. Project focused on transaction level mapping, application performance and infrastructure resiliency. The scope of the work focused on root cause analysis of major outages, performance issues and poor user satisfaction. Project outputprovided prioritized findings and recommendations across the enterprise platform.

► Served as the engagement lead on a major credit card platform development project for a global credit card company. Core responsibilities include operational readiness and stability. Worked with client development team on testing, defect resolution,production readiness and release management coordination.

► Dan is an international speaker and has brought concepts and learning to audiences through conference

speaking engagements over the last 15 years.

mailto:[email protected]

IT outsourcing continues to grow but often fails to deliver

18% of 2014 IT spend was on outsourcing…(1)

… and outsourcing will continue to grow 5.8% annually through 2019(2)

… while only 32% of companies feel positively about their ability to juggle multiple vendors(3)

Between 40%–70% of outsourcing ventures fail to meet customer expectations(3)

In fact, just 52% of IT buyers would renew their

contract with their current service provider(4)

89% of companies cite the need to improve competencies and significantly raise their maturity levels to manage multisourcing successfully …(1)

(1) Gartner

(2) Research and Markets

(3) Outsourcing Institute

(4) CiscoSMI Presentation 092016

Challenges in a Multi-Supplier Enterprise

► Increased complexity and

management overhead

► Lack of clarity into supplier

services and obligations

► Finger pointing when a service

is disrupted rather than “one

throat to choke”

► Additional enterprise risk due

to fragile processes and

reduced information

► Indecision when it comes

down to renew or extend

contracts

► Inability to exchange and

synchronize data across

different vendors

► Lack of tools to measure the

performance and values of

vendors and contracts

• Inability to monitor key assets

and manage the end to end

process

• Hand-off issues

• End users are dissatisfied even

though siloed service levels are

being met

• Supplier behaviors aren't

aligned to the required

business and IT outcomes


Challenges when managing suppliers

Supplier 1 Supplier 2 Supplier 3 Supplier n

KPI KPI KPI KPIOutsourcing hasn’t delivered on

the promise of ROI improvement

– more value from suppliers at

lower cost

Suppliers operate and are

measured in Silos

X X X

VP

Su

pp

lier

Can’t demonstrate control of

their business

CIO

Request service Report Issue Ask a question

Services Services Services

Can’t do their job effectively

because they don’t have visibility

to services supply chain

Can’t scale service delivery and

performance in line with

business expectations

LO

B

Op

era

tor

VP

IT

1 n32

Request change


Approach to SMI – Key considerations

Organization

Governance

Performance

• Target organization will optimize cost to acquire skills and speed of implementation

• Structure organization to minimize inefficiencies, ensure accountability and realize synergies

• Design will be based on roles required to enable processes; Avoid duplicating roles and micromanagement of certain positions

• Reduce organizational complexity

• Work with the Service Providers to jointly develop optimize the organization

• Develop a strong and effective governance structure which promotes accountability

• Establish robust reporting mechanisms

• Allow the Service Providers to jointly develop and participate in governance processes

• Clearly outline the parameters within which SIAM team members perform their job responsibilities

• Build alignment and partnership between SIAM, other client functions, and Service Providers

• Enable alignment of IT operating model targets with financial objectives by developing balanced scorecards

• Define a manageable number of service levels. Make adjustments within 18-24 months as the relationship with Service Providers matures

• Build a consistent reporting structure and measurement system

SM

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odel desig

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Execution

• All critical processes consistently operating at maturity level 3 (“Managed” on the capability maturity scale)

• Move from distributed and decentralized to centralized and standardized processes

• Create processes which are focused on best practice principles (i.e. ITIL v3)

• Deliver effective and efficient IT processes with transparency

• Design processes for scalability, flexibility and sustainability

• Define the inputs, outputs, providers, receivers, activities and critical success factors of the processes


Supplier standardization - integration with supplier management/contract management

