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  • PPM, QA, Service Desk, Sourcing,
  • בשנת 2012 נמצאים ארגונים ישראליים תחת הלחץ:1. של כלכלה עולמית הלא יציבה (מיתון עולמי מצמצם את ייצוא ישראלי, מלחמה מסתמנת עם אירן, מהפכות בעולם הערבי)2. צורך לעמוד בדרישות רלגולטוריות חדשות3. עליית הכוח של הצרכנים אשר סימנה המהפכה החברתית4. התקפות סייבר – והצורך להתגונן מסיכון הלא נודע5. וצורך מתמיד בחדשנות על מנת לעמוד בקצב השינויים בהרגלי הצריכה של לקוחות
  • Better managementChanging the IT services pricing modelSourcing modelsLean IT
  • With economic pressure, increased cloud-sourcing and changes to service delivery models, the allocation of staff within IT remains surprisingly stable
  • התעסקות בתקציבי ה IT אינה מקרית, מחצית מהשקעות הארגוניות הולכת להשקעה בטכנולוגיה. ע"י השקעה מאסיבית בטכנולוגיה החדשה ארגונים מסוגלים לתת מענה לתחרות הגוברת
  • ולכן הטענה העיקרית נגד IT הנה כי IT מתנהג עדיין כספינת תובלה שקשה להזיזה מהנטיב הנקבע מראש וכי מרבית ההוצאות ה-IT הולכות עדיין על תחזוקה
  • אםIT מואשם לעיתים בחוסר זריזות, הרי שגורם מספר אחד לאי עמידה של פר IT בלוחות זמנים או תקציבים – זה הדרישות המשתנות של הביזנס.אבל הפרדיגמה שפורטפוליו של IT לא משתנה היא שגויה, חייבים להתמודד עם שינויים במהירות עקב השינויים ששוק תחרותי מציף כל הזמן. פיני ידבר במצגת שלו על ספרינטים קצרים של פיתוח AGILE המאפשרים להגיב כל הזמן לשינויים בדרישות העסקיות. אנחנו נראה גם מעבר לחבילות עבודה קטנות יותר, רגישות למחיר, ובסבירות גדולה לא יוצאות לפועלHi level plan לרבעון הנוכחי
  • Thanks to the cloud3. IT will be able to deliver new products and required services as quickly as market offerועדת היגוי קבוצתית ברבעון יותר שיתוף וחיבור
  • IT will just be one of many possible sources of development that departments can use, and in many instances internal IT will compete with outside contractors for specific jobs
  • successful leaninitiatives are increasing as manufacturersrecognize the key enabler of continuousimprovement and eliminatingwaste – technology.
  • Acceture-ITG - Discussions on the impact of cloud computing and mobility have become routine. ITOs are just beginning to wrap their minds around Big Data. They’re pushing to weave analytics deeper into the organization
  • is an internal accounting procedure where your company charges departments for the cost of IT support. If a department had to obtain programming support from an outside company, they would pay anywhere from $50 to $150 per hour for the work they request
  • Clearly defined priced IT2 טענות מועלות בד"כ נגד
  • Gartner: For Better Cost Chargeback, First Determine IT Services and Costs
  • The IT services catalog should be the basis for developing a chargeback and allocation process and rate settingHardware: Depreciated and amortized capital expenditures, as well as leases and maintenance fees. Software: Depreciated and amortized capital expenditures as well as software licenses and maintenance fees. Personnel: Direct labor costs for full-time equivalents (FTEs) functioning in an IT capacity. Includes salaries and benefits. Services: Contracted costs from ESPs, including outsourcing, system integration, consulting, professional IT services and telecommunication carriers. Other: Facility costs, such as power, cooling, and occupancy of owned or leased buildings.
  • setting aflat rate per email box is a decent first step toward usage-based billing but doesn’t account forindividual resource consumption. A refinement to more accurately reflect usage would be tosetting aflat rate per email box is a decent first step toward usage-based billing but doesn’t account forindividual resource consumption. A refinement to more accurately reflect usage would be to
  • אמורים לדבר בקלות על נושאים עסקיים כמו – מהלך נבון בשיווק וגם בנושאים טכניים כמו - איפיון
  • 2. But this role more of an audit and reporting role, the function of which is to give guidance to individual department heads on ways to improve efficiency through cooperation and consolidation
  • אוש כדאי שיהיו ממוכניםחטיבה כלכלית של שיתוףחיבור BTM
  • Optimum portfolio mix and project evaluation for cost, value, and riskResource mngt - Prepare internal resources to become brokers not providers as the cloud enables externalization of many current IT functions
  • ליזה:נכון לעכשיו עדיין לא עושים הרבה שימוש בנושא של הווידיאו אבל בהחלט יש רצון להחליף את מערך ההדרכה המסורתי ליותר מעניין וכן להכניס יותר שימוש בוידיאו...יש לך כאן למטה 2 דוגמאות למה שאנשים בשולחן העגול דיברו על הווידאו....יש עכשיו גם משהו מעניין כזה שזה וידיאו שבמהלכו אתה בוחר מה יקרה הלאה וזה ממש יפה... אם תרצה אשלח לך לינק... פלאפון:הדבר הבא זה לומדות מתקדמות.. רוצים לעשות מערכות חזקות- רוב העובדים הם מאוד חדשים וזה האתגר הגדול- נמאס מהלומדות.. הדבר הבא זה ווידיאו.. הבעתיות זה סממנים חבריים- שם הקשיים מכבי שירותי בריאות: עולם חדש בונים על שרפויינט 2010 יכולת שיתוף הלינק על מנת לעשות הדרכה חברתית, לעשות וידיאו קונפרנס זה עדיין ממש בחיתולים... 
