GBS Event - Posten: "One IT - the governance challenge"

OneIT

Stockholm, April 28th, 2015

Governance challenges and key elements

Topics

The starting point

Sourcing strategy

The governance challenge and

key elements

Some lessons learned

4/27/2015 2

3

From a mail distributor…

4

…to a Nordic mail and logistics group

5

Numerous acquisitions had established a heterogeneous IT platform and a diversity of sourcing models

Mother-company fully outsourced since 2001

Subsidiaries with different sourcing-models and little service-oriented sourcing

A “forest” of vendors

No common vendor management

Very different business challenges

Little or no utilization of offshore deliverables

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EKDAHLS

ÅKERI

AB

The new strategy should support an integrated company, significantly reduce cost and secure flexibility

High level of outsourcing

Service-oriented contracts

Partnership with a few large vendors (3 to 5)

High degree of offshore deliverables

High degree of usage based pricing

Reduced number of vendors and contracts

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The procurement process lead to the selection of four main vendors for the six different Service Towers

Service Desk

Service Integration

Workplace Services

Network & Communication Services

Infrastructure Services

Applications Services (AO, AM and AD)

• Business solution applications

• Support solution applications

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OneIT transition – scope metrics

Migration of 131 applications and 500 TB of data

from several data centers to one new data center

Transfer of ADAM-responsibility for 131 applications

to two new vendors

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Transfer of 12.500 users to a new Service Desk

Centralization of 67 PABX at 62 different locations

to one IP-based PABX, supporting 1100 fixed

telephony line users and several call-centers

Roll-out of a new network to 1732 locations

Upgrade of 7,500 workplaces

The new Sourcing model introduced some Governance Challenges

From one major vendor and many small

«independent» vendors

01/01/2013 9

From a distributed IT organization and a

diversity of managing business needs and

vendors

To a centralized IT organization and a

common model

To four major vendors (Tier 1) working fully

integrated and with a set of additional vendors

(Tier 2)

Governance model – Key elements

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Overall Governance Model

Customer

• Centralized• Decentralized

Tier 2Vendors

WP Vendor

IM Vendor

ADAMVendors

Serv

ice

Des

k /

Sing

le P

oint

ofC

onta

ct

Service Integrator

Inci

dent

& P

robl

em M

anag

emen

t Ce

ntre

Shar

edIT

man

agem

ent p

latf

orm

• Documentation• Meeting forums• Joint Service Catl• Reporting• COM

Common processes Meeting forums

Vendor governanceOrganization and roles

Shared IT Management

platform

Vendor Governance elements

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Overall Governance Model

Customer

• Centralized• Decentralized

Tier 2Vendors

WP Vendor

IM Vendor

ADAMVendors

Se

rvic

e D

esk

/ S

ing

le P

oin

t o

fC

on

tact

Service Integrator

Inci

de

nt

& P

rob

lem

Ma

na

ge

me

nt

Ce

ntr

e

Sh

are

dIT

ma

na

ge

me

nt

pla

tfo

rm

A Service Desk function with a Single Point of

Contact (SPoC) responsibility

A Shared IT management platform (mainly

in CoGoS), containing the Joint Service

Catalogue and reporting functions (such as

following up agreed SLA and KPI targets)

A co-located Incidents and Problem Centre

(IPC)

A Service Integrator role facilitating the IPC,

coordinating cross-vendor incident and

problem management (including Critical

Incident Management for both single and cross

vendor), cross vendor release and deployment

and responsible for consolidated vendor

reporting

In addition a set of Vendor Governance

Meetings for a structured way to follow up

the delivery

Defined vendor meeting structure

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Commercial elements to support the multi-vendor governance

End-to-end SLA measurement

Both single-vendor as well as common

reward/penalty regime

Potential risk for a reduced scope

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Lessons learned

Establishing a multivendor governance model

is not straight forward

Implementing a new governance model takes

time

Training, training, training

Loyalty to the model and flexibility to adjust

“The same boat” principle

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Thank you for your attention!