The document outlines an operating model design for managed IT services. It includes discussions of key elements like processes, governance, sourcing, services, and measurement. The agenda covers assumptions, operating model scope, value proposition, design approach, a high-level process model mapped to ITIL processes, how the model can be used for business planning, candidate operational flows, and next steps. The goal is to design an efficient operating model that improves customer experience, revenue, and organizational maturity through best practices like ITIL.

1. Operating Model Design Service Offering Description

2. 5/19/2011 © Copyright 2010-2011 Sunnyside Associates, LLC. All Rights Reserved. 2

3. Operating Model Elements Processes – how we perform activities 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 portfolio of IT products and services. Measurement – how we measure and monitor our performance. Organization – how we structure and organize our IT capabilities? 5/19/2011 3 © Copyright 2010-2011 Sunnyside Associates, LLC. All Rights Reserved.

4. 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 5/19/2011 © Copyright 2010-2011 Sunnyside Associates, LLC. All Rights Reserved. 4

5. 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)

6. 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

8. Process triggers and interfaces

9. E.g., ITIL , eTOM, ISO 2000

11. Customer Experience

13. Process owners

14. Escalations & interactions, etc.

16. Data models and repositories (e.g., CMDB)

17. COTS, standards & simplificationOperating Model Scope

18. 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

19. Assumed Operating Model Savings Targets - Operations

20. Assumed Operating Model Savings Targets - Support

21. Assumed Operating Model Savings Targets - SBUs

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

24. 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

25. ITIL does not link solutions and training to a design process (it is part of release)

26. 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 maturesEnd-to-end operating processes Integrate with client requirements

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

29. The operating model also includes views of functionality as they span horizontally across the clients’s internal organization

31. ITIL V3 Mapping Service Desk Incident/Fault Management Problem Management Event Management Access Management Request Fulfillment Strategy & Service Operations and Support Service Lifecycle Management Business Strategy, Architecture & Planning Service Management and Operations Service Fulfillment Service Assurance Facilities Management Knowledge Management Release & Deployment Mgmt. Configuration Management Solution Management Service Validation & Testing Service-Level Management Chargeback Management Change Management Availability Management Service Continuity Management Operations Management Continuous Service Improvement Security Management Service Portfolio Management Risk Management Supplier Management Capacity Management Service Catalog Management Compliance Management Architecture Management Demand Management Financial Management

32. Operating Model REFERENCE MODEL PROCESS PEOPLE TECHNOLOGY

33. 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 Business Strategy, Architecture & Planning Processes

34. 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

35. Resource Model

36. Resource Model at a Glance Process Grouping ITIL V3 Processes Key Baseline Metrics Industry Benchmark Metrics ITIL Roles Headcount Forecast Demand Forecast

37. 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

39. Processes (ITIL V3)

40. Skills (SFIA)

41. KPIs / Metrics (Role Based / Processes Based)

42. Baseline and improvement

45. Ratio of L1 to L2 to L3 support staff

46. First call resolution rate

47. Percentage of escalations to L2 and L3 support

48. Time to plan a change

49. Time to approve a change

50. Backlog of changes

51. # of change collisions

52. % of changes rolled back

53. # of calls resolved via self-service requests (call avoidance)

54. MTBF for business availability

55. Ratio of planned to unplanned changes

56. Average cost per incident

57. Average cost per type of service request

58. % of incidents closed by L1 support

59. # of Incidents

61. 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

62. 1. New Service Request/Service Provisioning

63. 2. New Service Request Development Environment

64. 3. New Service Request Development Application

65. 4. Application Promotion

66. 5. Closed Loop Compliance

67. 6. Proactive Incident Management

68. 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

69. 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

70. Operating Model Focus Group Plan Milestones

71. High Level Roadmap Q4 Q2 Q1 Q3 Q4 Q2 Q1 Day One 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 Phase 1 Strategic Target OM Design Identify Process Owners Develop Approach Gain consensus on priority Develop and roadmap Sync with program priorities Phase 2 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

73. Stakeholder process

74. Resource Model Delivered

75. Governance Process

78. Process Models / Roadmap delivered

79. Prioritization Model / Approach / KPIs delivered

82. Function / skills / role profiles

83. Gap / remediation plan (e.g., Training / HR Plan)

85. Availability of Process Owners

86. Dedicated HR / Training planners (Budget)

87. Training Resources (Budget)