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Enterprise Cloud Operating Model Design
 

Enterprise Cloud Operating Model Design

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A Cloud Operations Service Model

A Cloud Operations Service Model

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    Enterprise Cloud Operating Model Design Enterprise Cloud Operating Model Design Presentation Transcript

    • Enterprise  Cloud  Opera1ng   Model  Design   Service  Offering  Descrip1on   Joseph  Schwartz  
    • 12/17/13   ©  Copyright  2010-­‐2011  Joseph  Schwartz     All  Rights  Reserved.   2  
    • Opera&ng  Model   Elements   Processes  –  how  we  perform  ac1vi1es   that  deliver  predictable  and  repeatable   business  results  through  competent   people  using  the  right  tools.     Governance  –  how  we  make  and   sustain  important  decisions  about  IT.     Sourcing  –  how  we  select  and  manage   the  sourcing  of  our  IT  products  and   services.     Services  –  our  porPolio  of  IT  products   and  services.     Measurement  –  how  we  measure  and   monitor  our  performance.     Organiza&on  –  how  we  structure  and   organize  our  IT  capabili1es?       12/17/13   ©  Copyright  2010-­‐2011  Joseph  Schwartz     All  Rights  Reserved.   3  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 4  
    • Major Assumptions •  The scope of managed services addressed by the model should be flexible enough to support technical services, e.g., network, storage, compute and application infrastructure or middleware, needed to deliver service offerings to the SBUs as well as the business services needed to run IT, e.g., infrastructure management systems, service management systems •  Best practice approaches should be leveraged wherever possible to deliver a Type 2 or 3 Service Provider Model (ITIL V3), e.g. managed and shared services •  In the Target Operational Model headcounts and skill levels will be aligned to ‘market standards’ to allow for operational metrics and KPIs to be benchmarked against industry best practices, e.g. ratio of devices / admin, incident metrics, etc. –  The best practice numbers will serve as a goal against which the target environment will be measured as it matures •  Operational maturity and skill levels will be evaluated after a Due Diligence phase and organizational gap remediation steps taken to ensure that the saves promised by initiative (s) be realized. •  The model must support E2E processes for all service management flows as they span Service Desk (e.g., incident, Support and Operations, e.g., config,. change, facilities mgmt., etc) 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 5  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 6  
    • Operating Model Scope Process Model •  End-to-end operating processes •  Process triggers and interfaces •  E.g., ITIL , eTOM, ISO 2000 •  Performance KPIs Operating Model Goals are: •  Operational Efficiency •  Customer Experience •  Revenue & Margin People & Organization •  Roles & Responsibilities (RACI) •  Process owners •  Escalations & interactions, etc. •  Performance KPIs and Metrics 12/17/13   Technology (IT Infrastructure, Tools & Automation) •  Process automation •  Data models and repositories (e.g., CMDB) •  COTS, standards & simplification © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 7  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 8  
    • Assumed Operating Model Savings Targets Value Metric Desired Value Metric Desired OperationsDesired Value Metric Direction Direction Direction Improved Audit Compliance % of Applications Running on a Virtualized Infrastructure Average cost per type of service request Number of emergency changes due to non-compliance Percentage Re-use and Redistribution of Under-utilized resources and assets Percentage increase in the overall end-to-end availability of service Number of unauthorized changes Average cost per incident Service unplanned downtime connected to change activities (hours / month) Non-complaint assets identified as the cause of service failures Mean-time between Failures (MTBF) Percentage reduction in the costs and time associated with service provision Time and cost to audit and remediate (audit cycle time) % of Incidents closed by Level 1 Support Change (all) to Admin (all) Ratio % Cost of Compliance to Total IT Budget Service downtime connected to rollout activities (hours / month) Reduction in the number of failed changes 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 9  
    • Assumed Operating Model Savings Targets Value Metric Desired Desired Value Metric Desired Support Direction Value Metric Direction Direction Percentage reduction in SLA targets missed Reduction in number and percentage of major incidents Time and cost to audit and remediate (audit cycle time) % of Incidents reported by End Users and customers vs IT Operations % of emergency changes due to non-compliance Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time Time and cost to audit and remediate (Audit cycle time) Percentage increase in customer perception and satisfaction of SLA achievements 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 10  
    • Assumed Operating Model Savings Targets Value Metric Desired Value Metric Desired Value Metric Desired SBUs Direction Direction Direction % Increase in Customer Satisfaction of SLA’s Improved Audit Compliance (# of audit tests passed versus total) Percentage reduction in costs associated with service provision % of IT Projects that Align with Corporate Objectives Cost of Unplanned Business Interruptions Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time % of Budget Focused on Operations, Labor, Investments Actual spend versus budgeted spend 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 11  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 12  