  • PPM, QA, Service Desk, Sourcing,
  • and on bureaucratic processes
  • CAN’T YOU DO ANYTHING RIGHT?
  • Respondents cited self-service, service desk staff competency and knowledge management asthe next three major reasons for the reduction in calls
  • תמחור חסרהלא יודע
  • מקווה לזכות בביזנס חדש- מה שלעולם לא קורהרוצה שלקוח יהיה מרוצה אבל לא מוכן להפסיד
  • תמחור חסר
  • אם יש פער גדול צריך להבין מאיפה אם אני ונדור להפסיד ואני הולך להפסידלפעמים לעבור ל טיים רק כדי להוריד אסקלציות טלפונת עדיף עוד כמה שקלים

Galit fein office of the cio presentation full version v5 Galit fein office of the cio presentation full version v5 Presentation Transcript

  • Office of the CIO Office of the CMO Market Trends 2012Tell me and I’ll forgetShow me and I may STKI Summit 2012remember Galit FeinInvolve me and I’ll VP & Senior Analyst
  • Agenda MEGA Office of Office of Trends the CIO the CMO IT Services and Chargeback Mobility QA, Service Desk Social Media Sourcing Galit Fein’s work Copyright 2012 @STKI 2 Do not remove source or attribution from any graphic or portion of graphic
  • Israeli Enterprise 2012: Under Pressure COM PETI TION Enterprise Global Economy Innovation 2012 Galit Fein’s work Copyright 2012 @STKI 3 Do not remove source or attribution from any graphic or portion of graphic
  • 1980’s - IT Department MIS BO Operations Back DRP Office Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 4 Do not remove source or attribution from any graphic or portion of graphic
  • 1990’s - IT Department IT CFO Transactions manager BO Back Office ERP DRP Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 5 Do not remove source or attribution from any graphic or portion of graphic
  • 2000’s - IT Organization Processes CIO BO CFO Sales Web Back CRM site Office DRP ERP Infrastructure Security Galit Fein’s work Copyright 2012 @STKI 6 Do not remove source or attribution from any graphic or portion of graphic
  • 2005 - IT Organization HR Processes CIO Back CRM Office DRP ERP HR Infrastructure Security CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 7 Do not remove source or attribution from any graphic or portion of graphic
  • 2008 - IT Organization OCIO HR Processes CIO Back CRM HR Office DRP ERP PPM Infrastructure Security CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 8 Do not remove source or attribution from any graphic or portion of graphic
  • 2010’s – Technology & Information Systems CEO OCIO HR CMO Business Products Technology & IT VP Analytics Back CRM HR Office DRP ERP BI PPM Infrastructure OR Mobile Security Social media CFO Sales BO Galit Fein’s work Copyright 2012 @STKI 9 Do not remove source or attribution from any graphic or portion of graphic
  • Capex increasing, Opex not decreasing Capex: New business demand for IT services$$ Opex1: Last year capex x 15% Opex2: 5-10% decrease on existed Time Galit Fein’s work Copyright 2012 @STKI 10 Do not remove source or attribution from any graphic or portion of graphic
  • How Can We Fill The Gap? Business demand for IT services$$ IT Budget Time Galit Fein’s work Copyright 2012 @STKI 11 Do not remove source or attribution from any graphic or portion of graphic
  • IT Budget Trends• Modest increase in IT budget -average rise of 3.7%• IT Capex flattens at beginning of year due to uncertainty• Despite continued volatility, IT staffing remains constant Galit Fein’s work Copyright 2012 @STKI 12 Do not remove source or attribution from any graphic or portion of graphic
  • Meeting business expectationsIT has to:• Create new platforms to support business innovation and growth• To be competitive to new IT service models or be open to use them Creating new products IT’s ideal priorities Reducing IT costs IT basic servicesSatisfaction with IT’s effectiveness New ideas Source: McKinsey 2012 Galit Fein’s work Copyright 2012 @STKI 13 Do not remove source or attribution from any graphic or portion of graphic
  • Capital Organizational Spending Technology Other Investments 47% Source: IDC 2012 Galit Fein’s work Copyright 2012 @STKI 14 Do not remove source or attribution from any graphic or portion of graphic
  • The Majority of IT total spending goes to Maintenance Breakdown of Total IT Expenditure 2009-2012 Innovation Business opportunity Maintenance Mandatory Source: CIO Executive Board 2012 Galit Fein’s work Copyright 2012 @STKI 15 Do not remove source or attribution from any graphic or portion of graphic
  • If you can’t beat them… What are the main reasons for SW project overruns? IT Portfolio is Changing requirements 56% changing quickly Poor estimation 17% due to changes in competitivePressure from management 15%to accept unreasonable schedules Resource: Cutter conditions Agile world – ability to respond on the fly to constant changes in business requests Small, cost-sensitive, more likely to be "disposable" Galit Fein’s work Copyright 2012 @STKI 16 Do not remove source or attribution from any graphic or portion of graphic
  • Changing Requirements AND Deliverables All the TimeSprint B Previous requests AND Sprint A Business New business demands requests P P R A2 A7 R A I Detailed I O O R Planning R A3 A A2 I I T T I B1 I Z A Z A A T T I B2 I A80 A79 O O N N Galit Fein’s work Copyright 2012 @STKI 17 Do not remove source or attribution from any graphic or portion of graphic
  • Consumer Power• End of IT monarchy: IT will be one of possible sources of development that departments can use, and in many cases internal IT will compete with outside contractors for specific jobs• IT spending is gradually changing it’s guards - from ITO to business departments• Different areas such as: risk, mobile, HR, IT purchase leaks to business departments Galit Fein’s work Copyright 2012 @STKI 18 Do not remove source or attribution from any graphic or portion of graphic
