1.
Date:
Presenter:
Building a Future Proofed IT Operating Model
Dave Favelle
October 2017

2.
Is it just me or are we experiencing a “quickening”?
2
Digital
DevOps
Agile
Intelligent
Automation
Artificial
Intelligence
Tools
n
“Uberisation”
ChatBots
IT4IT
XaaSBiggish Data
Things
Portals
Digital
Operating
Model?
Apps
IBM has over 1000 R&D staff in this space
90% of Business Execs are expecting to be disrupted - Sloan review ‘17
We could be forgiven being a little overwhelmed and falling behind…

3.
Is Bimodal An Answer?
Commercial in Confidence 3
Remember Y2K and the days of eCommerce?
Gartner proposed that we need 2 IT shops:
1. A cool funky team that gets stuff done
2. A legacy team to run the legacy portfolio
But aren’t these all interdependent?
The real questions are:
1. How do we change faster
2. What does the destination
look like?

4.
Traditional frameworks and Digital?
Commercial in Confidence 4
The problem with “best practices” is that they arrive after you need them….
The world is moving too fast!
ITIL™ 2011
• AXELOS selling the same “timeless” concepts
• Do Netflix, Amazon or Google use ITIL?
• One thing they all have in common is a move away from the call centric model…
COBIT 5 ™ (2012)
• Still as useful as ever…;-]
ISO20000
• Last updated 2011, currently being re-developed (5 year cycle)
PRINCE2/PMBoK/MSP ™
• Still useful for initiatives with certain levels of risk, complexity and value (but not ambiguity)

5.
An Operating Model Journey….(2004 to 2017)
Business Information Services’ Operating Framework
BUSINESS
ServiceLevelManagement
BusinessCapabilityRequirementsAnalysis
Management
Processes
IT Strategy, Planning and Governance
IT Financial Management
Vendor Management
Workforce Management
Programme Management
Service
Processes
Problem
Management
Configuration
Management
Availability
Management
Change
Management
Security
Management
Capacity
Management
Service
Functions
Solutions and Services Development
Analyse
Requirements
Design
Solution/
Service
Build and Test
Solution/
Service
Deploy
Solution/
Service
Release Management
Project Management
Control
Production
Service
Continuity
Manage
Technical
Environment
Manage
Software
Storage
Management
Managing Technology Environment
Request
Management
Incident
Management
IT Services
Promotion
Service Desk
Business DEMAND Drives SUPPLY of IT Services Through
Processes
Executed by
Our Workforce
Governed by
Controls
IT Process Framework
Service, Asset & Process Owners
IT Services
Management
Committee
IT Portfolio
Management
Committee
IT Strategy
Committee
Embedded Process Controls
SMO
PMO
Board & Business
Strategy Committees
IT Exec
CEO
IT Service CatalogueIT Service Pipeline
IT Service Portfolio
Engage Business
Corporate & Line of Business
Strategy & Governance
Portfolio &
Investment
Requirements
Change
the
Business
New
Capabilities
Programmes & Projects
Business and IT Services
Service
Operations
Changes
Run
the
Business
Operational
Alignment
BT Teams
Strategy & Architecture
Integration ServicesService Delivery
Business Services
Strategise & Plan
IT Services
Strategy
(WHAT)
Technology
& Sourcing
Strategy
(HOW)
Define & Build
Transition
Operate &
Support
Assure &
Optimise
Govern Services & Lifecycle and Manage IT Business
Plan Service
Portfolio
Operating Model
MSP Pattern Operating Model
Service
Management
Office
Professional
Services Applications
Services
Technical Services
Infrastructure
Suppliers
System
Integrators
BusinessRelationship
Management
Build
Run
Programmes
& Projects
Operate
& Maintain
Underpinning Capabilities
• Strategy & architecture
• Financial Management
• Service Portfolio Management
• Security
• Governance & Risk
• Service Analytics
• Transition planning
• Supplier management
• Project Management
• Continuous Improvement
• Knowledge Management
• Resource Management
Service
Desk
Service Integration & Orchestration
Path to Production & Transition Management
PortfolioofCustomers
Initial Focus Areas
Concept
Improve
Engage
Investment Management
Demand Management
Relationship Management
Innovation
Management
Govern IT
Risk & Compliance
Management
Performance Management
Operating Model Assurance
Problem
Management
Requirements
Definition
Options
Analysis
Operate
Incident
Management
Request
Fulfillment
Service Level
Management
Event
Management
Access
Management
IT Continuity
Management
Supplier
Management
Security
Management
Availability
Management
Capacity
Management
Financial
Management
Asset
Management
Transition
Release
Management
Change
Management
Configuration
Management
Testing
Management Knowledge
Management
Service
Reporting
Improvement
Management
Design Build
Experience
Design
Solution
Design
ITSM
Design
Workload
Management
Development
Management
Quality
Assurance
Project/Programme Management
Strategise & Plan
Strategy Generation
Service & Asset Portfolio Management
Architecture Management
Planning, Resource & Workload Management
Workload
Management
Digital Delivery
(Build – Operate – Transfer)
Digital Business Portfolio
Partner n
Digital Partners
ITSM (Shared tools & taxonomy with SIAM)
Partner 1
Service
Design
Service
Delivery
Operations
Governance
Enterprise
Security
Internal IT
Procurement
& Commercial
GRC
Support
Omni-Channel
Support
Operational ITSM
Service Operations
Partner 1
Partner 2
Partner n
Enterprise Partners
Partner 3
Portfolios
Development
Transition
Chat
Calls
Self
Service
Physical
Business Demand
Digital
Program
Business UnitsOffice of CIOUsers
Operating Model
Business
End
Users
Supply
Service Support
Service
Operations
Partners
Internal
Partners
Continuous Improvement
Internal
Service Management
Project Management
ICT Governance
Service
Development
Transition
Automation
Relationship
Management
Strategy, Architecture, Service Portfolio Management
Design Principles
1. Highly Automated
2. Multi-channel
3. Experience & value
driven
4. Agile development
5. Service Operations focus
6. Integrated partners
7. Measurement focus
Demand
© ValueFlow IT 2016
Enterprise IT Pattern
Partner
management

