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Examining IT Business Process at Intel

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  • 1. White Paper Intel Information Technology Examining IT Business Process Computer Manufacturing IT Business Value at Intel At Intel IT, our focus has shifted away from individual IT products and toward customer satisfaction. Underpinning this new focus is an emphasis on cross-service IT operations standards. Through our adoption of Microsoft Operations Framework* (MOF) standards, based on the Information Technology Infrastructure Library (ITIL*), Intel IT has demonstrated the undeniable benefit of these standards, enhancing efficiency and customer satisfaction while saving Intel time and money. Ravi Nannapaneni, Intel Corporation January 2007 IT@Intel
  • 2. White Paper Examining IT Business Process at Intel Executive Summary At Intel IT, our focus has shifted away from individual IT products and toward customer satisfaction. Through our adoption of Microsoft Operations Framework* (MOF) standards, based on the Information Technology Infrastructure Library (ITIL*), Intel IT has demonstrated the undeniable benefit of these standards, enhancing efficiency and customer satisfaction while saving Intel time and money. The information gained from our validation test More than ever, IT organizations need to move beyond suboptimal solutions and and MOF assessment emphasize comprehensive service solutions that deliver real value to business. MOF provides the IT process standards Intel needs for efficient service delivery to its will not only improve globally distributed computing infrastructure. our server management process, it will also Intel’s MOF engagement first identified its server management process as a enhance the way Intel representative IT service to pilot the MOF standards. We found that a work order implements virtually all encapsulating all requirements eliminates the need for separate documentation for IT services. each sub-process. This requires a consistent set of change, configuration, and release processes, as well as a standard data structure and a common data interface. This approach has many benefits: • Eliminates duplication of the same information for each sub-process, thus reducing errors as each participant works from the same information throughout • Reduces complexity • Reduces the amount of tracking, administration, and storage of the various pieces of documentation • Information collected in the work order can be sent to other systems and databases using business rules, thereby enhancing consistency and accuracy The information gained from our validation test and MOF assessment will not only improve our server management process, it will also enhance the way Intel implements virtually all IT services. 
  • 3. Examining IT Business Process at Intel White Paper Contents Executive Summary ...............................................................................................................................................  Business Challenge.................................................................................................................................................. 4 IT’s Role at Intel ...................................................................................................................................................... 4 Service-Oriented Focus ....................................................................................................................................... 5 Intel’s Use of ITIL* and MOF .............................................................................................................................. 5 Information Technology Infrastructure Library ...................................................................................... 5 Microsoft Operations Framework ................................................................................................................. 6 MOF Process Model ............................................................................................................................................... 6 MOF Team Model .................................................................................................................................................... 6 MOF Risk Model ....................................................................................................................................................... 7 MOF Assessment Process.................................................................................................................................... 8 Assessment Focus and Scope .......................................................................................................................... 8 Assessment Interviews ..................................................................................................................................... 8 Legacy Server Workflow Process .................................................................................................................. 8 Return on Investment Factors ..................................................................................................................... 10 Overall Findings .................................................................................................................................................... 11 Potential Barriers to Address ....................................................................................................................... 11 Recommendations ............................................................................................................................................... 1 Next Steps............................................................................................................................................................... 1 Conclusion ................................................................................................................................................................... 1 Authors ......................................................................................................................................................................... 1 Acronyms ..................................................................................................................................................................... 1 