Supplier

ManagementDevelop Vision

Supplier Information

Supplier Programs

Establish Baseline

Establish Baseline Develop Vision Supplier Information Supplier Programs

► Gather information on

your suppliers

► Assess the quality of that

supplier information

► Review all sources and

points of supplier

information,

communication,

processes and

transactions

• Set Goals & Objectives

• Involve Stakeholders and

solicit feedback

• Define supplier segments,

attributes and relationship

types

• Define supplier lifecycle and

relationship phases

• Establish supplier

management metrics

• Developer supplier data

governance model with

clear roles & responsibilities

• Establish a process or

system to gather and verify

all information

• Cleanse existing supplier

information

• Compliance

• Risk

• Performance

• Sustainability


Supplier Registration

New Service Provider

Details

Foundational Information

Service Offerings

Existing New

ListSetup New

Services

In Scope / Out Of Scope

Financials

Supporting Documentation

Contact Info / Users

SLA’s

Portal Svc Catalog

Assignment Groups

Assets/Items

Operational Info Measurement

Metrics

Reporting


Service Management Integration (SMI) addresses challenges of multisourcing by focusing on the end-to-end service, instead of individual service providers

End user communications service provider

Infrastructure service

provider

Network and telecom service

provider

Application management

service provider

End user communications service provider

Information security service

provider

Facilities service

provider

Supplier governance Financial management Demand management

Coordinated, end-to-end service delivery

Standardized processes

Integrated tools (E-Bonding)

Inn

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tService Management Integration (SMI) is an approach for delivering services to end-users and business stakeholders through collaboration with multiple service providers. In the SMI model, a single function coordinates end-to-end service delivery across multiple services providers.

SMI transition and transformation

Multi-vendor ecosystem without SMI

► Lack of a single point of accountability for the end-to-end service

► Service providers operate in silos. Communication and coordination is a challenge

► Inefficiencies due to lack of standardized processes and tools

► Customized processes and tools make it difficult to switch service providers

► Inconsistent supplier governance and performance management practices

Multi-vendor ecosystem with SMI:

► The Service Integrator is the single point of accountability for the end-to-end service

► Common processes are standardized and enforced. Data is shared between service providers through integrated ticketing systems, service catalog, knowledge bases, and a federated CMDB

► Service providers can be onboarded and offboarded seamlessly as business requirements change or technological advancements create new opportunities

► Consistent supplier governance and performance management practices across all vendors


Transformation Outcomes

All suppliers working to standardised, consistent processes and terminology.

Providing transparency of performance, effectiveness and efficiency.

Increasing innovation, business to IT alignment by decreasing time to market

of services and improvements.

Coordinate effort with clear accountability and reporting on a single system of record.

Effective governance and controls consistently applied so suppliers act in a cohesive and efficient manner.

Delegating addition and modification of services, centralised governance enabling a wider portfolio and skills.


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Section 1 EY’s Case Study – For SMI/SIAM(“HOW”)

The Unified Communication and Collaboration (UCC) program was launched to deliver a unified technology experience to end-users

A Financial Services Firm embarked on a mission to improve its digital capabilities to take advantage of opportunities made available by increasing use of digitalmedia in businesses and society. Unified Communication and Collaboration (UCC) was one of the programs launched under the larger digital transformationagenda to modernize the workforce by investing in end-user technologies. The purpose of UCC was to deliver a unified employee technology experience thatdrives sustainable productivity, innovation, and growth across the entire ecosystem of employees, partners, and customers. This program includes theimplementation of a third party hosted end-user technology environment and the setup of a Service Management Integration (SMI) function that coordinatesservice delivery across underlying technologies and service providers.

Background

Strategic objectives Benefits

► Enable a unified user experience that drives productivity, innovation, and growth across the entire ecosystem

► Leverage 3rd Party Hosted service provider

► Service Management Integration (SMI) across multiple service providers

► Implement ITSM Program/ Enterprise Architecture SMO to develop key ITSM capabilities

Scalability and vendor independence:

► Enable client to capitalize on UCC investments to build a solution that can scale across the enterprise.

