This is the last lecture about the directing organisation, the new ICT organisation. This directing organisation will act between demand (the business) and supply (the sourcing possibilities).

1. ITSM Sourcing specialization 2010 Directing Sourcing and Services

3. Shared Services

5. Measures in perspective Measures at task level: Stopping investments Orcutting down on current initiatives Measures at a process level: Collaboration and joint investments Measures at a functional level: Concentration, integration, mergers, Take-over or outsourcing Saving potential Short term (0,5-1 year Medium term (1-2 years Long term (2-5 years) Stopping projects Cutting down on training and learning Cutting down on engaging external consultants System optimazation Collaboration regarding purchasing, support, etc. Optimization and standardization of processes Integration, mergers and concentration Outsourcing of parts of the organization Shared Services Centre Full outsourcing Capitalizing effects

6. Concentration leads to economies of scale Internal SSC Insourcing/ External Supplier Costs Volume Efficiency- effects Economy of Scale

7. Are the trends moving up and down? Yes, to take maximum concentration and complexity there will be need for new solutions. Costs Volume Startingpoint Impact Scale reached Impact Scale reached Complexity Costs will increase

9. Variants of Shared Services supportfunctions Management primairy functions Shared Support Process Shared Business Process Shared back-offices

10. The components of Shared Services How to manage the environment, where the process is cut and who is responsible for what processes? What is the proper organization, which staff and how are we ready for the future? How are technology, process and organization knotted together ? The core of the service Processes Organization Systems Customers SSC 1 SSC 3 SSC 2 SSC 4 Opstellen van Business Cases Inrichten van processen Managen van projecten Governance Regie Architectuur

11. Name the change components Ontwikkelen maatwerk Ontwikkelen maatwerk Beheer infrastructuur Beheer infrastructuur Beheer & draaien pakketten Beheer & draaien pakketten Support/ Helpdesk Support/ Helpdesk Ontwikkelen maatwerk SSC 1 Beheer infrastructuur SSC 3 Beheer & draaien pakketten SSC 2 Support/ Helpdesk SSC 4 Response, context and vision of SSC's clear and design direction activities Target focus on service domains ICT - governance Governance Regie Regie Architectuur Architectuur Make Governance agreements Professionalize demand ICT - governance Governance Regie Regie Architectuur Architectuur Transform demand management ICT - governance - Governance Regie Regie Architectuur Architectuur SSC 1 SSC 3 SSC 2 SSC 4 Opstellen van Business Cases Inrichten van processen Managen van projecten Governance Regie Architectuur

12. An Change approach for Shared Services … . Change idea Intervention-oriented communication about plan and implementation Support by Change help desk Assessment by Change board Consultation with Sounding board group CIO Client … Characteristics of interaction Characteristics of employees Characteristics of products, pro- cesses & structure Clients, Governance & suppliers Histor y Reason Environment View on change Kick off Change analysis + Culture scan DD MM YYYY Change goals Aligning structure and processes Organizing control and and prepairing SSC implementation Contracting and realizing SLA’s Culture change and competence development Learning to collaborate Inter- ventions And (re) planning Reconsider- Ing goals Measuring progress Plateau 2 Inter- ventions and (re) planning Reconsider- ing goals Measuring progress Plateau 1

13. Example of a Target Efforts Network More innovative power and sharing knowledge Higher efficiency pension processes Better quality ICT services and products 75% Reuse pension processes and systems (FO & BO) 20% Faster market introduction pension products 30% Cheaper implementation processes 20% Less duplication 60% Knowledge pension products more accessible 95% Reliable service in accordance SLA Mission Goals Measurable goals Projects and activities Mission Develop a Shared Service Center that is a knowledge-and information-engine around pension products, by sharing forces to deliver better innovation and deliver at lower cost high quality products and services to

