Shashank P & Leena S
at
HIGH MATURITY IMPACT:
PREDICTIVE PERFORMANCE
LEADING TO
PRODUCTIVE BUSINESS
2 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
About this paper
Like any other industry, IT outsourcing industry too has witnessed a Wave
Pattern.
In last 3 decades, we have seen two prominent waves so far and the third
is in making.
In this paper, we are highlighting the challenges posed by this new wave
of IT outsourcing; and how our QA team has catalyzed to successfully
overcome these; using High Maturity Processes
Also we are showcasing how these HM Processes are taken to next level
to improve not only service delivery but also the top-line growth of IT
Services delivery business.
3 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Waves of IT Outsourcing
-Low Cost English
Speaking Indian Coders
-Currency Arbitrages –
key factor
-‘J-Curve’ Growth
Wave No 1 Wave No 2 Wave No 3
This wave dissipated with
changing economic
scenario: dotcom burst,
end of Y2K etc.
-No more ‘code factories’
-Offerings of Solutioning
capabilities
-Rigorous Quality Models
-Changing business
expectations
-Dynamic Strategies
-Fierce Competition
New set of challenges
arising out of current
economic equations
causing end of 2nd wave
Demands new
strategies for IT
Outsourcing business
4 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Readiness to face challenges
Market challenges faced today:
Service Delivery costs increasing with booming economy
Dynamic economical situations
Need to chase moving targets
Increased expectations from clients
Price competitiveness etc.
Hence to sustain and grow in these challenges; business houses have to be
Productive – for Price Competitiveness
&
Predictive – Help client organizations to meet moving targets.
5 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
To Be Productive.. 3 R’s at CapGemini
Traditional
Lean, six–
sigma
methodology
REDUCE
Automation
Pyramid
First time right
REUSE
KEDB
Mutualization of
resources
Skill based ticket
routing
REINFORCE
FMEA / Problem
Management
Left Shift
Improve Application
code quality (CAST)
These 3 R’s
associated with a
BIG R RISK
Helped in 10% –
12% of effort and
cost reduction
15% - 20% of Performance
Improvement – CSAT up
Account Progression /
Growth: Potential of
avg 15 - 20% of Growth
in an account (y-y)
6 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Quick Wins
Automation
• Entire account and BU level data integrated
• Sophisticated dashboards displaying live status
• Also access to clients on spectrum of interface – PDA’s
Known Error database
• Rich and Growing KEDB
• Helping improve resolution time by 15% - 25%
Skill Based Routing
• Auto assignment of tickets based on historical data
• Set of skilled resources getting relevant tickets
Direct solutions with low /no risk and high impact on Service Delivery
7 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Automation – Live Performance of Services Delivery
Portal based
Dashboards.
Real time
integration with
Ticketing tool.
Provides live
information on
service delivery.
Helps SDM to
pick up early
signals and
trends of critical
services
delivery
parameters.
Critical Threshold Tracking
In flight SLA
tracking, Response /
resolution. Probable
breaches, Capacity
Utilization, Alerts
Available on PDA’s
Ap
plic
atio
n w
ise
D
ata
APPLICATION HEALTH
Service Availability
Project data monitoring
Response
Resolution Priority
Efforts Severity
Ticket rate S
ervic
e
De
live
ry
ME
TA
DA
TA
Resources Skill
CR’s being Served Preventive
Efforts
Dashboard
DRILL-DOWN TO ACTION
Failure Trends Service Performance
Overview…
… to remediation
Portfolio
Applications
Modules
Tickets / CR
Org
baselines
comparison
Access to
root causes
Sr. MANAGEMENT VISIBILITY
Technology
Domain
Experience
Availability Real ti
me In
teg
rati
on
wit
h T
icketi
ng
To
ol
8 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
KEDB – Known Error Database
KEDB Benefis
Rich Knowledge Base of known errors,
helping faster resolution
Portal based, indexed KB’s with
multiple tagging ensures ease of use
Less dependency on SME’s
Solution is readily available
Improved Team productivity
Resolution efforts (AET Ticketed) improved by
15% resulting in Annual savings of 600K €
Project A: control chart shows that there is a reduction in the
resolution efforts (AET value) for (May-June 2012) period as
compared to before (Jan-March 2012) .
Resolution efforts (AET ticketed)
Apr-Jun 2012 v/s September 2012 (After)
for 15 projects -
There is shift of mean in Resolution efforts (AET ticketed) after
deploying KEDB framework.
9 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
FMEA – Deployed in AM Engagement
• Reduction in call volumes to increase efficiency and better utilize account teams, FMEA technique
was deployed.
• Underwent a 16 week Lean Deployment covering Diagnostic of the processes followed like Problem
Management, Incident Management, Change Management.