  • 4. White Paper Examining IT Business Process at Intel Business Challenge Rapid growth during the dotcom era forced IT organizations to emphasize speed of delivery over cost and efficiency. The objective was to deliver products and services as quickly as possible. This forced IT organizations to provide most of their services on a reactive basis, with little time for planning and coordination. In the economic downturn following the dotcom demise, the emphasis shifted to conservative spending. Many companies are reluctant to dedicate IT dollars to anything but the most essential needs until they are confident of a sustained economic recovery. Now more than ever, IT organizations must standardize their processes to eliminate duplicated effort and ensure efficient collaboration between all sub-organizations that support an IT service. Based on the Information Technology • Individual users. Enabling the productivity Infrastructure Library (ITIL*) standard, Microsoft of more than 80,000 globally distributed Operations Framework* (MOF) provides the IT employees by providing computing products process standards Intel needs for efficient service and services, as well as cost management and delivery to its globally distributed computing global communications capabilities. infrastructure. Intel’s MOF engagement first • Intel business units. Providing information identified its server management process as solutions to all Intel organizations, including a representative IT service to pilot the MOF design engineering, manufacturing, sales and standards. We started with a validation test of the marketing, and administration. server management process; an MOF assessment of the current process helped us identify the • Industry peers. Exchanging knowledge, inefficiencies. The information gained from our experience, and strategy with other validation test and MOF assessment will not only IT organizations to expand computing improve our server management process, it will technology understanding and influence also enhance the way Intel implements virtually industry directions. all IT services. • Industry suppliers. Working with external service providers to integrate tools, capabilities, IT’s Role at Intel and solutions into the Intel environment. Intel IT supports Intel’s diverse, globally We manage the infrastructure that is the distributed workforce. The customers our foundation of Intel’s productivity. We provide products and services benefit include: WANs, LANs, data centers, worldwide operations 4
  • 5. Examining IT Business Process at Intel White Paper management, and worldwide help desk calls for service-oriented practices rather than operations. All of these resources run around product-oriented practices. And paradoxically, the clock, 365 days per year. Support teams of by taking the time to incorporate consistency specialists in engineering, production operations, and collaboration into our processes, we research and development, procurement, actually increase our ability to deliver services marketing communications, customer account rapidly when needs dictate. The product- management, finance, and organizational oriented emphasis of the past focused on development all play a role. Our powerful and each component of the infrastructure with diverse IT offerings enhance every corner of little concern for the coordination necessary Intel’s productivity, enabling: to deliver the services our users needed. By focusing on the services themselves, we are • Computing capabilities (laptop and desktop better able to satisfy our customers’ needs. For computers) and communication capabilities example, if a customer reports that their e-mail (such as telephone systems, Internet is slow, the product-oriented approach would and intranet access, and audio and video be to simply test each component of the e- conferencing) for Intel’s employees around mail system. But it doesn’t really matter to the the world. customer that each individual component of the • USD 2 billion in e-Business revenue each e-mail system is running normally if they are not month, putting Intel on track to achieve its satisfied with the overall system performance. goal to become a 100 percent e-Business By taking a service-oriented approach, the corporation. bottom line becomes the customer’s satisfaction • Computing capability that supports the with each service we provide. A service-oriented design of some of the world’s most complex IT organization: computing products. • Analyzes and understands the • Automated tools to design, test, and validate customer’s true business needs. Intel’s sophisticated microprocessors. • Focuses on those needs when planning • Wafer fabrication plants, assembly factories, and delivering its offerings. and systems factories that produce • Implements systems and processes approximately 80 percent of the world’s necessary to provide the requested supply of microprocessors. service. • Monitors, manages, and improves the Service-Oriented Focus service on an ongoing basis. The focus toward efficiency and away from speed of deployment has caused a shift in the way Intel IT does business. Our new paradigm 5
  • 6. White Paper Examining IT Business Process at Intel Intel’s Use of ITIL* and MOF Information Technology affecting the customer who requested the Infrastructure Library service: The Office of Government Commerce in • Service level management the United Kingdom created ITIL to align IT • Financial management for IT services services with business needs. ITIL provides comprehensive guidelines that support best • Capacity management practices for IT services management. • IT service continuity management ITIL offers increased process maturity by • Availability management improving management control and increasing an organization’s ability to respond to customer Microsoft Operations needs. It also increases cost effectiveness by Framework improving the quality of services provided and by MOF extends ITIL. While ITIL provides the reducing the cost of those services. And because framework for IT best practices, extensions in ITIL requires that IT staff be trained and certified MOF enhance ITIL to meet the unique needs of in best practices, ITIL benefits the organization’s a specific environment. Using proven practices productivity and morale. established by Microsoft, its customers, and The foundation of ITIL is its IT service its partners, MOF provides the guidelines for management processes. These processes fall into using Microsoft products and technologies that one of two categories: service support or service conform to ITIL-defined best practices. MOF delivery. The service support processes focus on offers the means to improve the IT services we day-to-day operation and support of IT services, provide our customers. affecting the day-to-day user of the service: MOF consists of three parts: the process model, • Incident management the team model, and the risk model. Together these models allow IT organizations to improve • Problem management the availability, reliability, supportability, and • Configuration management manageability of their IT services. • Change management We started our MOF implementation by • Release management examining our existing business processes. Our analysis revealed that many groups operate The service delivery processes focus on a autonomously, relying on custom processes and service’s long-term planning and improvement, tools that do not mix well with the processes 6