► Onboard and offboard vendors seamlessly as business requirements change or technological advancements create new opportunities

Cost efficiency and effectiveness:

► Rapidly insource vendor capabilities that can be provided internally, resulting in cost savings

► Optimize IT spend across UCC, ITSM and SMO programs to augment value for money

Organization and process maturity:

► Enable client to leverage its investments in ITSM technology to accelerate the maturation of its internal people and process capabilities

► 3 year roadmap, 12 month phase 1 effort

► Processes in scope: Incident Management, Request Fulfilment, IT Change Management, Service Level Management

► 60,000 users

Scope and duration


In order to provide a unified technology experience, it needed a SMI function to coordinate service delivery across multiple vendors

3rd Party SMI

Client UCC Project

UCC Hosting

SP SP

Short Term

SP SP SP

Client

UCC Hosting

SP SP

Long Term

SP SP SP

Full SMI

…

3rd Party SMI

Client

UCC Hosting

SP SP SP SP SP

Partial Internal SMI

Mid Term

► Establish an internal SMI function to provide on going UCC service delivery within client UCC Project (resources owned by client UCC Project)

► Contract temporarily with external partners for other SMI resources until

► Implement eBonding for select processes

► Transition to partial in-house SMI capability

► External partners continue to provide SMI support with reduced scope

► UCC Project continues to help execute organizational change management

► Transition to full SMI capability in-house

► A dedicated in-house function manages and coordinates operations across vendors

(Months 0-6) (Months 6-12) (Months 12-24)


A rapid readiness assessment was performed to identify and prioritize gaps in key capabilities

1. Unreliable 2. Informal 3. Developing 4. Managed 5. Optimized

SMI Maturity Model

Current State

Strategic Direction

Performance Management

Contract Management

Service Lifecycle

Management

Financial & Business Case Management

Risk & Compliance Management

Governance &Program

Management

Continuous Improvement

1.0

2.0

3.0

5.0

Target State (2016)

4.0

The SMI Maturity Model enabled the client and EY to quickly assess the maturity or core capabilities required for SMI. Key capabilities include:

Strategic direction Performance management Contract management Service lifecycle management Financial and business case management Risk and compliance management Governance and program management Continuous improvement

We created a readiness checklist with critical improvements that must be completed prior to UCC go-live

Additionally, a transformation roadmap was designed to raise internal capability maturity and position the client for insourcing the UCC SMI contract


The SMI operating model defined the scope of the SMI function and its interaction with client stakeholders and service providers

SMI Tools and Reporting

Service Management Integrator (SMI)

Govern SMI

Value Governance Risk Governance Governance Reporting Strategy Management Portfolio Management Relationship Management Demand Management Performance Management Contract Management IT Financial Management

Manage SMI

Services

Demand

Services

Demand

Services

Demand

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UCCServices

• Application Support

• Service Desk

• Infrastructure Support

• Supplier Management

IT F

un

cti

on

s

Bu

sine

ss Fu

nctio

ns

RetailBanking

CorporateComms

Human Resources

Corporate & Institutional

Banking

Asset Management Group

Realty Services

Marketing

Internal Audit

UCC Demand

Run SMI

Event Management Incident Management* Request Fulfillment * Problem Management

Continuous Improvement &

Innovation

Em

plo

ye

e

Te

chn

olo

gy

Se

rvic

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Service Catalog Management Service Level Management* Capacity Management Service Continuity Management Information Security Management Supplier Management

Transition Planning and Support Service Validation and Testing Change Management* Knowledge Management Release and Deployment

Management Service Asset and Configuration

Management

Infr

ast

ructu

re

Se

rvic

es

Te

chn

ica

lS

erv

ice

sT

ran

siti

on

S

erv

ice

s

Finance

ResidentialMortgage

RiskManagement

Legal

ClientVendors

The Service Management Integrator functions as the “managing agent” over all other service providers in the client UCC environment. The Service Management Integrator will implement and run an ITIL based service framework that oversees the UCC supplier(s) ecosystem. It will also collaborate with Service Providers to present cohesive end-to-end services to the client employees.


eBonding enables exchange of ticketing and other IT Operations data between SMI and service providers. Being scalable, it allows additional UCC products or services to be added with minimal disruptions to the UCC service delivery model.

The client’s ServiceNow and service provider’s ITSM system were configured to exchange incident, change, request, and service level data.

ServiceNow’s robust SOAP APIs and web services enabled rapid integration with service providers

ServiceNoweBonding

Service Provider 2Ticketing Tool

Product 1

Product 2

Product 3

Network ServicesClient SMI

Service Provider 3

Ticketing Tool

Product 1

Product 2

Product 3

Internal SMI Function

Service Provider 1ServiceNow

Lync

SharePoint

Exchange

UCC Product X

UCC

New Service Provider or Product

ServiceNow’s robust integration and reporting capabilities, combined with its leading IT service management functionalities, enabled the client to quickly integrate with service providers

SMI Engine/Queue


Use case: Incident management in a SMI ecosystem

End User calls the Service Desk with an incident.