6.
8 things I learned along the way…
1. Plan – Build – Run < Operating Model
2. Operating Model > Structure
3. Governance controls are not separate
4. Independent “culture” change programs don’t
5. Framework de jour initiatives don’t deliver
6. Initiatives independent of the Service portfolio and Sourcing Model don’t work well
7. Leaders like the idea but struggle to design their own model
8. Nobody cares enough about FLOW
Commercial in Confidence 6

7.
IT Operating
Model
IT Strategy, EA
& Governance
Business
Strategy
Technology & Sourcing
Roadmaps
Service Portfolio (target),
Medibank Assets &
Sourced Services
Dimensions of IT Operating Model for a Digital Future
7
Service Portfolio
(Digital & Traditional Services)
Management Tools
& Automation
Value Streams & Capabilities
- Requirements to Deployment
- Request to Fulfill
- Detect to Correct
Measurement &
Improvement
Service Brokerage
& Partner
Integration
Organisational
Design
Leadership & Culture
Engagement Model &
Demand
The IT Operating Model
concept has recently
emerged as a way of
fully expressing the
integrated set of
capabilities needed to
run modern IT
It is a multi-dimensional
system operating
together to deliver
business technology
value
Governance

8.
Vectors indicate Portfolio tending to CD & SaaS
8
“Continuous delivery is a set of practices and principles aimed at
building, testing, and releasing software & related services
faster and more frequently”
As leaders, how can we enable these value streams?
DevOps
Lean Startup
(build – measure – learn)
Agile (Development)
Lean (End to End Flow)
Value
Scrum, Kanban
(process)
XP
(Engineering)
Idea
ITSM &
Continuous
Operations

9.
Third Way: Culture of continuous learning
and experimentation
Second Way: shorten and amplify feedback
First Way: Understanding work left to right
We need the 3 ways of DevOps for all IT
© ITRevolution/Gene Kim 2014: http://itrevolution.com
FLOW
FEEDBACK
FREEDOM