  • Radical Change of IT - Efficiency and Agility• IT can find itself nearly irrelevant, unless it becomes efficient , agile, and competitive with other market offerings• IT should embrace the new models offered by cloud or service providers, otherwise it will be replaced by them• Lean IT Galit Fein’s work Copyright 2012 @STKI 19 Do not remove source or attribution from any graphic or portion of graphic
  • What is Lean? • Japanese automotive Industry developed Lean manufacturing with a lead from Toyota and utilising the Toyota Production System (TPS) factory. • Maximize customer value by eliminating waste and optimizing the existing processes in all aspects of a firm’s production activities: HR, vendor relations , technology, and the mngt of materials and inventory • Doing more with less effort. Focus on your key processes in meeting customer needs with all muscles without any fat or waste. Source: http://www.hydspin.org/files/conf09/g_appa_rao.ppt STKI modifications Galit Fein’s work Copyright 2012 @STKI 20 Do not remove source or attribution from any graphic or portion of graphic
  • Customer VALUE and WASTE • The purpose is to deliver VALUE that the customer needs and is willing to pay for • If it ain’t value, its WASTE – Extra (unused) features – Handoffs – Task switching – Delays – Defects / REWORK – Partially done work / work in process Source: AgileSparks Galit Fein’s work Copyright 2012 @STKI 21 Do not remove source or attribution from any graphic or portion of graphic
  • Lean Benefits Wait Time Cycle Time (non value add) Before Work Time (value add) After Same work completed in less time Requirements Design Development Cost/ Chaos FLOWAvg time3 weeks Waiting Waiting Defect Fixing Cycle time Relentlessly focus on reducing non-value adding activities Galit Fein’s work Copyright 2012 @STKI 22 Do not remove source or attribution from any graphic or portion of graphic
  • Anything that slows down development • Inefficient manual steps to build/ install/ test/ release • Not fixing broken build/tests • Code Complexity (skipping refactoring, duplicate code, coupling and spaghetti code, etc.) • Code that not executed (but supported) • No documentation and leveraging of knowledge Source: AgileSparks Galit Fein’s work Copyright 2012 @STKI 23 Do not remove source or attribution from any graphic or portion of graphic
  • Office of the CIO Galit Fein’s work Copyright 2012 @STKI 24 Do not remove source or attribution from any graphic or portion of graphic
  • Office of the CIO penetration in Israel 2012 OCIO Banking Insurance Health Credit Cards Telecom Industry Goverment IDF Galit Fein’s work Copyright 2012 @STKI 25 Do not remove source or attribution from any graphic or portion of graphic
  • MEGA IT Trends 2012 Real Time Predictive Analytics and MobilityConsumerization IT Services social Context based Galit Fein’s work Copyright 2012 @STKI 26 Do not remove source or attribution from any graphic or portion of graphic
  • IT services and cost transparency• By implementing OCIO tools and methodologies , ITOs achieved greater business satisfaction with IT• BUs received greater visibility and control over their technology budgets• NOW, encouraged by better visibility and cloud models alternatives, business managers do not want the technology cost to become overhead cost or annual tax• IT must sell and deliver cost based services We deliver IT Galit Fein’s work Copyright 2012 @STKI 27 Do not remove source or attribution from any graphic or portion of graphic
  • From unresponsive corporate overhead to an agile business partner All-you-can-eat buffet Fast-food restaurant VS• Everyone pays the same • Price is affordable price • Choices driven by market• Food selections are driven by demand the chef’s priorities • Customers pay only for what they consume Galit Fein’s work Copyright 2012 @STKI 28 Do not remove source or attribution from any graphic or portion of graphic
  • The new IT Client/user Packaged Application Galit Fein’s work Copyright 2012 @STKI 29 Do not remove source or attribution from any graphic or portion of graphic
  • Why do we need IT Chargeback• It helps organizations understand that IT is not free• It gives BUs greater visibility and control over their technology budgets• It demonstrates the cost savings from shared services• Demand for visibility in IT costs comes from outside the ITO Galit Fein’s work Copyright 2012 @STKI 30 Do not remove source or attribution from any graphic or portion of graphic
  • IT Chargeback Recommendations1. Well-defined portfolio of IT activities along with outputin terms which are coherent to the customer Server DRP2. Start mapping types of Upgraderequirements which repeat themselves:• BI reports• Changes in GUI (field, color, etc.)• Client differentiation “When we are no longer able to change a situation, we are challenged to change ourselves”. Victor Frankl Galit Fein’s work Copyright 2012 @STKI 31 Do not remove source or attribution from any graphic or portion of graphic
  • Put It All Together: The IT Service Portfolio and Service Catalog• Bundling: • Value proposition:A clear definition of what the Why should the business buy it?service entails, and how it relatesand integrates with others as a • Competitive advantage:service package Why should the service be bought from internal IT?• Differentiation:Multiple offerings at different • SLAs/reporting/performanceprices for different parameter datavalues, for items such as service • Pricing and chargebackhours, availability and response time • Exceptions and escalations • Internal and external benchmark data Galit Fein’s work Copyright 2012 @STKI 32 Do not remove source or attribution from any graphic or portion of graphic
