Enterprise Shared Services
Timothy Rehac
Partner, IT Strategy & Architecture
EMC Consulting
Jim Silvia
Regional Manager
Laserfiche
Dave Kirk
Manager, Enterprise Initiatives
Management of Strategic Technologies Division Department of Information Services
Agenda
•
Welcome / Introduction
•
Establishing Enterprise Shared Services
•
Enterprise Content Management Shared Service
Agenda
•
Welcome / Introduction
•
Establishing Enterprise Shared Services
–
Enterprise Shared Services Concepts
–
How to deploy Shared Services
–
Case Studies / Lessons Learned
•
Enterprise Content Management Shared Service
Centralized / Decentralized Pendulum
Centralized
• Scale
• Efficiency
• Specialization
• Standardization
De-Centralized
• Customer Intimacy
• Alignment
• Flexibility
• Innovation
We have swung back and forth between Centralized and De-Centralized over the
past 40+ years, just swinging back to Centralized is not the answer.
Service Orientation
•
A Service is…
•
“A means of delivering
value
to
customers
by facilitating
outcomes
that customers want to achieve without the direct
ownership of specific
costs
and
risks
.” – ITIL V3
•
Services have a readily identifiable consumer and provider and
The Cloud Imperative
Sources: Amazon, EMC CIG, VMware analysis
Utilization
0.0 ¢ 4.0 ¢ 8.0 ¢ 12.0 ¢ 16.0 ¢ 20.0 ¢ 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Cost / VM hr (2GB inst) Average Enterprise Amazon EC2 Reserved Pricing The Cloud ImperativeThe enterprise challenge is to coordinate service
strategy across three core constituencies
•
Health Services (human & digital)
•
Licenses / Permits / Records (human & digital)
•
Education (human & digital)
•
Employment (human & digital)
•
Public Safety (human & digital)
•
Consulting & Solutions (human)
•
Licensing Applications (digital)
•
Unemployment Applications (digital)
•
Collaboration (digital)
•
Content Management (digital)
•
Management (human + automation)
•
Compute (digital)
•
Store (digital)
•
Network (digital)
•
Desktop (digital)
Clo
ud
Im
pe
tra
tiv
e
Press
ur
e
GOVERNMENT
The Enterprise needs to govern overall service strategy
Architecture
Design,
Development,
Quality Assure
and Deploy
Infrastructure Services
Security
Service Management
Infrastructure as a ServiceApplication Services
Software as a ServiceData as a Service Content as a Service Platform as a Service
Health ExpenseTravel &
Search BPM
Licensing CRM Collaboration ECM
Business Services
Business Processas a Service
Knowledge Health Facilities Travel Licensing Call Center
Finance HR
Government Services
Consumers
Mobile as a Service Desktop as a Service Architecture as a Service Design as a Service Development as a Service Quality Assurance as a Service Deployment as a Service Security as a Service Identity as a Service Authorization as a Service Authentication as a Service Confidentiality as a Service Integrity as a Service Audit as a ServiceShared Services: Core Building Blocks
Focus on Efficiency, Lean Centralization of common
functions
Service Level Agreements Transparently charge for
actual Service consumed
Repeatable, process driven
delivery based on Best Practices / Frameworks
Separate Demand & Supply
Management
Focus on Agile, Innovation,
Alignment with Business
Decentralize Advisory,
Relationship Management & roles requiring intimate business knowledge
Manage the service as a
business, not a fixed cost
Offer services customers
value, at the level they prefer
Provide incentives for
breakthrough methods, improve efficiency, invest in new services
Competition / benchmarking
ensures Market Competitive pricing
Professional Services
Organization Model
By combining the value provided by three supporting concepts, this model delivers on the
promise of technology at the lowest cost possible.
Service Oriented Organization
Run
As a Business
Shared
Why Ultimately Shared Services?
