Understand the operating models that are driving sucessful IT organizations

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Plan, Build, Run Operating Model

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• Implement single organization to
interface with Business units and IT to
manage demand
• Implement Demand Management
and Prioritization processes
• Integrate Process CoE and Regional
Process groups to centralize core
functions
• Establish organization to manage
resources and implementation activities
that collaborates with planning
organization to ensure resources are
allocated to prioritized projects
• Implement Resource Forecasting
tools to manage staff variability
• Develop processes to ensure tight
integration with Plan and Build
teams
As outsourcing expands the TOM needs to be adjusted to better manage
business demand and increase variability
Business Collaboration
SAMPLE
Process
Team
BUs
Client
GSO

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Centralized
Program
Management
ApplicationsInfrastructure
Strategy &
Architecture
Supplier
Relationship
Management
Security &
Compliance
IT Finance
CIO
Decentralized
A large % of IT organizations are organized by traditional operating models
– Centralized, Federated, and Decentralized
Federated

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The business process based model is implemented by a small % of
industry organizations that are SAP centric
• CLIENT has partially implemented the business process based model with the implementation of
the Process CoEs and the Regional Process and Integration Services teams.
• Process & IT team has dedicated business process experts to be responsive to business needs and
help drive operational improvements
• Business Functions (GSO) and Process & IT are separate organizations though in the current
implementation.
• Additional rigor required to minimize local changes and manage demand.
Business Process Based

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Emerging models are being adopted by sourced organizations to drive
efficiencies and increase business responsiveness
Supply & Demand Plan, Build, Run
• Supply and Demand models segment
resources working with the business from
those resources supporting the
implementation
• Supply and Demand is a common model when
sourcing application maintenance and
development
• PBR models further segment resources by
Build and Run to focus on efficiencies and
costs savings within both organizations
• Plan team focus on business priorities
• PBR models are implemented to provide a
clear delineation of responsibilities in
outsourced models

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Plan Build Run is an operating model that divides the work into discrete
capabilities around a lifecycle for delivering services
• Plan Build Run (PBR) models are often designed for organizations that have transformed
through sourcing and continue to seek ways to reduce delivery costs for Run activities
and better manage costs and delivery of new Projects.
• Model places emphasis on up-front planning and separation of Change the Business
(CtB) vs. Run the Business (RtB)
• PBR provides a face to the business with strong planning, business process and
relationship management, demand management and financial management
• PBR significantly reduces the tension (distraction) between improving/growing the
business vs. keeping the lights on
• PBR is supported by Manage & Enable to provide the management, cross-functional
services and reporting required to align the organization.

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The PBR model is widely adopted in the industry
Benefits
• Designed for organizations that have
transformed through sourcing.
• Emphasizes up-front planning and separation
of Change the Business (CtB) vs. Run the
Business (RtB) activities
• Enhances business alignment with strong
planning, business process transformation,
relationship management, demand
management and financial management
• Reduces the tension between improving/
growing the business vs. keeping the lights on
• Supported by Manage & Enable to provide
the management, cross-functional services
and reporting required to align the
organization.
65% of large
outsourcing
deals over the
last 3 years
implemented
the PBR model

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CIO
Process & IT
(Plan)
Applications
(Build)
GSO
(Run)
• Architecture & Strategy
• Security & Compliance
• Process CoE
• IT Finance & Budget
Management
• Portfolio Management
• Regional Process Demand
• Demand Management
Application Build
• Application Strategy
• Solution Architecture
• Technical Requirements
• Application Development
• Application Project Delivery
• Project Management
Application Run
• Application Maintenance &
Minor Enhancements
• Application Service
Management/Service
Delivery
• Application Performance
Management
• Application Implementation
• Service Management/
Service Delivery
• Infrastructure Support
• Data Center Support
• Performance
Management
VMO
(Manage & Enable)
• Sourcing Governance &
Financials
• Compliancy (Risks and
Audits)
• Business Continuity
The PBR model aligns with the existing organization
Link to Organization Chart