  • Ascertain IT Service CostsCOULD BE: Capex Hardware Software Installation costs Customization costsOne-timeexpenses Training costs Source: Galit Fein’s work Copyright ITSM 2012 @STKI 33 Do not remove source or attribution from any graphic or portion of graphic
  • Cost Model with Variable Pricing - ExamplesHigh-level Availability Performance Provisioning Security Standarddescription of guarantees guarantees servicewhat the definitionsserviceprovidesE-mail 24 x 7 with 4/9 mission criticaldelivery uptime 10 x 5 with 3/9 business critical business operational administrationHelp desksupport Galit Fein’s work Copyright 2012 @STKI 34 Do not remove source or attribution from any graphic or portion of graphic
  • Cost Model with Variable Pricing - ExamplesHigh-level Costsdescription ofwhat the serviceprovidesHelp desk Cost of tech Equipmentsupport Software Labor Manager 1st level support 2nd level support Facilities 3rd party services Direct costs Email server Indirect costs Per-foot operating cost of a DC Fixed Permanent IT staff Variable costs Temps Galit Fein’s work Copyright 2012 @STKI 35 Do not remove source or attribution from any graphic or portion of graphic
  • IT ChargebackConsumption $X per month per gigabyte of network storageTransactions: $Y per new PC set up and configurationUnits or headcount $Z per phone number or network portAllocation A base fee for IT overhead allocated, according to a BU’s percentage of total revenue or total employees Galit Fein’s work Copyright 2012 @STKI 36 Do not remove source or attribution from any graphic or portion of graphic
  • OCIO comprises of Business-IT relationship managers• All these ITG methodologies and new defined processes, SLAs, IT chargebacks and service catalogs could be very confusing• OCIO has important role in the communication with and the support of BU• Effective BRM must be a true hybrid of business and technical orientation• More than audit & reporting role - guidance to BU heads on ways to improve efficiency Galit Fein’s work Copyright 2012 @STKI 37 Do not remove source or attribution from any graphic or portion of graphic
  • Office of the CIO• As decentralized as IT gets, one person should have the visibility on the total spend, because there are a lot of places where effort and resources can get duplicated and wasted if no one has the big picture• Greater business partner responsibility - more business leaders are willing to take primary responsibility for managing delivery. BRMs consistently underestimate business partners willingness to lead• Engage business leaders in advance, to ensure effective technology delivery that doesnt introduce inefficiency and unnecessary complexity or undermine IT strategy Galit Fein’s work Copyright 2012 @STKI 38 Do not remove source or attribution from any graphic or portion of graphic
  • OCIO is Very Busy• BRM (Key Users) • IT Operations• Budget plan • Project mng/ Development• IT HR • QA/ Testing • Vendors mng• EA • Legal/ Compliance• Procurement plan • Remote sites - DR/BCP• Change mng • Critical Success Factors– ITIL-related • Key Process Indicators– Project-related • Controls in general• Risk/ security mng• Configuration Items: • Roll Out -– New ones that will be installed Does not end after project goes– Existing ones that will be change live! OCIO must maintain charge of employees knowledge and Galit Fein’s work Copyright 2012 @STKI usage of new system/ features Do not remove source or attribution from any graphic or portion of graphic
  • OCIO Responsibilities in Israel 2012 Strategic IT Plan …Selection, control and evaluation of IT PMO IT budget mng Methodologies, processes & tools Risk mng Enterprise architecture HR QA HD Other: App mng, training, config. Mng Source: STKI 2012 Galit Fein’s work Copyright 2012 @STKI 40 Do not remove source or attribution from any graphic or portion of graphic
  • OCIO helps IT be Competitive Service Provider Optimum portfolio mix Investment decisions Service Level translation into IT and project architecture and infra. Agreements evaluation Project Chargeback Resource mng Tracking Formal Tracking of Roll out Business Value Galit Fein’s work Copyright 2012 @STKI 41 Do not remove source or attribution from any graphic or portion of graphic
  • IT Project Rollout Plan - Actual project mngt • Detailed Work Breakdown Structure with dates - milestones, control gates, etc. • GANTT charts showing dependencies and progress • Human Resource Plan (Internal, Vendors, Customers) • Configuration Items:  New ones that will be installed  Existing ones that will be changed • Purchase/procurement plan for required CIs • Budget Plan Galit Fein’s work Copyright 2012 @STKI 42 Do not remove source or attribution from any graphic or portion of graphic
  • Employees knowledge and usage of new system/ features• Communication Plan (Awareness, Meeting schedules)• Project Change mngt Plan• Security Plan• Other aspects of project mngt based on your organization’s needs  What controls are needed to create a reasonable assurance of outcomes?• Roll Out Does not end after project goes live! OCIO must maintain charge of employees knowledge and usage of new system/ features Galit Fein’s work Copyright 2012 @STKI 43 Do not remove source or attribution from any graphic or portion of graphic
  • PPM ToolsPositioning of the Israeli Market Clarity (CA) Microsoft Worldwide Leader Enterprise Local Support MSP SaaS Player New Player Sciforma HP ITCC Primavera Clarizen Market Presence Galit Fein’s work Copyright 2012 @STKI 44 Do not remove source or attribution from any graphic or portion of graphic