• Dependency on users for issues’ investigation
• Lack of user response leading to tickets ‘On-Hold’
• High backlog volume leading to lack of focus
• No permanent fixes leading to recurrence of issues
• Incorrect prioritization of daily work
Findings of Diagnostics
• Usage of standardized work templates
• 3 strike rule with the customer
• Daily brain-storming in front of the physical White board
(via dSTUM)
• These Ensured that the call volumes are brought under
control.
How it was addressed
• The account used the FMA technique to reduce inflow. SIP process to generate ideas to automate number of manual processes.
• The problem management process has now inculcated A3 in it. Every Problem ticket has an A3 for it which is prepared by the
team, reviewed by the Problem Manager of the offshore and after getting the solution reviewed by onshore SME the A3 is
implemented. The A3s’ have encouraged the team to drive the root cause analysis. On an average there are 2 A3’s per month.
2011-2012 2012-2013 2010-2011 2009-2010
Result
10 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Critical – High Risk / High Rewards Solutions
• Here High Maturity Processes came to rescue to address this trade-off
• Having the prediction model for meeting SLA’s, Response / Resolution and resource
availability helps Service Delivery Account to take informed and safe decisions on Resources
restructuring, prioritizing
Trade
off
Services Delivery Quality
SLA Breaches
Bad fixes
Improved Margins
Resource Availability and
Utilization
Pyramid
Restructure Mutualization
11 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Being Predictive…
Predictive processes of High Maturity framework
helping projects implement critical revamping solutions
12 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
AM scenario: Prediction Model
Project Ambiguities
Optimum FTE V/s SLA
Compliance
Identifying Bottlenecks
Shift wise allocation
FTE Estimation &
Utilization
Dependency on Past
Performance
Rework / Redundant
work
Piloting new ideas risk free
Skill Availability
• All these ambiguities bear impact on end result of the
project – here in this case – Service Delivery
• The SDM deals with these on daily basis
• SDM needs a model where, by controlling these
unknown input parameters, desired end result is
achieved.
• Additionally SDM also needs to know to what degree
these input variables should be adjusted (process
composition / what –if’s)
• CMMi High Maturity process framework enabled us
to define a prediction model around all these input
parameters and their impact on end result.
• ‘ProcessModel’ tool was selected for prediction
purpose.
ProcessModel
13 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Multi-dimensional Prediction
Sub-Processes
Staff Shift Timings
Shift-wise Resources #
Skill-wise Resource #
Ticket Inflow
KEDB Usage
On-Hold %
Time per Priority
Time per Skill Level
Input to ProcessModel
It helps visualize, analyze, improve and control the
business processes.
Process mapping tool with modeling and real life simulation features
inbuilt.
Critical Sub-Processes
Cycle Time
Hot - Spots
14 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Case Study of HM Implementation – in a nut shell
AM projects make use of Prediction Models in showing quantitative improvements. PM’s can make use of this quantitative data for decision making.
The data in terms of ticket volume, Resolution efforts, shift and skill breakup, SLA targets, etc. is collected from projects to keep a tab on the estimation made by PM. The data is put into the model to predict SLA compliance
of available input parameters.
The PM can predict SLA Compliance, Backlog, Skill and Shift of FTE’s by mid course correction. i.e. at the middle of the month, he can use the actual data to predict for rest of the month, and hence know the failure
points if any.
There can also be few triggers which can cause overruns in output like high Breaches, High Backlog, etc. To bring things back on track, the PM feeds in actual project performance values for the given period and the model predicts the end results. Hence PM can take informed decisions. Eg. If the ticket inflow suddenly increases, then the PM might think of ramping up the resources for that month. But how many resources to ramp up, can be predicted by models thus helping PM in decision making.
• Triggers:
• Seasonal variation of ticket inflow and its impact
• Resource availability/Leave plans of critical resources
• Shift wise changes
• Resource skill related changes
8/15/2013 1
15 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Case Study of HM Implementation – in a nut shell
Quality & Process Performance Objectives**
Achieve targeted Goals & Sustain SLA Compliances (various priorities)
Business Objectives
ADRC* max 56 € OAE* min 80%, CSAT 3.5
Business Vision
Cost Competitiveness Customer Alignment
* - CapGemini Specific Internal Indices - proprietary.
** - Detailed Quantified QPPO Sheet available.
Multiple Team Process Model Used
6 different teams from account configured.
Validated for its correctness with actual data
What-if analysis done to determine skill-wise
team composition. Optimum skill mix V/s SLA
ADRC is a cost index related to skill level spread in team
P2 SLA Compliance QPPO was optimized
in the Process model for the project.