10.
We need to focus on Value Stream optimisation
10
Customer
Process
Function
LT = 1 day
PT = 10 min
%CA = 50%
Information Flow
Work Flow
Timeline
Process
Function
LT = 1 day
PT = 10 min
%CA = 50%
Process
Function
LT = 1 day
PT = 10 min
%CA = 50%
Request Deliverable
1 day
10 min
1 day
10 min
1 day
10 min
LT = 3 days
PT = 30 min
%CA = 12.5%
Activity Ratio = 2%
Total
F
e
n
c
e
p
o
s
t
F
e
n
c
e
p
o
s
t
http://www.ksmartin.com/books/value-stream-mapping/

11.
Understand the pace layers of your application services
Pace of
Delivery
Source: Jonny Woolridge
Cambridge Satchel 2014
APIs allow
the flexibility
to manage
components
of the same
service in
different ways

12.
And then choose IT4IT as the Unifying Framework
12IT4IT™ is a trademark of The Open Group
Digital Portfolio Continuous Delivery Continuous Operations

13.
IT4IT™ Reference Architecture: The Backbone of Flow
13
Configuration
Management
Component
Service
Monitoring
Component
Event
Component
Incident
Component
Change
Control
Component
Diagnostics &
Remediation
Component
Service Level
Component
Problem
Component
Usage
Component
Chargeback/
Showback
Component
Fulfillment
Execution
Component
Request
Rationalization
Component
Catalog
Composition
Component
Offer
Management
Component
Offer Consumption Component
Release
Composition
Component
Build
Package
Component
Build
Component
Test
Component
Defect
Component
Service
Design
Component
Project
Component
Source
Control
Component
Requirement
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Enterprise
Architecture
Component
Require-
ment
Test
Case
Problem,
Known
Error
Incident
Source
Charge-
back
Contract
Build Offer
Sub-
scription
Service
Contract Event
Portfolio
Backlog
Item
IT
Initiative
Build
Package
Service
Catalog
Entry
RFC
Usage
Record
Run
Book
Service
Monitor
Defect
Request
Fulfill-
ment
Request
Shopping
Cart
Con-
ceptual
Service
Logical
Service
Service
Release
Blueprint
Actual
Service
Desired
Service
Service
Release
Scope
Agree-
ment
Policy
Enter-
prise
Architec-
ture
Charge-
back
Record
Strategy to
Portfolio
Requirement to Deploy Request to Fulfill Detect to Correct
IT4IT™ is a trademark of The Open Group
Auxiliary data object IT4IT version: 2.1
Key data object
Service model object
Entity relationship
Key functional component
This diagram is based on material developed by the IT4IT™ Forum of The Open Group – Jan 2017

14.
IT4IT™ Detect to Correct (D2C) Level 2
14

15.
Presenting Capabilities using IT4IT
Single System of Record
ICT Governance
• Risk & Compliance Management
• Security Management
• Operating Model assurance
Technology Business Management
• Supplier/Vendor Management
• Financial Management
• Resource Management
Demand
Project Publish
Incident
Monitor & event
Problem
Change
Test
PLAN BUILD DELIVER RUN
STRATEGY TO
PORTFOLIO
REQUIREMENT
TO DEPLOY
REQUEST TO
FULFILL
DETECT TO
CORRECT
Portfolio
Fulfil
Release & Deploy
Design & Develop
Strategy &
Innovation
Filter & shape Request
Recharge
Knowledge
Service Integration & Operations Management
• Service Analytics
• Service Transition, Config & Asset Management (CMDB)
• Service Level Management & Supplier Integration
• Service Risk Management
• Using IT4IT to evaluate and
define Operating Model
capability in each value stream
• The automation architecture
needs to integrate the
supporting capability
requirements
• The Value Streams draw on
frameworks/guidance from all
useful sources including:
• IT4IT, ITIL, Agile, SIAM,
Prince2/MSP, COBIT, TBM
as appropriate
Platform Management
• API Management
• Platform Lifecycle Management
• Availability, Capacity & Service Continuity Management

16.
Evaluating Capability Integration @ Flowability ;-]
• Extended from IT4IT to create
holistic capabilities
• Flow can be estimated
• Tools investments can be
justified related to the Value
Streams
• Operating Model can
accommodate different
service portfolios
• May need multiple instances
of some Value Streams
Functional
& Integrated
Functional
but decoupled
Functional Gap
Not evaluated
Single System of Record
ICT Governance
• Risk & Compliance Management
• Security Management
• Operating Model assurance
Technology Business Management
• Supplier/Vendor Management
• Financial Management
• Resource Management
Demand
Project Publish
Incident
Monitor & event
Problem
Change
Test
PLAN BUILD DELIVER RUN
STRATEGY TO
PORTFOLIO
REQUIREMENT
TO DEPLOY
REQUEST TO
FULFILL
DETECT TO
CORRECT
Portfolio
Fulfil
Release & Deploy
Design & Develop
Strategy &
Innovation
Filter & shape Request
Recharge
Knowledge
Platform Management
• API Management
• Platform Lifecycle Management
• Availability, Capacity & Service Continuity Management
Operations Management & Service Integration
• Service Analytics
• Service Transition, Config & Asset Management (CMDB)
• Service Level Management & Vendor Management
• Service Risk Management

17.
Detect to Correct Current State Mapping (D2C)
Problem ComponentIncident Component
Service Level Component
Event Component
Change Control ComponentDiagnostics & Remediation
Component
Service
Monitoring Component
Configuration Management
Component
Collaboration KnowledgeSelf-Service Support
Discovery
Integration
Reporting
ServiceNow
Knowledge
Wiki
Splunk
Cognos
BA
Foglight
https Tibbco
MS
SharepointServiceNow
Portal
Nagios
VMWare
vRealize
Voice
Biometrics
Enterprise
ESB?
REST, Web
Services
ServiceNow
ITOM
ServiceNow
Performance
Analytics
MS Excel
MS Access
Ivanti
Xtraction
ServiceNow
Alert
Intranet
Splunk
ServiceNow
Connect
ServiceNow
Portal
ServiceNow
Knowledge
Dynatrace Solarwinds
Splunk
ServiceNow
Event
ServiceNow
Knowledge
ServiceNow
Orchestration
Jira
ServiceNow
Change
ServiceNow Incident Jira/Wiki
ServiceNow
Problem
VMWare
vROPS
Asset
ServiceNow
Configuration
MS SCCM
ServiceNow
SLM
ServiceNow
Service 360
SMS Email
Phone Skype
MS
Sharepoint
Does not fully support
capability, change required
Fully supports capability,
keep
Future addition,
consolidation opportunity
Incident
Event
Incident
Runbook
RFC
Conversation
Enquiry
Problem
Runbook
RFC
Service Performance
CIs
RFC
Changed CIs
Remediation
Notification
Planned for removal

18.
Hypothesis: Transform by targeting Digital Operating Model Capability Levels
Functional
•Service inventory identified
•Plan-build-run concept
•Tooling in place but de-coupled
•CAPEX funding
•Functional measures in place
•Local behaviours
Internally Integrated
• Patterns & frameworks driving
capability uplift
• Engagement model in place
• ‘Service backbone’ established
• Value Streams understood and
driving improvement
• Supporting capabilities linked to
Valuestreams
• Service level under management
• Automated provisioning
Value Chain Integrated
•End to end Value Steam Integration
•Full lifecycle designed and
implemented
Service Lifecycle under management
•IT4IT based architecture
•Continuous Delivery in place
•ServiceNow and associated tool chain
elements automated (where possible)
•Consumption based model
Cross functional culture
•Cloud and service orchestration
Digital Operating Model
•Business Process service
platforms (..aaS) established
•Optimised for industry
Verticals
•Experimentation and learning
culture & practices
•Digital leverage applied
(Service AI, IoT etc.)
•Pace layer driven
•Platform and product
independently managed
•Lean startup driven
synchronous flow with
business and customer needs
•Continuous Operations
ValueFlow IT Operating Model Capability Framework ©
Ø % Services covered
Ø MTTR
Ø WIP
Ø % revenue
Ø Support NPS
Ø Value Stream LT, PT, % C&A
Ø % automated provisioning
Ø Average availability
Ø Cost to serve
Ø End User CX
Ø CX metric driving
Ø Flow metrics driving
Ø Lifecycle value optimised
Ø Supplier portfolio optimised
Ø Flow metrics established
Ø Throughput per portfolio
Ø % orchestrated
Ø Value stream cost
Ø Lifecycle cost
Most Enterprise IT