14. What is directing?

16. The three columns of the enneahedron Beheren en exploiteren ICT services Beheren en gebruiken informatievoozieningen Ontwerpen en exploiteren bedrijfsvoering Implementing Ontwerpen en plannen ICT service Ontwerpen en plannen informatie voorziening en regie Ontwerpen en plannen bedrijfsvoering Organizing Bepalen strategie ICT service Bepalen strategie informatie voorziening en regie Bepalen strategie bedrijfsvoering Aligning Service Directing Management Business Directing Supplier organization

17. The three rows of the enneahedron Beheren en exploiteren ICT services Beheren en gebruiken informatievoozieningen Ontwerpen en exploiteren bedrijfsvoering Implementing Ontwerpen en plannen ICT service Ontwerpen en plannen informatie voorziening en regie Ontwerpen en plannen bedrijfsvoering Oganizing Bepalen strategie ICT service Bepalen strategie informatie voorziening en regie Bepalen strategie bedrijfsvoering Aligning Service Directing Management View and governance Planning, organization and projects Implementation and operational service delivery

18. A framework for managing sourcing Management and exploitation IT and FM services Management and use facilities Use and exploitation Implementing Design, build and implement IT and FM services Design and implementation facilities and information supply and control Design and implementation Organizing Specify IT and FM services Specify strategy facilities and information supply and control Specify strategy Aligning Service Directing Management

19. Cmmi process areas in the 9 grid model Implementing Management and exploitation IT and FM services Management and use facilities Use and exploitation management Design, build and implement IT and FM services Design and implementation facilities and information supply and control Design and implemantation management Organizing specify IT and FM services specify strategy facilities and information supply and control specify strategy and management Aligning Service Directing Management Monitoring quality Performance mgt and analysis Project Monit. & Control Supplier mgt. Change management Purchase & tenders Governance Account Mgt. Strategy & Collaboration Service Portfolio management Architecture Management Demand Management Demand & failure settlement Account & Demand mgt. Management Contract & Supplier mgt.

20. Processmodel for directing

22. The chain shows three dominant lines Implementing Management and exploitation IT and FM services Management and use facilities Use and exploitation management Design, build and implement IT and FM services Design and implementation facilities and information supply and control Design and implemantation management Organizing specify IT and FM services specify strategy facilities and information supply and control specify strategy and management Aligning Service Directing Management Monitoring quality Performance mgt and analysis Project Monit. & Control Supplier mgt. Change management Purchase & tenders Governance Account Mgt. Strategy & Collaboration Service Portfolio management Architecture Management Demand Management Demand & failure settlement Innovation Managing changes Service continuity

24. Process model detailed Supply Directing Customer/ Demand Delivery of services Incident management Measurement en analysis Opera - tional meeting Tactical meeting - Change process Innovation Request for change of Product or service Request for New product or service complaints within SLA Management of complaints Results customer satisfactionsurvey Monitoring KPI’s complaints outside SLA Improvement services / solve incidents Reports Structural problems Proposal for impovement supplier Proposal for renewal supplier Proposal for improvement Proposal for renewal Governance Service portfolio mgt Architecture mgt Procurement & tender Strategy & coorporation Monitoring KPI’s Proposal for renewal reports S t r a t e g i c T a c t i c O p e r a t i o n a l Stra tegical meeting Project monitoring control & Monitoring KPI’s Proposal for improvement complaints Service & incidents

25. Bounderies of IT supply Supply Directing Customer/ Demand Delivery of services Incident management Measurement en analysis Opera - tional meeting Tactical meeting - Change process Innovation Request for change of Product or service Request for New product or service complaints within SLA Management of complaints Results customer satisfactionsurvey Monitoring KPI’s complaints outside SLA Improvement services / solve incidents Reports Structural problems Proposal for impovement supplier Proposal for renewal supplier Proposal for improvement Proposal for renewal Governance Service portfolio mgt Architecture mgt Procurement & tender Strategy & coorporation Monitoring KPI’s Proposal for renewal reports S t r a t e g i c T a c t i c O p e r a t i o n a l Stra tegical meeting Project monitoring control & Monitoring KPI’s Proposal for improvement complaints Service & incidents

