The Benefits of Managed Services Application Support
Post on 30-Dec-2015
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The Benefits of Managed Services Application Support
Managed Services linking flexibilitywith affordability
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Agenda
Introductions– CherryRoad
What is Managed Services?– Definition– Core Services
Managed Services Drivers Engagement Characteristics
– Staffing Model– Success Attributes
Benefits of Managed Services Exploring Managed Services as a Solution
– Warning Signs– Choosing a MSP
Q&A
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Introductions
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Organizational Overview
Oracle Platinum Partner Oracle ERP is all we do 85% of our business is in the public sector Go-to partner for PeopleSoft Implementations
Implementing Oracle Solution Since 1992 200+ senior consultants Average consultant experience 12+ years Average consultant tenure with CherryRoad 10+ years 500+ Implementation/Upgrade engagements
Strong Managed Services Practice Focused PeopleSoft and E-Business support Two, Tier 4 data centers 24/7/365 Help Desk
A True Partner – CherryRoad State of Delaware, Office of Pensions: 15+ years Newark Public Schools: 14+ years
CherryRoad is one of the 12 original Oracle partners and a Platinum level partner. `
CherryRoad in the Public Sector:• 15 States• 7 Pension Clients• 24 Counties• 35 Cities• 10 Transit Authorities
Successful History
In the past ten years, CherryRoad as the prime systems integrator, has successfully
partnered with more public sector clients than any other Oracle partner.
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“I want to get back to the business of running a ____________.”
HospitalState
County City
School District
University
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What is Managed Services?
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Business Definition
Definition of Managed Services
– Managed services are the practice of outsourcing day-to-day management responsibilities and functions as a strategic method for improving operations and cutting expenses. It is the proactive management of an IT (Information Technology) asset or object, by a third party typically known as a MSP, on behalf of a customer. The operative distinction that sets apart a MSP is the proactive delivery of their service, as compared to reactive IT services, which have been around for decades.
Managed Services Characteristics
– Typically, MSPs will have the following distinguishing characteristics:
• Have some form of Network Operation Center (NOC) service
• Have some form of service or help desk service
• Be able to remotely monitor and manage all or a majority of the objects for the customer
• Proactively, compared to reactive, maintain the objects under management for the customer
• Deliver these solutions with some form of predictable billing model, where the customer knows with great accuracy what their regular IT management expense will be
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Managed Services Model(Outsourcing)
Supplier assumes control of all or part of the execution component of IT– Service delivery commitments
expressed as “service levels” Committed scope and term Pricing tied to service levels
and volumes where appropriate
Supplier managed delivery model; processes and tools
Impacted employees; assets and contracts may be transitioned to supplier (supplier needs to acquire or have the capability to deliver)
Knowledge must be documented and transferrable
Supplier assumes the risk of transition and operations
Supplier commits to providing resources of defined capability at a price– No Service delivery commitments
relative to outputs Limited commitment Pricing tied to hours worked
and availability Customer manages the
delivery model (including individual subcontractors); process and tools
No change to customer operating model
Knowledge vested in the individual
All delivery risk remains with client
Staff Augmentation(Out-tasking)
Commitment to deliver an outcome
Commitment to deliver an outcome
Commitment to provide an input
Commitment to provide an input
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Analogy
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Managed Services ModelsTypes of Managed Services Arrangements
Efficiency/Utility (Make it Cheaper) arrangement outsourcing focuses primarily on cost control and, over time, cost reduction with the goal of maintaining consistency in the delivery of services.
Business Enhancement (Make it Better) arrangement is about business productivity. The organization’s performance, as compared with their competitors, will improve, resulting in movement toward defined business goals.
Transformational (Make me Money) arrangement is characterized by a partnership between the service provider and service recipient that is focused on innovation and new business, changing the very basis of which an organization competes.
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Managed Services Offerings
SLA
AMS
Service Desk Support
Operations Support
Application Support
Hosting Systems Infrastructure
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Help Desk Services
Level 1 Support (initial) supplied by client personnel
– Triage initial trouble
– Handle usage, setup, and education issues
Level 2 & 3 Support supplied by MSP personnel
System Operations/Availability• 24x7 supportService Desk Support• On-call for emergency needs
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Application Managed Services
Application
Management
Incident Managem
ent
Release Managem
ent
Application
Development
– Remote or on-site development– Development support services – Custom integration development– User interface/customizations– Development migrations
– Application configuration and testing
– Security assessment and monitoring
– Application tuning– Interfaces monitoring and
support– Administration and monitoring
– Call Center/Help Desk support (Tier 1, 2, 3, and 4 support)
– Issue management and resolution services
– Client management and communications
– Technical support (infrastructure, application, etc.)
– Updates/upgrades– Application upgrades– Tax update application and testing– Maintenance Pack installations– Development migrations
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Hosting ‘Pyramid’ Services
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Service Level Agreements (SLA)
Objectives
Provide clear reference to service agreements
Present a concise and measurable description of service provision to the client
Match perceptions of expected service provision with actual service support and delivery
Measuring service through a disciplined approach
Provide Monetary penalties for non-delivery
MUST BE FLEXIBLE
One size doesn’t fit all – Six month SLA review 1st year, then yearly
Are we tracking the right metrics?
SLA Adjustment
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Example SLA for Uptime Guarantees and Application Response Times
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Example SLA for Uptime Guarantees and Application Response Times
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Managed Services Drivers
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Managed Services Drivers
ConsiderManaged Services
Is there a largebacklog of projects?