  • 7. Examining IT Business Process at Intel White Paper and tools employed by other groups within the organization. While this customized approach may have once provided a competitive Release Approved Review advantage, the resource limitations of the current business environment demand a broader vision and a more cohesive, cross-functional approach based on consolidation. This reality Optimizing Changing underscored the need for a framework of repeatable, common business processes. The ITIL-based MOF provides just Service Level Release Agreement Readiness such a framework. (SLA) Review Review MOF Process Model Supporting Operating The MOF process model assumes that the operations group’s main responsibility is managing change in the IT environment. The most effective way to handle change throughout the life of Operations Review a service is to combine related changes so that all changes can be planned and managed as a unit. In MOF, each group of related Figure 1. Microsoft Operations Framework* process model. changes is called a “release.” A service’s lifecycle encompasses all of its steps from implementation to retirement. MOF breaks this lifecycle into quadrants: operating, optimizing, supporting, and changing, as depicted in Figure 1. This four-stage lifecycle applies to every service and the associated service management functions (SMFs). MOF Team Model A successful and efficient operations team requires more than just role and responsibility definition. It also requires shared principles that instill a sense of cultural values and guidelines that help the team achieve those values. To accomplish this, the MOF team model applies lessons learned from the Microsoft Solutions Framework* (MSF). MOF also extends the best practices for organizational structure and process ownership as defined in ITIL, and uses as a model success factors used by Microsoft, its partners and customers, and other IT organizations. With communication at its hub, the MOF team model organizes an IT team into six distinct role clusters: release, infrastructure, 77
  • 8. White Paper Examining IT Business Process at Intel support, operations, partner, and security. MOF Risk Model Each of these role clusters contains more The MOF risk model applies proven practices to detailed descriptions of the responsibilities it the problems that IT operations face every day. encompasses. Figure 2 shows the MOF team Its primary objective is to prepare for an uncertain model and its roles. future. The MOF risk model provides customized terminology, a five-step repeatable process, and integration into the larger operations framework. • Change Management • Release Systems Engineering • Configuration Control and Asset Management • Software Distribution and Licensing • Quality Assurance • Intellectual Property Protection • Enterprise Architecture • Network and System Security • Infrastructure Engineering • Intrusion Detection • Capacity Management • Virus Protection Release • Cost/IT Budget Management • Audit and Compliance Administration • Resource and Long-range Planning • Contingency Planning Security Infrastructure Communication Partner Support • Maintenance Vendors • Environment Support • Service Desk and Help Desk • Managed Services, Outsourcers, Operations • Production/Product Support Trading Partners • Problem Management • Software/Hardware Suppliers • Service Level Management • Messaging Operations • Database Operations • Network Administration • Monitoring and Metrics • Availability Management Figure 2. Microsoft Operations Framework* team model. 8
  • 9. Examining IT Business Process at Intel White Paper MOF Assessment Process Assessment Focus • How can we reduce the time it takes to and Scope land a server? Process improvement typically begins with • How can we manage adds, moves, and a thorough assessment of the current changes to a server? process. Intel’s size and complexity, and the IT • How can we improve human resource infrastructure required to support it, made it productivity? most practical to start our MOF assessment with • How do we establish and implement a single end-to-end business process. For this global standards? initial assessment, we sought a business process that requires significant resource hours and • How do we deal with issues involving would benefit from automation. We chose our behavior change? server management business process, focusing on the change, release, and configuration SMFs Assessment Interviews While the scope of the assessment was limited Once the scope of the assessment was to server management and just three SMFs, we established, the team conducted face-to-face recognize that we must integrate and manage interviews with key IT server management our ultimate framework for the other IT business personnel. Previous server management process processes. We had already documented some analysis enabled us to quickly identify the best high-level current processes, enabling us to content and process experts to interview. These focus on the next level of detail. The MOF interviews were specific, each focusing on one or assessment team also investigated related SMFs two SMFs. We determined the process maturity and tools that were outside the immediate scores for each SMF by comparing the interview scope of the server management project. responses to established ITIL and MOF criteria. Next, we compared the data from each interview As the assessment team defined the scope, they to published ITIL and MOF best practices. Finally, considered the following questions: we analyzed the SMF findings, searching for • How can we make more effective use of patterns and opportunities for synergy. When our assets? we identified an improvement opportunity, we tagged it as a candidate for change. 