The Service Desk representative creates an incident ticket in ServiceNow

Web services / SOAP APIs/ REST

Incident attributes are exchanged between the client and the vendor’s IT service management systems using web services or SOAP APIs

A ticket is generated in the vendor’s incident management tool, and is populated with incident information from ServiceNow

Problem managementEvent

management

Change management

Service asset and

configuration management

Other processes

Customer interface management

Incident diagnosis and resolutions

Incident request monitoring and

tracking

Service affecting events

CI information

Service CALLS/REPORTS

Incidents requiring RCA

RFC requests

Incident management

Service level management

Incident SLAs

Service level management

SLA reports

Incident management workflow is initiated in the vendor’s Incident Management system. Tickets are routed as per the workflow until they are resolved.

Additional information required?

Incident is updated with status changes and comments from the vendor’s incident response team

Typical Incident management attributes exchanged:• Caller• Configuration item• Priority• Status

• Short description• Incident state• Subcategory• Additional comments

Bi-directional information flow

Yes

No

User and/or Service Desk representative provides additional information

Customer and/or Service Desk representative receives notifications with incident status and other updates

Service Desk representative updates the incident with new information

Vendor’s incident response team reviews incident information

User receives resolution confirmation

Incident is updated with status changes and comments from the vendor’s incident response team

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Information Exchange Layer enabled by eBonding


Use case: Metrics and reporting in a SMI ecosystem

Web services / SOAP APIs

Reporting attributes are exchanged between the client and the vendor’s IT service management systems using web services or SOAP APIs

Typical reporting attributes exchanged:• SLAs• Metrics / KPIs• Reports• Thresholds

Vendor # 1

Hosting Services

Metrics/Data

• Current and historical data• Short description• Trends

Vendor # 2

Network Services

Metrics/Data

Vendor # 3

Application Services

Metrics/Data

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Key features of reporting capabilities:

• Service Integrator is responsible for end to end reporting, aggregating, analyzing, and summarizing, rolling up data from service providers into reports

• Service Integrator will have access to various metrics from service providers and in certain cases access to raw data

• Vendors are expected to track and communicate metrics and data to the Service Integrator within timeframes dictated by client reporting requirements

• This will include

• SLA/OLA/UC compliance metrics

• Performance, availability and Capacity metrics

• Ad-hoc requests

• Vendors are expected to be flexible and accommodate changes in list of required data attributes

• SMI reports will include

• SLA/OLA/UC end to end reports

• Investigation reports

Service Integrator defines reporting requirements based on client’s needs

Service Integrator generates periodic or ad hoc performance reports and dashboards

Ve

nd

ors

Clie

nt

reta

ine

d

IT o

rga

niz

ati

on

/

En

d u

sers

Information Exchange Layer enabled by E-Bonding

Metrics and reporting database

Reports and dashboards are reviewed with the client

End users Business and IT stakeholders Retained IT organization


Desired Outcomes

Scalability

and vendor

independence

The proposed vision allows the client to capitalize on it’s investments to build a solution that can scale across the enterprise. The client would be able to onboard and offboard vendors seamlessly as business requirements change or technological advancements create new opportunities

Business

SIAM

Off board outdated technology and vendors

New Services

Onboard and integrate new services and vendors

Cost efficiency and

effectiveness

The proposed SIAM roadmap would allow the client to rapidly insource vendor capabilities that can be provided internally, resulting in cost savings. Also, the client would be able to optimize IT spend across multiple programs to augment value for money

Organization and

process maturity

The proposed vision would allow the client to leverage its investments in ITSM technology to accelerate the maturation of its internal people and process capabilities to meet their business objectives.

Immature organization and processes

Mature organization and processes

SIAM

IT Operations IT Operations

ITSM

SMO & SIAM


Putting it all together

Integration of people, process, and technology provide for a well balanced solution

Evolution of the IT capability in a multi-sourced environment is critical to the success of an organization

The ability to quickly build, integrate, automate, and scale is difference between success and failure

ServiceNow provides the enterprise with the ability to perform in a seamless manner

Standardization of multi-sourcing; Realization of value and dependency; Knowledge

Management


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Section 2 Considerations & Lessons Learned

Specific Capabilities – Vendor Considerations

Service DeskService Desk General, Incident, Request Mgmt.., Problem Mgmt.., Access Mgmt..