Is there a lack of acomprehensive long-termIT plan that addresses the
company’s strategicobjectives?
Is there a loss ofconfidence concerning
in-house expertise?
Is the company intransition?
Are fixed costs escalatingwithout any perceptionof improved services?
Do significant IT fixed costs exist?
Are there problemswith quality of service?
Is there a need forstructural change in
technology?
Is there a need to addressstandards and system
integration issues?
Do maintenancecosts exceed typical
cost levels?
Is IT slow to respond toorganizational changes or
changes in information needs?
Do the time andeffort required to
get desired resultsseem excessive?
Cost
TechnologyIT PrioritiesChange Mgmt.
Expertise
Quality
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Why Managed Services ?
The following are the major reasons given for making outsourcing decisions
Difficulty of hiring skilled professionals (28.8 percent)
Lack of in-house skills to deliver the desired levels of quality (20.3 percent)
Budgetary considerations (13.6 percent)
Mandate from the management (11.9 percent)
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Engagement Characteristics
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Engagement Staffing Model
All about Flexibility
one size doesn’t fit all….…..
– On-Site
• Fading Trend
– Off-Site
• Most economical
– Hybrid
• Best of both worlds
Tailored services to maximize customer satisfaction while minimizing total cost of ownership.
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Success AttributesWhat Does Our Experience Tell Us…
Trust (Win/Win)– Someone doesn’t have to lose
– Reduction in costs
– Built on the relationship and delivery of both tactical and strategic services (long-term process)
– Semi-annual service and volume review
Relationship (Open Communication)– Dedicated Client Manager and Practice Director
– Open Door Policy• Anytime/Anywhere
– Communication Framework which includes:• Monthly meetings to provide statistical information and
recommendations through trend analysis
• Quarterly Continuous Improvement Seminars
– Commitment to Continuous Improvement• Improved user experience
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Success AttributesWhat Does Our Experience Tell Us…
Tactical Services (Foundation for Success)
– Services Required:
• Troubleshoot and resolve both functional and technical issues (sometimes called break/fix)
• Provide answers to specific questions about existing or proposed functionality, provide advice, and research issues
• Apply application maintenance packs, bundles, and patches where required based on an agreed upon schedule
– Single Point of Contact
• Operate a managed services’ Help Desk for functional and technical issue resolution
• 24/7/365 support for mission critical systems
• Improved service levels
– Flexibility in delivery model
• On-site/off-site when needed
• Scalability
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Success AttributesWhat Does Our Experience Tell Us…
Strategic Services (Value Add)
– MSP’s goal for partnership is not only to be a tactical partner that provides day-to-day support, but also work to provide a strategic partnership
– Offer management oversight to ensure your application support needs are met
– Continuous Improvement recommendations, on a quarterly basis, MSP should work with you to present informational, training, and learning sessions which may include:
• Client Feedback (surveys)
• Industry Trends
• Software Trends (Engineered Systems -Exadata, Oracle Database Appliance, etc.)
• Data Center/Hardware Trends
• Application/Project Trends
• Cost/Benefit Analysis
• Etc.
– Partnership that allows both the MSP and client to share a vision for the future and assist you with not only short-term tactical solutions, but a long-term strategic vision as well
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Benefits of Managed Services
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Leveraging Managed Services Provides
Economies of Scale
– To hire, develop, and retain skilled IT personnel – Skillset modernization
– To provide full life-cycle application support
– To acquire tried and tested solutions
Access to Expertise
– For specialized and experienced IT talent
– For proven methodologies
Access to Technology
– For hosting custom enterprise applications
– For B2B skills and solutions
Operational Efficiencies
– 24x7 Resource availability
– No need for succession planning
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Benefits of Managed Services
Significant Cost Savings
– Budget Consistency
– Costs Are Spread Over Duration Of Project
– Gartner: 75% of TCO is Operational; Hosting Reduces Operational TCO by 30%-50%
– Costs Can Be Classified As Operational or Capital
Reduced Risk
– Environments Managed By Seasoned Professionals
• Ease strain on internal staff
– Dedicated, Fully Redundant Infrastructure with DR
– Proven Methodologies – Best Practice Driven
– SLA Driven
• Measured Accountability
• Penalty Driven
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Benefits of Managed Services
Increased Quality
– Guaranteed Availability and Performance
– Best Practices implemented
– Higher User Acceptance = Higher ROI
– Consistent, High-Quality Technology Experience
It’s All About Cost Savings through Efficiency and Risk Reduction
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Exploring Managed Services as a Solution
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Recognize the Signs…
Negativity Towards System
Chaos/Firedrills– Behind in Maintenance– Tickets/issues “piling”
Lack of Governance/Process– Best Practices– Change Control
Client Staffing Issues– Skills– Attrition– Hiring Freezes
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Ask yourself these questions…
Where and what are the largest challenges and road blocks today?
What roles are the toughest to hire and retain?
What services are core competencies?
Where are the biggest opportunities for maximizing ROI?
How can we best leverage investments in IT and PeopleSoft?
Would our staff currently doing the service provide more value elsewhere?
Can a MSP do what they do…
– for the same or better performance/results?
– for the same or better cost?
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Managed Services Provider Differentiators
When choosing a MSP look for..
– Experience
– Scope and Breadth of Business Focus
– Proven Methodologies
– Depth of Resources
– Strong Strategic Partnerships
– Flexibility and Scalability
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Questions & Answers
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