To define a service based delivery model, enabling the business units to pay per use for the services they need and IT to deliver the services at the speed of business

1. Student Case
Competition
Amandeep Singh
Pradeep Yadav
Swapnil Joshi
Tarun Khatri

2. Executive Summary-Background
• Business Background
• Three Business Units
• IT organization is both centralized and decentralized along traditional operational practices
• Applications development and management functions – Business Units
• Infrastructure and data center – centralized IT organization
• Business PMO is centralized and has a disciplined methodology that guarantees quality of results
• Time frame from concept to live environment – 6 months
• 40 projects proposed – 15-18 funded
• IT Background
• 2 data centers – 75% virtualization
• 4 teams
• Hosting
• Networks
• Storage
• DB Management
• ITSM Services applied are
• Change Management
• Incident Management and Request fulfilment – Optimized
• Single Service Catalog and Service Desk function
ABC IT Organization
Centralized
Infrastructure Data Centers PMO
Decentralized
Application
Development

3. Major Issues faced by ABC ENERGY INC.
• Producing “one offs” solutions
• Business PMO is centralized
• Produces one offs solution from the stand point of technology
• Increase in the cost of operations post implementation
• 40 projects are proposed and out of that only 15-18 are funded
• Business units are preferring outside suppliers, including public clouds to address their needs,
because:-
• “Pay as you use” – The business units have to pay as per the services used
• Avoid capital investments on the part of business units
• Leverage operations funding and control spend by paying what they need.

4. Problem Statement
• To define a service based delivery model, enabling the business
units to pay per use for the services they need and IT to deliver the
services at the speed of business
• This problem statement tackles:-
• Slow turn-around of business services
• Address the issue of one-offs
• Transform traditional model into consumption based model
• Focuses on reducing shadow IT presence

5. Goals and Objectives
Development of Business Strategies
• Transforming IT through
• Service Management Framework
• Service Based Delivery Model
Operational Excellence
• Reduce the cost of operation
• Optimal utilization of resources
Cost Reduction
• Reduce Cost of the application
development and maintenance
Time Reduction
• Reducing the time of development

6. Recommendation#1 Time and Cost Reduction
• Implementation of DevOps
• DevOps is a practice that emphasizes the collaboration and communication of both software
developers and other information-technology (IT) professionals while automating the process of
software delivery and infrastructure changes
• The main advantage that DevOps has is that reusable modules can be implanted thereby saving
time for the implementation of new applications or processes
• Integration of ITIL and Agile methodologies
• By creating a Product backlog for the requirements and working in Sprints which would enable
the team to get input from on the priorities while grooming the tasks. This would enable IT and
Business to access the complexity of the projects

7. Recommendation#2 Development of Business
Strategies
• Bridging the gap between IT and Business
• ABC Energy Inc. needs a proper implementation of ITIL model in order to provide value to
business
• Main Advantages
1) Better reliability and quality of service
2) IT Governance – ensuring that policies and strategies are actually implemented and that required
processes are correctly followed
3) Competitive advantage through value creation
4) Improved customers and Relationship
IT ITIL Business

8. Recommendation#3 Gain Operational Excellence by
Removing “one-off” Factor
• Decentralize the Business PMO and integrate IT PMO with Business PMO for each
Business Unit
This would enable business PMO to focus on the services that are required only for their own
business units and integrating the IT PMO will help the business to remove the “one-off” factor as
the they will help in taking strategic decisions and decide what services to implement and what
services to buy from the market
• Implement Pay Per Use service based delivery model
With the integration, the Business PMO with IT, the business units will be able to pay for the
applications and services that are just required by them, thereby enabling the implementation of
pay per use model

9. Financial Costs and Benefits
Recommendation Costs Benefits
Time and Cost Reduction
• Implementation of DevOps
• Integration of ITIL and Scrum
methodologies
• Implementation of DevOps
Software tools
• Providing training
• Scrum Master (if hired from
external source)
• Reusable modules
• Time reduction
• Cost efficiencies are improved
Development of Business Strategies • Providing technical training
• Cost of ITSM monitoring tools
• Better reliability and quality of
service
• IT Governance
• Improved customers and
Relationship
Gain Operational Excellence by
Removing “one-off” Factor
• Decentralize Business PMO and
integrating IT PMO with it
• Implement Pay Per Use service
based delivery model
• Nil – only change in
organization structure required
• Proper management of IT
services provided to business
• Reduction of the shadow IT
factor
• Removal of the one off factor

10. Organizational changes/Impact
• The new organization structure after the
recommendation would involve different Business
PMO’s integrated with IT PMO in order to provide
consumption based services
• The organization also requires 3 new departments
acting as Business PMO for each business unit
• Addition of new resources / roles for revamping of
the service management unit. Roles include
• ITSM Process Leads
• ITSM Director
• Managers for each processes in ITSM
• Business Relationship Manager
• Financial Manager
• Scrum Master – for Agile
CEO
ABC Energy INC
Petro
USA
ABC
Drilling
& Oil
Engg &
Discovery
Business
PMO
Business
PMO
Business
PMO
IT PMO
CIO
IT Organization
Service
Management
Unit

11. THANKYOU
Present organizational impact of implementing recommendations. If there is any negative impact that is expected, outline the remedial action to be undertaken