Transcript of a BriefingsDirect podcast in conjunction with HP Discover 2011 in Vienna on how a major telecom provider has improved service to customers by shifting from a technology emphasis to service delivery.

1. Vodafone Ireland Sees Huge ROI from Adopting HP
Technologies to Emphasize Service Delivery
Transcript of a BriefingsDirect podcast in conjunction with HP Discover 2011 in Vienna on how
a major telecom provider has improved service to customers by shifting from a technology
emphasis to service delivery.
Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: HP
Dana Gardner: Hello and welcome to a special BriefingsDirect podcast series coming to you in
conjunction with the HP Discover 2011 Conference in Vienna.
We’re here in the week of November 28, to explore some major case studies
from some of Europe’s leading enterprises. We'll see how a series of innovative
solutions and an IT transformation approach to better support business goals is
benefiting these companies, their internal users, and their global customers.
I'm Dana Gardner, Principal Analyst at Interarbor Solutions and I'll be your host throughout this
series of HP-sponsored Discover live discussions.
Out next customer case study interview highlights how a shift from a technology emphasis to a
business services delivery emphasis has created significant improvements in a large
telecommunications provider, Vodafone.
To learn more, we’re here with Shane Gaffney, Head of IT operations for Vodafone Ireland in
Dublin. Welcome to the show, Shane.
Shane Gaffney: Thank you, Dana.
Gardner: Tell me what was the challenge that you faced when you decided to switch from a
focus on technology purely to more one of a user experience of a business mentality? Why did
you think you needed to do that?
Gaffney: Back in summer of 2010, when we looked at the business perception of the quality of
service received from IT, the confidence was lower than we’d like in terms of
predictable and optimal service quality being provided.
There was a lack of transparency. Business owners didn’t fully understand what
quality was being received and they didn’t have simple meaningful language
that they were receiving from IT operations in terms of understanding service
quality: good, bad, or indifferent.
Within IT operations, as a function, we also had our own challenges. We were struggling to
control our services. We were under the usual pressure that many of our counterparts face in
terms of having to do more with less, and downward pressure on cost and headcount. We were

2. growing a dynamic complex IT estate, plus customers are naturally becoming ever more
discerning in terms of their expectations of IT.
Transactional and reactive
As a large multinational, we specified a fragmented organization, some services being provided
centrally vs. locally, some offshore vs. onshore. With that, we had a number of
challenges and the type of relationship we had with our customers was
transactional and reactive in nature.
So with that backdrop, we knew we needed to take some radical steps to really
drive our business forward.
Gardner: And before we learn some more about that, Shane, tell me a little bit about
Vodafone Ireland? Tell us the extent of your services and your reach there?
Gaffney: Vodafone is Ireland’s leading telecommunications operator. We have in excess of 2.4
million subscribers, about 1,300 employees in a mixture of on-premise and cloud operations. I
mentioned the complex and dynamic IT estate that we manage. To put a bit of color around that,
we’ve got 230 applications, about 2,500 infrastructure nodes that we manage either directly or
indirectly, with substantial growth in traffic, particularly the exponential growth in the telecom
data market.
Gardner: When you decided to change your emphasis to try to provide more of that business
confidence, the services orientation, clearly just using technology to do that probably wasn't
going to be sufficient. There are issues around people, process, culture, and so forth. How do
you, at a philosophical level, bridge the continuum among and between technology and these
other softer issues like culture?
Gaffney: That's a really important point. The first thing we did, Dana, was engage quite heavily
with all of our business colleagues to define a service model. In essence what we were looking at
there was having our business unit owners define what services were important to them at
multiple levels down to the service transactions, and defining the attributes of each of those
services that make them successful or not.
Once we had a very clear picture of what that looked like across all business functions, we used
that as our starting point to be able to measure success through the customer eyes.
That's the focus and continues to be the core driver behind everything else we in I operations do.
We essentially looked to align our people, revamp our processes, and look at our end-to-end tool
strategy, all based around that service model.
The service model has enforced a genuine service orientation and customer centricity that’s
driven through all activities and behaviors, including the culture within the IT Ops group in how