  • PPM Tools & Integrators in Israel Clients New Clients 11’ IntegratorsClarity (CA) Ministry of Tourism, Clalit, SanDisk, Orange, Pelephone Proceed Leumi Card, Harel, Jewish Agency, Strauss, Bank Leumi Teva, Bank Hapoalim CA, OrantechMSP Menora, IAI, Tel-Aviv Munic. Ayalon- Min.of the Environment ONE1 ins, Cellcom, Phoenix, Leumit, Visa CAL, BDO Justice Department, Clal Bit, Bank Igud, Delek, Paz, YES, CIO Dashboard: Random Logic, IDF, Elbit. iTeam (budget planning)Sciforma Bank Discount, Menora, Teva, Visa HOT, ZIM, Isracard, Xioma Cal, BVR, Nova, Evogene, Leadcom Machteshim agan eng. Signifer, Aman Hazera Genetics, Bid Band Networks, Given Imaging IDE, Veraz, Opgal, Teva TechPPM (HP) Mataf, Motorola(Global), LivePerson HP, BDA Galit Fein’s work Copyright 2012 @STKI 45 Do not remove source or attribution from any graphic or portion of graphic
  • PPM Tools & Integrators in Israel Clients New Clients 11’ IntegratorsEPM M-system, Leumit, IAI, IAA, Lotem, Bezeq, MS 2010 Matan, Orantec Mekorot, Orbotech, Bank Leumi, Coca- Amdocs, Defense(Microsoft) Cola, Nice, Matan: Machteshim Agan, h, Neway, PZ Matan: Strauss, Tel-Aviv Municip. Prime Minister, Maccabi, Alvarion, IAA, Elta, Marvell Projects Better Place, Tnuva, Random Logic; Orantech: Navy, Shabas, Teva R&D, Orantech: Netafim, ECI, Ceragon, Logic, Sorek, Leumi Le’Mashcantaot AD Gency Sol gel Rocar Playtech, PZ Projects: Justice Department, Sandisk; KAKAL, MODU, Kodak, RAD; PZ Elisra Projects: Min. of Foreign Affers; Proceed: MalamApproach Netafim Approach,PPM on Force.com SalesForce.comClarizen Tnuva ClarizenPrimavera Mercava, IDF, Intel Aviv(Oracle)Compuware Jacada (Global), Retalix (Global) MatrixChangepointITCC ECI, Tama, Metro Motor thats IT Galit Fein’s work Copyright 2012 @STKI 46 Do not remove source or attribution from any graphic or portion of graphic
  • Learning, Training and Implementation Galit Fein’s work Copyright 2012 @STKI 47 Do not remove source or attribution from any graphic or portion of graphic
  • Learning, Training and Implementation Trends As a result of:  Too many new systems  IT requirements flood  Employment high turnover  Generation gap  Lack of control of new system’s implementation Training and implementation are under HUGE focus Galit Fein’s work Copyright 2012 @STKI 48 Do not remove source or attribution from any graphic or portion of graphic
  • Does your organization measure the ROI generatedby the new system? Yes No Source: STKI 2012 Galit Fein’s work Copyright 2012 @STKI 49 Do not remove source or attribution from any graphic or portion of graphic
  • Learning, Training and Implementation - Major Trends• Gamification• Video Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • Video e-Learning –Next Generation Customer Care Subject covered in Shahar Maor’s presentation Choose your next choice on-the-flyVideo evolves according to choices made http://blogs.wsj.com/speakeasy/2010/10/25/andy-grammers-keep-your-head-up-applies-choose-your- Galit Fein’s work Copyright 2012 @STKI own-adventure-logic-to-music-videos/ 51 Do not remove source or attribution from any graphic or portion of graphic
  • Recommendations• Look for innovative ways to make SW training less boring Clue: American test is BORING• Gamification and Video trends serve as perfect training and implementation tool• If you invest massively in purchasing new SW invest a little more to make sure your employees use it to the max Subject covered in Liza Bodogin’s presentation Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • Agenda MEGA Office of Office of Trends the CIO the CMO IT Services and Chargeback Mobility QA, Service Desk Social Media Sourcing Galit Fein’s work Copyright 2012 @STKI 53 Do not remove source or attribution from any graphic or portion of graphic
  • QA and Testing Galit Fein’s work Copyright 2012 @STKI 54 Do not remove source or attribution from any graphic or portion of graphic
  • QA & Testing Services - Trends • Becoming more important as a result of new regulations and security requirements • Major priority to cost reduction: by using Nearshore model • Due to high competition - use of variety of tools and methods: Crowd testing, KDTpro, Practitest, Experitest, Perfecto Mobile • In spite of clients preferences for in-house QA, they’re more willing to give vendor some scopes of work Galit Fein’s work Copyright 2012 @STKI 55 Do not remove source or attribution from any graphic or portion of graphic
  • QA & Testing Services - Israeli Market • We can honestly say “goodbye” to independent testing companies! We’ve tried, but we failed  • Majority of IT projects are using the same vendor for both development and QA • Clients consider using different vendors as a waste of time and money • Increasing interest in Cyber, mobile and cloud testing Galit Fein’s work Copyright 2012 @STKI 56 Do not remove source or attribution from any graphic or portion of graphic
  • Because of the scope and complexity of ITmost ITOs often fail to define useful performance metrics Source: Gartner Galit Fein’s work Copyright 2012 @STKI 57 Do not remove source or attribution from any graphic or portion of graphic
  • Resource mng, Talent mng & Capacity planning ~44% of IT budget goes to manpower Galit Fein’s work Copyright 2012 @STKI 58 Do not remove source or attribution from any graphic or portion of graphic
  • Capacity Planning • After considering maintenance and HD commitment – how available are your resources? What are your bottlenecks? What skills do we lack? • It’s not just a matter of matching project to the available employee • It’s about matching skills, experience & employee availability to project requirements Galit Fein’s work Copyright 2012 @STKI 59 Do not remove source or attribution from any graphic or portion of graphic
