OneIT Stockholm, April 28 th , 2015 Governance challenges and key elements
Aug 04, 2015
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
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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
01/01/2013 10
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!