3. we service customers. It’s really incorporating those commercial and business drivers at the heart
of how we work.
Gardner: Shane, I've heard from other companies that another important aspect of moving to the
shift on services delivery is to gain more awareness of what the products of IT are at that services
abstraction. It involves, I suppose, gaining insight and then analysis, not at the point-by-point
basis in the products themselves, but at that higher abstraction of how the users themselves view
these services? Has that been important for you as well?
Helicopter view
Gaffney: We’ve taken the service view at a number of levels. Essentially, the service model is
defined at a helicopter view, which is really what’s important to our respective customers. And
we’ve drilled down into a number of customer or service-oriented views of their services, as well
as mapping in, distilling, and simplifying the underlying complexities and event volumes within
our IT estate.
Gardner: In order to get that helicopter view and abstract things in terms of a process level,
what have you done in terms of gaining that insight? What has become important for you to be
able to do that?
Gaffney: There are a number of things we’ve considered there. Without having a consolidated or
rationalized suite of tools, we found previously that it's very difficult to get control of our
services through the various tiers. By introducing the HP Application Performance Management
tools portfolio, there are a number of modules therein that have allowed us to achieve the various
goals that we’ve set to achieve the desired control.
Gardner: Before we go into any detail on products and approaches, let’s pause and step back.
What does this get for you, if you do it right? What is it that you've been able to attain by shifting
your emphasis to the business services level and employing some new approaches in culture?
What did you get? What’s the payoff?
Gaffney: First of all for IT, we build confidence within the team in terms of having a better
handle on the quality of service that we’re offering. Having that commercial awareness really
does drive the team forward. It means that we’re able to engage with our customers in a much
more meaningful way to create genuine value-add and move away from routine transactional
activity to helping our customers to innovate and drive business forward.
We’ve certainly enjoyed those type of benefits through our transformation journey by automating
a lot of the more core routine and repeatable activity, facilitating focus on our relationship with
our customers in terms of understanding their needs and helping them to evolve the business.

4. Gardner: Have you done any surveys or presented key performance indicators (KPIs) against
some of this, so that you have some tangible hard numbers? Is it still early? How might we look
to some more concrete results, if you're able to provide that?
Gaffney: In terms of how we measure success, Dana, we try to take a 360 view of our service
quality. So we have a comprehensive suite of KPIs at the technology layer. We also do likewise
in terms of our service management and establishing KPIs and service level agreements (SLAs)
at the service layer. We've then taken a look at what quality looks like in terms of customer
experience and perception, seeking to correlate metrics between these perspectives.
As an example, we routinely and rigorously measure our customer net promoter score, which
essentially assesses whether the customers, based on their experience, would recommend our
products and services to others.
To give a flavor of the type of KPI improvements at an operational level that we’ve seen improve
over the last year, we measure "customer loss hours," which is effectively due to any diminished
performance in, or availability of, our services. We measure the impact to the end customer in
terms of the adverse impact they would suffer.
Reduction in lost hours
We’ve seen a 66 percent reduction in customer lost hours year on year from last summer to this.
We’ve also seen a 75 percent reaction in mean time to repair or average service restoration time.
Another statistic I'd call out briefly is that at the start of this process, we were identifying root
cause for incidents that were occurring in about 40-50 percent of cases on average. We’re now
tracking consistently between 90-100 percent in those cases and have thereby been able to better
understand, through our capabilities and tools, what’s going on in the department and what’s
causing issues. We consequently have a much better chance of avoiding repetition in those issues
impacting customers.
At a customer satisfaction level, we’ve seen similar improvements that correlate with the
improved operational KPIs. From all angles, we’ve thankfully enjoyed very substantial
improvements. If we look at this from a financial point of view, we’ve realized a return on
investment (ROI) of 300 percent in year one and, looking solely at the cost to fix and the cost of
failure in terms of not offering optimal service quality, we’ve been able to realize cost savings in
the region of 1.2 million OPEX through this journey.
Gardner: And that would be €1.2 million? Is that what you’re measuring?
Gaffney: That's correct. €1.2 million.
Gardner: Let me just dig into that ROI. That’s pretty amazing, 300 percent ROI in one year.
And what was that investment in? Was that in products, services, consulting, how did you
measure it?

5. Gaffney: Yes, the ROI is in terms of the expenditure that would have related primarily to our
investment in the HP product portfolio over the last year as well as a smaller number of ancillary
solutions.
The payback in terms of the benefits realized from financial perspective that relate to the cost
savings associated with having fewer issues and in the event where we have issues, the ability to
detect those faster and spend less labor investigating and resorting issues, because the tools, in
effect, are doing a lot of that legwork and much of the intelligence is built in to that product
portfolio.
Gardner: I suppose this would be a good time to step back and take a look at what you actually
do have in place. What specifically does that portfolio consist of for you there at Vodafone
Ireland?
Gaffney: We have a number of modules in HP's APM portfolio that I'll talk about briefly. In
terms of looking to get a much broader and richer understanding of our end-user experience
which we lacked previously, we’ve deployed HP’s Business Process Monitors (BPMs) to
effectively emulate the end-user experience from various locations nationwide. That provides us
with a consistent measure and baseline of how users experience our services.
We’ve deployed HP Real User Monitoring (RUM), which gives us a comprehensive micro and
macro view of the actual customer experience to complement those synthetic transactions that
mimic user behavior. Those two views combined provide a rich cocktail for understanding at a
service level what our customers are experiencing.
Events correlation
We then looked at events correlation. We were one of the first commercial customers to adopt
HP’s BSM version 9.1 deployment, which gives us a single pane of glass into our full service
portfolio and the related IT infrastructure.
Looking a little bit more closely at BSM, we've used HP’s Discovery and Dependency Mapping
Advanced (DDMa) to build out our service model, i.e. effectively mapping our configuration
items throughout the estate, back up to that top-down service view. DDMa effectively acts as an
inventory tool that granularly links the estate to service. We’ve aligned the DDMa deployment
with our service model which, as I mentioned earlier, is integral to our transformation journey .
Beyond that, we’ve looked at HP’s Operations Manager i (OMI) capability, which we use to
correlate our application performance and our system events with our business services. This
allows our operators to reduce a lot of the noisy events by distilling those high-volume events
into unique actionable events. This allows operators to focus instead on services that may be
impacted or need attention and, of course, our customers and our business.

6. We’ve gone farther and looked at ArcSight Logger, software which we’ve deployed to a single
location that collects logged files throughout our estate. This allows us to quickly and easily
search across all logged files for abnormalities that might be related to a particular issue.
By integrating ArcSight Logger with OMI -- and I believe we’re one of the first HP customers to
do this -- we’ve enriched operator views with security information as well as the hardware, OS,
and application layer events. That gives us a composite view of what’s happening with our
services through multiple lenses, holistically across our technology landscape and products and
services portfolio.
Additionally, we’ve used HP’s Operations Orchestration to automate many of our routine
procedures and, picking up on the ROI, this has allowed us to free up operators’ time to focus on
value-add and effectively to do more with less. That's been quite a powerful module for us, and
we’ve further work in train to exploit that capability.
The last point to call out in terms of the HP portfolio is we’re one of the early trialists of HP’s
Service Health Analyzer. A year ago, we were to a degree reactive in terms of how we provided
service. At this point, we’re proactive in how we manage services.
Service Health Analyzer will allow us to move to the next level of our evolution, moving
towards predictive service quality. I prefer to call the Service Health Analyzer our “crystal ball,”
because that’s essentially what we’re looking at. It’s taking trends that are occurring with the
services of transaction, and predicting what's likely to happen next and what may be in jeopardy
of breaking down the line, so you can take early intervention and remedial action before there’s
any material impact on customers.
We’re quite excited about seeing where we can go there. One of the sub-modules of Service
Health Analyzer is Service Health Reporter, and that’s a tool that we expect to act as our primary
capacity planning capability across a full IT estate going forward.
Throughout our implementation, partnership was a key ingredient to success. Vodafone had the
business vision and appetite to evolve. HP provided the thought leadership and guidance. And,
Perform IT, HP's partner, brought hands-on implementation and tuning expertise into the mix.
Gardner: That’s very impressive. You’re certainly juggling a lot of balls and keeping them in
the air. One of the things that I've seen in the market when it comes to gaining this sort of pane of
glass view into operations is they’re starting to share that as sort of a dashboard, or a graphical
representation as a scorecard perhaps we could refer to it, with more of the business leadership.
Have you been able to take some of the analysis, and insights and then not just use that in the
context of the IT operations, but provide it back to business, so it would help them manage their
strategy and operational decision making?