16 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Case Study .. Critical Sub Process Selection
Output generated from the process model is used for comparing the sub-processes with respect to
1. Non value added activities
2. Mean cycle time
3. Standard Deviation of cycle time.
Based on ticket volume and business criticality, the following sub process are selected as critical sub process.
Oracle P2 resolution
Nova P2 resolution
Oracle P3 analyse
17 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Case Study: Output of Simulation – ProcessModel
Based on these simulated predictions,
the SDM takes a proactive /
Corrective Actions to bring the project
performance back on track.
Selected Sub-Process is analyzed and fine tuned so as to yield desired result.
Probable SLA Breaches / Mid-course
Correction
Resource availability – leave plans,
shifts, holidays
Optimum skill mix of resources
Seasonal ticket variation and inflow
Predicted Resource Utilization
18 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Case Study .. Process Optimized
In course correction done, now target is to optimize process
Service Delivery Factory
Mutualization
Pyramid
Skill - Mix
Shift Pattern
On-Demand Dynamic Control of the factory
Improved & Predictable
Service Quality
SLA Compliance
Project Profitability
C-SAT / E-SAT
To enhance further, each of the controls calibrated for optimized service delivery results.
Process Model helping establishing respective predictive baselines
19 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
What are benefits to project
This process helps the projects in improving project performance by:
Controlling the Critical Sub processes listed in the Hot Spot by taking Corrective Actions.
Improving the Resource Utilization by taking Corrective actions (change of Shift, readjusting capacity etc) and ensure that SLA breaches are within control.
Reducing the SLA Breaches in the flow, by analyzing the relevant flow and the activities in that flow (Bottlenecks if any).
Working on process steps to improve the Performance, if needed modify the process steps and evaluate the Performance using simulation.
This ensures that the critical business objectives are met. The clients do have a better understanding and predictability about the support engagement and help them dynamically strategize their business.
20 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Was it a cake-walk?
This is a major organizational change management exercise
• Finding additional bandwidth from pre-occupied delivery folks
• Getting a buy-in from delivery community
Since HM is purely data driven, major challenge is
• Correctness and timely availability of relevant data
• Fast and accurate mechanism for data collection
Major Innovations are already happening in many projects
• Since these initiatives are reaping benefits to engagements
• But due to lack of qualification, these cannot be fitted in CMMi HM framework
Change Mgt
Data
Collection
Data Quality
Optimization
Opportunities
Non-
Statistical
Initiatives
Statistical expectations of QWM anticipates
• Granular sub-process-wise data
• Identification of sub-processes, knowledge of statistics in practitioners
The basic business DNA of CapGemini is Services Delivery
• Hence many AM engagements are steady state
• Identifying further optimization needs a microscopic view at projects
21 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Bottom-line improved, now what next?
Bottom-Line Improved.
• HM Practices helped improve Service Delivery account’s bottom line
• Projects are more Productive, Predictive and Profitable with the help of high maturity practices.
Taking to next level
• It was time to take these to next level
• Targeting the business development activity – making more price competent and aggressive business propositions.
Aggressive Pricing
• Professional study revealed that Competitive markets necessitating a need for more aggressive pricing / offering structure
• To perform in competition, innovative solutions approach required.
Price Gap of 25% to 35% vis-à-vis competition while bidding for new business.
How HM practices applicable for addressing
this price gap?
22 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Measures to bridge this price gap
There are challenges faced during designing solutions for new business.
There is a trade-off between:
SLA’s Demanded
Clients wants
better SLA’s than
the incumbents
FTE’s Estimated
Can these SLA’s
be met with
proposed FTE’s
v/s
Proposed SLA’s
Based on
business priorities
SLA’s proposed
Available Capacity
Based on various
inputs: skill level,
tickets inflow etc
v/s
Competitive Cost
Aggressive
Pricing Structure
Proposed
Utilization
How best capacity
can be utilized for
given cost
v/s
HM processes coming to rescue
Input: SLA and ticket inflow known
Predict FTE’s through what-if analysis
See if given SLA’s are met
Input: fixed ticket inflow & FTE count
Propose SLA through what-if analysis
Analyze TAT
Predict %SLA Compliance for given FTE
Cost is the barrier
What-if done on FTE count
23 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Result – Competitive Bids!
With Predictive processes in bidding for new projects, immediate results were seen!
Pyramid
Mutualize Optimized Transition
Shared Services
Skill - Mix
22% – 25%
Lower
Productivity
Offshore Leverage
24 Copyright © Capgemini 2012. All Rights Reserved
Presentation Title | Date
Contact information
Shashank
Patil Improvement Champion
Leena
Sagar Associate Director, Process
Consultancy Head
The information contained in this presentation is proprietary.
© 2012 Capgemini. All rights reserved.
www.capgemini.com
About Capgemini
With more than 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2011 global revenues
of EUR 9.7 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore ®,
its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini