Service Integration and Management / MultiSourcing Services Integrationn

© 2013 National University of Singapore unless
otherwise stated. All Rights Reserved.
www.itsmf.org.sgitSMF Singapore 2015 Annual Conference - ITSM Leadership Congress
1(Total Slides=56) 09/03/2015 10:32 am - d:issitsmf 2015-
03 seminaritsmf 2015 - service integration.pptx
Service Integration and Management
(SIAM)
Goh Boon Nam
Institute of Systems Science, NUS
(in collaboration with UXC Consulting)

Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function
209/03/2015 10:32 am - itsmf 2015 - service integration.pptx

Introduction

My Organisation
 Institute of Systems Science www.iss.nus.edu.sg
 Part of National University of Singapore
 Support national IT competency development
needs
 Faculty of practitioners from industry with
average of more that 15 years experience each
 Caters to working IT professionals
 Post-Graduate Programmes
 Executive Programmes
 Industry Research
 Consulting

About Myself
ITIL® Expert, COMIT (Certification in
Outsourcing Mgt for IT), CITPM, CGEIT,
TOGAF, CBAP, Chartered IT Professional
 20 years of IT management experience
 Process Improvement
 Enterprise Architecture and Planning
 IT Operations Mgt
 Applications Mgt
 Consultancy for private and public sector
 CMMI
 Enterprise Architecture
 IT Strategy
Goh Boon Nam
Chief, New Initiatives
Institute of Systems Science

Managing Multiple Suppliers/Vendors
– Is it Easy?
Is it easy to manage multiple vendors?
What is the common issue that occurs when incidents occur?

Does ITIL® Cater Specifically to
Managing Multiple Suppliers?
Not specifically -
Only a few small sections specific to multi-vendor situation (e.g. Service
Strategy - “3.7.3. Multi-Vendor Sourcing”)
The rest of ITIL apply generally to both multi-vendor or non multi-
vendor environments.

What is the Industry Term for
Managing Multiple Suppliers?
 2 main terms being used
 Service Integration and Management
 More common term used in UK
 Multisourcing Services Integration
 More common term used in US

Service Integration and Management
- Definition
 No standard definition but common meaning
 “Service integration and management lets an organisation
manage the service providers in a consistent and efficient way,
making sure that performance across a portfolio of multi-
sourced goods and services meets user needs.”
Source: GOV.UK
 “The multisourcing service integration (MSI) role is undertaken by
the client, or by a third party contracted by the client organization
with an individual contract to act as its agent in coordinating
and integrating service delivery, in an environment that uses
multiple internal and external service providers to deliver IT
and business process services. The term "SIAM" comes from U.K.
government usage and stands for service integration and
management. The terms "MSI" and "SIAM" may be used
interchangeably, as well as combined (MSI/SIAM).”
Source:

Is SIAM New?
 How many of you had to work in a multi-
supplier/vendor environment since you started
work?
 When did you start work?

What’s New with SIAM?
 Many organisations now outsource almost all their IT
 And are transitioning from single vendor outsourcing model
to multiple-vendors model (see next few slides)
 Total outsource to multi-vendors is complicated
 Arising from above
 Best practices specific to SIAM (and especially for total-
outsourced IT) are starting to be compiled
 Public
 Proprietary
 Service providers starting to offer SIAM function as a
dedicated service
 ITSM tools catering better to SIAM functionality

Change in SIAM and IT Dept Structure
IT Dept
Mgt
Step1- Traditional
Multi-Sourcing
Server
Section
In-
House
Out-
Source
Network
Section
In-
House
Out-
Source
App.
Section
In-
House
Out-
Source
etc...
In-
House
Out-
Source
Main
Vendor
Step2 - Total Outsourcing
Single-Sourcing
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
etc...
IT Dept Mgt &
some retained staff
Multi-Sourcing
Vendor
#1
Vendor
#2
Vendor
#3
etc...
IT Dept Mgt &
some retained staff
Sufficient depth
& breadth of
in-house expertise
to manage multiple
vendors
Expertise lost
in step 2.
Even if retained,
now need it to be
more structured & formal
as all work now outsourced