Savings of
40 % to 50 %
from IT Shared Services
Savings of
56 % to 63 %
from Integrated
Business Services
Environment
Organization
Processes
Services
Offerings
Infrastructure
Service Maturity Model
Maturity Level
Level 1
Initial Level 2Supply Focused Level 3 Service Focused Level 4 Demand Focused Level 5 Market Focused Desire to move to Shared Service Strategy, desire to move to Shared Service Communicated Value proposition understood by most Business supports model, model aligns with Business Business & Technology Management Converged Unknown Beginning to segregate Demand/Supply Organization Service Centers Operational Demand & Service Management functions operational Professional Services Org. Model Initial, performed, inconsistently followed Managed, measured against baseline Defined, consistently followed, measured against IT organizations Quantitatively managed, benchmark against leading IT organizations Optimizing, benchmarked against "World Class" Organizations Undefined, Ad hoc Defined -Catalog of "What we do" Refined -Catalog of "Services" Client Centric descriptions of service packages -> Capabilities Complete catalog of Capabilities of IT
& its Partners
Unknown, Incomplete, Required
Required
support in Supports
Potential Savings Opportunities
Maturity Level
Level 1
Initial Level 2Supply Focused Level 3 Service Focused Level 4 Demand Focused Level 5 Market Focused None Consolidation Standardization, Consolidation, Re-use, Quality Improvement Process Efficiencies, Demand Management, Re-use Process & Sourcing Optimization, Re-use, Innovation None 0 to 10 % 5 to 15 % 5 to 15 % 5 to 10 %
Minimal Intermediate Substantial Intermediate Minimal
1 to 3 Months 6 to 12 Months 9 to 18 Months 6 to 12 Months 6 to 12 Months
Savings
From
Incremental
Savings
Opportunity
Incremental
Investment
Required
Timeframe
(Without
Acceleration)
Total savings of 15 % to 50 % are possible. Without acceleration, realization of full savings
opportunity may be delayed up to 5 years.
Har
v
est
Som
IT 2.0: SOO - Savings Opportunities
Maturity Level
Level 1
Initial Level 2Supply Focused Level 3 Service Focused Level 4 Demand Focused Level 5 Market Focused None Consolidation Standardization, Consolidation, Re-use, Quality Improvement Process Efficiencies, Demand Management, Re-use Process & Sourcing Optimization, Re-use, Innovation None 0 to 10 % 5 to 15 % 5 to 15 % 5 to 10 %
Savings
From
Incremental
Savings
Opportunity
Supply Focused Required Enablers: • Consolidation / Rationalization of organizational structures • Commitment to achieve savings Service Focused Required Enablers: • Supply Focused + • Strategic Sourcing • Enterprise Architecture (Standardized)• Process Focus (Performed) • Metrics Focus (Operational) • Service Definition
• Service Level Management • Funding Model (Incentives for Re-use)
Demand Focused Required Enablers:
• Service Focused +
• Service Level Management (multiple service levels) • Funding Model (Consumptive pricing & tiered pricing)
• Demand Management • Metrics Focus (Financial) • Process Focus (Managed) • Enterprise Architecture (Optimized Core) Market Focused Required Enablers: • Demand Focused + • Sourcing Optimization • Metrics Focus (Benchmarking)
• Process Focus (Quantitative) • Funding Model (Incentives for Innovation)
• Enterprise Architecture (Modular)
> Our client, a global Pharmaceutical Company, was faced with a significant need to reduce costs across their IT organization. At the same time, the client needed to shift IT spending from non-discretionary to more value add
activities
> Prior to this abrupt event, the internal services
organizations had been charged with delivering to the business needs, but had not focused on doing so as cost efficiently as possible
> IT delivered to business needs, but in a siloed, redundant, locally optimized way
> EMC Consulting assisted the client in developing a new IT Operating Model that split Demand and Supply and created Enterprise Shared Services
> EMC Consulting assisted the client in the transformation activities associated with implementing the new
Operating Model
> The client adopted EMC Consulting’s Capability Maturity
Model and Methodology for creating Shared Service Centers enabling a significant acceleration of their schedule
> EMC Consulting supported the growth of the Shared Service Centers with additional delivery and
management capacity
> The Company continues to mature IT along EMC Consulting’s Maturity Model and is focusing on achieving Level 4 - Demand Focused
> The Company has promoted to the CIO to also lead the other major internal service functions and is currently pursuing a Global Shared Services model for these functions
> The Company has reduced IT expense by over
$ 100 Million over 3 years by adopting Shared Services across their IT organization
> The IT group continues to meet its commitments to the business and has improved it’s on-time / on-budget performance
> The Company was able to significantly shift their spend from lights-on activities to enabling business innovation
> The Company is now focused on optimizing solutions at the Enterprise level