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Plan
Build
Run
Manage & Enable
•Business Relationship
management, business
acumen, planning and strategy
alignment rather than deep
technology skills
•Successful plan organizations
collaborate across the business
and IT
•Implement Demand
Management principles -
Create and validate business
cases, negotiate priorities,
accountability for results
The Plan function is Process & IT’s face to the business
Organizational MappingCore Functions
Process Center
of Excellence
Process Center
of Excellence
IT Strategy &
Architecture – Global
Standards
IT Strategy &
Architecture – Global
Standards
Service Delivery
& Performance Management
– Portfolio & Budget
Management
Service Delivery
& Performance Management
– Portfolio & Budget
Management
Service Delivery
& Performance Management
– Central Processes
Service Delivery
& Performance Management
– Central Processes
Information
Security *– Policy &
Governance
Information
Security *– Policy &
Governance
Business Knowledge
Enterprise Architecture
Enterprise Standards
Portfolio & Budget
Corporate Business Knowledge
Corporate Security Standards
Process Integration &
Deployment Services
Process Integration &
Deployment Services
Local Business Knowledge

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Plan
Build
Run
Manage & Enable
• Responsible for all activities to
deliver the business solution
(excludes minor
enhancements):
• Solution Architect
• Functional Requirements
• Design
• Build
• Test
• Managing the technology
roadmap to guide solutions
along a common path and for
retiring obsolete technologies
Build is focused on creating, developing, configuring, implementing or
acquiring solutions to meet business needs.
Organizational MappingCore Functions
Enterprise
Applications
Enterprise
Applications
IT Strategy &
Architecture –
Technology Platforms
IT Strategy &
Architecture –
Technology Platforms
IT Strategy &
Architecture – Solution
Architecture
IT Strategy &
Architecture – Solution
Architecture
Process Integration &
Deployment Services
Process Integration &
Deployment Services
Applications Service
Provider
Applications Service
Provider
Design, Build, Configure,
Test, Implement Enterprise
Applications
Design and deployment of
new technologies
worldwide.
Design, Build, Configure, Test,
Implement
Solution Architecture
Infrastructure Service
Provider
Infrastructure Service
Provider

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Plan
Build
Run
Manage & Enable
• Managed Service - Primary
point of contact for end user
support
• Resolve problems –
break/fix, enhancements
• Infrastructure support
• System Monitoring
• Fulfills end user requests
• External Supplier responsible
for delivery of Services per
contract
• Client responsible
Governance and Service
Assurance
The Run function is often characterized as “keep the lights on” and focuses
on Infrastructure and Application support activities
Organizational MappingCore Functions
Service Delivery
& Performance Management
– Service Management
Service Delivery
& Performance Management
– Service Management
External SupplierExternal Supplier
Data CenterData Center
Information
Security* – Infrastructure
& App Security
Information
Security* – Infrastructure
& App Security
Service Assurance
Data Center Management
Security Compliance

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Plan
Build
Run
Manage & Enable
The Manage & Enable function manages the integrity of standards, policies
and processes for IT and the Business
Information
Security – Risk &
Compliance
Information
Security – Risk &
Compliance
Vendor Management
Office
Vendor Management
Office
Service Delivery
& Performance
Managementt
Service Delivery
& Performance
Managementt
• M&E governs external
relationships with service
providers and IT suppliers
• M&E supports business
reporting, business
continuity compliancy and IT
standards compliance
• M&E provides oversight roles
and leads the following:
• Risk management
• IT Audit
• Financial & contract
management
Organizational MappingCore Functions
Process Governance
Organization (PGO) -
New
Process Governance
Organization (PGO) -
New
Service Provider
Management &
Governance
SW & HW Contract
Management, License
Management and
Negotiations
Audits and Controls
Process Consistency &
Governance

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CIO
Process and Region CoE
IT Architecture &
Security*
Portfolio & Budget
Management
• Architecture & Strategy
• Information Security
* Security could remain
separate organization
Application
Services
Region,
Process or BU
Region, Process
or BU
Region, Process
or BU
Application Build
• Application Strategy
• Application Governance
Application Run
• Application Service
Management/Service
Delivery
• IT Finance & Budget
Management
• Portfolio Management
• Demand Management
PBR organizations streamline Regional Support and focus retained
organizations on Planning activities
• Corporate and Regional
Process Requirements
• Business interface
Retained Planning Functions
BusinessUnits
Idea Generation
Validate Budget
& Roadmap
Confirm Strategy &
Architecture
Build/Integrate
components

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