Why the Need for Better SIAM Now?
 Total outsourcing via multi-sourcing increasingly being
used
 more complicated to manage than single-sourcing
 IT Dept had lost multi-sourcing competencies from in-
house sections when originally switched to total single-
source outsourcing
 Growing diversity of possible services and service
providers
 Increasing complexity of services
 High dependence on IT for business functions
 Many businesses now operate 24x7
 Rising expectations of external and internal
customers/users

Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function

Some SIAM Best Practices

Some SIAM Best Practices - Agenda
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation Service Level
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services

How many agreements?
Span of Control (1)
Vendor
#1
Vendor
#2
Vendor
#3
Vendor
#3
Vendor
#4
Vendor
#5
Vendor
#1
Vendor
#2
Vendor
#6
Vendor
#7
Option A
Option B
Which option is easier to manage?
Vendor
#8
Vendor
#9
IT Dept Mgt &
some retained staff
IT Dept Mgt &
some retained staff

Span of Control (2)
- Use Lead Supplier/Vendor Concept
Lead
Vendor
#1
Lead
Vendor
#2
Lead
Vendor
#3
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
Lead Vendor concept
as alternative to earlier Option B
IT Dept Mgt &
some retained staff

Understand the Vendor Dependencies
- Technical Service Catalog (1)
http://www.hci-itil.com/ITIL_v3/books/2_service_design/service_design_ch4_1.html
Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under licence from AXELOS

- Technical Service Catalog (2)
Example of
Technical
Catalog entry
for an ERP service
Copyright © AXELOS Limited 2011. All rights
reserved. Material is reproduced under licence
from AXELOS

- Beware of Availability Dependency
Database
(vendor1)
App
Server
(vendor2)
Network
(vendor3)
PC
(vendor4)
ERP Service
Required Availability in SLA = 99.9%
99.9% 99.9%99.9%99.9%x x x = 99.6%
99.975% 99.975%99.975%99.975%x x x = 99.9%
Fail !
Pass

Structure the Vendor Agreements (1)
- Overall Structure Per Agreement
Adapted from http://integrisapplied.com/wp-content/uploads/2012/07/MSI-Brochure-2012-07.pdf
(Responsibilities
towards other
providers)
(Includes Targets,
Incentives, Penalties)
(SOW
& tech
specs)
(ITSM
processes
to follow)
(Generic
contract
specs &
Priciing)
(Governance
& Integration
Obligations)

Structure the Agreements (4)
- OLA Service Provider Interfaces
definitions
Process
specification
Service (e.g. ERP service)
relationship
Sourcing
Change mgt
Incident mgt
etc ...
contract A
Service
(ERP app)
contract B
Service
(Server)
contract C
Service
(etc...)
SPI
SPI
SPI
Standard
Standard
Standard
Based on AXELOS ITIL® material. All rights reserved. Reproduced under licence from AXELOS
SPI identify/define
interactions between
provider and
- processes
- other providers
- customer
- users

Structure the Agreements (3)
- Impose Cooperation Service Level
http://www.straitstimes.com/sites/straitstimes.com/files/Ah%20Boys%202603e.jpg
How to make multi-
parties cooperate
with each other?
If possible, impose
Shared Service Level
for combined service
with other vendors
(in ADDITION to
the usual separate
service levels for their
individual services)

How to Introduce Such Agreements
 But we already have existing agreements in force with
existing vendors ...
 How then to replace with new type of agreement?
 Big bang enterprise wide
 By Division starting with Pilot
 By similar types of service e.g. infra / app
 Starting only from new contracts or contracts due for
renewal
 How much of a change to existing agreements
 Replace
 Retro-fit existing
 Change to supporting documents

Some SIAM Best Practices - Agenda
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation SLA
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services