    • Design Approach: Blending Industry Best Practices Isn’t ITIL Enough? •  ITIL V3 covers 100%+ of Day 1 capabilities •  From a pure end-state design perspective, ITIL is Internally focused – experience shows that once transparency is achieved for the business, comparative valuation occurs – eTOM offer management and campaign processes could address an important gap in the end state •  ITIL does not link solutions and training to a design process (it is part of release) •  The use of eTOM simply ensures that the end state design provides full coverage in the event the client needs to access additional capabilities as it matures End-to-end operating processes Integrate with client requirements 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 13  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 14  
    • High Level-Process Model Strategy & Service Business Strategy, Architecture & Planning Operations and Support Service Lifecycle Management Service Fulfillment Service Assurance Service Management and Operations Service Development & Management Customer Service Resource Development & Management Service Configuration & Activation Supplier Development & Management Service Quality Management •  The Operating Model shows seven vertical process groupings that are the end-to-end processes that are required to support customers and to manage operations •  The operating model also includes views of functionality as they span horizontally across the clients’s internal organization •  The horizontal functional process groupings distinguish functional operations processes and other types of business functional processes, e.g., Service Development versus Service Activation & Configuration, etc. 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 15  
    • Operating Model E2E Processes •  Built on industry best practice business and IT process models •  Addresses all of end-to-end processes needed to deliver Managed Services to customers - Includes –  Strategy and Service: “Enabling” processes of Business Strategy, Architecture & Planning, including •  Service Lifecycle Management and Service Development & Management –  Operations and Support: “Lights on,” or core operations processes of Customer Service, Service Management and Operations, including •  Operations Support, Billing/Chargeback, Service Desk, Service Development and Management •  Service Configuration & Activation, Service Quality Management, Facilities and Operations 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 16  
    • Facilities Management Operations Management Service Validation & Testing Availability Management Service Continuity Management Service-Level Management Continuous Service Improvement Knowledge Management Configuration Management Change Management Release & Deployment Mgmt. Solution Management Chargeback Management Access Management Event Management Problem Management Incident/Fault Management Security Management Supplier Management Capacity Management Demand Management Compliance Management Architecture Management Risk Management Service Catalog Management Service Portfolio Management Service Desk 17   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 12/17/13   Service Management and Operations Service Assurance Service Fulfillment Service Lifecycle Management Business Strategy, Architecture & Planning Operations and Support Strategy & Service Request Fulfillment Financial Management ITIL V3 Mapping
    • REFERENCE MODEL TECHNOLOGY PEOPLE PROCESS Operating Model 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 18  
    • Business Strategy, Architecture & Planning Processes •  Strategy & Service covers the processes involved in forming and deciding Service Strategy and gaining commitment from the business for this •  Service Lifecycle Management covers the services themselves – note that the model distinguishes Service, used by the client to represent the “technical” part of the product, and Resource (physical and non-physical components used to support Service) •  The vertical functional groupings in are mapped from ITIL V3, Service Strategy and Design 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 19  
    • Level 0 Operations & Support Processes •  Operations & Support (O&S) provide the core of lights-on Operations and first- and second-line support •  The vertical processes in O&S represent a view of flow-through of activity, and map to ITIL V3 processes where there is functionally-related activity, e.g., Service Transition, Operation and CSI 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 20  
    • Resource Model Inputs Cient Org. Roles / Process/ Task Headcount Incremental Roles / Process/Task Headcount needed for SVMA Pre-program Device Count Baseline Operational Metrics, e.g., Device to Admin Ratio Day 1 Device Count Map To End State Roles / Process / Task Headcount Device Retirement Schedule New Device Deployments schedule Role/Process/Task Headcount Apply Industry Benchmarks for Operational Metrics for Mature, Automated Processes, Roles Tasks Result Schedule of Decremented initiative Ops Roles / Process/Task Headcount 12/17/13   Schedule for Incremented Ops Roles / Process/Task Headcount © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 21  
    • Resource Model at a Glance Process Grouping ITIL V3 Processes Key Baseline Metrics Industry Benchmark Metrics ITIL Roles Headcount Forecast Demand Forecast 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 22  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 23  
    • The Target Model as a Business Planning Tool •  Roles (ITIL V3) •  Processes (ITIL V3) •  Skills (SFIA) •  KPIs / Metrics (Role Based / Processes Based) –  •  12/17/13   Baseline and improvement Allows us to dial up and down to see ROI © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 24  
    • Anticipated Trends Forecast (sample) Infrastructure Capacity, Efficiency, Scale and Ability Cope with Change BAU Headcounts BAU + Incremental Initiative Headcounts Aurora Planning Timeline 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 25  
