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Delivering Lean the IT Way PE Summit Apr 08
This document summarizes a presentation on delivering lean IT services through continuous improvement and standardization. It discusses how Fujitsu applies lean principles like reducing waste and standardizing components and processes. Currently, most IT costs go to running legacy systems and infrastructure, but Fujitsu's approach aims to shift work left through standardization, reduce demand waste, and prioritize projects based on value to increase the portion of spending adding value from just 8% to 55%. By optimizing end-to-end delivery and standardizing processes, the potential impact of delivering IT through lean principles could be to reduce costs by half.
Delivering Lean the IT Way PE Summit Apr 08
- 1. © Fujitsu Services2008 9th ANNUAL PROCESS EXCELLENCE SUMMIT London, 16th APRIL, 2008 Delivering Lean IT Services Phil Falato Fujitsu, London
- 2. © Fujitsu Services2008 The Winchester “Mystery” house
- 3. Today’s CIO is undersiege
- 4. IT today islike the automotive sector of 20 years ago TYPICAL IT COST BREAKDOWN Infrastructure 50% Services 17% Running LegacyProjects Integrating apps. into legacy 25% Value-Add 8% • An industry stuck in design excellence • The crushing weight of bespoke-ism • Living on change control • Over 65% of costs to run legacy • New apps integration challenging • Game of diminishing returns Is there a better way?
- 5. Industrialising IT throughthe application of Lean FUJITSU’S APPROACH TO DELIVERING LEAN IT SERVICES Standard, pre-tested assembly components Continuous improvement aimed at eliminating waste Can you industrialise IT?
- 6. Fujitsu: where Eastmeets West FUJITSU IS THE THIRD LARGEST IT COMPANY IN THE WORLD In summary • A $43.2bn (€32.5bn) leader in IT systems and services for the global marketplace • Core businesses of: • Technology Solutions (System Platforms & Services) • Ubiquitous Product Solutions (PCs, HDDs, etc.) • Device Solutions • Fujitsu has the highest share of the IT services market in Japan, the 3rd highest worldwide • Sales and support operations in over 70 countries • 161,000 employees worldwide Americas 11,300 EMEA* 22,300 Asia- Pacific 28,700 Japan 98,700
- 7. Lean is fundamentallya mind-set Relentless Customer Focus Taking the Long Term View Respect for the Individual Collective self-improvement
- 8.
- 9. An architecture fordelivering service MAKING SERVICE ENVIRONMENTS MORE LIKE FACTORIES: HIGH EFFICIENCY AND STANDARDISATION First Contact Second Line Desk Side Services Networks Data Centres User Demand Traditional Environment • Unpredictable Demand • Optimised silos • Reactive approach • Disempowered culture • Technical measures • Non-Standard processes Sense and Respond • Predictable Demand • Optimised end-to-end • Proactive approach • Empowered culture • Business measures • Standard processes Increase predictability in user demand Eliminate Waste Demand Reroute to Cheaper Channels Optimise end-to-end delivery and standardise processes Eliminate Waste Activities Shift work to the left Service Integration Management and Audit Process Ownership
- 10. An architecture fordelivering operational excellence Sense and Respond: Delivering Lean Service through Continuous Improvement Lean Tools and Techniques Six-Sigma: Reducing Defects and Variability Business Process Architecture: Fundamental Business Process and IT Infrastructure Design Business Operating Model: Business Architecture and Context
- 11. A day atthe customer interface Communications Cell 15 min/day •Customer value •People •Performance •Improvement …Team 1 answers calls as usual Pareto Analysis Value Failure Ratio Statistical Process Control Creative Problem Solving Small team structured improvement process Kaizen Large team three-five day process improvement workshop Audit Board Management audit of Standard Work and issues identified 9:00-9:15am Communications Session Review and Plan 9:15-1:30pm Service Delivery Performance analysis 1:30-2:15pm Issue Identified at 1:00pm Problem solving session 5:45-6:00pm Audit Boards Updated Senior management visibility …Team 2 continuous improvement analysis Gemba Management Go- See Hoshin Kanri Policy Deployment
- 12. CREATING AN EMPOWEREDCULTURE AT THE CUSTOMER INTERFACE A day at the customer interface
- 13. Striving for betterservice at lower cost THE ECONOMIC AND SERVICE BENEFITS OF “SHIFTING TO THE LEFT”
- 14. Striving for betterservice at lower cost
- 15. Lessons Learnt Capacity creationnot cost reduction “If it ain’t broke, improve it!” Emphasis on small, incremental, sustainable Sharing, not imposing best practices Quality first, then costs Inverting traditional hierarchies Treating “urgency addiction” Celebrating problems Looking across organisational silos Leader as a coach and mentor
- 16. Can IT bedelivered at half the cost? THE POTENTIAL IMPACT OF DELIVERING IT THE LEAN WAY Infrastructure 50% Services 17% Running LegacyProjects Integrating apps. into legacy 25% Value-Add 8% Infrastructure 20% Improve 10% Running Legacy Orchestrate 15% Value-Add 55% Projects Project prioritisation through value based governance Building from standard, pre- tested components Building from a standard, validated library Eliminating process and demand waste Standardisation and rationalisation of processes
- 17. Thank you The onethousand mile journey starts with a single step