Organise to Manage Multi-Vendors
Can be
in-house or
outsourced

Don’t Run Ops Based on Agreements
- Build Relationships Instead
Throwing the “book” at (i.e. using
contract clauses to threaten)
providers is NOT the way to manage
them on a day-to-day basis.
Build “good personal working
relationships” with them instead.
“People make SIAM work”
https://www.axelos.com/CMSPages/GetFile.aspx?guid=cbf5524d-2d6b-4ac9-ad5c-c0e1bd6e2899

Types of Relationships To Build
 With vendors’ service owners, managers and
practitioners
 Also include vendors’ process owners, managers
and practitioners
 Might also differentiate between type of vendors
 Customised Services & Integrated Services
 recommend Close Relationship
 Configurable Standard Services
 recommend Good Relationship
 Non-Configurable Commodity Services
 recommend Contractual Relationship

Set Up SIAM Performance &
Availability Monitoring (1)
http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

End to End Monitoring
Adapted from http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

http://www.manageengine.com/products/applications_manager/network-application-monitoring.html

Set up SIAM ITSM Tool Interfaces (1)
Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware
Vendor’s
ITSM Tool
Customer’s
ITSM Tool
End user
creates
new
ticket
Create new
ticket
Transfer to
support
group:
Vendor 1
Create new
ticket
Assign
ticket
Update ticket
information:
Status:
Assigned
Handle
ticket
Resolve
ticket:
Status:
Resolved
Update
ticket
information:
Status
Update
ticket
information:
Worklog
Update
ticket info:
Status:
Solved
End
End
?? ?? ?? ??
The Need for Tool Integration

Vendor 2
Secure Cloud Infrastructure
Service-Flow
Customer X
Network
ITSM
Tool X
Vendor 1
ITSM
Tool Y
ITSM
Tool Z
SSL
SSL
SSL
Adapter
X
Adapter
Z
Adapter
Y
Broker
Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

Not just a technical Issue
Mapping needed between different vendors’ definitions
Customer
ITSM Tool Urgency
Definition
Vendor#1
ITSM Tool Urgency
Definition
Vendor#2
ITSM Tool Urgency
Definition
1 Very High 1 High 1 Critical
2 High 1 High 2 High
3 Medium 2 Medium 3 Medium
4 Low 3 Low 4 Low
5 Very Low 3 Low 4 Low

Set Up SIAM Governance (1)
Strategic
Tactical
Operational
Governance
Bodies Scope
ICT Strategic
Committee
Executive Vendor
Review
SIAM Strategy
Contract Review
Service Delivery
Review
Measurment and
Compliance of Sourcing
Performance
Change and Release
Advisory Board
ITSM Forum
End to End Performance
Service Performance
IT Change Management
Evaluate,
Direct,
Monitor
Evaluate,
Direct,
Monitor
Evaluate,
Direct,
Monitor
Source: UXC Consulting
09/03/2015 10:32 am - itsmf 2015 - service integration.pptx 36

Carrying Out SIAM Services
http://www.i-pupil.com/attachments/article/39/Service%20Integration%20%20Management%20%28SIAM%29%20Service%20Descriptions%20v8a.pdf
Source: Draft UK Govt SIAM Framework

Some SIAM Best Practices - Summary
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation SLA
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services

Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function

Outsourcing of SIAM Function

Is SIAM Easy?
Can we Outsource SIAM? (1)
SIAM
vendor
Step3b - Outsourcing
Multi-Sourcing
plus SIAM outsourced
Vendor
#1
Vendor
#2
Vendor
#3
etc...
41
Main
Vendor
Single-Sourcing
Sub-
Vendor
Sub-
Vendor
Sub-
Vendor
etc...
IT Dept Mgt &
some retained staff
Multi-Sourcing
Vendor
#1
Vendor
#2
Vendor
#3
etc...
IT Dept Mgt &
some retained staff
IT Dept Mgt &
some retained staff

Is SIAM Easy?
Can we Outsource SIAM? (2)
http://pixel.nymag.com/imgs/daily/intel/2012/10/16/16-
truman.w529.h352.2x.jpg
If anything goes
wrong, can we now
blame the SIAM
vendor?
US President Truman
“The Buck Stops
Here” – i.e. you can
delegate/outsource
your responsibility
(i.e. work) but not
your accountability