    • Key Planning Metrics Low Hanging Fruit? •  Key Operations Metrics •  Key Support Metrics •  Mean Time to Repair (time required to diagnose and resolve problems) •  Ratio of L1 to L2 to L3 support staff •  First call resolution rate •  Incident to Change Ratio •  Percentage of escalations to L2 and L3 support •  % of Incidents Reported by End Users •  Time to plan a change •  % of Outages Traced to Mis-configurations •  Time to approve a change •  % of Changes Completed within change Windows •  Backlog of changes •  % of Changes Automated versus Manual •  # of change collisions •  Device to Admin Ratio •  % of changes rolled back •  Service roll-out cycle time (MTTD - mean time to deploy) •  # of calls resolved via self-service requests (call avoidance) •  Changes per Admin •  MTBF for business availability •  $ Unit per Device Managed •  Ratio of planned to unplanned changes •  Time and cost to Audit and Remediate (Audit cycle time) •  Average cost per incident •  Average cost per type of service request •  % of incidents closed by L1 support •  # of Incidents •  Ratio of L1 to L2 to L3 incidents •  Time and cost to Grant and Revoke Administrative Access •  Downtime traced to compliance violations •  % of configuration audits passed •  $ Operation per Device Managed © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 12/17/13   26  
    • Candidate Operational Flows •  Start the dialog •  Guide POV / POC activities •  Tied to KPIs / Metrics can help determine direct value opportunity 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 27  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 28  
    • 1. New Service Request/Service Provisioning 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 29  
    • 2. New Service Request Development Environment 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 30  
    • 3. New Service Request Development Application 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 31  
    • 4. Application Promotion 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 32  
    • 5. Closed Loop Compliance 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 33  
    • 6. Proactive Incident Management 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 34  
    • Agenda •  Major Assumptions •  Operating Model Scope •  Value Proposition •  Design Approach •  Level 0 Process Model with Level 1 ITIL V3 Mapping •  The Model as a Business Planning Tool •  Candidate Operational Flows •  Next Steps 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 35  
    • Call to action •  Gather data to complete Resource Model spreadsheet •  Cross-org. process “innovation workshop” –  Gain consensus and buy-in on high priority operational process improvement targets, KPIs, phasing, etc. •  Organization skills assessment, remediation recommendations •  Interface mapping across upstream and downstream systems (dependency mapping between SM, CRM, MIS, etc.) •  Implement operational flows in POV using defined alternatives •  Gain understanding of E2E optimization choices, e.g., replacement vs. migration 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 36  
    • Operating Model Focus Group Plan Milestones Day One – Operations Transition Readiness Phase One - Strategic Target Operating Model Design Phase 2 - Skills Assessment and Remediation Plan 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 37  
    • High Level Roadmap Q4 Day One Phase 1 Phase 2 12/17/13   Q1 Q2 Q3 Q4 Q1 Q2 Day One Operations Transition Readiness Dedicated Resources Assigned (see Resource Model) Stakeholder Process Transition Team and Infrastructure in place Governance Process Business-line Application Team Engagement Complete Resource Model Strategic Target OM Design Identify Process Owners Develop Approach Gain consensus on priority Develop and roadmap Sync with program priorities Skills Assessment & Remediation Plan Identify Functions / Skills Roles Develop Approach Gain consensus on approach Execute assessment, identify gaps, develop remediation plan Align plan to roadmap © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 38  
    • Day 1 – Operations Transition Readiness Q4 Day 1 Q1 Q2 Q3 Q4 Q1 Q2 Day One Operational Transition Readiness Qualified, Dedicated Resources Assigned (see Resource Required) Stakeholder Process Transition Team and Infrastructure in place Governance Process SBU Application Team Engagement Complete Resource Model - deliver to WG5 Deliverables •  Operations transition team in place, transition processes documented and ready to support Day One operations and activities •  Stakeholder process •  Resource Model Delivered •  Governance Process o  Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Stakeholder engagement, commitment by management to Governance Process Dependencies •  Existence of quality metric data •  Availability of Transition Team resources 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 39  
    • Phase 1 – Strategic Target Operating Model Design Q4 Phase 2 Q1 Q2 Q3 Q4 Q1 Q2 Strategic Target OM Design Identify Process Owners Develop Approach Gain consensus on priority Develop and roadmap Sync with Aurora priorities Deliverables •  Process Owners identified and committed – engagement with WG4 •  Process Models / Roadmap delivered •  Prioritization Model / Approach / KPIs delivered o  Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation (from Technical Operations), dedicated process design resources (see Day One Resource requirements) Dependencies •  Availability of dedicated resources (Budget) •  Availability and commitment of Process Owners 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 40  
    • Phase 2 – Skills Assessment and Remediation Plan Q4 2009 Phase 2 Q1 2010 Q2 2010 Q3 2009 Q4 2010 Q1 2011 Q2 2011 Skills Assessment & Remediation Plan Identify Functions / Skills Roles Develop Approach Gain consensus on approach Execute assessment, identify gaps, develop remediation plan Align plan to roadmap Deliverables •  Skills Assessment Framework •  Function / skills / role profiles •  Gap / remediation plan (e.g., Training / HR Plan) o  Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation, dedicated HR / training resources Dependencies (items still to be resolved – if any, and who might be the person / group to ask) •  Assessment framework (Budget) •  Availability of Process Owners •  Dedicated HR / Training planners (Budget) •  Training Resources (Budget) 12/17/13   © Copyright 2010-2011 Joseph Schwartz All Rights Reserved. 41