  • Watch Out! • The share of employees and contractors reporting to IT leaders has dropped more than 15% in 2011 • At the same time, more than a 1/3 of larger orgs report increase in social media specialists, service architects, technology brokers, and other new-to-world roles • Use strategic plans, labor market analysis, an org. review, and forecasting to create an action plan which include a talent mng. strategy, outsourcing plan, and organizational/ job redesign plan Galit Fein’s work Copyright 2012 @STKI 60 Do not remove source or attribution from any graphic or portion of graphic
  • Resource Management • OCIO gains the momentum, but real skills, capacity and training are not treated well • IT Talent and capacity mng - Identify emerging skills gaps and role changes in traditional IT roles in order to prepare for changes by strategic workforce planning • Prepare internal resources to become brokers, not providers, as the cloud enables externalization of many current IT functions Galit Fein’s work Copyright 2012 @STKI 61 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk HELP!!!! Galit Fein’s work Copyright 2012 @STKI 62 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk - Trends • Service desk is the first to be cut down • SPOC – HR, facilities, procurement request • Standardization of products & services (ITIL) • Proactive problem management • SLA externalization • Knowledge mng – make your tool work for you • Self-Service is the KING! Galit Fein’s work Copyright 2012 @STKI 63 Do not remove source or attribution from any graphic or portion of graphic
  • Total Cost of Ownership• As the Level 1 resolution rate increases, the cost per call for Level 1 increases• But the total cost per call, including Level 2 costs, declines• The cost of resolution at level 2 is typically 5X to 10X greater than at level 1 Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • Over Time• Clients become more savvy (Gen-Y)• Users prefer using blogs, vendor and user online support sites, and social networks to find answers instead of using service desk portal• Incidents’ complexity increase• Total cost per HD call increase Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • Growing Call Volume • Rapid increase in call volume stretches already limited resources, impacting customer satisfaction • Changes are main reason for call-volume increase: new HW, new app, new mobile device, etc • Mobile devices need attention: most orgs don’t support personal mobile devices neither company-owned mobile devices Galit Fein’s work Copyright 2012 @STKI 66 Do not remove source or attribution from any graphic or portion of graphic
  • Reasons for Decrease in Support IncidentsInfrastructure changes Self-ServiceIT HD staff competencyCustomer competency Knowledge mng Nu of customers Remote tools Outsourcing support Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 67 Do not remove source or attribution from any graphic or portion of graphic
  • Self-Service• Personal attention VS prompt answer• User friendly systems – YouTube “How to…” examples• IT HD phone call twice as expensive as Self-Service• SW distribution• Online catalog• Higher Clients satisfaction Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  • Measuring the Right KPIs • On hold times (contributes to customer satisfaction) • Number of calls received (trend analysis and Help desk problem identification) metrics still • Call duration (knowledge deficiencies) relevant • Customer satisfaction is KEYMetric focus is • Meeting service level targets on the customer: Galit Fein’s work Copyright 2012 @STKI 69 Do not remove source or attribution from any graphic or portion of graphic
  • Top Metrics for Service Desk Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 70 Do not remove source or attribution from any graphic or portion of graphic
  • Cost per Incident Source: InformationWeek Analytics 2o11 Galit Fein’s work Copyright 2012 @STKI 71 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk –Positioning of the Israeli Market CA Microsoft Worldwide BSM Leader Enterprise Local Support IBM HP IT Help Desk BMC Modules from CRM packages SAP Siebel Pivotal SysAid PeopleSoft Altiris Market Presence Galit Fein’s work Copyright 2012 @STKI 72 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ IntegratorsCA Comverse, IAI, Discount, Elta, ECI, HOT, Motorola, Teva, Ness (SaaS), CA, Ness, Ma Elbit, Mekorot, Osem, Phoenix, DSW, Bezeq Int, Beit Berl, Haartz, lam - Israel Police, Tnuva, Central Bureau of Statistics, EL-AL, Phoenix, Bank Team, Techm Tamas, TASE, Ministry of Health, Tel-Aviv Municipality, Yahav, MOD ind Herzelia Munic. Clalbit, Shabas, Rafael, Isracard, 888, 9900, Bank Hapoalim, Mifal Hapais, Ministry of Justice, Ministry of Defense, Yediot, Petah-Tikva Munic, Bank Israel, Ministry of Immigration, RASHAT, Teva (Bar), Brom, LotemBMC Zim, Malan, IGS, MED Nautilus, Malam, Kneset, NDS, Migdal, SCD, Matrix Social Insurance, Uniliver, Creo, Intel, Motorola, Summit 012 - eng., Design, Polycom, Cellcom- eng. HOT-eng. Partner – eng, Texas Instrum , Sandisk, Comverse, Nice, IAI, Better Place Netvision eng.HP HPOV:IDF, Netafim, Shaam, Open University, Orbotech, Aman, HP Tower Semiconductors, Haaretz; Service Manager: NDS, PlayTech, Shupersal Tefensoft: Clalit Health, Menora, Migdal, Prime Minister, Hadasa,work Copyright 2012 @STKI Galit Fein’s Machteshim, Maman, AudioCodes 73 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ IntegratorsIBM Harel, Menora Bahai World Center, IBM, Addon,TSRM Edgar Real-estate, Ludan NatgazAltiris Callmobile, IDF Ormat Aman, Bynet,Symantec Netcom, GlassHouse Galit Fein’s work Copyright 2012 @STKI 74 Do not remove source or attribution from any graphic or portion of graphic