If outsource SIAM, why not
outsource all of IT? Yes or No (1)
SIAM
vendor
(4) Total Outsourcing
Multi-Sourcing
plus SIAM outsourced
Vendor
#1
Vendor
#2
Vendor
#3
etc...
SIAM
vendor
(5) Why have IT Dept?
Why not outsource all
of IT?
Vendor
#1
Vendor
#2
Vendor
#3
etc...
IT Dept Mgt &
some retained staff
IT Dept Mgt &
some retained staff

If outsource SIAM, why not
outsource all of IT? Yes or No (2)
http://www.i-
pupil.com/attachments/article/39/Service%20Integration%20%
20Management%20%28SIAM%29%20Service%20Description
s%20v8a.pdf
Draft UK SIAM Framework

Options for SIAM/MSI Provider
• Control is maintained and the internal BU is an independent agent
• Internal SIAM provider may not have the skills to be effective
• Heavy investment required in internal skills and toolsets
• Lack of economy of scale for internal SIAM provider
Internal Multi Supplier
Integration (MSI)
“Do It Yourself”
• Some administrative burdens are passed on
• Internal BU still manages day-to-day supplier relationships making cost savings
difficult to achieve
• Provider has no real control and is unable to help beyond limited scope given
External MSI for
Contract Management
• Well-chosen provider may experience, methods, toolsets and economy of scale
• Provider can play off suppliers as provider may not be responsible for the end-
to-end experience
External MSI for
Partial SIAM Services
(e.g. Service Desk)
• Provider may have experience, methods, toolsets and economy of scale
• Provider has more “skin in the game”
• Provider has a one-stop shop for customer experience
• If SIAM provider not good, client can lose control
External MSI for
Complete SIAM
services
Adapted from UXC Consulting

The SIAM Journey
PLAN
• Develop a SIAM strategy, building the business case and action
plan
• Scope (what’s in/what’s out)
• Service Definition (Service Portfolio)
• Who does what? (in-house or outsource)
• What does success look like and how are you going to measure
it?
DO
• Go to market for SIAM Partner or setup your function
• Document/Agreements (OLAs/SLAs/Contracts)
• Negotiation with affected suppliers about changes
required/new contracts
• Project Implementation and Transition Planning
ACT
• Determine a continual service improvement plan
• Initiate business transformation activities
• Prioritise innovation activities that rapidly add business value
CHECK
• Monitor, measure, report, take remedial action
• Review SIAM model performance
• Review ongoing IT Service performance with the business
• Complete a new baseline maturity assessment

Example SIAM Provider Services
Unconsidered
“We haven’t thought about
SIAM as a solution”
Idea / Planning
“We know about it and we’re
planning our approach”
Scoping / RFP
“We’re finding the best
provider to meet our needs”
Transition / Implement
“We’re working with our
provider to implement SIAM”
Transformation
“Our SIAM model is in place
and we’re taking next steps”Customer
Position
UXC
Offerings
Education / Advisory Consulting
Capability UpliftSIAM Strategy Development
SIAM Assessment / Readiness
Business Case Development
SIAM Best Practice Modelling
SIAM Operate (Managed Service)
Transition Planning
RFPResponse
Innovation / Cycling
SIAM Assessment / Readiness
 Understand your organisations readiness to leverage SIAM
 Visualise the roadmap for SIAM success
 Know the quick wins to put in place in preparation for the journey ahead
SIAM Best Practice Modelling
 Leverage UXC’s existing best practice mode
 Tailor the model for your organisation
 Build with confidence based on best practice thinking and experience
SIAM Strategy Development
 Operating Model design
 People / Process / Products / Partner Development
 Measures / Success Factors
Business Case Development
 Return on Investment Analysis and Modelling
 Documented clear value proposition for SIAM implementation and operation
 Allow sound decision making by executive management
RFP Response / SIAM Operate
 Complete SIAM functional capability aligned to business needs
 End-to-End Project Delivery
 Ongoing management and delivery of the SIAM function
Transition Planning
 Manage transition to a SIAM model
 Strong focus on governance, Organisational Change, and One Way, Same Way
 Put in place solid foundations and generate early quick wins
Capability Uplift
 Improve current SIAM and supplier performance
 Recover SIAM initiatives that are not meeting objectives
 Retain business / ITconfidence in SIAM strategy
Innovation / Churn
 Transform SIAM into an organisational strategic asset
 Enable rapid supplier cycling to gain maximum value from IT Service towers
 Match development speeds to the pace of the business

