The Benefits of Managed Services Application Support

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