26. Innovation process (1/2) Start Global Analysis Initiation Detail Analysis Contracting 3 Agree terms and contract with supply Inventarisation of customer requirements 1a Develop customer requirements 1b Develop Product requirements 1c Analyse and validate requirements Prepare Project 2a Estimate planning and forecast 2b Develop projectplan 2c Get commitment for the project go No go Input Service portfolio management Input Governance Architecture management Output Functional Design Input Strategy & colaboration Output Business case with P.I.D Input Procurement and tenderprocess Demandmanager Demandmanager Projectmanager Contractmanager Suplly mgt Output Contract go No go go No go

27. Innovation process (2/2) Productintegration Verification 5a Prepare verification 5b Testing 5c Check selected products 6a Prepare productintegration 6b Ensure interface- ompatibility and deliver the product The innovation process Input Developed products Decision making about testgroup & test environment Input Testresults Output Acceptation products Demandmanager Contractmanager Demandmanager Contractmanager Suplly mgt Develop technical solutions 4a Select product-component 4b Develop the design 4c Implement the product design Projectmanager Supply mgt Input Contract & Functioneel Design Management Preparation & test Implementation Development

28. Change process Start The change process Initiation Management Alternative analysation and choice of solution Req. management 1 control requirements 2 Evaluate alternative solutions Demandmanagement Contractmanagement Configuration mgt Projectplanning 3 Develop projectplan 4 Track and manage changes Product integration 5 Prepare product-integration 6 Ensure interface- comptability and produce solution Demandmanager Demandmanagement Supply Contractmanagement Development Implementation No go go No go go Analysation

29. Incident process Start ICT Management stage 1st line support Administration Classification Incident entry Incident solved Yes No 2nd line support Design and specifications of the solution Solution or escalation Intake Frontoffice 2 nd line support 1 Registration Classification call 2 Relationship call 10 Decline call 11 Decline user 5 Escalation 6 Analyse Incident 1 st line support 8 Solve Incident 1st line support 3 Inform coördinator 4 Take Care existing incident Measure exceeding Supply mgt 7 Assign Incident 9 Manage progress ja Nee ja self The incident management process Supply Front Office Supply Back Office Deeper investigation incident Distribution and administration of activities and solution

30. Roles within the directing organisation

31. The areas plotted on the IT management framework Management and exploitation IT and FM services Management and use facilities Use and exploitation Implementing Design, build and implement IT and FM services Design and implementation facilities and information supply and control Design and implementation Organizing SpecifyIT and FM services Specify strategy facilities and information supply and control Specify strategy Aligning Service Directing Management Sourcing management Project mgt and collaboration mgt Account and Portfolio mgt Contract mgt and performance monitoring Sourcing Services Information management Functional Application mgt Goverance and architecture

40. Roles plotted on directing model Supply CIO Customer/ Demand Delivery of services Incident management Measurement en analysis Opera - tional meeting Tactical meeting - Change process Innovation Request for change of Product or service Request for New product or service complaints within SLA Management of complaints Results customer satisfactionsurvey Monitoring KPI’s complaints outside SLA Improvement services / solve incidents Reports Structural problems Proposal for impovement supplier Proposal for renewal supplier Proposal for improvement Proposal for renewal Governance Service portfolio mgt Architecture mgt Procurement & tender Strategy & coorporation Monitoring KPI’s Proposal for renewal reports S t r a t e g i c T a c t i c O p e r a t i o n a l Stra tegical meeting Project monitoring control & Monitoring KPI’s Proposal for improvement complaints Service & incidents ICT consultant Information analist Business architect Functional application mgt Application mgr Purchaser Contract manager Superuser Projectmanager Informationmanager Information architect Project and change coordinator Director(CIO) Demand manager

43. All rights reserved. No part of this presentation may be reproduced or published in any form or by any means without the prior written permission of Twynstra Gudde. Frank Willems [email_address] www.twynstragudde.nl