  • 10. White Paper Examining IT Business Process at Intel Legacy Server organization involved had its own sub-process Workflow Process for its portion. Inadequate or nonexistent coordination of processes between organizations Analysis of the legacy server management caused significant duplication of effort and process provided a baseline for our assessment. data. Most processes only defined required We started by identifying the organizations that inputs, with no output to communicate that participate in the process and the methods they the work was ready to move to the next step. use to engage each other. We also identified the This required the project manager or coordinator data requirements for each organization and the to poll each process to determine when it was tools used to record and distribute the data. complete and then initiate the next process. Our analysis showed that the legacy server These steps are illustrated in Figure 3. management process had four primary Further analysis revealed seven IT business components, each crossing over several IT units directly involved in the server management organizations: management, procurement, process. Five unrelated tools (web-based administrative, and technical resources. Each IT applications and spreadsheets) processed Customer Project Manager Project Manager Hours (14 hour average) Technician Hours (10 hour average) Hours Central Server Site Resource Asset Network SRS Server Support Data Center Management Services (SRSs) Management Figure 3. Legacy server management process. 10
  • 11. Examining IT Business Process at Intel White Paper input. Users manually input much of the project Return on Investment information, passing it along through e-mail—in Factors many cases, the project manager was the only The server management assessment team continuous link. identified many areas that could lead to significant We found that the tools’ output was specific to performance improvements and cost savings, various IT organizations, such as data centers potentially allowing us to: and application groups. These groups interacted • Achieve 95 percent accuracy in with project and change managers outside of configuration data their areas who handled server management as part of bigger, more complex changes. These • Reduce the time to land a server by up inefficiencies required far more day-to-day, to 50 percent hands-on effort by the project manager than a • Reduce project management and properly structured process would require. project administration time by up to 50 The analysis also identified a lack of common percent processes between business units, even though • Improve data center utilization by 10 to the units performed similar tasks toward a 15 percent common goal. These varied processes made it difficult for a customer to navigate the server • Save up to USD 3 million per year by management process without the help of a cutting 7,900 hours on the 700 server dedicated project manager. Additionally, cross- implementations each quarter organization communication that was not While the scope of the assessment did not enforced by common processes or tools made address the following savings opportunities, planning and forecasting difficult and reactive. we believe that a more comprehensive service Implementation of common processes across management program could help achieve the business units will ameliorate these problems. following cost savings: Redundancy and rework were common due to the • Data center utilization/consolidation. From wide range of process, tool, and organizational 10 to 30 percent savings projected. improvement projects underway throughout IT. • Server consolidation. From 15 to 30 percent Many of these improvement plans and changes savings projected. did not appear to be coordinated at the business unit or corporate level. The result was disjointed • IT employee productivity improvements. processes that function independently of other From 15 to 25 percent savings projected. business units and the development of redundant • Management tool efficiency. No savings tools to support them. projection. 11
  • 12. White Paper Examining IT Business Process at Intel • Software development and maintenance While these recommendations focus on the efficiency. No savings projection. server management process, we believe that they will provide the foundation of IT service The process teams can and should identify management across Intel. further savings areas. Future project and scope implementation plans should incorporate these In our service-oriented environment, the customer’s savings areas and they should include metrics satisfaction is the primary focus. The workflow and processes for ongoing measurement. The process supporting server management should team should establish quantifiable performance minimize interaction with the customer until goals for each of the defined processes. The the server is ready for use. It should function presentation of the cost/benefit analysis will be without significant supervision and coordination a major milestone for each project. by a project manager or other coordinator. And it should enhance connectivity between each task, We can achieve additional savings in any organization, and business process. ongoing expenses linked to the ITIL/MOF objectives, such as staffing models, technology We found that a work order encapsulating expenses, and vendor expenses. all requirements eliminates the need for separate documentation for each sub-process. Our return on investment benefits analysis will This requires a consistent set of change, focus on the following: configuration, and release processes, as well as • Revenue support a standard data structure and a common data interface. This approach has many benefits: • Cost reduction • Cost containment • Eliminates duplication of the same information for each sub-process, thus • Speed to market reducing errors as each participant works • More accurate management data from the same information throughout • Intangible benefits • Reduces complexity • Reduces the amount of tracking, Overall Findings administration, and storage of the various Our analysis revealed improvement opportunities pieces of documentation for our change, release, and configuration • Information collected in the work order management processes. We determined can be sent to other systems and improvement priorities according to the projected databases using business rules, thereby benefits, risks, “quick-win” potential, and costs. enhancing consistency and accuracy 1