Core SIAM – Service Integration & Mgmt..

Service Knowledge Mgmt..Central Repository AllService ManagementReference Material

Service Provider AssuranceService Level Design & Review

Service & Supplier QualityRegulatory Service Provider Compliance

IT Info Security SupportIncident & Event Monitoring, Protective Monitoring, Forensic Analysis,

Security Assurance/Accreditation, Security Incident Prevention

Service Transition Planning & SupportService Transition Planning, Project Management, Release &

Deployment Mgmt.., Transformation Delivery & Benefits Realization

Service Validation & TestingTest Planning & Design

Service EvaluationTest Environment Management

Availability Mgmt..Capacity Mgmt..Change ManagementEvent Mgmt.IT Service Continuity Mgmt.Service Asset & Configuration

Service Catalogue Mgmt.Service Level Mgmt.Standards & ArchitectureFinancial Mgmt. SupportService Provider Mgmt..


Technical Considerations

Vendor Logistics

• Define contractual SLAs and performance metrics

• Understand vendor capacity and dependency

• Determine integration frequency

• Deliver interactive Knowledge

01

Performance Impact

• Review ServiceNow instance infrastructure

• Analyze capacity for self-hosted environments

• Coordinate resources for instance dependencies (database, network etc.)

• Isolate recursive scenarios

02

Network Connectivity

• Configure firewalls and other security gateways

• Add exceptions to VPN and IP range based authentication

• Test data integrity and security

03

Disaster Recovery

• Outline outage remediation procedure

• Handle notifications

• Activate backup measures

• Reprocess failed integration

• Identify root cause

04

Client Business Processes

• Understand existing client business processes

• Develop seamless integration with service provider

05

Training,Go-Live andPost Go-Live

• Create Knowledge for future support

• Report service usage and supplier visibility

• Track resource allocation and accountability

• Iterate through considerations

.

06

Lessons Learned:

Contract Management

• Know your vendor

• Understand contractual obligations

• Negotiate changes early

• Lock down scope before starting

Project Planning

• Plan across all stakeholder groups

• Map all dependencies

• Sequence work properly

• Prioritize Day 1 vs. Day 2

Testing

• Provide traceability to requirements/features

• Define UAT with stakeholders early

• Allow time for go live testing

Operational Readiness • Have a plan

• Have a backup plan

• Have coverage for volume spikes


Lessons learned

Focus on the end-to-end service delivery, instead of individual service components

Build an integrated SMI function to coordinate service delivery across all service providers

Hold SMI accountable for the end-to-end service delivery

Define an operating model that enables service integration across the enterprise and its service providers

Establish standard service integration requirements to be adopted by all service providers

Design key processes using leading practices and standardize them across all service providers

eBonding is a key requirement for all new and existing tools. Design the eBonding architecture to rapidly

onboard and offboard service providers

Leverage the maturity of service providers support capabilities to accelerate improvements to the internal

support functions

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Section 3 Appendix – Enablers

EY enablers used to support the our clients SMI engagement

SMI Operating Model IT process reference model SMI governance model

SMI design principlesSMI roles and responsibilities SMI job descriptionsSMI functional model


EY SMI service offerings align with ServiceNow’s Service Integration and Management (SIAM) capabilities

► SMI RFI and RFP

► SMI governance framework

► Vendor assessments

Vendor performance management

► End-to-end service level reporting

► IT service quality dashboards

Performance analytics

► Major program transformation

► Project and portfolio management

Project and portfoliomanagement

► Service costing

► IT cost transparency

► Bill of IT

IT financial management

► Enterprise service catalog

► Service catalog integration

► Service catalog management process

Service catalog

► Enterprise Service Automation (ESA)

► Service architecture design

IT operations management

► SMI operating model

► E-Bonding and service integration

► Process design and implementation

► SMI managed services

IT service management

► Integration with Enterprise GRC

► IT vendor risk management

Governance, risk and compliance


Thank You!

service management integration - wsta · introduction dan stavola ... service management...

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