  • IT Service Desk Tools & Integrators in Israel Clients New Clients 11’ Integrators Jonson & Jonson, Highway 6, Omrix, Wintegra, Sami Shimon (300 Israeli clients) ConsistSysAid College, Africa Israel, Mei-Eden, AIG, Electra, McCann Erickson, Opgal Diesenhaus unitours, Opal , Flash Networsks, Liveperson, Hertz, Psagot Madanes Insu Shlomo Sixt Ofek, Coca Cola, Beit Barel College, Ashdod Port, Technion, Shila, Caesar stone Magic Cal Sugat, Gadot, Bezeq Int. AeroScout, Strauss, IKEA, Delek, Tempo, 013 auto West galilee collage Netvision, Tami4 ,Bank of Jerusalem Leumi Mortgage , Bituach Yeshir, Lageen Logic Holmes Place, Ashot Ashkelon, Netformx, Fishman, Hospital- Motorola Safe city Gitam Nahariya, halman aldubi, Eged Tour, Zoglobek, Madanes, Tempo, Beeri BBDO Danya-cebus Tower print, Lubensky, Shlomo Sixt, Excellence, Elul, Ophir optronics, Semiconductor Tcpoit Realcommerce, Nextcom, Fritz, LR Group, Israel Ports, Magicsoftware, Keshe TV Cal auto, West galilee collage, Maabarot Products, Haifa Port, FedEX WIX - Fibernet PharmUp, Lageen, ICQ, Logic, Tambur, Kamada, The Nation Traffic, Sapir collage Albar Intel Elcam, Carmel container systems, Brightsourceenergy, Kavim, Gitam Labs Dash El-Al Sec Div BBDO, Rishon Lezion Muni, Dania sibos, Baran group, Tower Diplomat Holon Muni Rokar Semiconductors, Bee Group, Betterplace, Keshet TV, Leumi Card, Tiny love IDC NOVA IMDsoft FedEX, WIX, Optier, Tahal, TGS, Palram, Sapience, Orca, UPS, Beeper, Tmura The Council for Intel labs, Mivtach Saimon, Albar, EMC, Tel-o-Fun, Dash, EL-AL Sec, Higher Education Imperva Sapir collage, Diplomat, Hulon Muni, Shlomo Insu, conduit, Hadssa Netformx Ashot Ashkelon hospital , Tradenetworks, Ceragon, Rokar, Celtro, National library, IDC, Eged Tour Environmental Nova, Ambar, Mediamind, UTI, Barzilay Hospital, Afimilk, David Services Company Ltd. (ESC) Intercontinental, Hertz, Isrotel, IKEA, IMsoft, Tmura, polymerlogistics, Shirbit shastovich, , Imperva, Haifa university, mashcal, Tel-hai collage, IBI, D&B, and many more Galit Fein’s work Copyright 2012 @STKI 75 Do not remove source or attribution from any graphic or portion of graphic
  • IT Help Desk Modules from CRM packages Clients New Clients 11’ Integrators Ministry of Finance, Israeli Navy, Intel, Prime Minister, 20 Partners, including:Microsoft Eldan Ministry of Health, Matrix-CRM Advantech: Eged, Shikunbinui, Amidar, Volcani Center, Shikun & Binui, Effect, SIT, Advantech, Malam- Lavi TOTO, Osem, College Team, Netwise, Bynet EL AD: Judicial Authority, Ministry of Transport, Court SW, Yael, El-AD…. Malam-Team: TAU of Management Guardian: Baad15, Jewish agency Matrix-Effect: Igud, Malan, Superpharm, Cellcom, Visa Cal, Machteshim-Agan, Marlboro, Ministry of Education Almog: Telmap Bat-Yam Municipality, Exlibris, Systematics, Panorama, ONE1Pivotal Telmap, Ericom FGG Radvision, Gilat, Shahal, Ritalix, Globs, Tadiran, Orad, Maccabi, Negev Ceramics Paz, Isr. Government, Bazan, Bank Hapoalim (modul) Ness, Taldor, Advantech, ValueSAP _ plus Ministry of Foreign Affairs, Mamram, Bezeq _ MatrixPeopleSoft Tnuva, Golden Pages, Bank Leumi Taldor, IBMSiebel(Siebel CRMonDemand) Yad Hanadiv Service WiseSalesForce Galit Fein’s work Copyright 2012 @STKI 76 Do not remove source or attribution from any graphic or portion of graphic
  • Outsourcing Trends Galit Fein’s work Copyright 2012 @STKI 77 Do not remove source or attribution from any graphic or portion of graphic
  • Outsourcing • In recent years the number of comprehensive and infra outsourcing new deals significantly decreased , except for public sector, SMB and some niche areas • On the other hand - successful examples of existing clients, who recently had revaluated and renewed their outsourcing contracts (with a lot changes) • Disappointment from conventional outsourcing for failing to meet client expectations Galit Fein’s work Copyright 2012 @STKI 78 Do not remove source or attribution from any graphic or portion of graphic
  • State of World Wide Outsourcing is NOT better 35% Applications Outsourcing Infrastructure Outsourcing Source: CIO Executive Board 2012 25% 2010 2011 2012 Percentage of Org. Allocating More than 20% of Total IT Spending to Outsourcing 2011 PMO DB admin Testing/QA Voice Network Help Desk App App Galit Fein’s work Copyright commun 2012 @STKI Mainten Develop 79 Do not remove source or attribution from any graphic or portion of graphic
  • Products and Services in IT Traditional Outsourcing Bought Services Owned Products Galit Fein’s work Copyright 2012 @STKI 80 Do not remove source or attribution from any graphic or portion of graphic
  • Outsourcing transforms into Cloud Computing Traditional Outsourcing Cloudy Sourcing Your own assets Cloud computing Resources control Multi-tenant, shared Fix price resources Location does matter Outcome focused Vendor monitoring SLA based Usage-based pricing Minimal ability to change the Location-agnostic terms of the contract Automated provisioning, self-service requesting Galit Fein’s work Copyright 2012 @STKI 81 Do not remove source or attribution from any graphic or portion of graphic
  • Three Approaches to Cloud Deployments Private Hybrid Public • Designed for, and access • Enterprise’s cloud services • Designed for a market, not a restricted to, a single enterprise portfolio includes both private single enterprise (or extended enterprise) and public cloud services • Open to a largely unrestricted • An internal shared resource, not • Some specific services are universe of potential users a commercial offering delivered in a combination of • Customers buy at specific level • IT Org is the “vendor” of the public and private models of abstraction shared/std service to its users (e.g., private cloud “bursting to” (server, application, platform) a public cloud service) • Single-vendor or multi-vendor Resource Single enterprise/ Virtual and physical (non- Multiple unrelated Isolation extended enterprise cloud) resources and enterprises (shared) (dedicated) applications Control | SLA | Specialization | Security | Agility | Price Advantage | Access | Elasticity D.I.Y. Galit Fein’s work Copyright 2012 @STKI 82 Do not remove source or attribution from any graphic or portion of graphic Source: IDC