Staged Transformation Towards the Future State
48

SIAM org chart (example)
49

Selecting a SIAM Provider - Criteria
1. Neutrality – lack of conflict of interest (either not an existing vendor for
other services, or another part of existing vendor able to set up effective
Chinese Walls)
2. Experience in SIAM
3. SIAM governance/management framework
4. ITSM tool multi-vendor integration capability
5. Service Catalog/CMDB/Performance Monitoring multi-vendor integration
capability
6. Proven end-to-end service quality
7. Ability to maintain good collaborative working relationship with multi-
vendors
8. Ability to cater to handover to new SIAM provider at end of contract
period (i.e. minimal lock-in)
NB: 2 to 7 also applies to some degree to your lead vendors as they have to do
SIAM (Service Integration and Management) of their sub-vendors.

Governance of Outsourced SIAM
7
StrategicManagement
Operations/
Execution
<Customer>
Innovation &
PPMPortfolio
Governance
<Customer>
Architecture
Governance
Service
Provider
<Customer>
Sourcing
Governance
<Customer>
ICT
Governance
SIAM
Architecture &
Innovation
Board
<Customer>
ICT Service
and Process
Governance
‘Other’domains,
Incl: Risk, TCO,
P&C,Business
Alignment, QMS
SIAM Provider Contract
Performance & compliance review
Board
<Customer>
Contract
Management
<Customer>
Service &
Process
ReviewBoards
SIAM
PPM/PMO
Portfolio
ReviewBoard
SIAM Service Delivery
Management
• Daily Service &
Major Issue Reviews
• Escalations
• Transition Boards
• QMS, ITSM, PPM
standards & assurance
<Customer>
Strategic Plan
SIAM/<Customer>
Project&
Programme
Boards
Internal/external provider
Service Operation &
Transition, incl Incident/
Change, Request ownership
Internal/external supplier
Project/ Programme
Manager, and/or SMEs &
projectteam
SIAM/<Customer>
Design Assurance
(Functionality, Availability, Capacity,
Continuity, Security SAC test & report)
Daily/Weekly Monthly Annual
SIAM
Process
Improvement
Councils
Internal/external service
provider
ProcessOwnersand
Representatives
Strategy&Directiontosupplychain
Advice,ideas,inovationandreportsfromsupplychain
Executive
SIAM
CSI Plan
Service Provider
Business
Plans
<Customer>
CSI strategy

Other Outsourcing Models
to obtain SIAM Capability
 Building the skills in-house (no outsourcing)
 Obtaining consultancy and training to build the
skills (consultancy/training outsourcing)
 Conventional SIAM Outsourcing
 Outsourcing to Build the capability, (co-)Operate
over a period of time, Transfer (BOT) back to
client to totally take over

Summary
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function
Effective
SIAM

Q&A

Acknowledgements & Notices
 ITIL® is a registered trade mark of the AXELOS
Limited
 Quoted text is from AXELOS material - all Copyright ©
AXELOS Limited 2011. Reproduced under licence
from the AXELOS. [Any original emphasis excluded.
Emphasis then added for purpose of this
presentation.]
 Text in italics is based on AXELOS ITIL® material.
Reproduced under licence from the AXELOS
 © 2015 NUS unless otherwise stated. The contents of
this document may not be reproduced in any form or
by any means, without the written permission of ISS,
NUS, other than for the purpose for which it has been
supplied

The End

Service Integration and Management / MultiSourcing Services Integrationn

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