  • 13. Examining IT Business Process at Intel White Paper Potential Barriers configuration, and release management—was a to Address factor when we identified owners to implement the proposals. The MOF assessment recommendations for server management include improvements to processes, tools, policies, and interfaces. Recommendations While most organizations acknowledge the Change must focus on business processes, not improvement potential, they also recognize that tools and technology. At a very high level, our it will require process changes that will affect recommendations fall into one of three areas: the way they interface with other organizations. • Develop Intel-wide definitions of change, This could initiate a chain reaction affecting configuration, and release management upstream and downstream interactions. processes based on ITIL/MOF standards Some of the server management project • Develop and implement a coordinated cross- benefits will be difficult to achieve on a large organizational change management process scale due to the current lack of process, tool, • Establish an integrated resource coordination and data integration. Some aspects of the role through change management project won’t scale well without significant changes that are specific to server management. Specific recommendations in change, Therefore, the approach we took in the configuration, and release management practices assessment was to focus first on change, include: configuration, and release management as • Clearly define objectives, scope, and mission they relate to the server management process, of the integrated processes and next to determine how to extend these improvements to other groups and teams • Document the business case behind the change with Intel IT’s global infrastructure and global • Appoint process managers and staff engineering organizations. This will reduce committed to their roles the risk of creating unique processes and increase awareness of the end-to-end process • Define roles, tasks, and responsibilities for integration required to support a change like this. each process, showing clearly where they interface; ensure that these parameters and To incorporate these changes, the process owners interfaces are understood must have sufficient authority to implement and • Define the quality criteria and metrics for enforce these standards. Therefore, the close successful implementation relationship between the three SMFs—change, 1
  • 14. White Paper Examining IT Business Process at Intel • Identify risks for the project, including critical to involve all parties who will be affected, and to success factors and potential problems clearly and regularly communicate the progress and direction. • Plan and record the structure for the different process documents Next Steps • Identify process tools according to the integrated process requirements Based on the recommendations, our global infrastructure management has decided to • Outline the costs for components such as: adopt ITIL/MOF as the framework for all future – Project management and delivery service improvement projects. In addition to server lifecycle management, other initiatives – Implementation of the new combined are on the ITIL/MOF implementation roadmap process for 2003: server patch management, WAN – Training during and after the project inventory management, and 300 mm factory LAN management. We will start with the change, – Software and hardware release, and configuration management SMFs, – Systems and tools and then move on to incident, problem, capacity, – Resources to carry out the project and and service level management SMFs. perform the ongoing processes When embarking on a project with an impact as potentially significant as this one, it’s important Conclusion More than ever, IT organizations need to move beyond suboptimal solutions and emphasize comprehensive service solutions that deliver real value to business. The ideal management process would require that the customer only submit a change request; the actual processes involved would be completely invisible to the customer. This requires comprehensive, standardized business processes that provide an end-to- end solution. ITIL/MOF provides a structured approach to achieve this business process standardization. The information we gained from our assessment reinforced this message and will help deliver service improvement plans in 2003 and beyond. 14
  • 15. Examining IT Business Process at Intel White Paper Authors Ravi Nannapaneni is a principal engineer with Intel Information Technology. Acronyms ITIL* Information Technology Infrastructure Library MSF Microsoft Solutions Framework* MOF Microsoft Operations Framework* SMF service management function 15
  • 16. www.intel.com/IT This paper is for informational purposes only. THIS DOCUMENT IS Intel, the Intel logo, Intel. Leap ahead. and Intel. Leap ahead. logo PROVIDED "AS IS" WITH NO WARRANTIES WHATSOEVER, INCLUDING are trademarks or registered trademarks of Intel Corporation or its ANY WARRANTY OF MERCHANTABILITY, NONINFRINGEMENT, subsidiaries in other countries. FITNESS FOR ANY PARTICULAR PURPOSE, OR ANY WARRANTY OTHERWISE ARISING OUT OF ANY PROPOSAL, SPECIFICATION OR * Other names and brands may be claimed as the property of others. SAMPLE. Intel disclaims all liability, including liability for infringement Copyright 2006, Intel Corporation. All rights reserved. of any proprietary rights, relating to use of information in this specification. No license, express or implied, by estoppel or otherwise, Printed in USA Please Recycle to any intellectual property rights is granted herein. 0107/ARM/RDA/PDF Order Number: 315999-001US