19.
Date:
Presenter:
The Process for Your
Organisation

20.
First the “WHY” of your IT
20
• Engaging to understand business needs,
• Building or brokering optimal services
• Operating safely and efficiently, and
• Delivering a compelling customer experience
• Transformed IT Operating Model based on
emerging thinking: Working smart
• Choosing and integrating partners that fit our
model and aspirations
• High level of ServiceNow automation
• Cultivating a culture of excellence & collaboration
Enable our business to outcompete their
opposition using technology

21.
IT Operating
Model
IT Strategy, EA
& Governance
Business
Strategy
Technology & Sourcing
Roadmaps
Service Portfolio (target),
Medibank Assets &
Sourced Services
IT Operating Model for a Digital Future
21
Service Portfolio
(Digital & Traditional Services)
Tools & Automation
Value Streams & Capabilities
- Requirements to Deployment
- Request to Fulfill
- Detect to Correct
Measurement &
Improvement
Service Brokerage
& Partner
Integration
Organisational
Design
Leadership & Culture
Engagement Model &
Demand
The IT Operating Model
concept has recently
emerged as a way of
fully expressing the
integrated set of
capabilities needed to
run modern IT
It is a multi-dimensional
system operating
together to deliver
business technology
value
Governance

22.
IT Operating Model Design Process
22
Service Portfolio & Service Models (see next slide)1. Configuration
Drivers
Internal & Partner Delivered Services (end to end and/or component)
Business Strategy, IT Strategy & Business Model Attributes
Defined
Service
Portfolios,
families
& Attributes
2.Aligning
Dimensions
IT Operating Model Dimensions
Engagement
& Demand
Service
Brokerage &
Integration
Organisation
Design
IT Automation
Architecture
Measurement &
Improvement
Value Streams &
Supporting
Capabilities
Governance
Selected
Patterns &
Frameworks
3.Designing
Capabilities
Roles, Skills &
Behaviours
Process
Framework
Automation
Requirements
Scorecards &
Reports
Value Stream
Definitions
Team scope &
structure
Control, Risk
Requirements
Fit for
purpose
Designs
Fit for
purpose
Designs
4. Realising
the Change
Job
Description
Process
Definitions
Service
Agreements
Staff/Team
Development
Plans
Team/Function
Definition
Automation
Applications
Service
Performance
Reports
Controls,
tests
Execution
Artifacts
Value
Stream
Metrics

23.
Service Portfolio led Capability Development
23
Value Stream Designs
Supporting Capability Designs
Organisational Change Plans
2. Design Value Streams
• Cadence requirements
• GRC control requirements
• Process requirements
• Tool chain & Automation
• Metrics
• Support Model Requirements
• Roles & Skills
• Organisational Roles & Responsibilities
• Current state gap analysis
Target
Portfolio
of
Value
Streams &
Capabilities
Informs
1. Discover & Analyse
Capture data:
• Service Portfolio
• Business value drivers
• Delivery/Sourcing Models
• Existing cadence fitness
• Resource types & groups
• Architectural complexity
Service Family
Service Family
Service Family A
Analyse all Services work to find service families with similar attributes and value stream requirements
Service Family
Service Family
Service Family B
Service Family
Service Family
Service Family C
Service Family
Service Family
Service Family… n
3. Implement Value Stream Designs & Supporting Capabilities
• Prioritise Value Streams
• Deliver capabilities via Scrum & Kanban
• Measure performance
• Revise and continue