7. Full transparency
Gaffney: Absolutely. One of our core principles throughout this journey has been to offer full
transparency to our customers in terms of the services they receive and enjoy from us. On one
hand, we provide the BSM console to all of our customers to allow them to have a view of
exactly what the IT teams see, but with a service orientation.
We’re actually going a step further and we’re building out a cloud-based service portal that takes
a rich feed in from the full BSM portfolio, including the modules that I've called out earlier. It
also takes feeds in from a remedy system, in order to get the view of core processes such as
incident management, problem management, change management.
Bringing all of that information together gives customers a comprehensive view of the services
they receive from IT operations. That's our aim -- to provide customers with everything they
need at their fingertips.
It's essentially providing simple and meaningful information with customized views and dynamic
drill-down capabilities, so customers can look at a very high level of how the services are
performing, or really drill into the detail, should they so desire. The portal, we believe, is likely
to act as a powerful business enabler. Ultimately, we believe there's opportunity to
commercialize or productize this capability down the line.
Gardner: We’re about out of time, but Shane, now that you've gone through quite a bit of this,
and as an early adopter, I wonder if you could share some 20-20 hindsight for those users around
the world who are examining some of the products and services available, thinking about culture,
re-emphasizing the business process issues, rather than just pure technology issues. What would
you tell them as advice when they get started? Any recommendations now that you've been
through this yourself?
Gaffney: For customers embarking on this type of transformation initiative, first off, I would
suggest: engage with your customers. Speak with your customers to deeply understand their
services, and let them define what success looks like.
Look to promote quick wins and win-wins. Look at what works for the IT community and what
works for the customer. Both are equally important. Buy-in is required, and people across those
functions all need to understand what success looks like, and believe in it.
I would recommend taking a holistic approach from a couple of angles. Don’t just look at your
people, technology, or processes, but look at those collectively, because they need to work in
harmony to hit the service quality sweet spot. Holistically, it's important to prepare your strategy,
but look top down from the customer view down into your IT estate and vice versa, mapping all
configuration items back into those top level services.

8. Rationalize and automate
Rationalize and automate wherever possible. We had a suite of over two dozen tools, acting as a
cumbersome patchwork solution for operators. We’ve vastly rationalized those tools into a much
more manageable single console that the teams use now.
We’ve automated all resource-intensive and transactional activities wherever possible, which
again frees up time to allow engineers to focus on the business relationship.
I’d also recommend the people incrementally build on success. We started out with modest
budget, but by targeting early wins through that investment, and by building subsequent business
cases, particularly with the service model, we were easily able to get the buy-in from
stakeholders, because the story was compelling, based on the commercial advantages and the
broader business benefits that were accrued from the earlier investment.
Lastly, for IT teams I would strongly suggest that you look to establish a dedicated surveillance
capability, whether that’s round the clock or whatever is appropriate for your business model.
Moving from a traditional support model to this type of service-oriented view, the key to success
is having people managing the eyes and ears across your services at all times. It really does pay
back in spades.
Gardner: Excellent. A big thank you to you Shane Gaffney, Head of IT Operations at Vodafone
Ireland. This has been a great story, and thank you for sharing it on how a shift from technology
emphasis to a business services delivery emphasis has created some significant improvements
and has set the stage for yet greater business productivity from IT.
I also want to thank our audience for joining us for this special BriefingsDirect podcast coming
to you in conjunction with the HP Discover 2011 Conference in Vienna. I hope you have a great
show. I appreciate your time, Shane.
Gaffney: Thank you, Dana.
Gardner: This is Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this
series of HP-sponsored Discover live discussions. Thanks again for listening and come back next
time.
Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: HP
Transcript of a BriefingsDirect podcast in conjuntion with HP Discover 2011 in Vienna on how a
major telecom provider has improved service to customers by shifting from a technology
emphasis to service delivery. Copyright Interarbor Solutions, LLC, 2005-2011. All rights
reserved.
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