  • 5 types: Enterprise Clouds Galit Fein’s work Copyright 2012 @STKI 83 Do not remove source or attribution from any graphic or portion of graphic
  • Change is ComingPlease estimate how much of your companys IT budget (inc. server, storage, network infrastructure, desktops anddevices, IT staff, infra. middleware, and applications), will be allocated to buying and managing these different types ofIT products and services. Source: IDCs North American Cloud Survey, 2011 Anticipated budget Today dedicated to OUTSOURCED -14% IT cloud by 2013 = 52% Months out +2% +3% +4% +3% n = 603 (Dir IT and above) Totals sum to 100% Traditional IT Outsourced IT/ASP Enterprise Private Hosted Private Public cloud (Internal) we own 3rd party owns Cloud cloud (External) and manage the hardware, runs IT (Internal) (External) subscription hardware, software staff, software virtualized, dynamic Hosted/managed by software services and IT staff ownership is mixed resource pools 3rd party, dedicated delivered over deployed and to the use of my internet managed in house) company True multi-sourcing is becoming a reality at many firms Galit Fein’s work Copyright 2012 @STKI 84 Do not remove source or attribution from any graphic or portion of graphic
  • Utility Computing at Predictable Price CIOs are willing how they should to make sizable which workloads best prioritize their are most “SaaS spending and IT bets, but they ready“ resources to take need guidance: advantage of cloud Utility/cloud rentable infrastructure for computing on-premises assets applications Firms who want but need to some benefits of maintain their own apps ecosystem for SaaS (reduced business fixed IT costs) performance needs Galit Fein’s work Copyright 2012 @STKI 85 Do not remove source or attribution from any graphic or portion of graphic
  • Cloud Benefits and Challenges Source: IDC 2011 Galit Fein’s work Copyright 2012 @STKI 86 Do not remove source or attribution from any graphic or portion of graphic
  • • People OutsourcingGalit Fein’s work Copyright 2012 @STKI 87Do not remove source or attribution from any graphic or portion of graphic
  • Staff Augmentation• IT will always use some Staff Augmentation for flexibility and scalability• Private sector reduce Staff Augmentation but the trend still exists especially in public sector, in ITOs with strong trade unions and Short term professionals• “Hashkalizazia” of Staff Augmentation market Galit Fein’s work Copyright 2012 @STKI 88 Do not remove source or attribution from any graphic or portion of graphic
  • NearShore - Trends in 2012• Majority of ITOs will at least consider NearShore (NearSite) model to reduce costs in 2012• NearSite model invention for better control• Few clients complain re high turnover and knowledge preserving in orthodox nearshore• Work tariff rates are slowly on the rise• Existing clients usually expand their scope of work• Hot topics: BI, Web and mobile development and testing, cloud and automation testing Galit Fein’s work Copyright 2012 @STKI 89 Do not remove source or attribution from any graphic or portion of graphic
  • X-Shore… Scope QualityTime Cost Near-site Galit Fein’s work Copyright 2012 @STKI 90 Do not remove source or attribution from any graphic or portion of graphic
  • Caution! Fix Price Ahead! 108 162 324 28.5 42.75 85.5 29.5 44.25 Price reduction race 88.5 108 216 432 1M What is missing? Evaluating the risk Galit Fein’s work Copyright 2012 @STKI 91 Do not remove source or attribution from any graphic or portion of graphic
  • Client / Vendor tug of rope Vendor Client • Takes the project in spite of “losing” prices• Chooses service provider by lowest price • Hopes to get new business• Doesn’t take the risk element into account • Wants the client to be happy• Gets use to receive free requirements • Moves to other pricing models• Ready to pay for additional work to a certain limit Galit Fein’s work Copyright 2012 @STKI 92 Do not remove source or attribution from any graphic or portion of graphic
  • Chronicle of a IT project foretold Underpriced High profit Temps Galit Fein’s work Copyright 2012 @STKI 93 Do not remove source or attribution from any graphic or portion of graphic
  • New type of client/ vendor relationship • Service provider has to make money • Sometimes you can’t avoid the conflict – choose an arbitrator agreed on both sides • Relationship between the parties is more important to the project’s success than price, performance and the terms • Less profit, less “home” vendors, more work Galit Fein’s work Copyright 2012 @STKI 94 Do not remove source or attribution from any graphic or portion of graphic
  • Vendor/Client revenue asymmetry Investment Expenditure Time & Materials Fix Price License Development SOW  RFP SLA Fix Testing Testing Hatmaa Delivery Day 1 Rollout Maintenance Vendor/Client revenue asymmetry Galit Fein’s work Copyright 2012 @STKI 95 Do not remove source or attribution from any graphic or portion of graphic
  • Staff Augmentation – Pros and Cons Source: TheMarker and STKI Galit Fein’s work Copyright 2012 @STKI 96 Do not remove source or attribution from any graphic or portion of graphic
  • Thank You And Hope You Enjoyed! Here you can find the latest version of this presentation : http://www.slideshare.net/Galit Galit Fein’s work Copyright 2012 @STKI 97 Do not remove source or attribution from any graphic or portion of graphic