24.
Organising Capability into a Roadmap of Releases
24
Single System of Record
ICT Governance
• Risk & Compliance Management
• Security Management
• Operating Model assurance
Technology Business Management
• Supplier/Vendor Management
• Financial Management
• Resource Management
Demand
Project Publish
Incident
Monitor & event
Problem
Change
Test
PLAN BUILD DELIVER RUN
STRATEGY TO
PORTFOLIO
REQUIREMENT
TO DEPLOY
REQUEST TO
FULFILL
DETECT TO
CORRECT
Portfolio
Fulfil
Release & Deploy
Design & Develop
Strategy &
Innovation
Filter & shape Request
Recharge
Knowledge
Operations Management & Service Integration
• Service Analytics
• Service Transition, Config & Asset Management (CMDB)
• Service Level Management & Vendor Management
• Service Risk Management
Platform Management
• API Management
• Platform Lifecycle Management
• Availability, Capacity & Service Continuity Management
• Outlines the sequence of capability
themes within each release
• Release capabilities may merge or
overlap, as maturity in each capability
group are assessed
• Sequencing will often depend on
incumbent tool replacement
timeframes and maturity level in non-
ITSM part of the technology lifecycle
Release 4+ – Integrated IT
Release 3 – Agile IT
Release 2 – Smart IT
Release 1 – Reliable IT

25.
Capability Development Roadmap version n.n
Release 1 Release 2 Release 3 Release ….N
Capability Uplift
Cycles (Releases/
Sprints)
ServiceNow
Capabilities
Required
(Functions,
Applications)
Incident Problem
Change Config
Organisational
Capabilities
• Basic SMO capabilities
• Professional Demand Services
• Service Mgmt reporting & governance
• Teams become aware of current
sources of work and can prioritise
• Establish standardised infrastructure
and application support models
• Establish CSI / process governance
• SMO extensions
• Integrated Service Mgmt with
Operations team
• Further IT transition practices
• Report performance & cost per service
• Establish integrated vendor/supplier
mgmt (initial SIAM)
• Consumption based offerings and
chargeback
• Integrate governance & risk controls
• Continuous uplift of Service Mgmt
capabilities (CSI)
• Establish automated provisioning and
advanced release management (CD/CI)
• Design Service Mgmt capabilities to be
leveraged by non-IT teams & customers
• SIAM model in place
• Public Cloud leverage and services
• Health business process service support
• End to end support for Digital Hospital
Services
• Establish portfolio aligned delivery and
lifecycle management practices
• Extend governance, risk and threat
capability
• Initiate Bots and AI – predictive,
autonomous services
Service Desk Uplift
Engagement and Demand changes
D2C and R2F process/tooling uplift
Collaboration & Communities
SMO established
Catalog
Discovery Orchestration
Service
Mapping
Release
Asset
Cost
Operational
Intelligence
Knowledge
Service
Level
Benchmarks
Cloud Mgmt
Service
Portal Baseline
Reports Performance
Analytics
Service
Portfolio
Dashboards
Service Mgmt tools uplift
Service Analytics Predictive Analytics Business Process Analytics
Service Mgmt as a Service
GRC
Offerings, Requests, Fulfilment
Vendor
Performance
Release Capabilities
Security Incident
Response
Vulnerability
Response
Threat
Intelligence
Ideation Demand
Automated Test
Framework
Event
PPM
Resource
APM
Agile
Fin Mgmt
Clinical Application Service Support
ESM / CSM Integration
Service Catalogue/Offerings online
KPI based analytics
Platform architecture
SIAM establishment SIAM Automation
Cloud Services
Demand-Projects established
Tool Chain Cycles Automation and Integration ITSM Tool replacement Other ServiceNow and non ServiceNow tool chain initiatives
Manage multi tenant environment
Service Lifecycle Governance
Customer Lifecycle Services
Service Innovation

26.
Reflect & Act
1. What are the digital aspirations of my business?
2. What are my current and future Service Families?
3. Is my IT Operating Model and its constituent value streams ready?
4. How can I leverage IT4IT, tools and emerging frameworks to accelerate IT capability?
5. Futureproof: Am I working in the system or on the system?
Commercial in Confidence 26

27.
As leaders, improving our work
IS our work
Fret not where the road will take you. Instead concentrate on the first step.
That is the hardest part and that is what you are responsible for.
Once you take that step, let everything do what it naturally does and the rest will follow.
Don’t go with the flow. Be the flow.
~ Shams of Tabriz (13th century) Rule 19 of the 40 rules of Love